Which of the Following Statements Is Correct with Respect to Breach

question 44

Multiple Choice

Which of the following statements is correct with respect to breach of contract?

• A) When a condition is breached, the victim can treat the contract as ended.
• B) When a condition is breached, a person can only sue for damages but must perform their part of the contract.
• C) When a warranty is breached, the victim can treat the contract as ended.
• D) When a contract for the purchase of goods is breached, the warranty will require that the goods be repaired by the seller.
• E) When a contract is repudiated before performance is due, the victim must wait until the time of performance before taking any action.

---

Definitions:

Assets

Assets are resources owned by a business or individual, which provide economic value or are expected to generate future benefit.

Revenues

The income generated from normal business operations and includes discounts and deductions for returned merchandise.

Limited Liability

A legal structure that limits the financial liability of owners or shareholders of a business to the amount they've invested, protecting personal assets from business debts.

Corporation

A legal entity that is separate and distinct from its owners, who are shareholders, and offers limited liability protection to them.