Tom Breached a Sales Contract to Purchase Goods from Jim

question 50

Multiple Choice

Tom breached a sales contract to purchase goods from Jim. In addition to other remedies available, Jim may be able to recover commercially reasonable expenses incurred as a result of the breach. These expenses are:

• A) incidental damages.
• B) punitive damages.
• C) liquidated damages.
• D) extraordinary damages.

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities, representing the ownership interest of the shareholders or owner.

Revenues

The total income generated from the sale of goods or services related to a company’s primary operations.

Statement of Financial Position

Another term for balance sheet, showing the company's assets, liabilities, and equity at a specific point in time.