An Action for the Agreed Sum Is the Most Common

question 5

Multiple Choice

An action for the agreed sum is the most common claim brought for breach of contract. Although it is a monetary claim, it is distinguishable from a damages claim for breach of contract in several ways. Which of the following statements is false?

• A) The claimant for the agreed sum need not prove any loss caused by the contract breaker's breach, only that he has not received payment.
• B) The remoteness limit is irrelevant to the innocent party's claim for the agreed sum.
• C) The innocent parties' failure to mitigate is irrelevant to his claim for the agreed sum.
• D) An innocent party cannot claim damages for breach of contract in addition to the agreed sum.

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Definitions:

Controllable Cost

Expenses that can be influenced or managed by decisions made by a manager or a business, such as materials or labor.

Supervisor

An individual in charge of overseeing and directing the work of a group of people.

Direct Materials

Raw materials that are used in the manufacturing process and are directly incorporated into the finished product.

Direct Labor

The wages and associated costs for employees who are directly involved in the production of goods or services.