Question 1

Match each statement with the correct term below.
-specific performance

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive. 
A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 2

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

Accepted Answer

A) True 
 B)False

Question 3

Which of the following is NOT true regarding specific performance?

Accepted Answer

A) It will not be granted if money damages would be adequate to compensate the injured party. 
B) It is granted in contracts involving unique items of personal property. 
C) It will be granted frequently in contracts involving the sale of goods. 
D) The courts will not order directly the specific enforcement of contracts for personal services. 
A) It will not be granted if money damages would be adequate to compensate the injured party. 
B) It is granted in contracts involving unique items of personal property. 
C) It will be granted frequently in contracts involving the sale of goods. 
D) The courts will not order directly the specific enforcement of contracts for personal services.

Question 4

The test of foreseeable damages is subjective.

Accepted Answer

A) True 
 B)False

Question 5

What interests of injured parties are protected by remedies for a breach of contract?

Accepted Answer

Contract remedies are available to prote

Question 6

Damages for reliance include expenses for:

Accepted Answer

A) lost profits. 
B) injury to the person. 
C) preparing to perform. 
D) punishment of the breaching party. 
A) lost profits. 
B) injury to the person. 
C) preparing to perform. 
D) punishment of the breaching party.

Question 7

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

Accepted Answer

A) benefit-of-the-bargain 
B) out-of-pocket 
C) liquidated 
D) restitution 
A) benefit-of-the-bargain 
B) out-of-pocket 
C) liquidated 
D) restitution

Question 8

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.

Accepted Answer

A) True 
 B)False

Question 9

Match each statement with the correct term below.
-option

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive. 
A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 10

Bob's brother,Steve,planned to visit over Labor Day weekend.Together they planned to build a deck in Bob's backyard.Bob ordered the lumber,concrete,nails,and other supplies to be delivered on Friday.He also arranged to rent a saw for the weekend (Sat.,Sun.,and Mon.)at a cost of $20 a day.When he went to pick up the saw,the store had already rented it.He drove all over town trying to borrow another but could only get one for Sunday,Monday,and Tuesday at a cost of $50 per day.Because they couldn't work on Saturday without a saw,Bob had to hire Mac at a cost of $80 to work with him on Tuesday and,of course,Bob had to take off from work.Calculate the damages to which Bob is entitled.Why?

Accepted Answer

(1)Cost of rental of a replacement saw f

Question 11

Delay will have no effect on the power of avoidance.

Accepted Answer

A) True 
 B)False

Question 12

Incidental damages are those that arise directly out of the breach.

Accepted Answer

A) True 
 B)False

Question 13

Match each statement with the correct term below.
-injunction

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive. 
A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 14

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel,but now Daniel tells Vladimir,"I'll never part with these stamps." Are the following remedies available to Vladimir?

Accepted Answer

A) Restitution: Yes; Specific Performance: Yes 
B) Restitution: Yes; Specific Performance: No 
C) Restitution: No; Specific Performance: Yes 
D) Restitution: No; Specific Performance: No 
A) Restitution: Yes; Specific Performance: Yes 
B) Restitution: Yes; Specific Performance: No 
C) Restitution: No; Specific Performance: Yes 
D) Restitution: No; Specific Performance: No

Question 15

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

Accepted Answer

A) injunction. 
B) reformation. 
C) specific performance. 
D) rescission. 
A) injunction. 
B) reformation. 
C) specific performance. 
D) rescission.

Question 16

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits,when damages under ordinary circumstances would be $17,000.Explain under what circumstances a court would award $25,000.

Accepted Answer

a.Specific performance is available in c

Question 17

Match each statement with the correct term below.
-output contract

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive. 
A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 18

In the case of Hadley v.Baxendale,the plaintiff was seeking damages for:

Accepted Answer

A) restitution. 
B) lost profits. 
C) failure to convey land. 
D) failure to specifically perform a contract. 
A) restitution. 
B) lost profits. 
C) failure to convey land. 
D) failure to specifically perform a contract.

Question 19

Match each statement with the correct term below.
-requirements contract

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive. 
A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 20

Equitable remedies are available any time the plaintiff chooses them over money damages.

Accepted Answer

A) True 
 B)False

Exam 18: Contract Remedies

Match each statement with the correct term below. -specific performance

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

Which of the following is NOT true regarding specific performance?

The test of foreseeable damages is subjective.

What interests of injured parties are protected by remedies for a breach of contract?

Damages for reliance include expenses for:

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

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.

Match each statement with the correct term below. -option

Delay will have no effect on the power of avoidance.

Incidental damages are those that arise directly out of the breach.

Match each statement with the correct term below. -injunction

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel,but now Daniel tells Vladimir,"I'll never part with these stamps." Are the following remedies available to Vladimir?

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

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits,when damages under ordinary circumstances would be $17,000.Explain under what circumstances a court would award $25,000.

Match each statement with the correct term below. -output contract

In the case of Hadley v.Baxendale,the plaintiff was seeking damages for:

Match each statement with the correct term below. -requirements contract

Equitable remedies are available any time the plaintiff chooses them over money damages.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance, Breach, and Discharge

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property, property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

Filters