When a Breach of Contract Occurs, the Non-Breaching Party Is

question 17

Multiple Choice

When a breach of contract occurs, the non-breaching party is required to:

• A) notify the breaching party
• B) increase her losses
• C) mitigate her losses
• D) have her losses verified by a notary
• E) do none of these

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Definitions:

Fixed Overhead

Regular, unchanging costs incurred by a business, regardless of its level of production or sales, such as rent or salaries.

Direct Labor

The labor costs directly associated with the production of goods or services, such as wages for workers who are involved in the manufacturing process.

Raw Material

Basic materials used in the production process, which are transformed into finished goods.

Property, Plant, and Equipment

Long-term assets, including land, buildings, machinery, and vehicles, used in the operation of a business.