Question 1

The remedy available when a court imposes a quasi contract is the recovery of the reasonable value of a benefit conferred or detriment suffered.

Accepted Answer

A) True 
 B)False  True

Question 2

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would

Accepted Answer

A)  be restored to the status quo. 
B)  be unjustly enriched. 
C)  obtain a reasonable exchange of values. 
D)  profit from Max's performance. 
A)  be restored to the status quo. 
B)  be unjustly enriched. 
C)  obtain a reasonable exchange of values. 
D)  profit from Max's performance. B

Question 3

When a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land.

Accepted Answer

A) True 
 B)False  True

Question 4

If the Statute of Frauds bars the enforcement of an oral contract, a court will not impose a quasi contract regardless of the circumstances.

Accepted Answer

A) True 
 B)False

Question 5

Baez is employed by Credit Agency Inc. On the termination of Baez's position, Credit Agency pays Baez $10,000 to agree not to disclose the employer's confidential information. Later, Baez sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit Agency is most likely to recover

Accepted Answer

A)  $10,000 from Baez. 
B)  $110,000 from Baez. 
C)  $100,000 from Debt Records. 
D)  all future profits from Debt Records. 
A)  $10,000 from Baez. 
B)  $110,000 from Baez. 
C)  $100,000 from Debt Records. 
D)  all future profits from Debt Records.

Question 6

Erma enters into a contract to buy a tract of lakefront property from Forest Acres to build and sell a residential development. Forest Acres fails to close the sale. Erma's remedy is most likely

Accepted Answer

A)  the amount that Erma invested in the project to the date of the closing. 
B)  nothing-Forest Acres still owns the land. 
C)  the difference between the contract and market prices of the land. 
D)  specific performance. 
A)  the amount that Erma invested in the project to the date of the closing. 
B)  nothing-Forest Acres still owns the land. 
C)  the difference between the contract and market prices of the land. 
D)  specific performance.

Question 7

The failure of one party to perform under a contract entitles the other party to rescind the contract.

Accepted Answer

A) True 
 B)False

Question 8

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement, repair, or refund of the purchase price. With respect to this provision, on a customer's suit for breach, a court is most likely to

Accepted Answer

A)  enforce it. 
B)  reform it. 
C)  refuse to enforce it. 
D)  reallocate the risk expressed in it. 
A)  enforce it. 
B)  reform it. 
C)  refuse to enforce it. 
D)  reallocate the risk expressed in it.

Question 9

Liquidated damages provisions normally are unenforceable.

Accepted Answer

A) True 
 B)False

Question 10

Jill enters into a contract to buy a certain building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to

Accepted Answer

A)  return the parties to the positions they occupied before the contract. 
B)  obtain the exact bargain promised in the contract. 
C)  reform the contract to reflect the parties' true intentions. 
D)  make the terms reasonable and enforce the contract as reformed. 
A)  return the parties to the positions they occupied before the contract. 
B)  obtain the exact bargain promised in the contract. 
C)  reform the contract to reflect the parties' true intentions. 
D)  make the terms reasonable and enforce the contract as reformed.

Question 11

Copper Circuit Inc. and Direct Electric LLC sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

Accepted Answer

A)  a liquidated damages clause. 
B)  a mitigation of damages clause. 
C)  a consequential damages clause. 
D)  a penalty clause. 
A)  a liquidated damages clause. 
B)  a mitigation of damages clause. 
C)  a consequential damages clause. 
D)  a penalty clause.

Question 12

Renew Turf Inc. enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by a certain date. The contract specifies an amount to be paid if Renew breaches the deal. This clause is enforceable if the amount is

Accepted Answer

A)  meant to pay for additional work in the event of damage. 
B)  a reasonable estimate of the loss on the breach. 
C)  designed to penalize Renew. 
D)  intended to quickly provide cash to Sports Park. 
A)  meant to pay for additional work in the event of damage. 
B)  a reasonable estimate of the loss on the breach. 
C)  designed to penalize Renew. 
D)  intended to quickly provide cash to Sports Park.

Question 13

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover

Accepted Answer

A)  the cost of new pools. 
B)  the difference between the contract and market prices for the work. 
C)  the loss of profit from the delayed opening. 
D)  nothing-the work is done. 
A)  the cost of new pools. 
B)  the difference between the contract and market prices for the work. 
C)  the loss of profit from the delayed opening. 
D)  nothing-the work is done.

Question 14

When a seller breaches a contract for a sale of goods, knowing the buyer plans to resell the goods, the buyer can recover the lost profits from the planned resale.

Accepted Answer

A) True 
 B)False

Question 15

On an architect's breach of contract after payment for the work, the owner can immediately hire a new architect and obtain restitution of the payment.

Accepted Answer

A) True 
 B)False

Question 16

Armand orally agrees to pay Borges to seed and harvest a quarter of Armand's farm acreage for four planting seasons. After Borges prepares the land and plants the first crop, Armand says that the deal is off. Borges can most likely recover on a theory of

Accepted Answer

A)  reformation. 
B)  restitution. 
C)  specific performance. 
D)  quasi contract. 
A)  reformation. 
B)  restitution. 
C)  specific performance. 
D)  quasi contract.

Question 17

The measure of compensatory damages does not vary by type of contract.

Accepted Answer

A) True 
 B)False

Question 18

Ivy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Jess and sends $2,500 as an initial payment. When Ivy pays the rest of the price, Jess refuses to ship the collection. In a suit for breach, Ivy should seek

Accepted Answer

A)  damages. 
B)  restitution. 
C)  a quasi contract. 
D)  specific performance. 
A)  damages. 
B)  restitution. 
C)  a quasi contract. 
D)  specific performance.

Question 19

Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in advance. Meals Catering pays the money, but Lunch Trucks fails to perform. Can Meals Catering rescind the contract? Can Meals Catering also obtain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.

Accepted Answer

Yes, Meals Catering can rescind the cont

Question 20

Quill contracts to buy an oven from Restaurant Appliances Inc. for $5,000, but the seller fails to deliver. Quill buys a similar oven from another dealer for $6,500. Quill's measure of damages is

Accepted Answer

A)  $5,000. 
B)  $1,500. 
C)  $1,500, plus any additional expense to obtain the oven. 
D)  $6,500. 
A)  $5,000. 
B)  $1,500. 
C)  $1,500, plus any additional expense to obtain the oven. 
D)  $6,500.

Exam 17: Breach and Remedies

The remedy available when a court imposes a quasi contract is the recovery of the reasonable value of a benefit conferred or detriment suffered.

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would

When a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land.

If the Statute of Frauds bars the enforcement of an oral contract, a court will not impose a quasi contract regardless of the circumstances.

Erma enters into a contract to buy a tract of lakefront property from Forest Acres to build and sell a residential development. Forest Acres fails to close the sale. Erma's remedy is most likely

The failure of one party to perform under a contract entitles the other party to rescind the contract.

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement, repair, or refund of the purchase price. With respect to this provision, on a customer's suit for breach, a court is most likely to

Liquidated damages provisions normally are unenforceable.

Jill enters into a contract to buy a certain building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jill should seek specific performance to

Copper Circuit Inc. and Direct Electric LLC sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

Renew Turf Inc. enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by a certain date. The contract specifies an amount to be paid if Renew breaches the deal. This clause is enforceable if the amount is

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover

When a seller breaches a contract for a sale of goods, knowing the buyer plans to resell the goods, the buyer can recover the lost profits from the planned resale.

On an architect's breach of contract after payment for the work, the owner can immediately hire a new architect and obtain restitution of the payment.

Armand orally agrees to pay Borges to seed and harvest a quarter of Armand's farm acreage for four planting seasons. After Borges prepares the land and plants the first crop, Armand says that the deal is off. Borges can most likely recover on a theory of

The measure of compensatory damages does not vary by type of contract.

Ivy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Jess and sends $2,500 as an initial payment. When Ivy pays the rest of the price, Jess refuses to ship the collection. In a suit for breach, Ivy should seek

Quill contracts to buy an oven from Restaurant Appliances Inc. for $5,000, but the seller fails to deliver. Quill buys a similar oven from another dealer for $6,500. Quill's measure of damages is

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