Question 1

Rescission is not available for a contract involving mistake.

Accepted Answer

A) True 
 B)False  False

Question 2

In connection with a contract,what is rescission?

Accepted Answer

A)  a court order to perform one's duties under a contract 
B)  a return of consideration to the other party 
C)  an undoing or cancellation of the contract 
D)  a formation of a second contract identical to the first 
E)  an order for specific performance 
A)  a court order to perform one's duties under a contract 
B)  a return of consideration to the other party 
C)  an undoing or cancellation of the contract 
D)  a formation of a second contract identical to the first 
E)  an order for specific performance C

Question 3

If a contractual duty has not been discharged or excused,the contracting party owes a conditional obligation to perform the duty.

Accepted Answer

A) True 
 B)False  False

Question 4

What is the general goal of awarding compensatory damages in a breach of contract situation?

Accepted Answer

A)  return the parties to the situation that they were in prior to the contract 
B)  punish the breaching party for the wrongdoing 
C)  modify the contract terms to be more equitable to the parties 
D)  place the non-breaching party in the same position as if the contract had been fully performed 
E)  require the breaching party to actually do what was called for in the contract 
A)  return the parties to the situation that they were in prior to the contract 
B)  punish the breaching party for the wrongdoing 
C)  modify the contract terms to be more equitable to the parties 
D)  place the non-breaching party in the same position as if the contract had been fully performed 
E)  require the breaching party to actually do what was called for in the contract

Question 5

A third party can contract with a breaching party without becoming liable for the tort of intentional interference with contractual relations if the contracting party has already breached the contract; in such a situation,the third party cannot be held to have induced a breach of the other parties' contract.

Accepted Answer

A) True 
 B)False

Question 6

Compensatory damages for a breach of a sales contract involving goods are governed by federal law.

Accepted Answer

A) True 
 B)False

Question 7

Justin purchased a new Ford Thunderbird in April of 2007. This was to be Justin's mid-life crisis car and would not be used in everyday driving. He did not sell his current car and would continue to drive it most of the time. Even though this was a low-volume car, Justin wanted his to be unique. He entered into a contract on May 1st, with a firm to make a custom interior for the car, with the job to be completed on June 11th. The customizer informed Justin on May 10th that the car would not be ready until June 15th. On June 12th, Justin rented a 2007 Thunderbird from a specialty car rental company at a cost of $120 a day until his car was ready on June 15th. Can Justin recover his car rental cost from the customizer?

Accepted Answer

No.Given that Justin did not need this c

Question 8

Which of the following is a type of damages recoverable in a breach of contract action?

Accepted Answer

A)  dispensatory 
B)  tangential 
C)  liquidated 
D)  phenomenal 
E)  non-cumulative 
A)  dispensatory 
B)  tangential 
C)  liquidated 
D)  phenomenal 
E)  non-cumulative

Question 9

The term "mitigation" refers to the ________ of damages resulting from breach of contract.

Accepted Answer

A)  calculation 
B)  prediction 
C)  assertion 
D)  reduction 
E)  estimation 
A)  calculation 
B)  prediction 
C)  assertion 
D)  reduction 
E)  estimation

Question 10

Paul is an organic biologist who teaches classes occasionally at a local college.Paul is a wonderful professor who is liked by the students.In the third week of the semester,Paul notified the school that he was suddenly too busy to teach that semester.Which of the following is true?

Accepted Answer

A)  The college could get an order of specific performance. 
B)  Paul would be obligated to pay the entire salary of any replacement that the school was able to find. 
C)  Paul would be obligated to pay for the reasonable costs the school encountered in hiring a new employee, plus any necessary increase in salary paid to the replacement. 
D)  The school would be able to obtain an injunction against Paul ordering him to teach the course. 
E)  Paul would be discharged from his duty to teach because of commercial impracticability. 
A)  The college could get an order of specific performance. 
B)  Paul would be obligated to pay the entire salary of any replacement that the school was able to find. 
C)  Paul would be obligated to pay for the reasonable costs the school encountered in hiring a new employee, plus any necessary increase in salary paid to the replacement. 
D)  The school would be able to obtain an injunction against Paul ordering him to teach the course. 
E)  Paul would be discharged from his duty to teach because of commercial impracticability.

Question 11

Cases involving nominal damages are usually brought on principle.

Accepted Answer

A) True 
 B)False

Question 12

Assume that a car owner contracts with a mechanic to have his engine overhauled.The mechanic mistakenly used original equipment quality piston rings in doing the overhaul,whereas the contract had called for the use of premium quality rings that are better than original equipment quality.Assume that the rings used by the mechanic should not affect the performance of the car.Which of the following is true?

Accepted Answer

A)  This is a substantial performance, and the owner must still pay something to the mechanic. 
B)  This is a material breach, and the owner must still pay something to the mechanic. 
C)  This is a substantial performance, and the owner owes nothing to the mechanic. 
D)  This is a material breach, and the owner owes nothing to the mechanic. 
E)  This is a novation, and the owner owes nothing to the mechanic. 
A)  This is a substantial performance, and the owner must still pay something to the mechanic. 
B)  This is a material breach, and the owner must still pay something to the mechanic. 
C)  This is a substantial performance, and the owner owes nothing to the mechanic. 
D)  This is a material breach, and the owner owes nothing to the mechanic. 
E)  This is a novation, and the owner owes nothing to the mechanic.

Question 13

Generally,to rescind a contract,the parties have no duty to make restitution.

Accepted Answer

A) True 
 B)False

Question 14

In a case involving anticipatory repudiation,which of the following statements is true regarding the non-breaching party's right to sue the repudiating party?

Accepted Answer

A)  The non-breaching party has the right to sue the repudiating party in equity, but not in law. 
B)  The non-breaching party has the right to sue the repudiating party thirty (30) days after the anticipatory repudiation occurs. 
C)  The non-breaching party has the right to sue the repudiating party ninety (90) days after the anticipatory repudiation occurs. 
D)  The non-breaching party has the right to sue the repudiating party when the anticipatory breach occurs. 
E)  The non-breaching party has the right to sue the repudiating party when, but not before, performance is due. 
A)  The non-breaching party has the right to sue the repudiating party in equity, but not in law. 
B)  The non-breaching party has the right to sue the repudiating party thirty (30) days after the anticipatory repudiation occurs. 
C)  The non-breaching party has the right to sue the repudiating party ninety (90) days after the anticipatory repudiation occurs. 
D)  The non-breaching party has the right to sue the repudiating party when the anticipatory breach occurs. 
E)  The non-breaching party has the right to sue the repudiating party when, but not before, performance is due.

Question 15

An employee whose employer breaches an employment contract can recover lost wages or salary as ________ damages.

Accepted Answer

A)  dispensatory 
B)  liquidated 
C)  compensatory 
D)  punitive 
E)  nominal 
A)  dispensatory 
B)  liquidated 
C)  compensatory 
D)  punitive 
E)  nominal

Question 16

Where there is an anticipatory repudiation,the non-breaching party's obligations under the contract are ________.

Accepted Answer

A)  non-dischargeable 
B)  discharged by the occurrence of a condition precedent 
C)  discharged by the occurrence of a condition subsequent 
D)  discharged by the occurrence of a concurrent condition 
E)  discharged 
A)  non-dischargeable 
B)  discharged by the occurrence of a condition precedent 
C)  discharged by the occurrence of a condition subsequent 
D)  discharged by the occurrence of a concurrent condition 
E)  discharged

Question 17

The tort of intentional interference with contractual relations usually arises when a third party induces a contracting party to breach a contract with another party.

Accepted Answer

A) True 
 B)False

Question 18

Most contracts are discharged by the complete performance of the contracting parties.

Accepted Answer

A) True 
 B)False

Question 19

An enforceable liquidated damages clause is a non-exclusive remedy.

Accepted Answer

A) True 
 B)False

Question 20

An employee whose employer breaches an employment contract can recover lost wages or salary as compensatory damages.

Accepted Answer

A) True 
 B)False

Exam 14: Breach of Contract and Remedies

Rescission is not available for a contract involving mistake.

In connection with a contract,what is rescission?

If a contractual duty has not been discharged or excused,the contracting party owes a conditional obligation to perform the duty.

What is the general goal of awarding compensatory damages in a breach of contract situation?

Compensatory damages for a breach of a sales contract involving goods are governed by federal law.

Which of the following is a type of damages recoverable in a breach of contract action?

The term "mitigation" refers to the ________ of damages resulting from breach of contract.

Paul is an organic biologist who teaches classes occasionally at a local college.Paul is a wonderful professor who is liked by the students.In the third week of the semester,Paul notified the school that he was suddenly too busy to teach that semester.Which of the following is true?

Cases involving nominal damages are usually brought on principle.

Generally,to rescind a contract,the parties have no duty to make restitution.

In a case involving anticipatory repudiation,which of the following statements is true regarding the non-breaching party's right to sue the repudiating party?

An employee whose employer breaches an employment contract can recover lost wages or salary as ________ damages.

Where there is an anticipatory repudiation,the non-breaching party's obligations under the contract are ________.

The tort of intentional interference with contractual relations usually arises when a third party induces a contracting party to breach a contract with another party.

Most contracts are discharged by the complete performance of the contracting parties.

An enforceable liquidated damages clause is a non-exclusive remedy.

An employee whose employer breaches an employment contract can recover lost wages or salary as compensatory damages.

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