The Nature of a Loss Resulting from a Contract Breach

question 15

Multiple Choice

The nature of a loss resulting from a contract breach may be such as to entitle one party to a choice among two or more means to redress the grievance, where the choices are mutually exclusive. This is known as _____.

• A) restitution
• B) waiver
• C) foreseeability
• D) election of remedies
• E) consequential damage

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Definitions:

Self-Liquidating

An asset or credit that can cover or repay its own cost through the income it generates.

Inventory

The range of products or goods that are held by a business for the purpose of resale, crucial for operations and financial health.

Working Capital Assets

Current assets that are used in the operation of a business and can be converted into cash within a year.

Net Working Capital

The difference between a company's current assets and its current liabilities, indicating the short-term financial health and operational efficiency.