Which of the Following Is True with Regard to Remedies

question 46

Multiple Choice

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

• A) The victim of a breach can recover damages that he could have avoided if he had tried to mitigate his loss.
• B) If the seller has committed a "fundamental breach" of the contract, an exemption clause absolves the seller from liability.
• 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 an non-essential term, i.e., a warranty.
• E) Non est factum is an equitable remedy forcing a person to comply with the terms of the contract.

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Definitions:

Boxed Macaroni

Pre-packaged, dry macaroni pasta that is typically accompanied by powdered or liquid cheese, intended for quick and easy preparation.

Normal Goods

Goods for which demand increases as consumer income rises, and decreases when consumer income falls.

Consumer Incomes

The total earnings of individuals, affecting their purchasing power and demand for goods and services in the economy.

Bicycles

A human-powered, pedal-driven vehicle with two wheels attached to a frame, one behind the other.