Exam 18: Contract Remedies

Restitution can be obtained where a voidable contract is avoided.

Delay will have no effect on a party to a contract's power of avoidance.

Courts will usually uphold a liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine.

An action to recover damages for breach of contract may be maintained only if the plaintiff has sustained or can prove an injury or loss resulting from the breach.

Where a contract is unenforceable because of the statute of frauds,a party may recover the benefits conferred on the other party in reliance on the contract.

A liquidated damage is a provision by which the parties agree in advance to the damages to be paid in the event of breach.

Skylar,an antique dealer,intentionally represents the value of an antique chest of drawers as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is actually worth $2,500.In a state that uses the "benefit-of-the-bargain" rule,Margaret's damage award would be:

When a breach of contract occurs,the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Specific performance is the usual remedy for breach of contract.

If Jana,a minor,transfers property to Scott and Scott sells the property to a good faith purchaser for value before Jana avoids the transfer:

At its discretion,a court may grant the equitable remedy of injunction against breach of a contractual duty where damages would be inadequate.

Explain three limitations on monetary damages.

Equitable remedies result in monetary awards to the plaintiff.

Monetary damages are the most frequently granted remedy for breach of contract.

The purpose of reliance damages is to place the injured party in a position as good as he would have held had there been no contract.

Harry said to Marge,"I have a ring once owned by Marilyn Monroe.Would you like to buy it for $500?" Marge pays for the ring,but the next day a friend tells her that Harry had recently purchased the ring at a local department store.Marge enjoys wearing the ring and wears it constantly for twelve months.Finally,she goes to Harry and says,"Here is the ring you lied about.Give me my $500." Most likely Marge will:

The return to the aggrieved party of the consideration,or its value,which he gave to the other party is:

What Article of the UCC governs sales of goods?

The majority of states follow the ____ rule in awarding damages for fraud.

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?