When the Seller in a Contract for Sale Fails to Perform

question 15

Multiple Choice

When the seller in a contract for sale fails to perform (e.g. breach of contract, nonperformance, or default) , the buyer has a variety of remedies. One such remedy is to appeal to the court to force the defaulting seller to carry out the contract. This remedy is most commonly referred to as suing for:

• A) Damages.
• B) Earnest.
• C) Recission.
• D) Specific performance.

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Definitions:

Economies of Scale

A condition where the average costs of production fall as the output level increases, leading to a more efficient production process.

Horizontal Demand

Refers to a market situation in which the demand for a product or service is not sensitive to changes in its price, often illustrated as a horizontal line on a demand curve graph.

Reselling

The act of selling a product or service again, typically after buying it from the original seller.

Demand Elasticities

Various measures that quantify the sensitivity of demand for a good or service to changes in its price or other relevant factors.