Question 1

The remedy of rescission involves suspending the operation of a contract temporarily.

Accepted Answer

A) True 
 B)False

Question 2

Jack agrees to paint the home of Jim.During the negotiations,Jim leads Jack to believe that he is in some financial predicament and so cannot pay the full fee.Jack agrees to give him a discount because of his predicament.A few days before Jack is due to perform,he learns from a source that Jim is a very wealthy man.Jack decides that because he has been tricked he will not honour his obligation to paint the home.He gives away all his tools and equipment and tells Jim that he cannot paint the home because his tools have been stolen.Jack's conduct is

Accepted Answer

A) a breach of contract by implied repudiation. 
B) a breach of a condition. 
C) not a breach of contract. 
D) a breach of contract because Jack's conduct renders performance impossible. 
E) a breach of contract by express repudiation. 
A) a breach of contract by implied repudiation. 
B) a breach of a condition. 
C) not a breach of contract. 
D) a breach of contract because Jack's conduct renders performance impossible. 
E) a breach of contract by express repudiation.

Question 3

An express repudiation only occurs when one party to a contract actually tells the other party that it refuses to perform its obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 4

A warranty is

Accepted Answer

A) a non-essential term of a contract. 
B) a guarantee of performance given by one party to another. 
C) a guarantee contained in a contract regarding the performance of an obligation. 
D) a non-essential term of a contract that guarantees the performance of an obligation. 
E) an essential term of a contract that guarantees the performance of an obligation. 
A) a non-essential term of a contract. 
B) a guarantee of performance given by one party to another. 
C) a guarantee contained in a contract regarding the performance of an obligation. 
D) a non-essential term of a contract that guarantees the performance of an obligation. 
E) an essential term of a contract that guarantees the performance of an obligation.

Question 5

Exemption clauses are

Accepted Answer

A) not used in contracts for the sale of goods. 
B) strictly construed by the courts against the party that seeks to rely on them. 
C) not considered by courts. 
D) strictly construed by the courts against the parties for whom they are drawn. 
E) not used in employer-employee contracts. 
A) not used in contracts for the sale of goods. 
B) strictly construed by the courts against the party that seeks to rely on them. 
C) not considered by courts. 
D) strictly construed by the courts against the parties for whom they are drawn. 
E) not used in employer-employee contracts.

Question 6

Where an anticipatory breach occurs,the innocent party must carefully consider its election.Explain.

Accepted Answer

The election is to either accept the bre

Question 7

Alice Munroe entered into a contract with Joe Green for the sale of Alice's car to Joe.Joe's plan was to use the car for parts.After the sale had been completed and the car was partially dismantled,Joe discovered that the transmission had been cannibalized.In other words,some of the transmission parts had been removed.Joe wished to get his money back from Alice.Discuss whether or not he is entitled to his money back.

Accepted Answer

Joe Green's wish would be for rescission

Question 8

The Lockheart Community has a restrictive covenant that does not allow more than a 1 metre solid fence within 3 metres of any public walkway.Ignoring the covenant,Mr.Bailey starts to build a 2 metre high rock wall along his front sidewalk.Mr.Bailey might be subject to

Accepted Answer

A) a restraining order. 
B) the sheriff's ordnance writ. 
C) the community compliance marshal. 
D) the building inspector. 
E) a court injunction. 
A) a restraining order. 
B) the sheriff's ordnance writ. 
C) the community compliance marshal. 
D) the building inspector. 
E) a court injunction.

Question 9

Express repudiation happens when a third party requests to one of the contracting parties that he not perform as promised,but the request is denied.

Accepted Answer

A) True 
 B)False

Question 10

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 11

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 12

Carlos,an antique dealer,contracted to buy an antique dining room set at a garage sale for $700.He made a down payment and agreed to return on the weekend to pick it up.Then Carlos contacted a former customer who he knew wanted such an item.This customer agreed to pay $850 for the set.However,when Carlos returned on the weekend to where the garage sale had been,he found that the dining room set had been sold to someone else for $900 and had already been hauled away.Carlos was given back his down payment cheque.Does Carlos have any other claim to damages?

Accepted Answer

A) Yes,he does,for mental anguish. 
B) No,he doesn't; there are no further damages. 
C) Yes,he does,for $150 of consequential damages. 
D) Yes,he does,for $200 of consequential damages. 
E) Yes,he does,for $200 of expectation damages. 
A) Yes,he does,for mental anguish. 
B) No,he doesn't; there are no further damages. 
C) Yes,he does,for $150 of consequential damages. 
D) Yes,he does,for $200 of consequential damages. 
E) Yes,he does,for $200 of expectation damages.

Question 13

The consequences of a purely economic approach to breach of contract can result in

Accepted Answer

A) the decision by a party to ensure that all contractual obligations are met. 
B) the decision by a party not to perform a contractual obligation. 
C) the decision by a party to breach the contract. 
D) the decision by a party to actually weigh the consequences of breach against its reward. 
E) the decision by a party to merely perform a contractual obligation. 
A) the decision by a party to ensure that all contractual obligations are met. 
B) the decision by a party not to perform a contractual obligation. 
C) the decision by a party to breach the contract. 
D) the decision by a party to actually weigh the consequences of breach against its reward. 
E) the decision by a party to merely perform a contractual obligation.

Question 14

Should you win a money judgment in the court,how would you collect the money?

Accepted Answer

The force of the court judgment is usual

Question 15

Unconscionable terms in a contract can be unfair even if they are agreed to by parties of equal bargaining power.

Accepted Answer

A) True 
 B)False

Question 16

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 17

A genuine estimate of damages contained in a contract as a term of the contract can best be described as

Accepted Answer

A) reliance damages. 
B) liquidated damages. 
C) nominal damages. 
D) expectation damages. 
E) consequential damages. 
A) reliance damages. 
B) liquidated damages. 
C) nominal damages. 
D) expectation damages. 
E) consequential damages.

Question 18

Specific performance will NOT generally be available for breach of a contract for

Accepted Answer

A) sale of goods. 
B) contracts requiring unique personal skill or judgment. 
C) sale of goods that have been custom-made. 
D) sale of works of art. 
E) sale of antiques. 
A) sale of goods. 
B) contracts requiring unique personal skill or judgment. 
C) sale of goods that have been custom-made. 
D) sale of works of art. 
E) sale of antiques.

Question 19

An order of specific performance

Accepted Answer

A) would always apply to the buyer of real property (i.e.,land and buildings). 
B) requires one party to a contract to refrain from acting in a particular manner. 
C) requires that the defendant do a certain act,usually something not specified in the contract. 
D) requires that the defendant do a certain act,usually fulfilling his or her part of the contract. 
E) requires that the party in breach pay a specific monetary sum to the other party. 
A) would always apply to the buyer of real property (i.e.,land and buildings). 
B) requires one party to a contract to refrain from acting in a particular manner. 
C) requires that the defendant do a certain act,usually something not specified in the contract. 
D) requires that the defendant do a certain act,usually fulfilling his or her part of the contract. 
E) requires that the party in breach pay a specific monetary sum to the other party.

Question 20

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

Exam 13: Breach of Contract and Its Remedies

The remedy of rescission involves suspending the operation of a contract temporarily.

An express repudiation only occurs when one party to a contract actually tells the other party that it refuses to perform its obligations under the contract.

A warranty is

Exemption clauses are

Where an anticipatory breach occurs,the innocent party must carefully consider its election.Explain.

The Lockheart Community has a restrictive covenant that does not allow more than a 1 metre solid fence within 3 metres of any public walkway.Ignoring the covenant,Mr.Bailey starts to build a 2 metre high rock wall along his front sidewalk.Mr.Bailey might be subject to

Express repudiation happens when a third party requests to one of the contracting parties that he not perform as promised,but the request is denied.

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

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

The consequences of a purely economic approach to breach of contract can result in

Should you win a money judgment in the court,how would you collect the money?

Unconscionable terms in a contract can be unfair even if they are agreed to by parties of equal bargaining power.

A genuine estimate of damages contained in a contract as a term of the contract can best be described as

Specific performance will NOT generally be available for breach of a contract for

An order of specific performance

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

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

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

Writing and Interpretation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Sale of Goods and Consumer Contracts

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

International Business Transactions

Electronic Commerce

Privacy

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