Question 1

Punitive damages will often be awarded where the conduct of the party in breach is high-handed,malicious,arbitrary,or highly reprehensible.

Accepted Answer

A) True 
 B)False

Question 2

Give an example of damages that flow naturally from the breach of a contract.

Accepted Answer

For example,a building contractor abando

Question 3

Where the losses suffered by an innocent party for breach of contract are minimal in nature,an award of damages

Accepted Answer

A) may be outweighed by the litigation costs incurred by the innocent party. 
B) will be a vindication of the innocent party. 
C) will usually be pursued as a matter of principle. 
D) establishes the validity of the innocent party's claim. 
E) all of the above 
A) may be outweighed by the litigation costs incurred by the innocent party. 
B) will be a vindication of the innocent party. 
C) will usually be pursued as a matter of principle. 
D) establishes the validity of the innocent party's claim. 
E) all of the above

Question 4

When might a warranty in a contract be a good answer to a lawsuit for breach of contract?

Accepted Answer

Generally,where the parties ar

Question 5

Which of the following is NOT true about how a breach may occur?

Accepted Answer

A) Jack may breach the contract by acting in a manner that makes his promise impossible to perform. 
B) Jack may breach a contract by expressly repudiating his liabilities. 
C) Jack may breach a contract by calling James and advising him that he will be ten minutes late in arriving at the home of James to start painting the home. 
D) Jack may breach a contract by tendering an actual performance that falls short of his promise. 
E) Jack may breach a contract by failing to perform all his obligations. 
A) Jack may breach the contract by acting in a manner that makes his promise impossible to perform. 
B) Jack may breach a contract by expressly repudiating his liabilities. 
C) Jack may breach a contract by calling James and advising him that he will be ten minutes late in arriving at the home of James to start painting the home. 
D) Jack may breach a contract by tendering an actual performance that falls short of his promise. 
E) Jack may breach a contract by failing to perform all his obligations.

Question 6

Generally speaking,to successfully seek an equitable remedy for breach of contract,a plaintiff must

Accepted Answer

A) come to court with "clean hands." 
B) be a party against whom the remedy would otherwise be awarded were he a defendant. 
C) have paid a substantial consideration for the defendant's promise. 
D) launch his lawsuit within a reasonable amount of time of the breach. 
E) all of the above 
A) come to court with "clean hands." 
B) be a party against whom the remedy would otherwise be awarded were he a defendant. 
C) have paid a substantial consideration for the defendant's promise. 
D) launch his lawsuit within a reasonable amount of time of the breach. 
E) all of the above

Question 7

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,A Co.will argue that

Accepted Answer

A) the act of B Co.entering into the contract with C Co.on February 15 was an express repudiation of the contract. 
B) its fax of February 2 did not constitute a repudiation of the contract. 
C) not being a repudiation,the contract was still in force. 
D) having repudiated the contract on February 15 in the way it did,the contract was at an end and A Co.was relieved from further performance. 
E) all of the above 
A) the act of B Co.entering into the contract with C Co.on February 15 was an express repudiation of the contract. 
B) its fax of February 2 did not constitute a repudiation of the contract. 
C) not being a repudiation,the contract was still in force. 
D) having repudiated the contract on February 15 in the way it did,the contract was at an end and A Co.was relieved from further performance. 
E) all of the above

Question 8

A condition is

Accepted Answer

A) a fundamental event that must be fulfilled before another can happen. 
B) a contractual obligation that must happen before another can take place. 
C) a term of a contract that must be fulfilled by the promisee. 
D) an essential term of a contract. 
E) a contractual event that must take place before another can happen. 
A) a fundamental event that must be fulfilled before another can happen. 
B) a contractual obligation that must happen before another can take place. 
C) a term of a contract that must be fulfilled by the promisee. 
D) an essential term of a contract. 
E) a contractual event that must take place before another can happen.

Question 9

Jack has a contract to deliver goods to Jim on June 2.On the morning of June 2,Jack tells Jim that he will not be able to deliver the goods as promised.This is

Accepted Answer

A) an express repudiation of the contract. 
B) a rescission of the contract. 
C) an implied repudiation. 
D) a minor breach. 
E) a warranty. 
A) an express repudiation of the contract. 
B) a rescission of the contract. 
C) an implied repudiation. 
D) a minor breach. 
E) a warranty.

Question 10

An exemption clause in a contract can protect a party from liability for

Accepted Answer

A) damages. 
B) negligence. 
C) deliberate acts of employees. 
D) breach of contract. 
E) all of the above 
A) damages. 
B) negligence. 
C) deliberate acts of employees. 
D) breach of contract. 
E) all of the above

Question 11

A party to a contract has a continuous expectation of performance.Explain.

Accepted Answer

The courts have held that a contract exi

Question 12

Why would courts be willing to give specific performance routinely in the purchase of real property,both for the seller and for the buyer?

Accepted Answer

Courts grant specific performance on lan

Question 13

Jack's supplier fails to deliver the products Jack has ordered at the required time.Jack is expected to do what he can to reduce his losses.This is called mitigation of losses.

Accepted Answer

A) True 
 B)False

Question 14

Name two equitable remedies.Describe three ways in which a party will lose its right to claim an equitable remedy.

Accepted Answer

Both specific performance and injunction

Question 15

Damages are a common law remedy.What is the purpose of damages,and how do they achieve their purpose?

Accepted Answer

An award of damages for breach of contra

Question 16

Between the time when a contract is formed and the date of performance,a promisee is entitled to

Accepted Answer

A) notice of any anticipatory breach. 
B) performance of the warranties. 
C) notice of any intention on the party of a party to breach the contract. 
D) notice of all conditions and warranties. 
E) a continuous expectation of performance. 
A) notice of any anticipatory breach. 
B) performance of the warranties. 
C) notice of any intention on the party of a party to breach the contract. 
D) notice of all conditions and warranties. 
E) a continuous expectation of performance.

Question 17

Describe why the doctrine of substantial performance is of practical importance.

Accepted Answer

The doctrine of substantial performance

Question 18

Lambhair Corp.contracted with Prof.Jones for a two-week series of seminars with employees in the Appliance Division.Prof.Jones put in 10 days of specific preparation only to have the series cancelled at the Appliance Division and rescheduled at the Tool Division.This change required Prof.Jones to put in another 5 days of specific preparation.This change was a breach of the original contract.Prof.Jones is entitled to what type of damages?

Accepted Answer

A) consequential 
B) nominal 
C) general 
D) reliance 
E) expectation 
A) consequential 
B) nominal 
C) general 
D) reliance 
E) expectation

Question 19

An injunction is available in a variety of circumstances,including where the contract does not contain a negative covenant.

Accepted Answer

A) True 
 B)False

Question 20

Speedy Courier Service has a phrase on their order form that reads,"We deliver on time or our delivery is free." In legal terminology,this is

Accepted Answer

A) an advertising gambit. 
B) liquidated damages. 
C) a promotional come-on. 
D) a self-imposed penalty clause. 
E) consequential damages. 
A) an advertising gambit. 
B) liquidated damages. 
C) a promotional come-on. 
D) a self-imposed penalty clause. 
E) consequential damages.

Exam 34: Breach of Contract and Its Remedies

Punitive damages will often be awarded where the conduct of the party in breach is high-handed,malicious,arbitrary,or highly reprehensible.

Give an example of damages that flow naturally from the breach of a contract.

Where the losses suffered by an innocent party for breach of contract are minimal in nature,an award of damages

When might a warranty in a contract be a good answer to a lawsuit for breach of contract?

Which of the following is NOT true about how a breach may occur?

Generally speaking,to successfully seek an equitable remedy for breach of contract,a plaintiff must

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,A Co.will argue that

A condition is

Jack has a contract to deliver goods to Jim on June 2.On the morning of June 2,Jack tells Jim that he will not be able to deliver the goods as promised.This is

An exemption clause in a contract can protect a party from liability for

A party to a contract has a continuous expectation of performance.Explain.

Why would courts be willing to give specific performance routinely in the purchase of real property,both for the seller and for the buyer?

Jack's supplier fails to deliver the products Jack has ordered at the required time.Jack is expected to do what he can to reduce his losses.This is called mitigation of losses.

Name two equitable remedies.Describe three ways in which a party will lose its right to claim an equitable remedy.

Damages are a common law remedy.What is the purpose of damages,and how do they achieve their purpose?

Between the time when a contract is formed and the date of performance,a promisee is entitled to

Describe why the doctrine of substantial performance is of practical importance.

An injunction is available in a variety of circumstances,including where the contract does not contain a negative covenant.

Speedy Courier Service has a phrase on their order form that reads,"We deliver on time or our delivery is free." In legal terminology,this is

Law, society, and Business

The Machinery of Justice

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

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