Which Form of Damages Can Have the Effect of Reducing

question 16

Multiple Choice

Which form of damages can have the effect of reducing the liability of the party guilty of a breach of contract?

• A) Incidental damages
• B) Consequential damages
• C) Liquidated damages
• D) Mitigated damages
• A party cannot recover for losses that he could have avoided without undue risk, burden, or humiliation.
• E)g.-an employer who has wrongfully fired an employee would be liable only for the damages equal to his wages for the remainder of the employment period. It is the employee's duty to make reasonable amends by seeking a job elsewhere.

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Definitions:

Ceteris Paribus

A Latin phrase meaning "all other things being equal," used in economics to analyze the effect of one variable on another while holding all other relevant factors constant.

Total Income

The sum of all earnings obtained by an individual or entity, including wages, salaries, benefits, and income from investments, before any deductions.

Complementary

Goods or services that are used together, where the consumption or use of one increases the value or demand for the other.

Fixed Proportions

A production condition where inputs are used in constant ratios, without substitution between them, over a range of output levels.