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CIMAPRA17-BA4-1 Exam - Topic 1 Question 128 Discussion

Which of the following is incorrect in relation to the remedy of damages?
D) Damages are designed to compensate the innocent party and to punish the contract breaker.
A) A contract breaker is liable for losses which arise naturally from the breach.
B) A contract breaker is liable for special losses which are within his contemplation.
C) Damages will not normally be awarded for the distress caused to the innocent party by the breach.

CIMAPRA17-BA4-1 Exam - Topic 1 Question 128 Discussion

Actual exam question for CIMA's CIMAPRA17-BA4-1 exam
Question #: 128
Topic #: 1
[All CIMAPRA17-BA4-1 Questions]

Which of the following is incorrect in relation to the remedy of damages?

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Suggested Answer: D

by Latosha at Jun 18, 2026, 03:04 PM

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Gail
16 days ago
I feel like C is tricky. Penalty clauses can be enforced in some cases.
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Tyisha
21 days ago
I agree, B doesn't make sense. Creditors still need to prove loss.
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Makeda
26 days ago
I think option B is incorrect. Mitigation is always relevant.
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Ludivina
1 month ago
A creditor can recover an agreed debt regardless of mitigation.
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Gladys
1 month ago
Wait, can you really not claim damages for personal services? That seems odd.
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Shonda
1 month ago
Mitigation is super important for recovering damages!
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Kris
2 months ago
I disagree with D; damages can be claimed in some cases.
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Nana
2 months ago
A penalty clause really can't be enforced, that's true.
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Azalee
2 months ago
D sounds familiar, but I can't recall if damages can be claimed for personal services; I need to think about that one more.
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Evelynn
2 months ago
I feel like we had a practice question about penalty clauses, and I think C is true because they can't be enforced.
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Jacqueline
2 months ago
I'm not entirely sure, but I think B might be tricky since it mentions remoteness, which we've covered in class.
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Carma
2 months ago
I remember discussing how a victim must mitigate their losses to recover damages, so A seems correct.
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