Question 1

An award of damages seeks to place the injured party in the same position as if the contract had not been completed.

Accepted Answer

A) True 
 B)False

Question 2

Which premise most likely falls under the "specific performance" of equitable remedies?

Accepted Answer

A)  A singer breaches a contract to sing because of a sore throat. 
B)  A home owner is forced to sell her house because of a court decision. 
C)  Land is sold to a realtor for an unfair price and the seller sues for loss of equity. 
D)  A restaurant customer refuses to pay for a meal and is made to do dishes. 
E)  A car is sold to a third party and the first party takes the loss. 
A)  A singer breaches a contract to sing because of a sore throat. 
B)  A home owner is forced to sell her house because of a court decision. 
C)  Land is sold to a realtor for an unfair price and the seller sues for loss of equity. 
D)  A restaurant customer refuses to pay for a meal and is made to do dishes. 
E)  A car is sold to a third party and the first party takes the loss.

Question 3

Farmer Gibson ordered an irrigation pump from Sinclair Farm Supply where he has an open account. When they attempted to deliver, he refused to accept, claiming he could get a better deal elsewhere. Legally, Gibson could be charged for all damages that naturally flow from this breach. Assuming Sinclair made free deliveries and it had more pumps than customers, the damages would include

Accepted Answer

A)  only the expected profits on this item. 
B)  expected profits, delivery charge, and a restocking charge. 
C)  transportation as well as a restocking charge. 
D)  the damages associated with Gibson not being able to properly irrigate his land. 
E)  only two way transportation to Gibson's farm. 
A)  only the expected profits on this item. 
B)  expected profits, delivery charge, and a restocking charge. 
C)  transportation as well as a restocking charge. 
D)  the damages associated with Gibson not being able to properly irrigate his land. 
E)  only two way transportation to Gibson's farm.

Question 4

Danny agreed to sell a large painting to Mary for $5,000. It has a sentimental value to Mary-being a painting of her house in 1938. Before delivery Danny discovered the sentimental interest of Mary and refused to sell it at the agreed upon price. Which of the following statements is correct?

Accepted Answer

A)  Mary is not entitled to an equitable remedy because the subject of the contract is not real property. 
B)  Danny does not have to deliver the painting at the original price because of the doctrine of mistaken value. 
C)  Danny can demand compensation for the painting's full esthetic value. 
D)  Mary could claim the remedy of specific performance because the painting is so special to her. 
E)  Mary is entitled to damages of $5,000. 
A)  Mary is not entitled to an equitable remedy because the subject of the contract is not real property. 
B)  Danny does not have to deliver the painting at the original price because of the doctrine of mistaken value. 
C)  Danny can demand compensation for the painting's full esthetic value. 
D)  Mary could claim the remedy of specific performance because the painting is so special to her. 
E)  Mary is entitled to damages of $5,000.

Question 5

In which of the following situations is a court most likely to award punitive damages:

Accepted Answer

A)  breach of a contract for sale of land 
B)  breach of a contract for sale of a business 
C)  breach of a construction contract. 
D)  breach of a contract for sale of goods 
E)  breach of a contract of employment 
A)  breach of a contract for sale of land 
B)  breach of a contract for sale of a business 
C)  breach of a construction contract. 
D)  breach of a contract for sale of goods 
E)  breach of a contract of employment

Question 6

On April 10, Mel entered into a contract to sell his house to Nan at a price of $300,000. Title was to transfer May
31. Nan paid Mel a deposit of $20,000. A clause in the contract between them said: "If the buyer does not complete as specified, the seller can elect to keep the deposit as liquidated damages." On April 30, Nan told Mel she could not complete the contract because she could not sell her own house. Mel immediately entered into a contract to sell his house to Paul for $320,000. Nan insists that Mel return her deposit because he has suffered no damages. Will a court order Mel to return her deposit?

Accepted Answer

The contract between Mel and Nan contain

Question 7

The remedy of rescission involves suspending the operation of a contract temporarily.

Accepted Answer

A) True 
 B)False

Question 8

Why would courts be willing to give specific performance routinely in the purchase of real property, both for the seller as well as the buyer?

Accepted Answer

Courts grant specific performance on lan

Question 9

The purpose of an award of damages is to put the plaintiff in the position it would have been in had the contract been performed.

Accepted Answer

A) True 
 B)False

Question 10

Consequential damages are

Accepted Answer

A)  those that do not flow naturally from the breach. 
B)  those that a defendant will not be liable to compensate a plaintiff for. 
C)  extra significant damages. 
D)  one stage removed form the immediate effects of a breach. 
E)  those that are not reasonably foreseeable. 
A)  those that do not flow naturally from the breach. 
B)  those that a defendant will not be liable to compensate a plaintiff for. 
C)  extra significant damages. 
D)  one stage removed form the immediate effects of a breach. 
E)  those that are not reasonably foreseeable.

Question 11

Specific performance will NOT generally be available for breach of a contract for:

Accepted Answer

A)  contracts requiring unique personal skill or judgment 
B)  sale of works of art 
C)  sale of goods 
D)  sale of antiques 
E)  sale of goods that have been custom- made 
A)  contracts requiring unique personal skill or judgment 
B)  sale of works of art 
C)  sale of goods 
D)  sale of antiques 
E)  sale of goods that have been custom- made

Question 12

Name two equitable remedies. Describe three ways in which a party will lose its right to claim an equitable remedy.

Accepted Answer

Both specific performance and injunction

Question 13

Which of the following is NOT an equitable remedy?

Accepted Answer

A)  quantum meruit 
B)  punitive award 
C)  specific performance 
D)  injunction 
E)  rescission 
A)  quantum meruit 
B)  punitive award 
C)  specific performance 
D)  injunction 
E)  rescission

Question 14

Onar Development stopped progress payments to its general contractor, Shape Construction. Upon the advice of their attorney, Shape decided to sue for rescission of the contract rather than collect damages for breach. Shape will most likely

Accepted Answer

A)  file for bankruptcy. 
B)  get expectation damages. 
C)  get an injunction. 
D)  collect under quantum meruit. 
E)  ask for specific performance. 
A)  file for bankruptcy. 
B)  get expectation damages. 
C)  get an injunction. 
D)  collect under quantum meruit. 
E)  ask for specific performance.

Question 15

Explain the circumstances under which a claim of quantum meruit would be successful.

Accepted Answer

Quantum Meruit exists when there is a re

Question 16

Hastro Toys Mft. operates on a "just- in- time" inventory basis. When one of its suppliers missed a 2:00 PM delivery of a key component, the entire assembly line was shut down for the balance of the day. Hastro is suing its supplier for damages.

Accepted Answer

A)  reliance 
B)  consequential 
C)  general 
D)  liquidated 
E)  expectation 
A)  reliance 
B)  consequential 
C)  general 
D)  liquidated 
E)  expectation

Question 17

An injunction is available in a variety of circumstances, including where the contract does not contain a negative covenant.

Accepted Answer

A) True 
 B)False

Question 18

An order of specific performance

Accepted Answer

A)  requires one party to a contract to refrain from acting in a particular manner. 
B)  requires that the defendant do a certain act, usually something not specified in the contract. 
C)  requires that the party in breach pay a specific monetary sum to the other party. 
D)  would always apply to the buyer of real property (i.e. land and buildings). 
E)  requires that the defendant do a certain act, usually fulfill his part of the contract. 
A)  requires one party to a contract to refrain from acting in a particular manner. 
B)  requires that the defendant do a certain act, usually something not specified in the contract. 
C)  requires that the party in breach pay a specific monetary sum to the other party. 
D)  would always apply to the buyer of real property (i.e. land and buildings). 
E)  requires that the defendant do a certain act, usually fulfill his part of the contract.

Exam 15: Remedies for Breach

An award of damages seeks to place the injured party in the same position as if the contract had not been completed.

Which premise most likely falls under the "specific performance" of equitable remedies?

Danny agreed to sell a large painting to Mary for $5,000. It has a sentimental value to Mary-being a painting of her house in 1938. Before delivery Danny discovered the sentimental interest of Mary and refused to sell it at the agreed upon price. Which of the following statements is correct?

In which of the following situations is a court most likely to award punitive damages:

The remedy of rescission involves suspending the operation of a contract temporarily.

Why would courts be willing to give specific performance routinely in the purchase of real property, both for the seller as well as the buyer?

The purpose of an award of damages is to put the plaintiff in the position it would have been in had the contract been performed.

Consequential damages are

Specific performance will NOT generally be available for breach of a contract for:

Name two equitable remedies. Describe three ways in which a party will lose its right to claim an equitable remedy.

Which of the following is NOT an equitable remedy?

Onar Development stopped progress payments to its general contractor, Shape Construction. Upon the advice of their attorney, Shape decided to sue for rescission of the contract rather than collect damages for breach. Shape will most likely

Explain the circumstances under which a claim of quantum meruit would be successful.

Hastro Toys Mft. operates on a "just- in- time" inventory basis. When one of its suppliers missed a 2:00 PM delivery of a key component, the entire assembly line was shut down for the balance of the day. Hastro is suing its supplier for damages.

An injunction is available in a variety of circumstances, including where the contract does not contain a negative covenant.

An order of specific performance

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Sale of Goods

Leasing and Bailment

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

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