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NEW QUESTION 34
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 loss
• B. yes- this is known as a limitation of liability clause
• C. yes- this is known as a pre-estimate of damages
• D. no- there can be no cap to either direct loss or consequential loss

Answer: B

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

 

NEW QUESTION 35
What is the first stage in conflict resolution?

• A. assess the impact of the breach
• B. look at remedies available
• C. identify the nature and source of the conflict
• D. decide on the type of conflict resolution approach

Answer: C

Explanation:
The first stage is 'identify the nature and source of the conflict'. Stage 2 is assess the impact of the breach, stage 3 is look at remedies available and stage 4 is agree on a way forward and type of conflict resolution. These stages are explained on p.62 of the study guide.

 

NEW QUESTION 36
Which of the following is not a way in which a contract can end?

• A. agreement
• B. breach
• C. litigation
• D. performance

Answer: C

Explanation:
Litigation is the correct answer. This is not a way in which a contract can end- it is a conflict resolution method. The three ways in which a contract can end are; performance, agreement and breach. See p. 42 for more details on how contracts end

 

NEW QUESTION 37
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