Question 1

"Contract disputes can be resolved only through a judicial process." Discuss arguments against this notion.

Accepted Answer

Many contract disputes are heard and dec

Question 2

Hanson is employed as a Chief Financial Officer of EasyMoney firm in New York City,for a salary of $200,000 per year on a three-year contract.His employer terminates Hanson with two years left in the contract.Hanson accepts employment as a financial analyst at a different firm that pays $150,000 per year.Which of the following hold true in this scenario?

Accepted Answer

A)  Hanson cannot take any legal action against his formal employer after accepting another job. 
B)  Hanson's former employer must pay Andrew two years' worth of his former salary. 
C)  Hanson can only sue to receive nominal damages. 
D)  Hanson can sue his prior employer and recover $100,000. 
A)  Hanson cannot take any legal action against his formal employer after accepting another job. 
B)  Hanson's former employer must pay Andrew two years' worth of his former salary. 
C)  Hanson can only sue to receive nominal damages. 
D)  Hanson can sue his prior employer and recover $100,000.

Question 3

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100,000 a year.Two years into the contract,Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

Accepted Answer

A)  Any job that offers $100,000 or more a year. 
B)  Another software applications developer job, irrespective of the salary. 
C)  A job in any software firm in any part of the country. 
D)  An applications developer job in San Jose for $100,000 a year or more. 
A)  Any job that offers $100,000 or more a year. 
B)  Another software applications developer job, irrespective of the salary. 
C)  A job in any software firm in any part of the country. 
D)  An applications developer job in San Jose for $100,000 a year or more.

Question 4

In the occurrence of a substantial performance,the breaching party can correct the breach to complete performance.

Accepted Answer

A) True 
 B)False

Question 5

Where there has been a material breach of contract,the nonbreaching party ________.

Accepted Answer

A)  cannot treat the contract as being in effect 
B)  is strictly liable to complete performance under the contract 
C)  is allowed to rescind the contract 
D)  can be sued by the breaching party 
A)  cannot treat the contract as being in effect 
B)  is strictly liable to complete performance under the contract 
C)  is allowed to rescind the contract 
D)  can be sued by the breaching party

Question 6

The usual measure of damages for a breach of sales contracts is the difference between the contract price and the ________.

Accepted Answer

A)  current market price of the goods 
B)  market price at the time of contract 
C)  market price at the time of breach 
D)  current cost price of the goods 
A)  current market price of the goods 
B)  market price at the time of contract 
C)  market price at the time of breach 
D)  current cost price of the goods

Question 7

A liquidated damage clause is unenforceable if ________.

Accepted Answer

A)  the actual damages are impractical to determine 
B)  the liquidated damages clause is considered a penalty 
C)  the liquidated damages are conscionable 
D)  the liquidated damages do not result in a loss of money for the nonbreaching party 
A)  the actual damages are impractical to determine 
B)  the liquidated damages clause is considered a penalty 
C)  the liquidated damages are conscionable 
D)  the liquidated damages do not result in a loss of money for the nonbreaching party

Question 8

The recovery for breach of contract is not limited to contract damages if a contract-related tort can be proved.

Accepted Answer

A) True 
 B)False

Question 9

________ damages are intended to compensate a nonbreaching party for the loss of the bargain.

Accepted Answer

A)  Compensatory 
B)  Liquidated 
C)  Nominal 
D)  Consequential 
A)  Compensatory 
B)  Liquidated 
C)  Nominal 
D)  Consequential

Question 10

For a contract to rescind,the parties to the contract must restitute the considerations received under the contract.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following holds true in case of liquidated damages?

Accepted Answer

A)  For liquidated damages to be lawful, the actual damages must be precisely determined. 
B)  Liquidated damages are enforceable even if actual damages are later determined to be different. 
C)  A liquidated damages clause is considered a penalty if actual damages are not determinable in advance. 
D)  If a liquidated damages clause is found to be a penalty, it continues to be enforceable. 
A)  For liquidated damages to be lawful, the actual damages must be precisely determined. 
B)  Liquidated damages are enforceable even if actual damages are later determined to be different. 
C)  A liquidated damages clause is considered a penalty if actual damages are not determinable in advance. 
D)  If a liquidated damages clause is found to be a penalty, it continues to be enforceable.

Question 12

________ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

Accepted Answer

A)  Reformation 
B)  Injunction 
C)  Conjunction 
D)  Garnishment 
A)  Reformation 
B)  Injunction 
C)  Conjunction 
D)  Garnishment

Question 13

A ________ is an order of the court that orders that wages,bank accounts,or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgment.

Accepted Answer

A)  writ of attachment 
B)  writ of garnishment 
C)  specific performance 
D)  liquidation of damages 
A)  writ of attachment 
B)  writ of garnishment 
C)  specific performance 
D)  liquidation of damages

Question 14

Which of the following is true of specific performance?

Accepted Answer

A)  Specific performance of personal service contracts is not granted. 
B)  Specific performance is not awarded if the subject matter of the contract is unique. 
C)  Works of art, antiques, and heirlooms are exempted as subject matter for specific performance. 
D)  Specific performance is not available to enforce land contracts. 
A)  Specific performance of personal service contracts is not granted. 
B)  Specific performance is not awarded if the subject matter of the contract is unique. 
C)  Works of art, antiques, and heirlooms are exempted as subject matter for specific performance. 
D)  Specific performance is not available to enforce land contracts.

Question 15

Disputes under contracts containing arbitration clauses ________.

Accepted Answer

A)  are heard by a judge or a jury 
B)  cannot be appealed to the courts 
C)  are resolved in public forums 
D)  cannot involve federal or state laws 
A)  are heard by a judge or a jury 
B)  cannot be appealed to the courts 
C)  are resolved in public forums 
D)  cannot involve federal or state laws

Question 16

A nonbreaching party may recover actual damages if the liquidated damages clause is found to be a penalty.

Accepted Answer

A) True 
 B)False

Question 17

The Amosi Corporation contracts to have the Whetsel Builders construct a manufacturing unit for $800,000.It would take Whetsel $500,000 to build the unit.Amosi withdraws from the contract before the construction begins.Whetsel can recover ________ from Amos as compensatory damages for its lost profits.

Accepted Answer

A)  $500,000 
B)  $300,000 
C)  $800,000 
D)  $1,100,000 
A)  $500,000 
B)  $300,000 
C)  $800,000 
D)  $1,100,000

Question 18

Nonbreaching parties can bring lawsuits against breaching parties for nominal damages even though no financial loss has resulted from the breach.

Accepted Answer

A) True 
 B)False

Question 19

If the goods or property received under a contract is unavailable or consumed,the contract cannot be rescinded.

Accepted Answer

A) True 
 B)False

Question 20

Discuss the effects of liquidated damage on contracts.

Accepted Answer

Under certain circumstances,the parties

Exam 14: Breach of Contract and Remedies

"Contract disputes can be resolved only through a judicial process." Discuss arguments against this notion.

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100,000 a year.Two years into the contract,Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

In the occurrence of a substantial performance,the breaching party can correct the breach to complete performance.

Where there has been a material breach of contract,the nonbreaching party ________.

The usual measure of damages for a breach of sales contracts is the difference between the contract price and the ________.

A liquidated damage clause is unenforceable if ________.

The recovery for breach of contract is not limited to contract damages if a contract-related tort can be proved.

________ damages are intended to compensate a nonbreaching party for the loss of the bargain.

For a contract to rescind,the parties to the contract must restitute the considerations received under the contract.

Which of the following holds true in case of liquidated damages?

________ refers to an equitable doctrine that permits the court to rewrite a contract to express the parties' true intentions.

A ________ is an order of the court that orders that wages,bank accounts,or other property of the breaching party held by third persons be paid to the nonbreaching party to satisfy a judgment.

Which of the following is true of specific performance?

Disputes under contracts containing arbitration clauses ________.

A nonbreaching party may recover actual damages if the liquidated damages clause is found to be a penalty.

Nonbreaching parties can bring lawsuits against breaching parties for nominal damages even though no financial loss has resulted from the breach.

If the goods or property received under a contract is unavailable or consumed,the contract cannot be rescinded.

Discuss the effects of liquidated damage on contracts.

Legal Heritage and the Digital Age

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Nature of Traditional and E-Contracts

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Genuineness of Assent and Statute of Frauds

Third-Party Rights and Discharge

Digital Law and E-Commerce

Formation of Sales and Lease Contracts

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Creation and Transfer of Negotiable Instruments

Holder in Due Course and Liability of Parties

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