How Does the Basic Premise of Contract Law Differ from Tort

question 21

Multiple Choice

How does the basic premise of contract law differ from tort law?

• A) Contract actions are intended to allow the government to impose penalties for failure to follow contracts; tort law is intended to allow private individuals to impose penalties on each other for failure to fulfill a bargain.
• B) Tort actions are intended to allow the government to impose penalties; contract law is intended to allow private individuals to impose penalties on each other for failure to fulfill a bargain.
• C) Contract actions are created to enforce the intentions of parties to an agreement; tort law is primarily designed to vindicate social policy
• D) Tort actions are created to enforce the intentions of parties to an agreement; contract law is primarily designed to vindicate social policy
• E) Tort law and contract law have the same basic premise

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Definitions:

Total Wealth

The complete sum of an individual's or entity's assets and resources, including both tangible and intangible assets, subtracting any debts owed.

Insurance

A financial product that provides protection against potential financial losses or liabilities in exchange for a premium payment.

Expected Wealth

The anticipated sum of money an individual or entity predicts to hold in the future, based on current assets, income sources, and investment strategies.

Insurance Premium

The amount of money an individual or business must pay for an insurance policy, typically charged monthly or annually.