Exam 14: Breach of Contract and Remedies

Zora was driving,talking on her cell phone to her boyfriend,and drinking a soda all at the same time.Her boyfriend made her angry at the same time that she spilled her soda.Because of the distractions,Zora momentarily took her eyes off the road,ran into Zach's yard,and smashed his brand new customized Jaguar.Zora only had $15,000 in insurance for property damage.The damages to Zach's Jaguar totaled $15,000.Zora begged her insurance company to offer Zach the limits of the policy and settle the lawsuit.Her insurance company refused to do so.Not surprisingly,Zach sued Zora.Zach got a judgment against Zora for $25,000.Her insurance company paid the $15,000 in insurance and left Zora to pay the rest.What should Zora do?

To be liable for consequential damages,the breaching party must ________ that the breach will cause special damages to the other party.

Equitable remedies are available to result in unjust enrichment.

If the goods or property have been consumed or are otherwise unavailable,restitution must be made by conveying a cash equivalent.

When property is attached to satisfy a judgment,the property is seized by the sheriff and given to the plaintiff in satisfaction of the judgment.

Rescission and restitution are designed to give the parties the benefit of the bargain.

Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known as:

A liquidated damages provision will be invalidated if it is considered to be a penalty.

Substantial performance is performance that is complete enough that there is no breach.

Intentional interference with contractual relations requires a showing of bad faith before liability can be imposed.

"Benefit of the bargain" is descriptive of which type of damages?

Specific performance is usually available for the buyer in a contract for the sale of land.

You have been offered and accepted a job with a salary of $50,000.When the contract of employment is typed,an error is made and the salary is listed as $55,000.Since your employer made the mistake,it has no remedy and you get the $55,000.

Where there is an anticipatory repudiation,the non-breaching party's obligations under the contract are discharged immediately.

A fully performed contract is called an executed contract.

Generally,punitive damages are not recoverable for breach of contract.

Specific performance is the primary remedy used to make a party live up to his or her obligations under a personal services contract.

Nominal damages are awarded in order to return the non-breaching party to the status quo.

What does the term "mitigation" refer to in connection with damages?

Pat Painter contracts to paint Harry Homeowner's home for $6,000.Pat would supply all materials at a cost to Pat of $1,000.Harry breaches by refusing to let Pat paint the house,which Pat found out before spending any money on the materials.Pat is able to find another job that nets a profit of $4,200 during that same time that Harry's house was to be painted.How much can Pat recover from Harry in damages?