Question 1

A liquidated damages clause will not always be effective.Explain.

Accepted Answer

A liquidated damages clause that provide

Question 2

Farmer Gibson ordered an irrigation pump from Sinclair Farm Supply,where he has an open account.When they attempted to deliver,he refused to accept,claiming he could get a better deal elsewhere.Legally,Gibson could be charged for all damages that naturally flow from this breach.Assuming Sinclair made free deliveries and it had more pumps than customers,the damages would include

Accepted Answer

A) the damages associated with Gibson not being able to properly irrigate his land. 
B) only the expected profits on this item. 
C) transportation as well as a restocking charge. 
D) only two-way transportation to Gibson's farm. 
E) expected profits,delivery charge,and a restocking charge. 
A) the damages associated with Gibson not being able to properly irrigate his land. 
B) only the expected profits on this item. 
C) transportation as well as a restocking charge. 
D) only two-way transportation to Gibson's farm. 
E) expected profits,delivery charge,and a restocking charge.

Question 3

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,the court is most likely to find that

Accepted Answer

A) the fax of February 2 from A Co.was a material change in the contract. 
B) the fax of February 2 from A Co.was an express repudiation of the contract. 
C) the contract between B Co.and C Co.on February 15 was proper in the circumstances. 
D) the fax of February 2 from A Co.was an implied repudiation. 
E) the entering into the contract with C Co.on February 15 was an express repudiation of the contract by B Co. 
A) the fax of February 2 from A Co.was a material change in the contract. 
B) the fax of February 2 from A Co.was an express repudiation of the contract. 
C) the contract between B Co.and C Co.on February 15 was proper in the circumstances. 
D) the fax of February 2 from A Co.was an implied repudiation. 
E) the entering into the contract with C Co.on February 15 was an express repudiation of the contract by B Co.

Question 4

The fact that a party enters into a contract with knowledge of special liability if it fails to perform

Accepted Answer

A) has a direct effect on the amount of damages that will be awarded against it. 
B) has no material effect on the amount of damages that will be awarded against it. 
C) has the effect of rendering the contract a nullity in the event of a breach. 
D) has a minimal effect on the amount of damages that will be awarded against it. 
E) none of the above 
A) has a direct effect on the amount of damages that will be awarded against it. 
B) has no material effect on the amount of damages that will be awarded against it. 
C) has the effect of rendering the contract a nullity in the event of a breach. 
D) has a minimal effect on the amount of damages that will be awarded against it. 
E) none of the above

Question 5

In an action to enforce a covenant in restraint of trade in an employment contract,the court may grant an injunction.

Accepted Answer

A) True 
 B)False

Question 6

Even if the wording of an exemption clause applies to a situation that has occurred and the clause is not determined to be unconscionable at the time the contract was formed,a court may still refuse to enforce it if the injured party can

Accepted Answer

A) point to some paramount consideration of public policy sufficient to override the public interest and freedom of contract. 
B) prove it is an unreasonable term. 
C) prove a significant loss. 
D) claim an unjust enrichment. 
E) argue the clause is restitutionary in nature. 
A) point to some paramount consideration of public policy sufficient to override the public interest and freedom of contract. 
B) prove it is an unreasonable term. 
C) prove a significant loss. 
D) claim an unjust enrichment. 
E) argue the clause is restitutionary in nature.

Question 7

It is fair to say that the damages for breach of contract may well exceed the damages arising in tort.

Accepted Answer

A) True 
 B)False

Question 8

Rachel had been looking forward to her two weeks of vacation in Paris,France,with a Never Late Inc.tour group.The day before the tour was to leave Toronto,Rachel was told that the entire tour had to be cancelled because of a "mix-up in hotel accommodations." She was immediately given a full refund of her money.What sort of additional damages is Rachel entitled to?

Accepted Answer

A) consequential-since breach was the result of negligence in making hotel reservations 
B) general-since there was mental anguish 
C) nominal-to recognize the breach that did occur 
D) none-since she received all her money back 
E) expectation-for cost of a substitute tour 
A) consequential-since breach was the result of negligence in making hotel reservations 
B) general-since there was mental anguish 
C) nominal-to recognize the breach that did occur 
D) none-since she received all her money back 
E) expectation-for cost of a substitute tour

Question 9

What is anticipatory breach,and why is it considered to be a form of express repudiation?

Accepted Answer

Express repudiation takes place when a p

A liquidated damages clause will not always be effective.Explain.

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,the court is most likely to find that

The fact that a party enters into a contract with knowledge of special liability if it fails to perform

In an action to enforce a covenant in restraint of trade in an employment contract,the court may grant an injunction.

Even if the wording of an exemption clause applies to a situation that has occurred and the clause is not determined to be unconscionable at the time the contract was formed,a court may still refuse to enforce it if the injured party can

It is fair to say that the damages for breach of contract may well exceed the damages arising in tort.

What is anticipatory breach,and why is it considered to be a form of express repudiation?

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

Electronic Commerce

Privacy

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Exam 34: Breach of Contract and Its Remedies

A liquidated damages clause will not always be effective.Explain.

Use the fact situation in Q5 to answer the related question that follows. In the same lawsuit,the court is most likely to find that

The fact that a party enters into a contract with knowledge of special liability if it fails to perform

In an action to enforce a covenant in restraint of trade in an employment contract,the court may grant an injunction.

Even if the wording of an exemption clause applies to a situation that has occurred and the clause is not determined to be unconscionable at the time the contract was formed,a court may still refuse to enforce it if the injured party can

It is fair to say that the damages for breach of contract may well exceed the damages arising in tort.

What is anticipatory breach,and why is it considered to be a form of express repudiation?

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

Electronic Commerce

Privacy

Filters