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ACCA Applied Skills · Corporate and Business Law (Global) · Business, political and legal systems

Zephyr Ltd supplied defective machinery to Arlo Co, and Arlo Co sues Zephyr Ltd for damages for breach of contract. How is this action classified?

The action is civil law. Arlo Co is suing Zephyr Ltd to enforce its private contractual rights and obtain compensation. Both parties are private persons, and no state prosecution is involved, so it is not criminal or public law.

  1. ACivil law, because it concerns a dispute between private parties over their rights and obligationsCorrect
  2. BCriminal law, because a breach has occurred and a remedy is sought
  3. CPublic law, because a company is involved
  4. DConstitutional law, because machinery was supplied across the market

Explanation

A claim for damages for breach of contract is brought by one private party against another to enforce private rights. That is civil, private law. A breach alone does not make it criminal, and the involvement of a company does not make it public law.

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