Question 1

The remedy of specific performance will most likely be granted in the case of a(n):

Accepted Answer

A)  employment contract. 
B)  contract to buy shares of publicly-traded stock. 
C)  contract for the sale of a business. 
D)  contract for the sale of Florida oranges. 
A)  employment contract. 
B)  contract to buy shares of publicly-traded stock. 
C)  contract for the sale of a business. 
D)  contract for the sale of Florida oranges.

Question 2

An antimodification clause specifies that a waiver to any breach automatically modifies the contract.

Accepted Answer

A) True 
 B)False

Question 3

When the contract requires that both parties submit disputes to arbitration, this is an example of a limitation-of-remedies clause.

Accepted Answer

A) True 
 B)False

Question 4

If an exculpatory clause limits liability for damages caused by negligent conduct, the tortfeasor's liability is:

Accepted Answer

A)  contributorily negligent. 
B)  not limited if the conduct is willful. 
C)  limited unless the plaintiff signed a release. 
D)  limited if the conduct is grossly negligent. 
A)  contributorily negligent. 
B)  not limited if the conduct is willful. 
C)  limited unless the plaintiff signed a release. 
D)  limited if the conduct is grossly negligent.

Question 5

When a party fails to perform in the manner called for in the contract, a breach occurs.

Accepted Answer

A) True 
 B)False

Question 6

When a party expressly declares before the time for performance arrives that the contract will not be performed, such a declaration is called an anticipatory repudiation.

Accepted Answer

A) True 
 B)False

Question 7

A reservation of rights is an assertion by a party to a contract that even though a tendered performance is accepted, the right to damages for the nonconformity to the contract is reserved.

Accepted Answer

A) True 
 B)False

Question 8

When a written contract does not correctly state the agreement already made but the parties either party make seek a(n):

Accepted Answer

A)  rescission 
B)  injunction 
C)  reformation of the contract 
D)  action for specific performance 
A)  rescission 
B)  injunction 
C)  reformation of the contract 
D)  action for specific performance

Question 9

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

Accepted Answer

A)  waives the late fee. 
B)  will collect the late fee at a later date. 
C)  is ignorant of the late fee. 
D)  allows the tenant to repudiate the lease. 
A)  waives the late fee. 
B)  will collect the late fee at a later date. 
C)  is ignorant of the late fee. 
D)  allows the tenant to repudiate the lease.

Question 10

The normal remedy for breach of contract where the plaintiff has suffered a loss is nominal damages.

Accepted Answer

A) True 
 B)False

Question 11

Only direct losses from a breach of contract may be recovered by an injured party.

Accepted Answer

A) True 
 B)False

Question 12

Punitive damages are generally recoverable in contract actions.

Accepted Answer

A) True 
 B)False

Question 13

Contract provisions that limit the remedies of the parties are generally unenforceable.

Accepted Answer

A) True 
 B)False

Question 14

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

Accepted Answer

A)  nominal 
B)  contract 
C)  liquidated 
D)  breach 
A)  nominal 
B)  contract 
C)  liquidated 
D)  breach

Question 15

A waiver of a breach may be either express or implied.

Accepted Answer

A) True 
 B)False

Question 16

Gregory, a comedy writer, entered into a contract with Wessel, a comedian. The contract provided that Gregory would provide Wessel with a 15-minute monologue for his upcoming appearance on Comedy Hour and that Wessel would pay Gregory $250. All performers on Comedy Hour make $500 per appearance. As Gregory knows, the last time Wessel appeared on Comedy Hour he was asked to make special guest appearances at three local comedy clubs using the same monologue. He earned a total of $750 for the three performances. Shortly before Wessel was scheduled to appear on Comedy Hour, Gregory informed him that he was unable to provide the monologue. As a result, Wessel was forced to cancel his appearance. Wessel sued Gregory for breach of contract and requested damages of $1,250. What will result?

Accepted Answer

Judgment will be for Wessel for breach o

Question 17

If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the damages would most likely be classified as:

Accepted Answer

A)  punitive damages. 
B)  exemplary damages. 
C)  nominal damages. 
D)  compensatory damages. 
A)  punitive damages. 
B)  exemplary damages. 
C)  nominal damages. 
D)  compensatory damages.

Question 18

A waiver is based on the subjective opinion of the innocent party.

Accepted Answer

A) True 
 B)False

Exam 19: Breach of Contract and Remedies

The remedy of specific performance will most likely be granted in the case of a(n):

An antimodification clause specifies that a waiver to any breach automatically modifies the contract.

When the contract requires that both parties submit disputes to arbitration, this is an example of a limitation-of-remedies clause.

If an exculpatory clause limits liability for damages caused by negligent conduct, the tortfeasor's liability is:

When a party fails to perform in the manner called for in the contract, a breach occurs.

When a party expressly declares before the time for performance arrives that the contract will not be performed, such a declaration is called an anticipatory repudiation.

A reservation of rights is an assertion by a party to a contract that even though a tendered performance is accepted, the right to damages for the nonconformity to the contract is reserved.

When a written contract does not correctly state the agreement already made but the parties either party make seek a(n):

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

The normal remedy for breach of contract where the plaintiff has suffered a loss is nominal damages.

Only direct losses from a breach of contract may be recovered by an injured party.

Punitive damages are generally recoverable in contract actions.

Contract provisions that limit the remedies of the parties are generally unenforceable.

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

A waiver of a breach may be either express or implied.

If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the damages would most likely be classified as:

A waiver is based on the subjective opinion of the innocent party.

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces, and the Law

The Constitution As the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environment of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents Estates and Trusts

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