Question 1

The usual remedy for breach of contract is:

Accepted Answer

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

Question 2

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 3

Match each statement with the correct term below.
-illusory promise

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 4

Match each statement with the correct term below.
-duress

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

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

In the Arrowhead School District No.75,Park County,Montana,v.James A.Klyap,Jr.case,the court found the liquidated damages clause was void as a penalty because it was unreasonable and unduly oppressive.

Accepted Answer

A) True 
 B)False

Question 7

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 the above are situations in which restitution is available.

Question 8

Under the rule in Hadley v.Baxendale,only damages foreseeable at the time of entering into the contract can be recovered.

Accepted Answer

A) True 
 B)False

Question 9

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 10

If Nioma cannot prove a particular element of her loss with reasonable certainty,she is barred from recovering any of the loss arising from breach of contract by the other party.

Accepted Answer

A) True 
 B)False

Question 11

Match each statement with the correct term below.
-condition precedent

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 12

Incidental damages include lost profits and injury to person or property resulting from defective performance.

Accepted Answer

A) True 
 B)False

Question 13

Scott,a minor,sells his digital camera to Megan,who then sells it to Sherry.Under these circumstances:

Accepted Answer

A) Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry. 
B) if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted. 
C) Megan and Sherry both received a voidable title regardless of whether they contracted in good faith. 
D) if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse.

Question 14

Punitive damages are not always awarded as a deterrent in breach of contract cases.

Accepted Answer

A) True 
 B)False

Question 15

Match each statement with the correct term below.
-consideration

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 16

Match each statement with the correct term below.
-delegation

Accepted Answer

A) A contract by which an offeror is bound to keep an offer open for a specified period of time. 
B) Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will. 
C) Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence. 
D) A contract in which only one party makes a promise. 
E) A failure to properly perform contractual promises.
F)A contract that has not been fully performed.
G)A provision excusing one party from fault or liability.
H)Doctrine enforcing noncontractual promises for which there has been justifiable reliance on the promise and justice requires enforcement.
I)A contract in which both parties exchange promises.
J)An event that must or must not occur before performance is due under a contract.
K)Transfer of a contractual obligation to a third party.
L)A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.
M)A promise that imposes no obligation on the promisor.
N)A defective contract not wholly lacking in legal effect but that is capable of being avoided.
O)The inducement given to enter into a contract; whatever is given for something else as a bargained-for exchange that makes a promise enforceable.
P)A substituted contract involving a new third-party promisor or promisee.
Q)An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.
R)Voluntary transfer of contractual rights to a third party.
S)Affirmation of the entire contract.
T)Specifies contracts that must be in writing to be enforceable.
U)A party owing a duty under a contract.
V)A formal court order prohibiting a party from doing a specific act.
W)Approval based on whether a reasonable person would be satisfied.
X)An agreement of a seller to supply all the materials of a particular kind that the purchaser needs.
Y)An agreement of a buyer to purchase the entire production of a particular seller.
Z)Knowledge of falsity and intention to deceive.

Question 17

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

Accepted Answer

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

Question 18

Equitable remedies result in money awards to the plaintiff.

Accepted Answer

A) True 
 B)False

Question 19

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

Accepted Answer

A) True 
 B)False

Question 20

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.

Exam 18: Contract Remedies

The usual remedy for breach of contract is:

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

Match each statement with the correct term below. -illusory promise

Match each statement with the correct term below. -duress

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:

In the Arrowhead School District No.75,Park County,Montana,v.James A.Klyap,Jr.case,the court found the liquidated damages clause was void as a penalty because it was unreasonable and unduly oppressive.

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

Under the rule in Hadley v.Baxendale,only damages foreseeable at the time of entering into the contract can be recovered.

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.

If Nioma cannot prove a particular element of her loss with reasonable certainty,she is barred from recovering any of the loss arising from breach of contract by the other party.

Match each statement with the correct term below. -condition precedent

Incidental damages include lost profits and injury to person or property resulting from defective performance.

Scott,a minor,sells his digital camera to Megan,who then sells it to Sherry.Under these circumstances:

Punitive damages are not always awarded as a deterrent in breach of contract cases.

Match each statement with the correct term below. -consideration

Match each statement with the correct term below. -delegation

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

Equitable remedies result in money awards to the plaintiff.

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

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: