Which of the Following Is False with Regard to Remedies

question 139

Multiple Choice

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

• A) Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.
• B) The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss.
• C) A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach.
• D) Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of an non-essential term, i.e., a warranty.
• E) An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a "fundamental breach" of the contract.

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Definitions:

Prepaid Expense

Expenses paid in advance for goods or services to be received in the future, treated as assets until they are actually consumed or expired.

Accounts Receivable

Receivables from clients to a corporation for products delivered or services rendered without payment.

Unearned Subscription Revenue

Unearned subscription revenue represents money received by a company for subscriptions or services not yet provided or delivered, recognized as a liability until the service is fulfilled.

Unearned Rent

Income received by a landlord for a period of rent not yet occurred; it's considered a liability until the service period passes.