Christine Entered into a Contract with Vernon

question 57

Multiple Choice

Christine entered into a contract with Vernon.She was required to pay $5000 and he was to provide advice regarding a business venture that she was pursuing.If Vernon had performed properly, Christine would have earned a profit of $20 000.As a result of Vernon's negligent performance, however, Christine suffered a loss of $10 000 (in addition to the $5000 that she had paid to Vernon) .Christine wants to sue Vernon in both contract and tort.Which of the following statements is most likely TRUE?

• A)Christine will receive damages of $20 000 if her claim in tort is successful.
• B)Christine will receive damages of $5000 if her claim in tort is successful.
• C)Christine must choose between tort and contract, and cannot sue for both at the same time.
• D)As the terms were explained in the text, Vernon owed a primary obligation in contract and a secondary obligation in tort, at the moment before her acted carelessly.
• E)As the terms were explained in the text, Vernon owed a primary obligation to Christine in both tort and contract.

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Definitions:

Unsecured Liabilities

Debts or obligations that are not protected by a security interest or collateral, making them riskier for lenders.

Net Realizable Value

The estimated selling price of goods minus the cost of their sale or disposal.

Liabilities With Priority

Liabilities with priority refer to debts or obligations that must be paid before others in the event of a liquidation or bankruptcy.

Liabilities With Priority

Financial obligations that must be paid before other debts in the event of a liquidation or bankruptcy.