Which of the Following Is False with Regard to Remedies

question 118

Multiple Choice

Which of the following is False with regard to remedies for breach of contract?

• A) The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss.
• B) An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract.
• C) A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach.
• D) Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of a non-essential term (e.g., a warranty).
• E) Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.

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Definitions:

Financial Statements

Structured representations of the financial performance and financial position of an entity, providing detailed information about its income, expenses, assets, liabilities, and equity.

Independent Evaluation

An assessment conducted by a party outside of the project or program team to ensure objectivity and impartiality.

Material

In financial and accounting contexts, refers to information or an item that could influence the decision-making process of users of financial statements.

Omission

An oversight or failure to include something, often resulting in an incomplete set of information or accounting records.