Multiple Choice
Morgan signs a contract with Shane agreeing to work with him for a movie.Halfway through the production of the movie,Shane decides to quit as he gets another job as a marketing executive.The printed terms in the contract state that when a breach of contract occurs,the breaching party has to pay $20,000 to the nonbreaching party.The contract also has additional handwritten terms that state that in the event of a party being unable to complete the performance required due to unforeseen,unnatural causes,the breaching party does not have to pay any money to the nonbreaching party.Which of the following statements is true in this situation?
A) Shane has to pay Morgan $20,000 as consequential damages.
B) Shane has to pay $20,000 to Morgan for breach of contract.
C) Shane does not have to pay any amount to Morgan because his breach was excused by the contractual terms.
D) Morgan cannot sue Shane for the breach as the liquidated damage is meant to penalize the nonbreaching party.
E) Shane can sue Morgan for compensatory damages.
Correct Answer:

Verified
Correct Answer:
Verified
Q76: What are liquidated damages? When will courts
Q77: A _ exists when a party to
Q78: Michael signs a contract with Bill to
Q79: What is a condition precedent? Briefly explain
Q80: Frank is the fresh produce supplier to
Q82: Restitution requires a party to compensate for
Q83: Matthew wants to buy Brian's car for
Q84: A similarity between a waiver and a
Q85: Great Tires Inc.orders 50 tons of rubber
Q86: Which of the following statements is true