Question 1

Which of the following statements is true of mitigation of damages?

Accepted Answer

A) The breaching party must make efforts to mitigate damages resulting from the breach of contract. 
B) If an employer breaches an employment contract, he or she owes a duty to mitigate damages by trying to find substitute employment for the employee. 
C) The extent of mitigation of damages required is common to all kinds of contracts. 
D) If an employer breaches a contract, the employee is only required to accept comparable employment. 
A) The breaching party must make efforts to mitigate damages resulting from the breach of contract. 
B) If an employer breaches an employment contract, he or she owes a duty to mitigate damages by trying to find substitute employment for the employee. 
C) The extent of mitigation of damages required is common to all kinds of contracts. 
D) If an employer breaches a contract, the employee is only required to accept comparable employment.

Question 2

Tender of performance discharges a party's contractual obligations.

Accepted Answer

A) True 
 B)False

Question 3

Intentional interference with contractual relations arises when a third party induces a contracting party to breach the contract with another party.

Accepted Answer

A) True 
 B)False

Question 4

________ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Accepted Answer

A) Reformation 
B) Injunction 
C) Conjunction 
D) Garnishment 
A) Reformation 
B) Injunction 
C) Conjunction 
D) Garnishment

Question 5

Poole Contractors makes a contract with Delta Resources to pay $50, 000 for the supply of 500 truckloads of sand within next week.Delta Resources delivers the sand in two days after the contract was made.Poole Contractors pays the $50, 000 promised in the contract.This is an instance of ________.

Accepted Answer

A) substantial performance 
B) material breach 
C) minor breach 
D) strict performance 
A) substantial performance 
B) material breach 
C) minor breach 
D) strict performance

Question 6

To rescind a contract, the parties must make restitution of the consideration they received under the contract.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is true of discharge of contracts?

Accepted Answer

A) Anticipatory breach discharges the breaching party's obligations to the contract. 
B) Substantial performance is sufficient to discharge a contract. 
C) Tender of performance discharges a party's contractual obligations. 
D) Tender is a conditional offer by contracting party to perform his or her obligations under the contract. 
A) Anticipatory breach discharges the breaching party's obligations to the contract. 
B) Substantial performance is sufficient to discharge a contract. 
C) Tender of performance discharges a party's contractual obligations. 
D) Tender is a conditional offer by contracting party to perform his or her obligations under the contract.

Question 8

If the builder breaches a construction contract either before or during construction, the owner can recover the increased cost above the contract price that he or she has to pay to have the work completed by another contractor.

Accepted Answer

A) True 
 B)False

Question 9

Specific performance is not awarded in contracts for the sale of land.

Accepted Answer

A) True 
 B)False

Question 10

An employee who has been dismissed improperly accepts a job that is less comparable.Which of the following is a subsequent course of action?

Accepted Answer

A) The employee can sue the prior employer for damages. 
B) The previous employer must offer salary compensation on a monthly basis, until the employee's new salary becomes comparable to that offered by the previous job. 
C) The employee can sue the former employer to recover his or her salary for one year. 
D) The employee can take no legal action against his or her formal employer after accepting a different job. 
A) The employee can sue the prior employer for damages. 
B) The previous employer must offer salary compensation on a monthly basis, until the employee's new salary becomes comparable to that offered by the previous job. 
C) The employee can sue the former employer to recover his or her salary for one year. 
D) The employee can take no legal action against his or her formal employer after accepting a different job.

Question 11

Which of the following is true of monetary damages?

Accepted Answer

A) Nominal damages are paid once the nonbreaching party has suffered a financial loss. 
B) Anticipatory breaches cannot be awarded monetary damages. 
C) Liquidated damages are set by the court towards the breaching party. 
D) Consequential damages are considered as monetary damages. 
A) Nominal damages are paid once the nonbreaching party has suffered a financial loss. 
B) Anticipatory breaches cannot be awarded monetary damages. 
C) Liquidated damages are set by the court towards the breaching party. 
D) Consequential damages are considered as monetary damages.

Question 12

When a party commits an anticipatory breach, the nonbreaching party ________.

Accepted Answer

A) must wait until the performance was due before suing 
B) is immediately discharged from his or her own duties 
C) cannot seek damages because he or she received advance notice of the breach 
D) loses his or her right to sue after the due-date for performance is reached 
A) must wait until the performance was due before suing 
B) is immediately discharged from his or her own duties 
C) cannot seek damages because he or she received advance notice of the breach 
D) loses his or her right to sue after the due-date for performance is reached

Question 13

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Accepted Answer

A) injunction 
B) writ of garnishment 
C) tender of performance 
D) writ of attachment 
A) injunction 
B) writ of garnishment 
C) tender of performance 
D) writ of attachment

Question 14

A court order that prohibits a person from doing a certain act is termed as a(n)________.

Accepted Answer

A) rescission 
B) reformation 
C) injunction 
D) restitution 
A) rescission 
B) reformation 
C) injunction 
D) restitution

Question 15

Minor breach occurs when a party renders substantial performance of his or her contractual duties.

Accepted Answer

A) True 
 B)False

Question 16

Which of the following statements is true of nominal damages?

Accepted Answer

A) They are also known as compensatory damages. 
B) Only damages above $1, 000 can qualify as nominal damages. 
C) Most courts favor nominal damages lawsuits. 
D) They are awarded even when a breach did not result in financial loss. 
A) They are also known as compensatory damages. 
B) Only damages above $1, 000 can qualify as nominal damages. 
C) Most courts favor nominal damages lawsuits. 
D) They are awarded even when a breach did not result in financial loss.

Question 17

Specific performance of personal service contracts is not granted.

Accepted Answer

A) True 
 B)False

Question 18

Andrew is employed as a Chief Financial Officer of EasyMoney firm in New York City, for a salary of $200, 000 per year on a three-year contract.His employer terminates Andrew with two years left in the contract.Andrew accepts employment as a financial analyst at a different firm that pays $150, 000 per year.Which of the following hold true in this scenario?

Accepted Answer

A) Andrew cannot take any legal action against his formal employer after accepting another job. 
B) Andrew's former employer must pay Andrew two years' worth of his former salary. 
C) Andrew can only sue to receive nominal damages. 
D) Andrew can sue his prior employer and recover $100, 000. 
A) Andrew cannot take any legal action against his formal employer after accepting another job. 
B) Andrew's former employer must pay Andrew two years' worth of his former salary. 
C) Andrew can only sue to receive nominal damages. 
D) Andrew can sue his prior employer and recover $100, 000.

Question 19

The return of goods or property received from the other party to rescind a contract is known as restitution.

Accepted Answer

A) True 
 B)False

Question 20

Distinguish minor breach from material breach.

Accepted Answer

A minor breach occurs when a party rende

Exam 16: Remedies for Breach of Traditional and E-Contracts

Which of the following statements is true of mitigation of damages?

Tender of performance discharges a party's contractual obligations.

Intentional interference with contractual relations arises when a third party induces a contracting party to breach the contract with another party.

________ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Poole Contractors makes a contract with Delta Resources to pay $50, 000 for the supply of 500 truckloads of sand within next week.Delta Resources delivers the sand in two days after the contract was made.Poole Contractors pays the $50, 000 promised in the contract.This is an instance of ________.

To rescind a contract, the parties must make restitution of the consideration they received under the contract.

Which of the following statements is true of discharge of contracts?

If the builder breaches a construction contract either before or during construction, the owner can recover the increased cost above the contract price that he or she has to pay to have the work completed by another contractor.

Specific performance is not awarded in contracts for the sale of land.

An employee who has been dismissed improperly accepts a job that is less comparable.Which of the following is a subsequent course of action?

Which of the following is true of monetary damages?

When a party commits an anticipatory breach, the nonbreaching party ________.

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

A court order that prohibits a person from doing a certain act is termed as a(n)________.

Minor breach occurs when a party renders substantial performance of his or her contractual duties.

Which of the following statements is true of nominal damages?

Specific performance of personal service contracts is not granted.

The return of goods or property received from the other party to rescind a contract is known as restitution.

Distinguish minor breach from material breach.

Legal Heritage and the Digital Age

Courts and Jurisdiction

Judicial,Alternative,and E-Dispute Resolution

Constitutional Law for Business and E-Commerce

Intentional Torts and Negligence

Product and Strict Liability

Intellectual Property and Cyber Piracy

Criminal Law and Cyber Crimes

Nature of Traditional and E-Contracts

Agreement

Consideration and Promissory Estoppel

Capacity and Legality

Genuineness of Assent and Undue Influence

Statute of Frauds and Equitable Exceptions

Third-Party Rights and Discharge

E-Commerce and Digital Law

Formation of Sales and Lease Contracts

Title to Goods and Risk of Loss

Remedies for Breach of Sales and Lease Contracts

Warranties

Creation of Negotiable Instruments

Holder in Due Course and Transferability

Liability, Defenses, and Discharge

Banks, E-Money, and Financial Reform

Credit,Mortgages,and Debtor's Rights

Secured Transactions and E-Filing

Bankruptcy and Reorganization

Agency Formation and Termination

Liability of Principals, Agents, and Independent Contractors

Employment, Worker Protection, and Immigration Law

Labor Law and Collective Bargaining

Equal Opportunity in Employment

Small Business, Entrepreneurship, and General Partnerships

Limited Partnerships and Special Partnerships

Corporate Formation and Financing

Corporate Governance and the Sarbanes-Oxley Act

Corporate Acquisitions and Multinational Corporations

Limited Liability Companies and Limited Liability Partnerships

Franchises and Special Forms of Businesses

Investor Protection, E-Securities, and Wall Street Reform

Ethics and Social Responsibility of Business

Administrative Law and Regulatory Agencies

Consumer Protection and Product Safety

Environmental Protection

Antitrust Law and Unfair Trade Practices

Personal Property and Bailment

Real Property

Landlord-Tenant Law and Land Use Regulation

Insurance

Accountants' Duties and Liability

Wills Trusts and Estates

Family Law

International and World Trade Law

Filters