Question

25.

In the event of a breach of contract, the non-breaching party has an obligation to minimize their loss.

Select one:

True

False

Which of the following is true about the privity of contract doctrine?

Select one:

a. It restricts the operation of a contract to those who are parties to it

b. It allows any person(s) with a specific loss to bring an action

c. It excludes parties to the contract from bringing an action

d. It allows any person(s) who suffered as a result of a breach to claim damages

Answer 1

Answers-

The statement is True.

The non-breaching party has the duty to mitigate and take action to minimize their losses resulting from a breach of contract. If the losses incurred by a non-breaching party can be avoided, the court may not award damages for that loss.

Answer-

The statement d is correct. It allows any person(s) who suffered as a result of a breach to claim damages. Any person can claim damages if he/she has suffered due to breach of contract.

The statement a is incorrect. The parties of contract are not restricted from ooperations of contract.
The statement b is incorect. It does not allow any person with specic loss to bring an action.
The statement c is incorrect. It allows parties of contract for bringing an action.