Question 1

Punitive damages will often be awarded where the conduct of the party in breach is high-handed,malicious,arbitrary,or highly reprehensible.

Accepted Answer

A) True 
 B)False  True

Question 2

Specific performance will always be granted to a purchaser of land.

Accepted Answer

A) True 
 B)False  False

Question 3

In contract,the material time for measuring damages is

Accepted Answer

A) the time of the wrongdoing. 
B) both the time of wrongdoing and the time the contract is formed. 
C) the time the breach occurs. 
D) the time the contract is formed. 
E) the time the tort was committed. 
A) the time of the wrongdoing. 
B) both the time of wrongdoing and the time the contract is formed. 
C) the time the breach occurs. 
D) the time the contract is formed. 
E) the time the tort was committed. D

Question 4

An express repudiation only occurs when one party to a contract actually tells the other party that it refuses to perform its obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 5

Why would courts be willing to give specific performance routinely in the purchase of real property,both for the seller and for the buyer?

Accepted Answer

Courts grant specific performance on lan

Question 6

When might a warranty in a contract be a good answer to a lawsuit for breach of contract?

Accepted Answer

Generally,where the parties ar

Question 7

An injunction is available in a variety of circumstances,including where the contract does not contain a negative covenant.

Accepted Answer

A) True 
 B)False

Question 8

If one party breaches a condition of a contract,the other party will generally be entitled to repudiate the contract.

Accepted Answer

A) True 
 B)False

Question 9

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,A Co.will argue that

Accepted Answer

A) the act of B Co.entering into the contract with C Co.on February 15 was an express repudiation of the contract. 
B) its fax of February 2 did not constitute a repudiation of the contract. 
C) not being a repudiation,the contract was still in force. 
D) having repudiated the contract on February 15 in the way it did,the contract was at an end and A Co.was relieved from further performance. 
E) all of the above 
A) the act of B Co.entering into the contract with C Co.on February 15 was an express repudiation of the contract. 
B) its fax of February 2 did not constitute a repudiation of the contract. 
C) not being a repudiation,the contract was still in force. 
D) having repudiated the contract on February 15 in the way it did,the contract was at an end and A Co.was relieved from further performance. 
E) all of the above

Question 10

Any ambiguity in an exemption clause must be interpreted against the _________ party because that party had every chance to make the ambiguity more clear.

Accepted Answer

A) remote 
B) third 
C) drawing 
D) assigning 
E) minor 
A) remote 
B) third 
C) drawing 
D) assigning 
E) minor

Question 11

An injured party cannot elect to treat a breach as discharging him or her from its obligations under a contract unless

Accepted Answer

A) the breaching party elects to treat the breach as discharging him or her from contractual obligations. 
B) the breaching party suffers financial loss. 
C) the innocent party suffers financial loss. 
D) the breach causes physical injury. 
E) it is of the whole contract or an essential part of the contract. 
A) the breaching party elects to treat the breach as discharging him or her from contractual obligations. 
B) the breaching party suffers financial loss. 
C) the innocent party suffers financial loss. 
D) the breach causes physical injury. 
E) it is of the whole contract or an essential part of the contract.

Question 12

Distinguish an injunction order from an order for specific performance.

Accepted Answer

An injunction is an order preventing som

Question 13

The doctrine of substantial performance says that there will be rescission if each party does not substantially perform its obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 14

Damages are not available for an anticipatory breach because the time for performance has not arrived.

Accepted Answer

A) True 
 B)False

Question 15

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

Accepted Answer

Exemption clauses are clauses in contrac

Question 16

It is contrary to public interest to allow an exemption clause to insulate an offending party for conduct approaching criminal or fraudulent behaviour.

Accepted Answer

A) True 
 B)False

Question 17

All of the following may bar someone from obtaining an equitable remedy EXCEPT

Accepted Answer

A) if to do so would affect an innocent purchaser. 
B) if the plaintiff is a minor and the contract couldn't be enforced against him or her. 
C) if the plaintiff her- or himself did not have "clean hands." 
D) if there were unreasonable delays in taking the other party to court. 
E) if no attempt was made by the defendant to mitigate damages. 
A) if to do so would affect an innocent purchaser. 
B) if the plaintiff is a minor and the contract couldn't be enforced against him or her. 
C) if the plaintiff her- or himself did not have "clean hands." 
D) if there were unreasonable delays in taking the other party to court. 
E) if no attempt was made by the defendant to mitigate damages.

Question 18

An order of specific performance

Accepted Answer

A) would always apply to the buyer of real property (i.e. ,land and buildings). 
B) requires one party to a contract to refrain from acting in a particular manner. 
C) requires that the defendant do a certain act,usually something not specified in the contract. 
D) requires that the defendant do a certain act,usually fulfilling his or her part of the contract. 
E) requires that the party in breach pay a specific monetary sum to the other party. 
A) would always apply to the buyer of real property (i.e. ,land and buildings). 
B) requires one party to a contract to refrain from acting in a particular manner. 
C) requires that the defendant do a certain act,usually something not specified in the contract. 
D) requires that the defendant do a certain act,usually fulfilling his or her part of the contract. 
E) requires that the party in breach pay a specific monetary sum to the other party.

Question 19

A condition is

Accepted Answer

A) a fundamental event that must be fulfilled before another can happen. 
B) a contractual obligation that must happen before another can take place. 
C) a term of a contract that must be fulfilled by the promisee. 
D) an essential term of a contract. 
E) a contractual event that must take place before another can happen. 
A) a fundamental event that must be fulfilled before another can happen. 
B) a contractual obligation that must happen before another can take place. 
C) a term of a contract that must be fulfilled by the promisee. 
D) an essential term of a contract. 
E) a contractual event that must take place before another can happen.

Question 20

Damages are a common law remedy.What is the purpose of damages,and how do they achieve their purpose?

Accepted Answer

An award of damages for breach of contra

Exam 13: Breach of Contract and Its Remedies

Punitive damages will often be awarded where the conduct of the party in breach is high-handed,malicious,arbitrary,or highly reprehensible.

Specific performance will always be granted to a purchaser of land.

In contract,the material time for measuring damages is

An express repudiation only occurs when one party to a contract actually tells the other party that it refuses to perform its obligations under the contract.

Why would courts be willing to give specific performance routinely in the purchase of real property,both for the seller and for the buyer?

When might a warranty in a contract be a good answer to a lawsuit for breach of contract?

An injunction is available in a variety of circumstances,including where the contract does not contain a negative covenant.

If one party breaches a condition of a contract,the other party will generally be entitled to repudiate the contract.

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,A Co.will argue that

Any ambiguity in an exemption clause must be interpreted against the _________ party because that party had every chance to make the ambiguity more clear.

An injured party cannot elect to treat a breach as discharging him or her from its obligations under a contract unless

Distinguish an injunction order from an order for specific performance.

The doctrine of substantial performance says that there will be rescission if each party does not substantially perform its obligations under the contract.

Damages are not available for an anticipatory breach because the time for performance has not arrived.

What is an exemption clause? Explain the attitude of the courts towards exemption clauses.

It is contrary to public interest to allow an exemption clause to insulate an offending party for conduct approaching criminal or fraudulent behaviour.

All of the following may bar someone from obtaining an equitable remedy EXCEPT

An order of specific performance

A condition is

Damages are a common law remedy.What is the purpose of damages,and how do they achieve their purpose?

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

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