According to the Remoteness Test in Contractual Actions, an Innocent

question 14

Multiple Choice

According to the remoteness test in contractual actions, an innocent party can only recover damages for types of loss that were reasonably contemplated by the defendant as a serious possibility at the time of contracting. In tortuous actions, an injured party is only entitled to recover damages for types of loss that were reasonably contemplated by the defendant as a slight possibility of arising. What is the test of remoteness where concurrent actions exist in contract and tort?

• A) The difference between the two tests is semantic, not substantial. The same test applies.
• B) This depends on the nature of the loss. For physical damage, the remoteness test of tort applies; for loss of profit, the remoteness test of contract.
• C) The remoteness test of tort.
• D) The remoteness test of contract

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