Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Match each statement with the correct term below.
-ratification

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 3

Consequential damages include lost profits and injury to person or property.

Accepted Answer

A) True 
 B)False

Question 4

Match each statement with the correct term below.
-statute of frauds

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 5

If West and Burton designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty,the injured party will be left without a remedy.

Accepted Answer

A) True 
 B)False

Question 6

Deanne contracts with Leonard to paint her barn in two weeks.If Leonard breaches the contract,Deanne can elect the remedy of damages or the remedy of injunctive relief to prevent Leonard from providing his painting services for anyone else until he paints her barn.

Accepted Answer

A) True 
 B)False

Question 7

Match each statement with the correct term below.
-voidable 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 8

According to the "American Rule," when contracting parties litigate over a breach:

Accepted Answer

A) each party pays its own attorney fees, regardless of who wins. 
B) attorney fees are considered consequential damages. 
C) the losing party has to pay the winner's attorney fees. 
D) a provision for attorney fees in the written contract will not be given effect. 
A) each party pays its own attorney fees, regardless of who wins. 
B) attorney fees are considered consequential damages. 
C) the losing party has to pay the winner's attorney fees. 
D) a provision for attorney fees in the written contract will not be given effect.

Question 9

A small breach of contract damage amount fixed without regard to the amount of loss is known as:

Accepted Answer

A) reliance damages. 
B) out-of-pocket damages. 
C) nominal damages. 
D) None of the above. 
A) reliance damages. 
B) out-of-pocket damages. 
C) nominal damages. 
D) None of the above.

Question 10

Match each statement with the correct term below.
-assignment

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 11

Specific performance is the usual judicially granted remedy for breach of contract.

Accepted Answer

A) True 
 B)False

Question 12

If the parties to a contract stipulate an amount that will be paid in the event of a breach,the courts will always enforce it.

Accepted Answer

A) True 
 B)False

Question 13

Explain consequential damages.Give an example.

Accepted Answer

Consequential damages are those that do

Question 14

Arlene signs an employment contract to work for a local business,Davis Restoration,for one year but is wrongfully discharged after three months.In order to recover from Davis full pay for the remaining nine months of her contract,Arlene:

Accepted Answer

A) must accept employment 60 miles away if that is the only available similar job. 
B) must use reasonable efforts to mitigate her damages by seeking other employment, even if she does not find another job. 
C) need only file suit against Davis Restoration since they are contractually bound to pay Arlene for one year of employment. 
D) must accept a radically different type of job if that is all she can find. 
A) must accept employment 60 miles away if that is the only available similar job. 
B) must use reasonable efforts to mitigate her damages by seeking other employment, even if she does not find another job. 
C) need only file suit against Davis Restoration since they are contractually bound to pay Arlene for one year of employment. 
D) must accept a radically different type of job if that is all she can find.

Exam 18: Contract Remedies

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

Match each statement with the correct term below. -ratification

Consequential damages include lost profits and injury to person or property.

Match each statement with the correct term below. -statute of frauds

If West and Burton designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty,the injured party will be left without a remedy.

Deanne contracts with Leonard to paint her barn in two weeks.If Leonard breaches the contract,Deanne can elect the remedy of damages or the remedy of injunctive relief to prevent Leonard from providing his painting services for anyone else until he paints her barn.

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

According to the "American Rule," when contracting parties litigate over a breach:

A small breach of contract damage amount fixed without regard to the amount of loss is known as:

Match each statement with the correct term below. -assignment

Specific performance is the usual judicially granted remedy for breach of contract.

If the parties to a contract stipulate an amount that will be paid in the event of a breach,the courts will always enforce it.

Explain consequential damages.Give an example.

Arlene signs an employment contract to work for a local business,Davis Restoration,for one year but is wrongfully discharged after three months.In order to recover from Davis full pay for the remaining nine months of her contract,Arlene:

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

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