Question 1

An award of damages

Accepted Answer

A)  usually accompanies a rescission. 
B)  seldom comes out of a case for breach. 
C)  aims to place the injured party in the same position as if the contract had been completed. 
D)  is a tool used by the courts to act as a punishment to those who breach a contract. 
E)  is an "equitable remedy" for breach. 
A)  usually accompanies a rescission. 
B)  seldom comes out of a case for breach. 
C)  aims to place the injured party in the same position as if the contract had been completed. 
D)  is a tool used by the courts to act as a punishment to those who breach a contract. 
E)  is an "equitable remedy" for breach. C

Question 2

Give an example of a business mitigating the affects of breach of contract by the other party.

Accepted Answer

For example, perishable goods that are not accepted on delivery should be immediately sold to someone else before they lose their value. Or if a supplier does not deliver a critical component as promised, find another supplier before you run out of inventory.

Question 3

Damages are a common law remedy. What is the purpose of damages and how do they achieve their purpose?

Accepted Answer

An award of damages for breach of contract is intended to place the injured party in the same position he would have been in but for the breach. It achieves its purpose by awarding money as compensation for losses suffered as a result of the breach of contract.

Question 4

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

Question 5

Speedy Courier Service had a phrase on their order form that read, "We deliver on time or our delivery is free." In legal terminology, this is

Accepted Answer

A)  an advertising gambit. 
B)  a self imposed penalty clause. 
C)  liquidated damages. 
D)  consequential damages. 
E)  a promotional come- on. 
A)  an advertising gambit. 
B)  a self imposed penalty clause. 
C)  liquidated damages. 
D)  consequential damages. 
E)  a promotional come- on.

Question 6

Where a creditor serves an employer with an order that requires the employer to retain a portion of the debtor's wages each payday, the employer has been served with an execution order.

Accepted Answer

A) True 
 B)False

Question 7

Lambhair Corp. contracted with Prof. Jones for a two week series of seminars with employees in the Appliance Division. Prof. Jones put in ten 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 five 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)  nominal 
B)  reliance 
C)  consequential 
D)  general 
E)  expectation 
A)  nominal 
B)  reliance 
C)  consequential 
D)  general 
E)  expectation

Question 8

When a breach of contract has occurred the purpose of damages is to

Accepted Answer

A)  compensate the wronged party for the loss incurred. 
B)  make the case an example to the rest of the community that this type of behaviour will not be tolerated. 
C)  provide a deterrent for the breaking of moral and legal obligations. 
D)  punish the one who has committed the breach by making him pay compensation. 
E)  have the damages reflect the severity of the breach. 
A)  compensate the wronged party for the loss incurred. 
B)  make the case an example to the rest of the community that this type of behaviour will not be tolerated. 
C)  provide a deterrent for the breaking of moral and legal obligations. 
D)  punish the one who has committed the breach by making him pay compensation. 
E)  have the damages reflect the severity of the breach.

Question 9

What are the implications when damages "flow naturally from the breach"?

Accepted Answer

A)  Damages would not include the expected chain of events. 
B)  Damages include unusual or unexpected consequence of breach. 
C)  Loss resulting from breach is within the foreseeable boundaries of what the parties would have expected. 
D)  This allows one to use the natural person reasonability test. 
E)  Must communicate the significance of performance at time of forming the contract. 
A)  Damages would not include the expected chain of events. 
B)  Damages include unusual or unexpected consequence of breach. 
C)  Loss resulting from breach is within the foreseeable boundaries of what the parties would have expected. 
D)  This allows one to use the natural person reasonability test. 
E)  Must communicate the significance of performance at time of forming the contract.

Question 10

The union's contract would not expire for five months, yet members were out in force picketing Sunnyville Paving Co. for higher pay. At two o'clock this afternoon Judge Lowbranden issued which was presented on the scene by Sheriff Quigly.

Accepted Answer

A)  an official summons 
B)  a restraining order 
C)  a stop and desist order 
D)  a court injunction 
E)  an interlocutory injunction 
A)  an official summons 
B)  a restraining order 
C)  a stop and desist order 
D)  a court injunction 
E)  an interlocutory injunction

Question 11

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?

Accepted Answer

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

Question 12

It is sometimes difficult to measure damages. Explain that statement in the context of an award of general damages.

Accepted Answer

An award of general damages is intended

Question 13

A person may recover damages even if the damages do not flow naturally from the breach.

Accepted Answer

A) True 
 B)False

Question 14

Give an example of damages that flow naturally from the breach of a contract.

Accepted Answer

A building contractor abandons a job. A

Question 15

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 cannibalised. 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 16

Distinguish an injunction order from an order for specific performance.

Accepted Answer

An injunction is an order preventing som

Question 17

Jack's supplier fails to deliver the products Jack has ordered at the required time. Jack is expected to do what it can to reduce his losses. This is called mitigation of losses.

Accepted Answer

A) True 
 B)False

Question 18

Working on a firm order, Henry tried to deliver sixteen dozen roses to the Pilfrage Corp. for their valentine party. They would not accept delivery because they "changed their minds". Henry immediately found another buyer but at half the original price. In doing this, Henry was attempting to the damages resulting from Pilfrage's breach of contract.

Accepted Answer

A)  eliminate 
B)  recover 
C)  cancel 
D)  exasperate 
E)  mitigate 
A)  eliminate 
B)  recover 
C)  cancel 
D)  exasperate 
E)  mitigate

Question 19

Casey Construction abandoned its $23 million north county road project after spending $7 million. (One progress payment of $5 million had been made.) The county immediately contracted with Beachwood Corp. to take over and finish the project for $21 million. Expectation damages for Casey Construction would be

Accepted Answer

A)  zero, since Casey did $2 million of work where no payment was received. 
B)  the difference between $18 and $21 million. 
C)  the difference between $16 and $21 million. 
D)  the difference between $21 and $23 million. 
E)  none, only consequential damages might apply. 
A)  zero, since Casey did $2 million of work where no payment was received. 
B)  the difference between $18 and $21 million. 
C)  the difference between $16 and $21 million. 
D)  the difference between $21 and $23 million. 
E)  none, only consequential damages might apply.

Question 20

Nominal damages are

Accepted Answer

A)  assessed where a party commits a tort within the context of a contract. 
B)  where damages are determined by local bylaws. 
C)  used for allowing the case to go to a higher court. 
D)  awarded to serve as an acknowledgement to a breach of contract where no appreciable loss has been sustained by the promisee. 
E)  assessed with purely personal or passionate reasons. 
A)  assessed where a party commits a tort within the context of a contract. 
B)  where damages are determined by local bylaws. 
C)  used for allowing the case to go to a higher court. 
D)  awarded to serve as an acknowledgement to a breach of contract where no appreciable loss has been sustained by the promisee. 
E)  assessed with purely personal or passionate reasons.

Exam 15: Remedies for Breach

An award of damages

Give an example of a business mitigating the affects of breach of contract by the other party.

Damages are a common law remedy. What is the purpose of damages and how do they achieve their purpose?

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

Speedy Courier Service had a phrase on their order form that read, "We deliver on time or our delivery is free." In legal terminology, this is

Where a creditor serves an employer with an order that requires the employer to retain a portion of the debtor's wages each payday, the employer has been served with an execution order.

When a breach of contract has occurred the purpose of damages is to

What are the implications when damages "flow naturally from the breach"?

The union's contract would not expire for five months, yet members were out in force picketing Sunnyville Paving Co. for higher pay. At two o'clock this afternoon Judge Lowbranden issued which was presented on the scene by Sheriff Quigly.

It is sometimes difficult to measure damages. Explain that statement in the context of an award of general damages.

A person may recover damages even if the damages do not flow naturally from the breach.

Give an example of damages that flow naturally from the breach of a contract.

Distinguish an injunction order from an order for specific performance.

Jack's supplier fails to deliver the products Jack has ordered at the required time. Jack is expected to do what it can to reduce his losses. This is called mitigation of losses.

Nominal damages are

Law and Society

The Machinery of Justice

The Law of Torts

Professional Liability

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration, and Intention to Create Legal Relations

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Impeached: Mistake

Grounds Upon Which a Contract May Be Impeached: Misrepresentation, Undue Influence, and Duress

The Requirement of Writing

The Interpretation of Contracts

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

The Effect of Breach

Sale of Goods

Leasing and Bailment

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

The Internal Affairs of Corporations

The External Responsibilities of a Corporation

Secured Transactions

Creditors Rights

Government Regulation of Business

International Business Transactions

Electronic Commerce

Filters