The Tort of Interference with Contract

question 42

Multiple Choice

The tort of interference with contract:

• A) does not protect the sanctity of private contractual relationships.
• B) does not apply to a person who intentionally induces a person to breach a contract with another.
• C) applies to a person who intentionally prevents performance of another person's contract.
• D) justifies inducing a breach of contract in most cases.

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Definitions:

Fixed Costs

Expenses that do not change with changes in the level of production or sales, such as rent, salaries, and insurance premiums.

Marginal Cost

The expense incurred from manufacturing an extra unit of a product or service.

Average Cost

The total cost of production divided by the number of goods or services produced, often used to determine profitability.

Maximize Profit

The process or strategy by which a business attempts to achieve the highest possible profit from its operations, often by increasing revenue, reducing costs, or both.