Exam 18: Contract Remedies

If the parties to a contract stipulate an amount that will be paid in the event of a breach (a liquidated damages clause), the courts will always enforce it.

Restitution can be obtained where a voidable contract is avoided.

Delay will have no effect on the power of avoidance.

Specific performance is the usual remedy for breach of contract.

Equitable remedies are available any time the plaintiff chooses them over money damages.

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is worth $2,500.In a state that uses the "benefit-of-the-bargain" rule, Margaret's damage award would be:

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the remedies of restitution and specific performance available to Vladimir?

Contract damages that put the injured party in as good a position as if the other party had performed are:

A contractor and Buckingham, Inc.have a contract, which calls for the contractor to build a building with the completion of it by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

If Kenneth signs an employment contract for one year but is fired without cause after two months and spends $500 in reasonable fees trying to find a comparable job, he may recover $500 in incidental damages.

Howard needs a truck to pull a 2,000-pound trailer.Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer.If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can recover:

In the case of Hadley v.Baxendale, the plaintiff was seeking damages for:

Monetary damages are the most frequently granted remedy for breach of contract.

What Article of the UCC governs sales of goods?

The expectation interest is protected by the contract remedy of:

Lost profits can never be recovered as damages since they are speculative and cannot be established with reasonable certainty.

If a liquidated damage provision is found to be unenforceable, the injured party loses any remedy for breach of contract.

Restitution is available as an alternative remedy for a party's repudiation of the contract.

The basic remedy for misrepresentation is restitution.

Costs incurred to acquire a nondelivered performance from some other source are consequential damages.