Question 1

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

Accepted Answer

A)  avoid reletting the premises to recover damages from Ray. 
B)  make reasonable efforts to relet the premises to mitigate damages. 
C)  relet the premises to recover damages from Ray. 
D)  sell the premises to recover damages from Ray. 
A)  avoid reletting the premises to recover damages from Ray. 
B)  make reasonable efforts to relet the premises to mitigate damages. 
C)  relet the premises to recover damages from Ray. 
D)  sell the premises to recover damages from Ray.

Question 2

The purpose of the doctrine of election of remedies is to permit double recovery.

Accepted Answer

A) True 
 B)False

Question 3

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. Hollis breaches the contract. Grady's normal remedy is

Accepted Answer

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

Question 4

Lester and Myrtle want to rescind their contract under which Lester sold an MP3 player for $40. To rescind the contract

Accepted Answer

A)  Lester must return the $40 and Myrtle must return the player. 
B)  Lester must return the $40 only. 
C)  Myrtle must return the player only. 
D)  the parties can keep the "benefits" of their bargain. 
A)  Lester must return the $40 and Myrtle must return the player. 
B)  Lester must return the $40 only. 
C)  Myrtle must return the player only. 
D)  the parties can keep the "benefits" of their bargain.

Question 5

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an offshore oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

Accepted Answer

A)  establish, as a matter of principle, that QuikBilt acted wrongfully. 
B)  provide Pure with funds for a foreseeable loss beyond the contract. 
C)  provide Pure with funds for its loss of the bargain. 
D)  punish QuikBilt and deter others from similar acts. 
A)  establish, as a matter of principle, that QuikBilt acted wrongfully. 
B)  provide Pure with funds for a foreseeable loss beyond the contract. 
C)  provide Pure with funds for its loss of the bargain. 
D)  punish QuikBilt and deter others from similar acts.

Question 6

SFX Paintball Games, Inc., and Truck & Trailer Delivery Corporation sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

Accepted Answer

A)  a liquidated damages clause. 
B)  a mitigation of damages clause. 
C)  a nominal damages clause. 
D)  a penalty clause. 
A)  a liquidated damages clause. 
B)  a mitigation of damages clause. 
C)  a nominal damages clause. 
D)  a penalty clause.

Question 7

The failure of one party to perform a contract entitles the other party to rescind it.

Accepted Answer

A) True 
 B)False

Question 8

Special damages are awarded for damage caused by special circumstances beyond a contract.

Accepted Answer

A) True 
 B)False

Question 9

Punitive damages are recoverable in contract law for an intentional breach of contract.

Accepted Answer

A) True 
 B)False

Question 10

Consumer Credit Union pays Derby $10,000 to design an ad campaign. The next day, Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign. As compensatory damages, the credit union can recover

Accepted Answer

A)  $100,000. 
B)  $10,000. 
C)  $1,000. 
D)  $0. 
A)  $100,000. 
B)  $10,000. 
C)  $1,000. 
D)  $0.

Question 11

Compensatory damages are foreseeable damages that arise from a party's breach of a contract.

Accepted Answer

A) True 
 B)False

Question 12

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Accepted Answer

A) True 
 B)False

Question 13

National Drilling Company ships its only pump to American Hydraulics Corporation, the manufacturer, for repair. National hires Overland Transport, Inc., to take the pump to American Hydraulics and to return it to National as soon as the repair is complete. National is forced to suspend operations without a pump, but Overland does not know this. National expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day, National rents a pump at a cost of $100 per day. Overland delays five more days before returning the pump. National files a suit against Overland, asking for compensatory, consequential, and punitive damages. Will National recover

Accepted Answer

Yes and no. National will succeed in rec

Question 14

Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA may recover

Accepted Answer

A)  $17,000. 
B)  $15,000. 
C)  $2,000. 
D)  $0. 
A)  $17,000. 
B)  $15,000. 
C)  $2,000. 
D)  $0.

Question 15

Vacation Vistas, Inc., agrees to sell certain acreage to Umiko, who intends to develop a destination resort. Vacation Vistas repudiates the deal. Umiko sues Vacation Vistas and recovers damages. She can now obtain

Accepted Answer

A)  an amount in a quasi-contractual recovery. 
B)  damages representing restitution. 
C)  specific performance of the deal. 
D)  nothing more. 
A)  an amount in a quasi-contractual recovery. 
B)  damages representing restitution. 
C)  specific performance of the deal. 
D)  nothing more.

Question 16

Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon knows that without the repair, Carousel will have to cancel an upcoming game. Damon does not perform as promised. As consequential damages, Carousel can recover

Accepted Answer

A)  the cost of new turf. 
B)  the difference between Damon's price and the actual cost of repair. 
C)  the loss of profit from the canceled game. 
D)  nothing. 
A)  the cost of new turf. 
B)  the difference between Damon's price and the actual cost of repair. 
C)  the loss of profit from the canceled game. 
D)  nothing.

Question 17

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can

Accepted Answer

A)  do nothing but make a deal with .a different service provider. 
B)  do nothing but temporarily suspend operations and wait. 
C)  file a criminal complaint against Even-Flo. 
D)  sue Even-Flo for damages. 
A)  do nothing but make a deal with .a different service provider. 
B)  do nothing but temporarily suspend operations and wait. 
C)  file a criminal complaint against Even-Flo. 
D)  sue Even-Flo for damages.

Question 18

The four broad types of damages in contract law are conciliatory, consecutive, punctual, and nominative.

Accepted Answer

A) True 
 B)False

Question 19

The duty owed under the mitigation of damages doctrine depends on the nature of the contract.

Accepted Answer

A) True 
 B)False

Question 20

Rural Power Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. The parties rescind the contract. Shovel's refund of the payment is

Accepted Answer

A)  a penalty. 
B)  liquidated damages. 
C)  restitution. 
D)  a breach of contract. 
A)  a penalty. 
B)  liquidated damages. 
C)  restitution. 
D)  a breach of contract.

Exam 18: Breach of Contract and Remedies

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

The purpose of the doctrine of election of remedies is to permit double recovery.

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. Hollis breaches the contract. Grady's normal remedy is

Lester and Myrtle want to rescind their contract under which Lester sold an MP3 player for $40. To rescind the contract

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an offshore oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

SFX Paintball Games, Inc., and Truck & Trailer Delivery Corporation sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

The failure of one party to perform a contract entitles the other party to rescind it.

Special damages are awarded for damage caused by special circumstances beyond a contract.

Punitive damages are recoverable in contract law for an intentional breach of contract.

Consumer Credit Union pays Derby $10,000 to design an ad campaign. The next day, Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign. As compensatory damages, the credit union can recover

Compensatory damages are foreseeable damages that arise from a party's breach of a contract.

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA may recover

Vacation Vistas, Inc., agrees to sell certain acreage to Umiko, who intends to develop a destination resort. Vacation Vistas repudiates the deal. Umiko sues Vacation Vistas and recovers damages. She can now obtain

Damon contracts to repair the turf on a soccer field for Carousel Sports Park. Damon knows that without the repair, Carousel will have to cancel an upcoming game. Damon does not perform as promised. As consequential damages, Carousel can recover

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can

The four broad types of damages in contract law are conciliatory, consecutive, punctual, and nominative.

The duty owed under the mitigation of damages doctrine depends on the nature of the contract.

Rural Power Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. The parties rescind the contract. Shovel's refund of the payment is

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Performance and Discharge

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

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