Question 1

The equitable remedy of specific performance is most likely to be awarded by a court in which of the following circumstances?

Accepted Answer

A) Sale of a Da Vinci original where the seller refuses to deliver 
B) Sale of a perfume bottle which the seller refuses to deliver 
C) A promisee's failure to perform at a charity event 
D) A promisee's failure to deliver a contract of employment 
A) Sale of a Da Vinci original where the seller refuses to deliver 
B) Sale of a perfume bottle which the seller refuses to deliver 
C) A promisee's failure to perform at a charity event 
D) A promisee's failure to deliver a contract of employment

Question 2

Stacey wanted someone to paint her house.Jessica offered to do it for $300 while Nancy offered to do it for $250.A few days after Stacey entered into a contract with Nancy,Nancy increased her fee to $400.By this time,Jessica was not interested in entering into a contract with Stacey anymore.Stacey can seek to be compensated on the basis of a ________.

Accepted Answer

A) quasi-contract 
B) part performance 
C) reliance interest 
D) compensatory damages 
A) quasi-contract 
B) part performance 
C) reliance interest 
D) compensatory damages

Question 3

Which of the following is a doctrine under which a party to a contract is relieved of his duty to perform when that performance can no longer be completed because of the occurrence of an event unforeseen at the time of contracting?

Accepted Answer

A) Waiver 
B) Impracticability 
C) Impossibility 
D) Good faith and fair dealing 
A) Waiver 
B) Impracticability 
C) Impossibility 
D) Good faith and fair dealing

Question 4

Winston contracts to sell a plot of land called Blackacre to Paris for $500,000.Winston breaches the contract and Paris sues him.Blackacre's reasonable market value at the time of the breach was $525,000.Paris can recover:

Accepted Answer

A) nothing,for he hasn't really suffered any harm. 
B) nothing,because specific performance is his only remedy here. 
C) only $25,000. 
D) the entire $500,000. 
A) nothing,for he hasn't really suffered any harm. 
B) nothing,because specific performance is his only remedy here. 
C) only $25,000. 
D) the entire $500,000.

Question 5

What is the term for a condition that is not stated in the contract but is created by the nature of the transaction between parties?

Accepted Answer

A) Express condition 
B) Implied-in-fact condition 
C) Corporate condition 
D) Bilateral condition 
A) Express condition 
B) Implied-in-fact condition 
C) Corporate condition 
D) Bilateral condition

Question 6

In the case in the text,Harrison v.Family Home Builders,LLC,the court held that:

Accepted Answer

A) FHB failed to perform the work in a workmanlike manner. 
B) FHB failed to perform the work in accordance with the plans and specifications provided by the Harrisons. 
C) FHB failed to render substantial performance of the contract. 
D) FHB was entitled to a reasonable time to perform the contract. 
A) FHB failed to perform the work in a workmanlike manner. 
B) FHB failed to perform the work in accordance with the plans and specifications provided by the Harrisons. 
C) FHB failed to render substantial performance of the contract. 
D) FHB was entitled to a reasonable time to perform the contract.

Question 7

In World of Boxing LLC v.King,the case in the text,the court held that:

Accepted Answer

A) impossibility excused King's breach because his mistaken belief was reasonable. 
B) impossibility excused King's breach because he should not be punished for failing to foresee a plainly remote and unlikely event. 
C) impossibility did not excuse King's breach. 
D) impossibility  excused King's breach because his duty to perform was triggered by an event out of his control. 
A) impossibility excused King's breach because his mistaken belief was reasonable. 
B) impossibility excused King's breach because he should not be punished for failing to foresee a plainly remote and unlikely event. 
C) impossibility did not excuse King's breach. 
D) impossibility  excused King's breach because his duty to perform was triggered by an event out of his control.

Question 8

A ________ is a future,uncertain event that discharges the duty to perform.

Accepted Answer

A) concurrent condition 
B) condition precedent 
C) condition subsequent 
D) constructive condition 
A) concurrent condition 
B) condition precedent 
C) condition subsequent 
D) constructive condition

Question 9

Which of the following is generally taken to mean neither party to a contract will do anything to prevent the other from obtaining the benefits that she has the right to expect from the parties' agreement or their contractual relationship?

Accepted Answer

A) Implied covenant of candor 
B) Implied covenant of fairness 
C) Implied covenant of good faith and fair dealing 
D) Implied covenant of loyalty 
A) Implied covenant of candor 
B) Implied covenant of fairness 
C) Implied covenant of good faith and fair dealing 
D) Implied covenant of loyalty

Question 10

Which of the following is true of the materiality of breach?

Accepted Answer

A) Courts generally adopt strict standards to determine materiality. 
B) The magnitude of the breach is of relatively less importance. 
C) There is no concern about compensating the nonbreaching party. 
D) The timing of the breach is generally taken into consideration. 
A) Courts generally adopt strict standards to determine materiality. 
B) The magnitude of the breach is of relatively less importance. 
C) There is no concern about compensating the nonbreaching party. 
D) The timing of the breach is generally taken into consideration.

Question 11

Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party.Yvonne does not produce the advertisement until July 6.Here,Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence.

Accepted Answer

A) True 
 B)False

Question 12

On May 2,1972,Mix,an accountant,entered into an oral contract with Dell to provide certain accounting services to Dell.The contract was fully performed by both parties in 1974.On April 25,1988,Dell commenced a breach of contract action against Mix claiming that Mix improperly performed the accounting services.Mix's best defense to the action would likely be:

Accepted Answer

A) Parol evidence rule 
B) Statute of limitations 
C) Statute of frauds 
D) Lack of consideration 
A) Parol evidence rule 
B) Statute of limitations 
C) Statute of frauds 
D) Lack of consideration

Question 13

Which form of damages is intended to give the victim of the breach of contract the "benefit of his bargain"?

Accepted Answer

A) Compensatory 
B) Punitive 
C) Nominal 
D) Liquidated 
A) Compensatory 
B) Punitive 
C) Nominal 
D) Liquidated

Question 14

Maria and Joe entered into a contract for the sale of Maria's car.Delivery of the car and payment were to be made on March 1.Joe clarified that he needed the car so that he can commute between San Francisco and Oakland to his new job that is starting on March 2.Maria breached the contract and failed to deliver the car on March 1.Joe needed a car to commute so he rented a car at $30 per day for 20 days,which was the reasonable amount of time it took him to locate and buy another car.Joe sued Maria for his losses,including the $600 car rental.The $600 makes up the ________ damages.

Accepted Answer

A) liquidated 
B) consequential 
C) punitive 
D) specific performance 
A) liquidated 
B) consequential 
C) punitive 
D) specific performance

Question 15

Richard contracts with Yuan to buy Yuan's house for $100,000 "unless my horse does not win the Kentucky Derby." This is a condition subsequent,or at least an attempted condition subsequent.Rephrase it as a condition precedent with the same effect.If you can do this,why does the law bother to distinguish conditions precedent from conditions subsequent?

Accepted Answer

"I,Richard,promise to buy Yuan's house f

Question 16

Bing engaged Dill to perform personal services for $2,200 a month for a period of four months.The contract was entered into orally on July 1,1984,and performance was to commence on September 1,1984.On August 10,Dill anticipatorily repudiated the contract.As a result,Bing:

Accepted Answer

A) may not assign his rights to damages under the contract to a third party. 
B) can obtain specific performance. 
C) may not enforce the contract against Dill since the contract is oral. 
D) can immediately sue for breach of contract. 
A) may not assign his rights to damages under the contract to a third party. 
B) can obtain specific performance. 
C) may not enforce the contract against Dill since the contract is oral. 
D) can immediately sue for breach of contract.

Question 17

There cannot be subjective standards of personal taste and comfort when determining a promisee's performance.

Accepted Answer

A) True 
 B)False

Question 18

Damages that are agreed upon at the time the contract is entered into are called ________.

Accepted Answer

A) compensatory damages 
B) consequential damages 
C) liquidated damages 
D) mitigation of damages 
A) compensatory damages 
B) consequential damages 
C) liquidated damages 
D) mitigation of damages

Question 19

Which of the following statements about courts determining the materiality of a breach is false?

Accepted Answer

A) The standard for determining materiality is a flexible one that takes into account the facts of each individual case. 
B) A breach that occurs later in the parties' relationship is more likely to be viewed as material than is one that occurs early. 
C) They key question is whether the breach deprives the injured party of the benefits that he reasonably expected. 
D) Courts take into account the extent to which the breaching party will suffer forfeiture if the breach is held to be material. 
A) The standard for determining materiality is a flexible one that takes into account the facts of each individual case. 
B) A breach that occurs later in the parties' relationship is more likely to be viewed as material than is one that occurs early. 
C) They key question is whether the breach deprives the injured party of the benefits that he reasonably expected. 
D) Courts take into account the extent to which the breaching party will suffer forfeiture if the breach is held to be material.

Question 20

Price signed a contract to sell Wyatt a parcel of land for $90,000.The entire sales price was payable at the closing.Price decided to keep the land.If Wyatt commences an action against Price,what relief is Wyatt most likely to receive?

Accepted Answer

A) Specific performance 
B) Compensatory damages and specific performance 
C) Punitive damages 
D) Compensatory damages and punitive damages 
A) Specific performance 
B) Compensatory damages and specific performance 
C) Punitive damages 
D) Compensatory damages and punitive damages

Exam 18: Performance and Remedies

The equitable remedy of specific performance is most likely to be awarded by a court in which of the following circumstances?

Which of the following is a doctrine under which a party to a contract is relieved of his duty to perform when that performance can no longer be completed because of the occurrence of an event unforeseen at the time of contracting?

Winston contracts to sell a plot of land called Blackacre to Paris for $500,000.Winston breaches the contract and Paris sues him.Blackacre's reasonable market value at the time of the breach was $525,000.Paris can recover:

What is the term for a condition that is not stated in the contract but is created by the nature of the transaction between parties?

In the case in the text,Harrison v.Family Home Builders,LLC,the court held that:

In World of Boxing LLC v.King,the case in the text,the court held that:

A ________ is a future,uncertain event that discharges the duty to perform.

Which of the following is generally taken to mean neither party to a contract will do anything to prevent the other from obtaining the benefits that she has the right to expect from the parties' agreement or their contractual relationship?

Which of the following is true of the materiality of breach?

Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party.Yvonne does not produce the advertisement until July 6.Here,Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence.

Which form of damages is intended to give the victim of the breach of contract the "benefit of his bargain"?

Bing engaged Dill to perform personal services for $2,200 a month for a period of four months.The contract was entered into orally on July 1,1984,and performance was to commence on September 1,1984.On August 10,Dill anticipatorily repudiated the contract.As a result,Bing:

There cannot be subjective standards of personal taste and comfort when determining a promisee's performance.

Damages that are agreed upon at the time the contract is entered into are called ________.

Which of the following statements about courts determining the materiality of a breach is false?

Price signed a contract to sell Wyatt a parcel of land for $90,000.The entire sales price was payable at the closing.Price decided to keep the land.If Wyatt commences an action against Price,what relief is Wyatt most likely to receive?

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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