Question 1

Expenses that are caused directly by a breach of contract-such as those in?curred to obtain performance from another source-are inci?dental dam?ages.

Accepted Answer

A) True 
 B)False  True

Question 2

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Accepted Answer

A) True 
 B)False  True

Question 3

Mitchell orally agrees to pay Lorena to plant and harvest a quarter of Mitchell's farm acreage for four soybean seasons.After Lorena prepares the land and plants the first crop,Mitchell says that their deal is off.Lorena can most likely recover

Accepted Answer

A)  in quasi contract.
B)  nothing.
C)  in restitution.
D)  on the parties' existing contract. A

Question 4

The measure of damages on a breach of contract is the amount that will impress on the breaching party the harm that has been done.

Accepted Answer

A) True 
 B)False

Question 5

Lava Excavators,Inc. ,needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company.Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000.Mining ships the drill late.Lava can recover

Accepted Answer

A)  $13,000.
B)  $10,000.
C)  $3,000.
D)  $0.

Question 6

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.When Handy cancels the contract,Ilsa spends $100 to obtain a similar job that pays $450 per week for a year.Ilsa is entitled to recover

Accepted Answer

A)  the amount of the wages that Handy promised only.
B)  the difference between the wages at the two jobs only.
C)  the difference between the wages at the two jobs plus $100.
D)  $100 only.

Question 7

Windstar Heli-Pads,Inc. ,enters into a contract to employ Valerie as an on-site project manager for two years.Windstar breaches the contract.Valerie has a duty to

Accepted Answer

A)  do nothing.
B)  reduce the damages that Valerie might otherwise suffer.
C)  breach the contract with Windstar.
D)  sue Windstar to deter others from similar acts.

Question 8

For Petra to recover the benefit of her bargain from a breached real estate contract with River City Properties,Inc. ,the most appropriate remedy is

Accepted Answer

A)  damages.
B)  quasi-contractual recovery.
C)  rescission.
D)  specific performance.

Question 9

A contract for a sale of land from Evergreen Properties,Inc. ,to Longlife Investment Corporation contains an erroneous legal description.The most appropriate remedy for these parties is

Accepted Answer

A)  quasi-contractual recovery.
B)  reformation.
C)  rescission.
D)  specific performance.

Question 10

Nominal damages normally establish that the defendant acted wrongly.

Accepted Answer

A) True 
 B)False

Question 11

The measurement of compensatory damages for breach of contract is the same for all types of contracts.

Accepted Answer

A) True 
 B)False

Question 12

Value Ventures,Inc. ,contracts to buy Umbrage Corporation's as?sets.Umbrage breaches the contract.Value files a suit against the corporation,seeking various remedies.The doc?trine of election of remedies has been elimi?nated in contracts involving sales of

Accepted Answer

A)  goods.
B)  intellectual property.
C)  real property.
D)  services.

Question 13

Rescission advances the contracting parties to the position they would have been in if the contract had been fully executed.

Accepted Answer

A) True 
 B)False

Question 14

Tristan hires Stefani to perform at Tristan's Club,but she breaches the agreement to accept a higher-paying job at Rock Star Arena.Tristan files a suit against her.The court will most likely

Accepted Answer

A)  award damages to Tristan.
B)  cancel Stefani and Rock Star's contract.
C)  order Stefani to perform the contract.
D)  reform Tristan and Stefani's contract.

Question 15

In a contract for a sale of goods,the usual measure of compensatory dam?ages is the difference between the contract price and the market price.

Accepted Answer

A) True 
 B)False

Question 16

General Equity Corporation enters into a contract with Honi,who agrees to create artwork for General's main office building.Honi delays and eventually refuses to perform.Meanwhile,General contracts to sell the building to Ideal Investments,Inc. ,but before the transaction is complete,Jewel Funds Company offers to pay a higher price.General re?fuses to transfer the building to Ideal.In separate suits by General against Honi and by Ideal against General,each plaintiff seeks specific performance.How might the court rule in each case,and why?

Accepted Answer

The answer of General Equity Corporation enters into a contract...

Question 17

Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that the clause excuses.

Accepted Answer

A) True 
 B)False

Question 18

Consequential damages are foreseeable damages that arise from a party's breach of a contract.

Accepted Answer

A) True 
 B)False

Question 19

Fact Pattern 18-B1 
Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to subdivide and sell in fifth-acre lots for Pristine Acres,a residential development.
-Refer to Fact Pattern 18-B1.If Watershed breaches the contract,Bella's remedy would most likely be

Accepted Answer

A)  a certain ratio of the amount that Watershed has in liquidated funds.
B)  a percentage of Watershed's unrealized profit.
C)  the difference between the land's contract and market prices.
D)  specific performance.

Question 20

A party who knowingly accepts defective performance of a contract thereby acknowledges the breach and can take later action on it.

Accepted Answer

A) True 
 B)False

Exam 18: B: Breach of Contract and Remedies

Expenses that are caused directly by a breach of contract-such as those in?curred to obtain performance from another source-are inci?dental dam?ages.

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Mitchell orally agrees to pay Lorena to plant and harvest a quarter of Mitchell's farm acreage for four soybean seasons.After Lorena prepares the land and plants the first crop,Mitchell says that their deal is off.Lorena can most likely recover

The measure of damages on a breach of contract is the amount that will impress on the breaching party the harm that has been done.

Lava Excavators,Inc. ,needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company.Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000.Mining ships the drill late.Lava can recover

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.When Handy cancels the contract,Ilsa spends $100 to obtain a similar job that pays $450 per week for a year.Ilsa is entitled to recover

Windstar Heli-Pads,Inc. ,enters into a contract to employ Valerie as an on-site project manager for two years.Windstar breaches the contract.Valerie has a duty to

For Petra to recover the benefit of her bargain from a breached real estate contract with River City Properties,Inc. ,the most appropriate remedy is

A contract for a sale of land from Evergreen Properties,Inc. ,to Longlife Investment Corporation contains an erroneous legal description.The most appropriate remedy for these parties is

Nominal damages normally establish that the defendant acted wrongly.

The measurement of compensatory damages for breach of contract is the same for all types of contracts.

Value Ventures,Inc. ,contracts to buy Umbrage Corporation's as?sets.Umbrage breaches the contract.Value files a suit against the corporation,seeking various remedies.The doc?trine of election of remedies has been elimi?nated in contracts involving sales of

Rescission advances the contracting parties to the position they would have been in if the contract had been fully executed.

Tristan hires Stefani to perform at Tristan's Club,but she breaches the agreement to accept a higher-paying job at Rock Star Arena.Tristan files a suit against her.The court will most likely

In a contract for a sale of goods,the usual measure of compensatory dam?ages is the difference between the contract price and the market price.

Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that the clause excuses.

Consequential damages are foreseeable damages that arise from a party's breach of a contract.

Fact Pattern 18-B1 Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to subdivide and sell in fifth-acre lots for Pristine Acres,a residential development. -Refer to Fact Pattern 18-B1.If Watershed breaches the contract,Bella's remedy would most likely be

A party who knowingly accepts defective performance of a contract thereby acknowledges the breach and can take later action on it.