Final answer:
The statement that a supplier is free of any legal obligations for direct and foreseeable financial consequences after breaching a contract is false. They can be held liable for such damages.
Step-by-step explanation:
A supplier who commits to a contract is not free of any legal obligations for direct and foreseeable financial consequences that the other party to the contract may experience should the supplier breach the contract. The correct answer is b. False.
Under contract law, parties in a binding agreement are expected to fulfill their contractual duties. If one party, such as a supplier, breaches the contract, they can be held liable for damages which are both direct and foreseeable. These are consequences which naturally arise from the breach itself or which were contemplated by both parties at the time the contract was entered into.
Liable suppliers may be required to pay for losses the non-breaching party suffered as a result of their failure to meet the contract terms. This ensures that the injured party is returned to a position as close as possible to their situation before the breach occurred.