Question 1

A party with the power to avoid a contract may lose that power by being subordinated to the intervening rights of third parties.

Accepted Answer

A) True 
 B)False

Question 2

Jimmy made a contract to sell his townhouse to Thomas for $180,000. Two days later Jimmy changed his mind after discovering that he could have sold the property to another buyer for an additional $30,000. Thomas sues and asks the court to have the property conveyed to him at the price of $180,000. Thomas is seeking:

Accepted Answer

A)  restitution. 
B)  punitive damages. 
C)  specific performance. 
D)  valid tender.

Question 3

Glen enters into a contract giving Woody the right of first refusal on a tract of land owned by Glen . Glen subsequently offers the land to Leif without first offering it to Woody . An appropriate remedy for Woody to seek would be:

Accepted Answer

A)  an injunction. 
B)  liquidated damages. 
C)  reformation. 
D)  punitive damages.

Question 4

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Accepted Answer

A) True 
 B)False

Question 5

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order:

Accepted Answer

A)  injunctive relief. 
B)  specific performance. 
C)  restitution. 
D)  equitable rescission.

Question 6

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may:

Accepted Answer

A)  keep Lynne's $20,000. 
B)  keep $10,000 of Lynne's down payment. 
C)  not keep any of the down payment money. 
D)  sue for specific performance.

Question 9

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

Accepted Answer

The answer of When will a court enforce a liquidated...

Question 10

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)  minimal damages.

Question 11

a. When is specific performance available to enforce a contract? 
b. Under what circumstances will a court grant specific performance to enforce a contract involving personal services? 
c. What remedy did the court award in the Madison Square Garden case? Explain why the court chose this remedy.

Accepted Answer

The answer of a. When is specific performance available to...

Question 12

Eve agrees to sell her boutique to Shelley for $150,000. Shelley spends $60,000 on inventory and fixtures for the store, but then Eve repudiates the contract. Shelley is able to sell the inventory and fixtures for $45,000. Since Shelley cannot establish her lost profits with reasonable certainty, discuss what damages she should seek for Eve's breach of contract.

Accepted Answer

The answer of Eve agrees to sell her boutique to...

Question 13

In which of the following situations is restitution available as a remedy?

Accepted Answer

A)  As an alternative remedy for a party injured by breach. 
B)  For a party in default. 
C)  For a party who may not enforce the contract because of the statute of frauds. 
D)  All of these are situations in which restitution is available.

Question 14

Courts of equity generally will not grant specific performance of contracts for personal services.

Accepted Answer

A) True 
 B)False

Question 15

Bonnie has an employment contract with QualNeed Corporation which includes a clause requiring exclusive personal services.  If Bonnie takes on contract work with QualNeed's primary competitor, she is not breaching her agreement, as long as her status remains as an independent contractor with the competitor.

Accepted Answer

A) True 
 B)False

Question 16

The usual remedy for breach of contract is:

Accepted Answer

A)  injunction. 
B)  specific performance. 
C)  punitive damages. 
D)  money damages.

Question 17

A power of avoidance held by a party may be lost if:

Accepted Answer

A)  the contract is disaffirmed. 
B)  there are delays in exercising the power. 
C)  the party lacks contractual capacity. 
D)  the rights of third parties are terminated.

Question 18

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available?

Accepted Answer

A)  Compensatory damages. 
B)  Specific performance. 
C)  Reformation. 
D)  Nominal damages.

Question 19

Explain consequential damages. Give an example.

Accepted Answer

The answer of Explain consequential damages. Give an example....

Question 20

A deceived party may seek a remedy under tort law, contract law, and restitution,  and may be compensated under more than one of these remedies.

Accepted Answer

A) True 
 B)False

Exam 18: Contract Remedies

A party with the power to avoid a contract may lose that power by being subordinated to the intervening rights of third parties.

Glen enters into a contract giving Woody the right of first refusal on a tract of land owned by Glen . Glen subsequently offers the land to Leif without first offering it to Woody . An appropriate remedy for Woody to seek would be:

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order:

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

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

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may:

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

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

a. When is specific performance available to enforce a contract? b. Under what circumstances will a court grant specific performance to enforce a contract involving personal services? c. What remedy did the court award in the Madison Square Garden case? Explain why the court chose this remedy.

In which of the following situations is restitution available as a remedy?

Courts of equity generally will not grant specific performance of contracts for personal services.

The usual remedy for breach of contract is:

A power of avoidance held by a party may be lost if:

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available?

Explain consequential damages. Give an example.

A deceived party may seek a remedy under tort law, contract law, and restitution, and may be compensated under more than one of these remedies.