Question 1

Under the doctrine of mitigation of damages, the duty owed depends on the nature of the contract.

Accepted Answer

A) True 
 B)False

Question 2

The measure of compensatory damages often varies by type of contract.

Accepted Answer

A) True 
 B)False

Question 3

Fact Pattern 15-1
Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery.
-Refer to Fact Pattern 15-1. If Ambrose breaches the contract, Belle Vista's remedy would most likely be

Accepted Answer

A)  ​the amount that Ambrose expected to invest in the project. 
B)  ​a percentage of Ambrose's unrealized profit. 
C)  ​the difference between the land's contract and market prices. 
D)  ​specific performance.

Question 4

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

Accepted Answer

A)  ​damages. 
B)  ​restitution. 
C)  ​rescission. 
D)  ​specific performance.

Question 5

Specific performance will not be granted unless the party's legal remedy is inadequate.

Accepted Answer

A) True 
 B)False

Question 6

A party seeking to recover compensatory damages can also recover incidental damages.

Accepted Answer

A) True 
 B)False

Question 7

Bread & Bagels Bakery (B&B) enters into a contract with Cineplex for discounted tickets for B&B's employees. Cineplex breaches the contract and B&B enters into a contract with DigiMovies for the same service at a lower price. B&B might be awarded nominal damages to

Accepted Answer

A)  ​establish, as a matter of principle, that Cineplex acted wrongfully. 
B)  ​provide B&B with funds for a foreseeable loss beyond the contract. 
C)  ​provide B&B with funds for its loss of the bargain. 
D)  ​punish Cineplex and set an example to deter others from similar acts.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

The answer of National Drilling Company ships its only pump...

Question 10

Damages that compensate the nonbreaching party for the loss of a bargain are known as consecutive damages.

Accepted Answer

A) True 
 B)False

Question 11

Nominal damages are awarded for the breach of a contract to nominate someone or something to a higher office, position, or category.

Accepted Answer

A) True 
 B)False

Question 12

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

Accepted Answer

A) True 
 B)False

Question 13

Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of

Accepted Answer

A)  ​rescission. 
B)  ​restitution. 
C)  ​liquidated damages. 
D)  ​quasi contract.

Question 14

Ridgeview Mining Inc. agrees to deliver ten tons of coal to Static Energy Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek

Accepted Answer

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

Question 15

Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely

Accepted Answer

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

Question 16

Usually, a court will not award an equitable remedy unless the remedy at law is inadequate.

Accepted Answer

A) True 
 B)False

Question 17

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) True 
 B)False

Question 19

Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

Accepted Answer

A) True 
 B)False

Question 20

The injury suffered by a nonbreaching party due to the breach of a con­tract may be remedied by payment of coincidental damages.

Accepted Answer

A) True 
 B)False

Exam 15: Breach and Remedies

Under the doctrine of mitigation of damages, the duty owed depends on the nature of the contract.

The measure of compensatory damages often varies by type of contract.

Fact Pattern 15-1 Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. -Refer to Fact Pattern 15-1. If Ambrose breaches the contract, Belle Vista's remedy would most likely be

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

Specific performance will not be granted unless the party's legal remedy is inadequate.

A party seeking to recover compensatory damages can also recover incidental damages.

Bread & Bagels Bakery (B&B) enters into a contract with Cineplex for discounted tickets for B&B's employees. Cineplex breaches the contract and B&B enters into a contract with DigiMovies for the same service at a lower price. B&B might be awarded nominal damages to

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

Damages that compensate the nonbreaching party for the loss of a bargain are known as consecutive damages.

Nominal damages are awarded for the breach of a contract to nominate someone or something to a higher office, position, or category.

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of

Ridgeview Mining Inc. agrees to deliver ten tons of coal to Static Energy Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek

Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely

Usually, a court will not award an equitable remedy unless the remedy at law is inadequate.

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

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

Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

The injury suffered by a nonbreaching party due to the breach of a contract may be remedied by payment of coincidental damages.

Exam 15: Breach and Remedies

Under the doctrine of mitigation of damages, the duty owed depends on the nature of the contract.

The measure of compensatory damages often varies by type of contract.

Fact Pattern 15-1 Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. -Refer to Fact Pattern 15-1. If Ambrose breaches the contract, Belle Vista's remedy would most likely be

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

Specific performance will not be granted unless the party's legal remedy is inadequate.

A party seeking to recover compensatory damages can also recover incidental damages.

Bread & Bagels Bakery (B&B) enters into a contract with Cineplex for discounted tickets for B&B's employees. Cineplex breaches the contract and B&B enters into a contract with DigiMovies for the same service at a lower price. B&B might be awarded nominal damages to

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

Damages that compensate the nonbreaching party for the loss of a bargain are known as consecutive damages.

Nominal damages are awarded for the breach of a contract to nominate someone or something to a higher office, position, or category.

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of

Ridgeview Mining Inc. agrees to deliver ten tons of coal to Static Energy Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek

Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely

Usually, a court will not award an equitable remedy unless the remedy at law is inadequate.

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

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

Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

The injury suffered by a nonbreaching party due to the breach of a con­tract may be remedied by payment of coincidental damages.

The injury suffered by a nonbreaching party due to the breach of a contract may be remedied by payment of coincidental damages.