What constitutes an economic breach of contract in a contractual business relationship?
A) refusing to provide payment for services received in order to get a reduction in price
B) allowing existing legal obligations to keep the business from considering other opportunities
C) electing to refuse performance of contractual obligations and paying damages for the breach
D) electing to avoid damages by completing the performance of the contractual obligations

Question

Quizplus · Accepted Answer

An economic breach of contract occurs when one party refuses to perform their contractual obligations, resulting in financial harm to the other party. The appropriate remedy for such a breach is for the breaching party to pay damages to the other party. Option A is a form of coercion or blackmail, which is not permissible in business. Option B refers to a situation where a party's existing legal obligations prevent them from entering into new contractual relationships, and is not necessarily a breach of contract. Option D is a description of a situation where there is no breach of contract.

What Constitutes an Economic Breach of Contract in a Contractual