In a Breach of Contract Case, Compensatory Damages Are Damages

question 21

Multiple Choice

In a breach of contract case, compensatory damages are damages that:

• A) allow the party suffering the breach to recover costs incurred by relying on the promise of the other party
• B) allow the party suffering the breach to recover lost profits
• C) allow the party suffering the breach to gain economically by imposing "affirmative punishment" on the breaching party
• D) exceed what the party suffering the breach lost due to the breach
• E) none of the other choices are correct

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Definitions:

Breaches

Acts of breaking laws, rules, agreements, or promises, leading to legal consequences.

Statute of Limitation

A law prescribing a period within which legal action must be taken for an alleged wrongdoing, after which the claim is no longer valid.

Sales Commissions

Earnings given to sales personnel based on the value or volume of sales they successfully complete.

Widgets

Generic term for a manufactured product or a user interface element in software applications that can be easily placed and configured within a system.