Exam 16: Remedies for Breach of Traditional and E-Contracts

Which of the following is true of monetary damages?

Consequential damages arise from circumstances outside a contract.

As a part of downsizing, Richmond and Sons fired an employee before his employment contract lapsed. Is the employee obliged to mitigate damages? Explain.

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?

How are liquidated damages awarded?

Kinlin, a furniture retailer, has a contract with William, a carpenter. The agreement states that William must deliver five tables and that Kinlin would pay $2,000 per table. However, William manages to deliver only four tables and Kinlin needs to buy the fifth table from another supplier for $3,000. How much money can Kinlin recover from William?

An injunction is an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Which of the following statements is true of a breach of contract?

Specific performance of personal service contracts is not granted.

________ damages are awarded when the nonbreaching party sues the breaching party even though no financial loss has resulted from the breach.

Many credit card agreements, employment contracts, electronic contracts, and software licenses contain arbitration clauses requiring any disputes arising from the contracts to be heard through a nonjudicial process.

Which of the following statements is true of mitigation of damages?

How are compensatory damages awarded for construction contracts?

If the employee breaches the contract, the employer can recover the costs to hire a new employee.

Jenson and Johnson enter into a contract that involves Johnson paying Jenson $1,000 for shoveling the snow from his driveway throughout winter. Jenson, who was paid before work commenced, materially breached some of the conditions of the contract on the very first day. He should refund $1,000 to Johnson as ________.

Most arbitration agreements stipulate that the arbitrator's decision cannot be appealed to the courts.

________ place the nonbreaching party in the same position as if the contract had been fully performed.

Kinetosphere Automation Inc. (K.A.) makes a mandatory employment contract with all its employees. The contract states that K.A.'s employees are not to work for any other organization while they are employed by it. If K.A. finds an employee who is also serving another company, it can approach the court to obtain a(n) ________ to prevent the employee from working in the other company.

When there is substantial performance of a contract, the nonbreaching party may sue to recover the cost to repair the defect.

The recovery for breach of contract is usually limited to contract damages.