Exam 18: Contract Remedies

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

What interests of an injured party are protected by contract remedies?

Which of the following is correct with respect to election of remedies?

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward.An appropriate remedy for Edward to seek would be:

Miller made a contract to sell his condominium to Jefferson for $80,000.Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000.Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000.Jefferson is seeking:

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

A power of avoidance held by a party may be lost if:

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500.When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne.Marianne can ask the court to order:

Define incidental damages and give an example.

Courts of equity will grant specific performance of contracts for personal service.

The majority of states follow the rule in awarding damages for fraud.

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

Restitution involves a return of consideration or its value to the aggrieved party.

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

In which of the following situations will a court grant specific performance?

Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down.Then Lynne learns she is allergic to hay and repudiates the contract.If Harriette can sell the farm one month later for $90,000, she may:

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is:

Consequential damages include lost profits and injury to person or property resulting from defective performance.

An employee's promise of providing ordinary personal services may be enforced by an injunction against serving another employer.