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:

Legal Authority

The right and power to enforce laws, exact obedience, or make decisions and judgments.

Deeds

Legal documents representing the ownership of property or legal rights.

Marriage Vows

Promises made by individuals to each other during a wedding ceremony, signifying their commitment and intentions for their marriage.

Invisible Hand

A metaphor used by Adam Smith to describe the unintended social benefits resulting from individual actions.