Which of the Following Is False with Regard to Remedies

question 112

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 an non-essential term-i.e., 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:

Intermediate-Term Credit

Intermediate-term credit involves loans or financial credit with a repayment period typically ranging from one to five years.

SBA Express Program

A relatively new loan program available through the SBA that simplifies the paperwork that has historically been required.

Conventional Loans

A mortgage loan that is not insured or guaranteed by the federal government, typically requiring a higher credit score and a minimum down payment.

Potential Lender

An individual or institution considering the provision of credit or loans to borrowers under specific conditions.