Which of the Following Statements Is True of 'Direct Loss

question 1

Multiple Choice

Which of the following statements is true of 'direct loss' arising from a breach of contract by a defendant?

• A)It is loss that is not caused directly by the breach or would not ordinarily be expected to result from the breach.
• B)It entitles a plaintiff to an award of special, abnormal or extraordinary damages.
• C)It is only recoverable if it can be shown that the parties had the possibility of such loss in mind when the contract was formed.
• D)It is loss incurred by the plaintiff that flows naturally from the breach according to the ordinary course of events.

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Definitions:

Punitive Damages

Financial compensation awarded to a plaintiff that goes beyond what is necessary to compensate for losses and is intended to punish the defendant for egregious behavior.

Property Insurance Policies

Contracts between an insurer and a policyholder that specify the property covered, the risks insured against, and the terms of coverage.

Flood-Related Losses

Damage or losses sustained as a direct result of flooding, usually requiring specific insurance coverage.

Friendly Fires

Incidents where individuals are accidentally harmed by forces from their own side, typically in a military context.