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NEW QUESTION 25
Which of the following is usually the default method for resolving disputes?

A. negotiationB. conciliationC. mediationD. litigation

Answer: A

Explanation:
Negotiation is usually the default method for resolving disputes. This is a direct quote from p.63

 

NEW QUESTION 26
Penguin Ltd has a contract with Blue Company. Blue Company has just broken a warranty in the contract. What remedies does Penguin Ltd have available?

A. they can claim damages but not terminate the contractB. they can sue and claim damagesC. they can terminate the contract but cannot claim damagesD. they can claim damages and terminate the contract

Answer: A

Explanation:
They can claim damages but not terminate the contract. If Blue company has broken a Condition, they would be able to terminate the contract, but this isn't the case for a breach of a Warranty. See p.43 for more details

 

NEW QUESTION 27
Restitution Measures are an award which seeks to return the value of a benefit which has been seen to be unfairly received. Which of the following statements about Restitution Measures is TRUE? Select TWO

A. restitution damages considers the position of the breaching party before the contractB. restitution damages are based on how much was gained by the breaching party as a re-sult of the breachC. restitution damages intend to return the innocent party to the position they were in be-fore the contractD. restitution damages are not limited to pre-agreed levels stated in the contract

Answer: B,C

Explanation:
The correct answers are 1 and 3. These are taken from p. 124. Option 2 is incorrect - this is the definition of reliance damages. Option 4 is also incorrect- restitution damages are limited to pre-agreed levels stated in the contract.

 

NEW QUESTION 28
When considering consequential loss, can a cap be placed on the amount claimed?

A. no- there can be a cap to direct loss but not to consequential lossB. yes- this is known as a pre-estimate of damagesC. yes- this is known as a limitation of liability clauseD. no- there can be no cap to either direct loss or consequential loss

Answer: C

Explanation:
Yes- this is known as a limitation of liability clause. See p. 112 for more details

 

NEW QUESTION 29
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