Exam 14: Breach of Contract and Remedies

Brewer Refineries enters into a written contract to employ Joe Mohr as the Chief Operations Officer at a salary of $40,000 per month for a period of three years.However,Brewer Refineries fires Joe before he can start work.If Joe cannot find a comparable job,how much can Joe recover as compensatory damages from Brewer Refineries?

If there has been a breach of contract that cannot be adequately compensated through a legal remedy,the breaching party is excused from nonperformance of its duties.

A contracting party can be held liable for a slight deviation from a complete performance.

Which of the following is a legal consequence of a complete performance?

Alan is a subject matter expert for First University,with an employment contract of three years.Two years into the contract,Second University-fully aware of Alan's contract-offers him twice the money he currently makes-for the similar post.Alan takes the job.First University can recover damages from Second University for which of the following torts?

Which of the following best describes a breach of contract?

If a builder breaches a construction contract before construction,he is not liable for nonperformance under the contract.

Discuss circumstances under which a breaching party is not liable to pay consequential damages to a nonbreaching party?

A fully performed contract is called a(n)________ contract.

________ is an action to undo a contract.

A material breach of a contract immediately discharges the nonbreaching party from the duties specified under the contract.

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

Disclaimer of consequential damages is lawful in most instances.

Which of the following statements is true of the performance of a contract?

________ damages are foreseeable damages that arise from circumstances outside a contract.

Specific performance of personal service contracts is not granted due to the difficulty in monitoring the performance of such contracts.

Jenson and Thomas enter into a contract that involves Thomas paying Jenson $1,000 for shoveling the snow from his driveway throughout winter.Jenson,who was paid before work commenced,breached the contract on the very first day.He should refund $1,000 to Thomas as ________.

The Federal Arbitration Act promotes the arbitration of contract disputes,whether the dispute involves federal or state law.

A party to a contract can sue a third person only if the third person acted with malice or bad faith.

Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply of 500 truckloads of sand within next week.Delta Resources delivers the sand in two days after the contract was made.Poole Contractors pays the $50,000 promised in the contract.This is an instance of ________.