Question 1

Suing based on a breach of good faith is not recognized by the courts because good faith is such an abstract term that it cannot be measured.

Accepted Answer

A) True 
 B)False

Question 2

When one party substantially,but not completely,performs a contract,creating a minor breach,which of the following remedies may the aggrieved party choose?

Accepted Answer

A)  deduct the cost necessary to complete performance from the payment due to the breaching party 
B)  sue the breaching party for the cost to complete performance 
C)  rescind the contract. 
D)  deduct the cost necessary to complete performance from the payment due to the breaching party, sue the breaching party for the cost to complete performance, or rescind the contract 
E)  deduct the cost necessary to complete performance from the payment due to the breaching party, or sue the breaching party for the cost to complete performance 
A)  deduct the cost necessary to complete performance from the payment due to the breaching party 
B)  sue the breaching party for the cost to complete performance 
C)  rescind the contract. 
D)  deduct the cost necessary to complete performance from the payment due to the breaching party, sue the breaching party for the cost to complete performance, or rescind the contract 
E)  deduct the cost necessary to complete performance from the payment due to the breaching party, or sue the breaching party for the cost to complete performance

Question 3

In Hickman v.Bates,involving the sale of land by the plaintiff to the defendant,the court found:

Accepted Answer

A)  that Bates had forced Hickman to sign under duress and awarded Hickman the value of the property that she signed away as compensatory damages. 
B)  that Bates had made an intentional misstatement of the facts constituting fraud and awarded Hickman the value of the property that she signed away as compensatory damages. 
C)  that Bates committed fraud by not disclosing information to the young and mentally limited Hickman and awarded Hickman the value of the property that she signed away as compensatory damages. 
D)  that Bates committed fraud by not disclosing information to the young and mentally limited Hickman and rescinded the contract. 
E)  that a contract was formed with the consent of the parties, that Hickman's mistake was unilateral, and that since Hickman could have sought advice but did not, she had no remedies. 
A)  that Bates had forced Hickman to sign under duress and awarded Hickman the value of the property that she signed away as compensatory damages. 
B)  that Bates had made an intentional misstatement of the facts constituting fraud and awarded Hickman the value of the property that she signed away as compensatory damages. 
C)  that Bates committed fraud by not disclosing information to the young and mentally limited Hickman and awarded Hickman the value of the property that she signed away as compensatory damages. 
D)  that Bates committed fraud by not disclosing information to the young and mentally limited Hickman and rescinded the contract. 
E)  that a contract was formed with the consent of the parties, that Hickman's mistake was unilateral, and that since Hickman could have sought advice but did not, she had no remedies.

Question 4

Rescission is not available for a contract involving undue influence.

Accepted Answer

A) True 
 B)False

Question 5

The doctrine of reformation is a legal doctrine.

Accepted Answer

A) True 
 B)False

Question 6

________ is an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract.

Accepted Answer

A)  Proffer 
B)  Tinder 
C)  Tender 
D)  Proclamation 
E)  Subornation 
A)  Proffer 
B)  Tinder 
C)  Tender 
D)  Proclamation 
E)  Subornation

Question 7

If an anticipatory breach of contract has occurred,the non-breaching party must wait until performance is due to sue the repudiating party.

Accepted Answer

A) True 
 B)False

Question 8

Under contract law,the general purpose of equitable remedies is to provide a fair remedy when the legal remedy of damages does not adequately compensate the non-breaching party.

Accepted Answer

A) True 
 B)False

Question 9

Specific performance of personal service contracts is not granted,because the courts would find it difficult or impracticable to supervise or monitor performance of such a contract.

Accepted Answer

A) True 
 B)False

Question 10

Tender is a conditional offer by a contracting party to perform his or her obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 11

Substantial performance occurs when there has been a(n)________ breach of contract.

Accepted Answer

A)  conditional 
B)  major 
C)  hypothetical 
D)  anticipatory 
E)  minor 
A)  conditional 
B)  major 
C)  hypothetical 
D)  anticipatory 
E)  minor

Question 12

Liquidated damages clauses will generally not be enforced where courts view them as excessive,but courts generally do not inquire into whether liquidated damages clauses are too small.For example,when taking a roll of film to be developed,most developers include a liquidated damages clause to provide a new roll of film,and nothing more,in the event that the customer's film is lost or destroyed.Why is there this difference in treatment? Do you agree with this rule?

Accepted Answer

The concern with liquidated damages clau

Question 13

A buyer can generally recover the additional cost of acquiring substitute goods if the seller breaches by not delivering the goods.

Accepted Answer

A) True 
 B)False

Question 14

A construction contractor entered into a contract to build a family room addition onto Harry's home for $25,000.In order to encourage timely performance,the agreement provided that the contractor would be penalized $5,000 as liquidated damages for each day that the project was late in getting finished.The contractor was 30 days late in finishing the project,but otherwise met the terms of the agreement.What is most likely in this situation?

Accepted Answer

A)  The liquidated damages clause would not be enforced due to its being excessive. 
B)  The liquidated damages clause would be limited to $25,000, the amount of the contract price. 
C)  The liquidated damages clause would be enforced. 
D)  The liquidated damages clause would not be enforced because the parties made a mutual mistake about when the contract would be finished. 
E)  The liquidated damages clause would be enforced only if it can be shown that the contractor has made that much in profits over the past six months. 
A)  The liquidated damages clause would not be enforced due to its being excessive. 
B)  The liquidated damages clause would be limited to $25,000, the amount of the contract price. 
C)  The liquidated damages clause would be enforced. 
D)  The liquidated damages clause would not be enforced because the parties made a mutual mistake about when the contract would be finished. 
E)  The liquidated damages clause would be enforced only if it can be shown that the contractor has made that much in profits over the past six months.

Question 15

When a court rewrites a contract to express the parties' true intentions,what remedy has it used?

Accepted Answer

A)  reformation 
B)  restitution 
C)  specific performance 
D)  substituted contract 
E)  quasi-contract 
A)  reformation 
B)  restitution 
C)  specific performance 
D)  substituted contract 
E)  quasi-contract

Question 16

________ damages are usually awarded in a small amount.

Accepted Answer

A)  Consequential 
B)  Special 
C)  Compensatory 
D)  Nominal 
E)  Punitive 
A)  Consequential 
B)  Special 
C)  Compensatory 
D)  Nominal 
E)  Punitive

Question 17

In Chodos v.West Publishing Company,Inc.,in which the defendant refused to publish a treatise after the author had completed the document as agreed,what was the result?

Accepted Answer

A)  As a matter of law, West had the right in its sole discretion to refuse to publish the document. 
B)  West had breached its contract with the author, because he had completed the treatise as agreed. 
C)  West had substantially complied by giving the author notice that the treatise likely would not sell. 
D)  The author had failed to periodically ask West if the agreement was still in place, which barred the author from any recovery. 
E)  The author had no right to rely on West's statements, because he had not received any partial payment. 
A)  As a matter of law, West had the right in its sole discretion to refuse to publish the document. 
B)  West had breached its contract with the author, because he had completed the treatise as agreed. 
C)  West had substantially complied by giving the author notice that the treatise likely would not sell. 
D)  The author had failed to periodically ask West if the agreement was still in place, which barred the author from any recovery. 
E)  The author had no right to rely on West's statements, because he had not received any partial payment.

Question 18

Consequential damages are also known as spurious damages.

Accepted Answer

A) True 
 B)False

Question 19

If an employer breaches an employment contract,the employee owes a duty to mitigate damages by doing which of the following?

Accepted Answer

A)  pursuing a college degree 
B)  drawing unemployment benefits 
C)  engaging in pro se representation in his or her civil action against the employer 
D)  suing the employer in district, rather than in superior, court 
E)  trying to find substitute employment 
A)  pursuing a college degree 
B)  drawing unemployment benefits 
C)  engaging in pro se representation in his or her civil action against the employer 
D)  suing the employer in district, rather than in superior, court 
E)  trying to find substitute employment

Question 20

Should there be such a tort as the intentional interference with contractual relations? Even though one person might induce another to breach a contract,isn't it ultimately the choice of that other person to breach the contract? Why should one be liable if that person was not the one who actually breached the contract?

Accepted Answer

Even though the outsider has not breache

Exam 14: Breach of Contract and Remedies

Suing based on a breach of good faith is not recognized by the courts because good faith is such an abstract term that it cannot be measured.

When one party substantially,but not completely,performs a contract,creating a minor breach,which of the following remedies may the aggrieved party choose?

In Hickman v.Bates,involving the sale of land by the plaintiff to the defendant,the court found:

Rescission is not available for a contract involving undue influence.

The doctrine of reformation is a legal doctrine.

________ is an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract.

If an anticipatory breach of contract has occurred,the non-breaching party must wait until performance is due to sue the repudiating party.

Under contract law,the general purpose of equitable remedies is to provide a fair remedy when the legal remedy of damages does not adequately compensate the non-breaching party.

Specific performance of personal service contracts is not granted,because the courts would find it difficult or impracticable to supervise or monitor performance of such a contract.

Tender is a conditional offer by a contracting party to perform his or her obligations under the contract.

Substantial performance occurs when there has been a(n)________ breach of contract.

A buyer can generally recover the additional cost of acquiring substitute goods if the seller breaches by not delivering the goods.

When a court rewrites a contract to express the parties' true intentions,what remedy has it used?

________ damages are usually awarded in a small amount.

In Chodos v.West Publishing Company,Inc.,in which the defendant refused to publish a treatise after the author had completed the document as agreed,what was the result?

Consequential damages are also known as spurious damages.

If an employer breaches an employment contract,the employee owes a duty to mitigate damages by doing which of the following?

Legal Heritage and the Information Age

Constitutional Law for Business and E-Commerce

Courts and Jurisdiction

Judicial, Alternative, Administrative, and E-Dispute Resolution

Torts and Strict Liability

Criminal Law and Cyber Crimes

Intellectual Property and Cyber Piracy

Ethics and Social Responsibility of Business

Nature of Traditional and E-Contracts

Agreement and Consideration

Capacity and Legality

Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Digital Law and E-Commerce

Formation of Sales, Lease, and E-Contracts

Performance of Sales, Leases and E-Contracts

Remedies for Breach of Sales and Lease Contracts

Warranties and Product Liability

Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

Banking System, E-Money, and Financial Reform

Credit and Secured Transactions

Bankruptcy and Reorganization

Agency Law

Small Business, Entrepreneurship, and Partnerships

Corporate Formation and Financing

Corporate Governance and Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Company and Limited Liability Partnership

Franchise and Special Forms of Business

Investor Protection,E-Securities Transactions,and Wall Street Reform

Antitrust Law

Consumer Safety, Consumer Financial Protection, and Environmental Protection

Labor, Worker Protection, Employment, and Immigration Law

Equal Opportunity in Employment

Personal Property, Bailment, and Insurance

Real Property, Landlord-Tenant Law, and Land Use Regulation

Family Law, Wills, and Trusts

Accountants' Liability

International and World Trade Law

Filters