CIPS Exam L5M3 Topic 1 Question 20 Discussion

Actual exam question for CIPS's L5M3 exam

Question #: 20
Topic #: 1

Restitution damages are often calculated before contracts are signed and are clearly stated within a contract. Which of the following statements is not true?

Arestitution damages means you are unable to claim for future losses

Brestitution damages may leave the breaching party in a worse position than they were in before the contract began

Crestitution damages are calculated based on how much the breaching party gained, ra-ther than how much the innocent party lost

Drestitution damages cannot be mitigated by the actions of the innocent party

Show Suggested Answer

Suggested Answer: D

'restitution damages cannot be mitigated by the actions of the innocent party' is the untrue state-ment out of these four. The general principle of Restitution Damages is that the innocent party is expected to be proactive in mitigating the consequences of any breach and should not allow costs to spiral out of control. See p. 124

by Simona at Jan 27, 2024, 10:10 AM

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