Dave Was Contractually Required to Deliver a Widget to Pam

question 14

Multiple Choice

Dave was contractually required to deliver a widget to Pam by July 1.He failed to do so.At that point,Pam predicted that she would suffer a loss of $100 000 during the next six months because her factory cannot operate efficiently without a widget.Which of the following statements is TRUE?

• A)Because she is under a duty to mitigate,Pam cannot receive any damages unless she purchases a widget from another supplier.
• B)Because she is under a duty to mitigate,Pam must do everything possible to acquire a widget from another supplier.
• C)Because he is under a duty to mitigate,Dave will be held liable for $100 000 unless he takes reasonable steps to help Pam purchase a widget from another supplier.
• D)Because Dave is under a duty to mitigate,the damages that he must pay will be reduced to the extent that he reasonably spends money trying to help Pam purchase a widget from another supplier.
• E)Because she is under a duty to mitigate,Pam will be denied damages to the extent that she could reasonably avoid a loss flowing from Dave's breach.

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Definitions:

Rule of Law

The principle that all people and institutions are subject to and accountable to law that is fairly applied and enforced.

Government Authority

The legal and formal right given to officials or bodies to make decisions, enforce laws, and administer public resources.

Civil Disobedience

The refusal to comply with certain laws or to pay taxes and fines, as a peaceful form of political protest.

Nonviolent Refusal

The act of saying no or resisting in a peaceful manner, without resorting to physical force.