Question 1

What are liquidated damages in connection with a contract?

Accepted Answer

A)  damages that are used to punish the non-breaching party 
B)  damages that are set at a fixed amount in advance in the contract 
C)  damages that are used when there are no actual damages 
D)  damages that require approval in advance from the court 
E)  damages that result in all assets of the breaching party being paid out as damages 
A)  damages that are used to punish the non-breaching party 
B)  damages that are set at a fixed amount in advance in the contract 
C)  damages that are used when there are no actual damages 
D)  damages that require approval in advance from the court 
E)  damages that result in all assets of the breaching party being paid out as damages

Question 2

Anticipatory breach of a contract is also known as anticipatory reconciliation.

Accepted Answer

A) True 
 B)False

Question 3

An award of specific performance orders the breaching party to perform the acts promised in a contract.

Accepted Answer

A) True 
 B)False

Question 4

A material breach allows the other party to rescind a contract.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following is true about rescission and restitution?

Accepted Answer

A)  Rescission and restitution are designed to give the non-breaching party the benefit of the bargain. 
B)  Rescission and restitution occur when a party seeks compensatory damages. 
C)  Rescission and restitution usually occur together. 
D)  Rescission and restitution are available only when the subject matter of the contract is unique. 
E)  Rescission and restitution are available only if the breaching party has committed fraud. 
A)  Rescission and restitution are designed to give the non-breaching party the benefit of the bargain. 
B)  Rescission and restitution occur when a party seeks compensatory damages. 
C)  Rescission and restitution usually occur together. 
D)  Rescission and restitution are available only when the subject matter of the contract is unique. 
E)  Rescission and restitution are available only if the breaching party has committed fraud.

Question 6

Restitution consists of returning the goods,property,money,or other consideration received from the other party.

Accepted Answer

A) True 
 B)False

Question 7

Equitable remedies are designed to supplement all legal remedies available to a plaintiff.

Accepted Answer

A) True 
 B)False

Question 8

As it relates to mitigation of damages,the word mitigate means "to allocate."

Accepted Answer

A) True 
 B)False

Question 9

Mitigation of damages is a doctrine that requires a non-breaching party to minimize damages.

Accepted Answer

A) True 
 B)False

Question 10

A plaintiff is automatically entitled to a writ of garnishment if execution of a writ of attachment fails to produce proceeds sufficient to satisfy a breach-of-contract judgment in favor of the plaintiff.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is false about the recovery of punitive damages in connection with contracts?

Accepted Answer

A)  They are awarded to punish the defendant. 
B)  They are awarded to deter the defendant from similar conduct in the future. 
C)  They are awarded as a substitution for compensatory damages. 
D)  They are awarded to set an example for others. 
E)  They are awarded as a substitute for compensatory damages. 
A)  They are awarded to punish the defendant. 
B)  They are awarded to deter the defendant from similar conduct in the future. 
C)  They are awarded as a substitution for compensatory damages. 
D)  They are awarded to set an example for others. 
E)  They are awarded as a substitute for compensatory damages.

Question 12

A contractor is generally entitled to recover any lost profits on a contract breached by the client.

Accepted Answer

A) True 
 B)False

Question 13

Billy Bob had a great job handling the lion show for Wild Events Circus.Billy Bob had a written contract with Wild Events for three years.The contract was in year two,and Billy Bob was fully performing his obligations under the contract.Wild Sam,who was well known as a lion handler,really wanted Billy Bob's job.Wild Sam told the circus that he could do a better job than Billy Bob with the lions and that there would be more attendance at the shows because of his reputation.The circus breached its contract with Billy Bob and hired Wild Sam.Billy Bob is mad and sues Wild Sam for intentional interference with a contract.What would be the most likely result?

Accepted Answer

A)  Wild Sam would be held liable to Billy Bob. 
B)  Wild Sam would not be held liable to Billy Bob because Wild Events Circus, the employer, would be the only defendant who could be held liable to Wild Sam. 
C)  Wild Sam would not be held liable to Billy Bob, because the job of lion handler is not a professional job which is required for the action of intentional interference with a contract. 
D)  Wild Sam could be held liable to Billy Bob for punitive damages, but not for compensatory damages. 
E)  Wild Sam would be held liable to Billy Bob, but only if Billy Bob can show that he was a better lion handler than Wild Sam. 
A)  Wild Sam would be held liable to Billy Bob. 
B)  Wild Sam would not be held liable to Billy Bob because Wild Events Circus, the employer, would be the only defendant who could be held liable to Wild Sam. 
C)  Wild Sam would not be held liable to Billy Bob, because the job of lion handler is not a professional job which is required for the action of intentional interference with a contract. 
D)  Wild Sam could be held liable to Billy Bob for punitive damages, but not for compensatory damages. 
E)  Wild Sam would be held liable to Billy Bob, but only if Billy Bob can show that he was a better lion handler than Wild Sam.

Question 14

Only those consequential damages that are known or foreseeable can be collected.

Accepted Answer

A) True 
 B)False

Question 15

Complete performance is also known as strict performance.

Accepted Answer

A) True 
 B)False

Question 16

The primary goal of compensatory damages is to place the parties in the position that they were in prior to the formation of the contract.

Accepted Answer

A) True 
 B)False

Question 17

What kind of damages will be awarded when there is no actual financial loss?

Accepted Answer

A)  special damages 
B)  consequential damages 
C)  nominal damages 
D)  compensatory damages 
E)  There are no damages that a court will award in the absence of an actual financial loss. 
A)  special damages 
B)  consequential damages 
C)  nominal damages 
D)  compensatory damages 
E)  There are no damages that a court will award in the absence of an actual financial loss.

Question 18

Compensatory damages for a breach of a sales contract involving goods are governed by the common law of contracts.

Accepted Answer

A) True 
 B)False

Question 19

There are three (3)types of performance of a contract: 1)superior performance; 2)partial performance; and 3)subordinate performance.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is a type of damages recoverable in a breach of contract action?

Accepted Answer

A)  dispensatory 
B)  tangential 
C)  non-liquidated 
D)  nominal 
E)  non-cumulative 
A)  dispensatory 
B)  tangential 
C)  non-liquidated 
D)  nominal 
E)  non-cumulative

Exam 14: Breach of Contract and Remedies

What are liquidated damages in connection with a contract?

Anticipatory breach of a contract is also known as anticipatory reconciliation.

An award of specific performance orders the breaching party to perform the acts promised in a contract.

A material breach allows the other party to rescind a contract.

Which of the following is true about rescission and restitution?

Restitution consists of returning the goods,property,money,or other consideration received from the other party.

Equitable remedies are designed to supplement all legal remedies available to a plaintiff.

As it relates to mitigation of damages,the word mitigate means "to allocate."

Mitigation of damages is a doctrine that requires a non-breaching party to minimize damages.

A plaintiff is automatically entitled to a writ of garnishment if execution of a writ of attachment fails to produce proceeds sufficient to satisfy a breach-of-contract judgment in favor of the plaintiff.

Which of the following is false about the recovery of punitive damages in connection with contracts?

A contractor is generally entitled to recover any lost profits on a contract breached by the client.

Only those consequential damages that are known or foreseeable can be collected.

Complete performance is also known as strict performance.

The primary goal of compensatory damages is to place the parties in the position that they were in prior to the formation of the contract.

What kind of damages will be awarded when there is no actual financial loss?

Compensatory damages for a breach of a sales contract involving goods are governed by the common law of contracts.

There are three (3)types of performance of a contract: 1)superior performance; 2)partial performance; and 3)subordinate performance.

Which of the following is a type of damages recoverable in a breach of contract action?

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