Specific Damages to Be Paid in Case of Breach, That

question 58

Multiple Choice

Specific damages to be paid in case of breach, that the parties agree to in the contract in advance of a breach are called ____ damages:

• A) compensatory
• B) penalty
• C) punitive
• D) nominal
• E) none of the other choices

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Definitions:

Stated Interest Rate

The annual interest rate declared on a financial instrument, such as a loan or bond, not taking into account compounding or fees.

Market Interest Rate

The prevailing rate of interest available in the market, influencing the rates charged on loans and paid on deposits.

Face Value

The face value or monetary amount displayed on a bond, note, or any financial document, indicating the total due upon its maturity.

Operating Lease

A lease agreement allowing a business to use an asset without ownership, often with lower payments and shorter terms than a finance lease.