Asked by Chhor Sotheanea on Jul 20, 2024
Verified
When may a lessor seek incidental damages in the event of a breach by a lessee of goods?
A) A lessor may seek incidental damages only if the lessee agreed in writing to pay them.
B) A lessor may seek incidental damages only if the lessee agreed orally or in writing to pay them.
C) A lessor may seek incidental damages only if the damages are in an amount over $500.
D) A lessor may seek incidental damages only if the damages are in an amount over $1,000.
E) A lessor may seek incidental damages whenever the lease is breached.
Incidental Damages
Compensation for additional unexpected expenses that arise directly from a breach of contract, beyond the direct loss or damage incurred.
Breach
The violation or breaking of a legal obligation or agreement, which can result in legal action against the party that fails to honor their part of the contract.
Lessor
The party or entity that leases or rents property to another party, known as the lessee, under a lease agreement.
- Discern the entitlements and remedies afforded to sellers and lessors by the Uniform Commercial Code (UCC) during instances of contract breaches by buyers or lessees.
Verified Answer
SU
Shafira UlinnuhaJul 23, 2024
Final Answer :
E
Explanation :
Incidental damages can be sought by a lessor whenever the lease is breached, as they are meant to cover additional costs directly resulting from the breach, such as expenses related to re-leasing or selling the goods. There's no requirement for a prior agreement or a specific monetary threshold.
Learning Objectives
- Discern the entitlements and remedies afforded to sellers and lessors by the Uniform Commercial Code (UCC) during instances of contract breaches by buyers or lessees.