Question 1

Which of the following statements is the best description of the remedy of' 'rescission'?

Accepted Answer

A) The injured party is entitled to set aside the contract and be restored to their pre-contractual position. 
B) The party at fault is restrained from breaching the contract or from committing a wrongful act. 
C) The party at fault is directed to carry out their obligations under the contract. 
D) The party at fault has unjustly obtained a benefit at the injured party's expense and is ordered to restore it to the injured party. 
A) The injured party is entitled to set aside the contract and be restored to their pre-contractual position. 
B) The party at fault is restrained from breaching the contract or from committing a wrongful act. 
C) The party at fault is directed to carry out their obligations under the contract. 
D) The party at fault has unjustly obtained a benefit at the injured party's expense and is ordered to restore it to the injured party.

Question 2

Which of the following statements is the best description of the object of damages for breach of contract?

Accepted Answer

A) To put the parties into the position they would have been in if the contract had been performed. 
B) To restore the parties to their pre-contractual position. 
C) To put the parties into the position they were in before the contract was breached. 
D) To punish the person responsible for the breach. 
A) To put the parties into the position they would have been in if the contract had been performed. 
B) To restore the parties to their pre-contractual position. 
C) To put the parties into the position they were in before the contract was breached. 
D) To punish the person responsible for the breach.

Question 3

In Commonwealth of Australia v Amann Aviation Pty Ltd (1991)104 ALR 1,the court ordered the Commonwealth to:

Accepted Answer

A) pay exemplary damages. 
B) mitigate the loss suffered by Amman. 
C) pay damages for expectation and reliance losses. 
D) perform the contract. 
A) pay exemplary damages. 
B) mitigate the loss suffered by Amman. 
C) pay damages for expectation and reliance losses. 
D) perform the contract.

Question 4

In Lumley v Wagner (1852)42 ER 687,the court:

Accepted Answer

A) refused to grant any remedy. 
B) granted a decree of specific performance which required the singer to perform at Lumley's theatre. 
C) made an order for damages against the singer for breach of contract. 
D) granted an injunction restraining the singer from breaching her contract to sing at Lumley's theatre. 
A) refused to grant any remedy. 
B) granted a decree of specific performance which required the singer to perform at Lumley's theatre. 
C) made an order for damages against the singer for breach of contract. 
D) granted an injunction restraining the singer from breaching her contract to sing at Lumley's theatre.

Question 5

Exemplary damages are awarded when the court feels that it needs to punish the party in default.

Accepted Answer

A) True 
 B)False

Question 6

In most Australian jurisdictions,the right to sue for breach of a simple contract is limited to the period of 6 years from the date on which the right of action accrues.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements is the best description of a 'mandatory' injunction?

Accepted Answer

A) A court order restraining the defendant from removing or disposing of assets until the court makes a decision. 
B) A court order requiring the person to perform some contractual obligation. 
C) A court order preventing a breach of contract. 
D) A court order which freezes the status quo between the parties until the dispute can be heard by the court. 
A) A court order restraining the defendant from removing or disposing of assets until the court makes a decision. 
B) A court order requiring the person to perform some contractual obligation. 
C) A court order preventing a breach of contract. 
D) A court order which freezes the status quo between the parties until the dispute can be heard by the court.

Question 8

According to Mareva Compania Naviera SA v International Bulk Carriers [1980] 1 All ER 213,the plaintiff must establish which of the following:

Accepted Answer

A) that the defendant has assets that are in the court's jurisdiction. 
B) that there is a real risk that the defendant will remove or get rid of any assets before judgment. 
C) that the plaintiff can establish a substantive cause of action,such as a claim for damages. 
D) all of the above. 
A) that the defendant has assets that are in the court's jurisdiction. 
B) that there is a real risk that the defendant will remove or get rid of any assets before judgment. 
C) that the plaintiff can establish a substantive cause of action,such as a claim for damages. 
D) all of the above.

Question 9

Which of the following statements is the best description of 'liquidated' damages?

Accepted Answer

A) An amount not fixed in the contract and left for the court to determine. 
B) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
C) An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract. 
D) An amount awarded to punish the party in breach of the contract. 
A) An amount not fixed in the contract and left for the court to determine. 
B) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
C) An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract. 
D) An amount awarded to punish the party in breach of the contract.

Question 10

Which of the following statements is the best description of the remedy of 'restitution'?

Accepted Answer

A) The injured party is entitled to set aside the contract and be restored to their pre-contractual position. 
B) The party at fault is restrained from breaching the contract or from committing a wrongful act. 
C) The party at fault is directed to carry out their obligations under the contract. 
D) The party at fault has unjustly obtained a benefit at the injured party's expense and is ordered to restore it to the injured party. 
A) The injured party is entitled to set aside the contract and be restored to their pre-contractual position. 
B) The party at fault is restrained from breaching the contract or from committing a wrongful act. 
C) The party at fault is directed to carry out their obligations under the contract. 
D) The party at fault has unjustly obtained a benefit at the injured party's expense and is ordered to restore it to the injured party.

Question 11

Which of the following statements is the best description of 'unliquidated' damages?

Accepted Answer

A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss. 
B) An amount awarded to punish the party in breach of the contract. 
C) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
D) An amount not fixed in the contract and left for the court to determine. 
A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss. 
B) An amount awarded to punish the party in breach of the contract. 
C) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
D) An amount not fixed in the contract and left for the court to determine.

Question 12

Which of the following statements is the best description of the duty of the injured party to 'mitigate' their loss?

Accepted Answer

A) They must take all reasonable steps to minimise their loss. 
B) They must take all reasonable steps to prevent the breach. 
C) They must take all reasonable steps to report the breach to the court. 
D) They must take all reasonable steps to transfer the loss to the party in breach. 
A) They must take all reasonable steps to minimise their loss. 
B) They must take all reasonable steps to prevent the breach. 
C) They must take all reasonable steps to report the breach to the court. 
D) They must take all reasonable steps to transfer the loss to the party in breach.

Question 13

To recover special damages under the rule in Hadley v Baxendale (1854)9 Ex 341 the plaintiff must make known to the other party the special circumstances at the time the contract is entered into.

Accepted Answer

A) True 
 B)False

Question 14

While not a remedy for breach of contract,restitution is available to avoid unjust enrichment.

Accepted Answer

A) True 
 B)False

Question 15

Define penalty and discuss its purpose.

Accepted Answer

A penalty is an amount agreed upon as a

Question 16

Which of the following is NOT one of the requirements which must be satisfied before the remedy of restitution will be granted by a court?

Accepted Answer

A) It would be unjust to allow the defendant to retain the benefit. 
B) The defendant has received a benefit. 
C) The benefit to the defendant was at the plaintiff's expense. 
D) The plaintiff has suffered loss or damage as a consequence of a breach of the contract. 
A) It would be unjust to allow the defendant to retain the benefit. 
B) The defendant has received a benefit. 
C) The benefit to the defendant was at the plaintiff's expense. 
D) The plaintiff has suffered loss or damage as a consequence of a breach of the contract.

Question 17

Which of the following statements is the best description of 'exemplary' damages?

Accepted Answer

A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss. 
B) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
C) An amount awarded to punish the party in breach of the contract. 
D) An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract. 
A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss. 
B) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
C) An amount awarded to punish the party in breach of the contract. 
D) An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.

Question 18

Which of the following statements is the best description of 'nominal' damages?

Accepted Answer

A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss. 
B) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
C) An amount awarded to punish the party in breach of the contract. 
D) An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract. 
A) An amount awarded where the innocent party's rights have been infringed but they have suffered no actual loss. 
B) An amount awarded to compensate the innocent party for the loss suffered as a result of the breach of contract. 
C) An amount awarded to punish the party in breach of the contract. 
D) An amount based upon a genuine pre-estimate of actual loss flowing from the breach of contract.

Question 19

Why was the plaintiff builder successful in the case of Pavey & Matthews Pty Ltd v Paul (1987)162 CLR 221?

Accepted Answer

A) The work was completed with proper skill and on time. 
B) The defendant had repudiated the contract. 
C) The defendant had received a benefit from the builder's performance of the contract. 
D) The contract was entire and not divisible. 
A) The work was completed with proper skill and on time. 
B) The defendant had repudiated the contract. 
C) The defendant had received a benefit from the builder's performance of the contract. 
D) The contract was entire and not divisible.

Question 20

What is meant by the term 'damages'?

Accepted Answer

Damages is compensation in monetary form

Exam 15: Remedies in Contract

Which of the following statements is the best description of the remedy of' 'rescission'?

Which of the following statements is the best description of the object of damages for breach of contract?

In Commonwealth of Australia v Amann Aviation Pty Ltd (1991)104 ALR 1,the court ordered the Commonwealth to:

In Lumley v Wagner (1852)42 ER 687,the court:

Exemplary damages are awarded when the court feels that it needs to punish the party in default.

In most Australian jurisdictions,the right to sue for breach of a simple contract is limited to the period of 6 years from the date on which the right of action accrues.

Which of the following statements is the best description of a 'mandatory' injunction?

According to Mareva Compania Naviera SA v International Bulk Carriers [1980] 1 All ER 213,the plaintiff must establish which of the following:

Which of the following statements is the best description of 'liquidated' damages?

Which of the following statements is the best description of the remedy of 'restitution'?

Which of the following statements is the best description of 'unliquidated' damages?

Which of the following statements is the best description of the duty of the injured party to 'mitigate' their loss?

To recover special damages under the rule in Hadley v Baxendale (1854)9 Ex 341 the plaintiff must make known to the other party the special circumstances at the time the contract is entered into.

While not a remedy for breach of contract,restitution is available to avoid unjust enrichment.

Define penalty and discuss its purpose.

Which of the following is NOT one of the requirements which must be satisfied before the remedy of restitution will be granted by a court?

Which of the following statements is the best description of 'exemplary' damages?

Which of the following statements is the best description of 'nominal' damages?

Why was the plaintiff builder successful in the case of Pavey & Matthews Pty Ltd v Paul (1987)162 CLR 221?

What is meant by the term 'damages'?

Legal Foundations

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How Law Is Made: Precedentstatute Law

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