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:

Stock Subscription

An agreement to purchase a specified number of shares in a company, often before they are available to the general public.

Board Of Directors

A group of individuals elected to represent shareholders and oversee the management and major decisions of a corporation.

Stock Warrants

Financial instruments that give the holder the right, but not the obligation, to buy shares of a company at a specified price before the warrant expires.

Redeemed

Refers to the process of exchanging a financial instrument, such as a bond or coupon, for its cash value or for another specified benefit.