Question 1

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is specific performance.

Accepted Answer

A) True 
 B)False

Question 2

In most situations, when a breach of contract occurs, the innocent injured party is held to a duty to mitigate the damages.

Accepted Answer

A) True 
 B)False

Question 3

Leif contracts to sell his Micro Brewery & Pub to Naomi on April 1. On March 15, Leif tells Naomi that he will not go through with the deal. Naomi can recover

Accepted Answer

A)  ​the cost of any other property that Naomi would find suitable. 
B)  ​the cost of a similar, nearby brewery and pub. 
C)  ​the Micro Brewery & Pub. 
D)  ​

Question 4

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

Accepted Answer

A) True 
 B)False

Question 5

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract​

Accepted Answer

A)  ​Guido must return the $100 and Hal must return the bike. 
B)  ​Guido must return the $100 only. 
C)  ​Hal must return the bike only. 
D)  ​the parties can keep the "benefits" of their bargain.

Question 6

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 Belle Vista breaches the contract, Ambrose's remedy would most likely be

Accepted Answer

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

Question 7

Expenses that are caused directly by a breach of a contract are known as primary damages.

Accepted Answer

A) True 
 B)False

Question 8

Copper Conduit, Inc., and Dependable Electric Company 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 waiver-of-breach clause. 
D)  ​a penalty clause.

Question 9

Builders, Inc., agrees to construct an office building for Champion Fitness Clubs, Inc. The project proceeds according to plan, but before it is done, Champion tells Builders to quit. Builders may recover

Accepted Answer

A)  ​the contract price less costs of materials and labor. 
B)  ​the contract price. 
C)  ​the costs needed to complete construction. 
D)  ​profits plus the costs incurred up to the time of the breach.

Question 10

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.

Accepted Answer

A) True 
 B)False

Question 11

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is​

Accepted Answer

A)  ​a limitation-of-liability clause. 
B)  ​an exculpatory clause. 
C)  ​a liquidated damages clause. 
D)  ​a quasi contract.

Question 12

The amount of compensatory damages is the value of a breaching party's promised performance.

Accepted Answer

A) True 
 B)False

Exam 15: Breach and Remedies

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is specific performance.

In most situations, when a breach of contract occurs, the innocent injured party is held to a duty to mitigate the damages.

Leif contracts to sell his Micro Brewery & Pub to Naomi on April 1. On March 15, Leif tells Naomi that he will not go through with the deal. Naomi can recover

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the 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 Belle Vista breaches the contract, Ambrose's remedy would most likely be

Expenses that are caused directly by a breach of a contract are known as primary damages.

Copper Conduit, Inc., and Dependable Electric Company 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​

Builders, Inc., agrees to construct an office building for Champion Fitness Clubs, Inc. The project proceeds according to plan, but before it is done, Champion tells Builders to quit. Builders may recover

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is​

The amount of compensatory damages is the value of a breaching party's promised performance.

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract

Copper Conduit, Inc., and Dependable Electric Company 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

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is