Exam 14: The Termination of Contracts: Breach of Contract

For fraud to exist, a false statement must be made or a material fact concealed.

(a) Are contracts made under the influence of fraud, duress and undue influence void or voidable? (b) What rights do victims of one of these acts have?

Mitigation of damages is intended to ensure that the damages awarded are not

Specific performance is an equitable remedy.

If a contract is rescinded, the parties may keep the consideration received.

In assessing damages for an actual loss, a court will usually grant a plaintiff

Babitt entered into a contract with Gurtz to build an indoor swimming pool. The price was $15,000. Gurtz failed to do the work, so Babitt contracted with Dao to do the work for the same price ($15,000). Babitt then sued Gurtz for breach of contract. Babitt will receive

Which of the following remedies is not generally allowed in a breach of contract suit?

Fraud, duress, and undue influence make a contract ____________________.

Damages to be awarded to an injured party in case of a breach of contract may be determined by the parties in advance and stated in the contract. These damages are called

Smart Computer Services had a service contract with Johnson College to maintain all of the college computers used for instructional services. The college depended heavily on its computer system being maintained properly at all times. A liquidated damage clause in the contract provided that Smart Computers pay $500 to Johnson College for each day that Smart was late responding to a service call. On October 10, Smart was notified that Johnson College's computer system failed. Smart, however, did not respond to the college's request until October 15. If Johnson College sues Smart Computer Services under the liquidated damages provision of the contract, Johnson College will

What is the theory behind a liquidated damages clause in a contract?

Terry agreed to sell an antique lamp to her neighbor for $300. Later that day, she decided she would rather sell it to another person who offered her $400. The neighbor has sued. The court will most likely rule that Terry must sell the lamp to the

Rodell Construction Co. contracted to build several greenhouses for Delmar Corp. The specifications in the contract called for the use of Apex glass. By mistake Rodell installed Remco glass which is of slightly lesser quality than Apex, but in all other respects met Delmar's needs. Which of the following statements is correct?

A(n) ____________________ is a course of action available to an injured party to obtain satisfaction for a breach of contract.

Under threat of bodily harm, Jones signed a contract for the purchase of an apartment building. He may later have this contract set aside on the grounds of

Contracts are usually breached after the date set for performance.

A person who wishes to bring an action against another based on fraud must first show that there has been either a false statement or a concealment of a(n) ____________________ fact.

Of the following, the one that is not an equitable remedy is

A minor breach of contract discharges the contract.