Which of the Following Statements Is True with Respect to the Law

Multiple Choice

Which of the following statements is true with respect to the law of damages?

A) Damages are intended to punish the wrongdoer for breaching the contract.
B) Damages are awarded for a breach of a condition but not for a breach of warranty.
C) If a contract contains a liquidated damages clause, the party who has breached the contract has agreed to pay to the party wronged an amount equal to all the loss that directly and naturally flows from the breach.
D) Damages are an order from the court for the breaching party to perform the contract as he or she agreed to do.
E) A deposit is an amount of money a party to a contract agrees to forfeit if he or she breaches the contract.