The Duty to Mitigate Damages

question 50

Multiple Choice

The duty to mitigate damages:

• A) is not applicable unless the defendant had reason to foresee them at the time the contract was created.
• B) requires the plaintiff to recover damages only in case of physical injuries.
• C) allows the non-breaching party to waive his or her right to insist on complete performance.
• D) requires the plaintiff to do so without undue risk, expense, or humiliation.

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Definitions:

Investment Project

An investment project involves committing resources with the expectation of generating returns or benefits over time, typically assessed for profitability through various financial metrics.

Discount Factor

A multiplier used in discounting to calculate the present value of future cash flows, representing the time value of money.

Working Capital

The contrast between a corporation's immediate financial resources and outstanding obligations, illustrating its short-term monetary health and effectiveness in running its operations.

Net Present Value

A method used to evaluate the profitability of an investment by calculating the difference between the present value of cash inflows and the present value of cash outflows over a period.