Question 45 (2 points) Listen What are punitive damages and when might they apply? Question 46 (1 point) Listen Because numerous circumstances may arise that prevent a party from performing its contractual obligations, it is important (particularly in longer-term contracts) that negotiators evaluate risks, speculate on possible changes in the business environment, and be wary of making inflexible commitments or obligations that make performance much more expensive than anticipated. How might a business that is contracting to supply goods in the future protect itself from potential increases in costs? 24