Which of the Following Is True with Regard to Remedies

question 142

Multiple Choice

Which of the following is true with regard to remedies for breach of contract?

• A) The victim of a breach can recover damages that he could have avoided if he had tried to mitigate his loss.
• B) An injunction is an equitable remedy forcing a person to comply with the terms of the contract.
• C) The quantum (amount) of damages to be given to the victim of the breach may be limited to the amount specified in a liquidated damages clause of her contract.
• D) A person who breaches a contract is liable for all the loss that directly and naturally flows from the breach, no matter how unforeseeable.
• E) Specific performance is the proper remedy to stop a person from doing something that he had promised in the contract not to do, e.g., not to compete, not to disclose secrets, etc.

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Definitions:

Stagflation

A situation where an economy experiences stagnant growth, high unemployment, and high inflation simultaneously, presenting a challenge to economic policy.

Actual Price Level

The current level of prices in the economy for goods and services, reflecting inflation or deflation in the market.

Real Wages

The purchasing power of wages, taking into account the effects of inflation or deflation, representing the quantity of goods and services wages can buy.

Cyclical Unemployment

Unemployment that rises during economic downturns and falls when the economy improves, directly related to cycles of economic upturn and downturn.