Question 1

Between experienced businesspersons,exculpatory clauses are generally:

Accepted Answer

A)  voidable. 
B)  void. 
C)  valid. 
D)  unenforceable. 
A)  voidable. 
B)  void. 
C)  valid. 
D)  unenforceable.

Question 2

If one party to a contract breaks the contract,the other party generally is under a duty to stop any further performance to avoid sustaining greater damages.

Accepted Answer

A) True 
 B)False

Question 3

A firm request for additional payment under an existing contract without refusal to perform until the additional payment is made is considered a repudiation of a contract.

Accepted Answer

A) True 
 B)False

Question 4

An antimodification clause specifies that a waiver to any breach automatically modifies the contract.

Accepted Answer

A) True 
 B)False

Question 5

The rule of mitigation of damages requires that a party injured by a breach of contract must:

Accepted Answer

A)  take any and all steps possible to reduce the damages that will be sustained because of the breach. 
B)  discharge the contract before filing suit for breach. 
C)  hire someone else to perform the contract. 
D)  take reasonable steps to reduce the damages that would otherwise be sustained because of the breach. 
A)  take any and all steps possible to reduce the damages that will be sustained because of the breach. 
B)  discharge the contract before filing suit for breach. 
C)  hire someone else to perform the contract. 
D)  take reasonable steps to reduce the damages that would otherwise be sustained because of the breach.

Question 6

Punitive damages are generally recoverable in contract actions.

Accepted Answer

A) True 
 B)False

Question 7

Damages in excess of actual loss,imposed for the purpose of punishing or making an example of the defendant,are known as compensatory damages.

Accepted Answer

A) True 
 B)False

Question 8

When one party commits a non-material breach of contract,the other party may rescind the contract.

Accepted Answer

A) True 
 B)False

Question 9

A waiver is based on the subjective opinion of the innocent party.

Accepted Answer

A) True 
 B)False

Question 10

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

Accepted Answer

A)  nominal 
B)  contract 
C)  liquidated 
D)  breach 
A)  nominal 
B)  contract 
C)  liquidated 
D)  breach

Question 11

Consequential damages are those that necessarily flow from the breach.

Accepted Answer

A) True 
 B)False

Question 12

When a written contract does not correctly state the agreement already made but the parties either party make seek a(n):

Accepted Answer

A)  rescission 
B)  injunction 
C)  reformation of the contract 
D)  action for specific performance 
A)  rescission 
B)  injunction 
C)  reformation of the contract 
D)  action for specific performance

Question 13

In some cases the court may require specific performance,whereby the court will order the contractual performance to be carried out.

Accepted Answer

A) True 
 B)False

Question 14

If one of the parties retains money or a legal benefit in a breach of contract,that person is obligated to make restitution to the person conferring the benefit.

Accepted Answer

A) True 
 B)False

Question 15

Contract provisions that limit the remedies of the parties are generally unenforceable.

Accepted Answer

A) True 
 B)False

Question 16

An injured party that does not suffer an actual loss from the breach of a contract is entitled to consequential damages.

Accepted Answer

A) True 
 B)False

Question 17

Ordinarily,contracts for the performance of personal services are specifically ordered.

Accepted Answer

A) True 
 B)False

Question 18

If an exculpatory clause limits liability for damages caused by negligent conduct,the tortfeasor's liability is:

Accepted Answer

A)  contributorily negligent. 
B)  not limited if the conduct is willful. 
C)  limited unless the plaintiff signed a release. 
D)  limited if the conduct is grossly negligent. 
A)  contributorily negligent. 
B)  not limited if the conduct is willful. 
C)  limited unless the plaintiff signed a release. 
D)  limited if the conduct is grossly negligent.

Question 19

Repeated breaches and waivers are generally interpreted to indicate:

Accepted Answer

A)  poor business practices. 
B)  illegal behavior. 
C)  ignorance of the law. 
D)  modification of contract. 
A)  poor business practices. 
B)  illegal behavior. 
C)  ignorance of the law. 
D)  modification of contract.

Question 20

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

Accepted Answer

A)  waives the late fee. 
B)  will collect the late fee at a later date. 
C)  is ignorant of the late fee. 
D)  allows the tenant to repudiate the lease. 
A)  waives the late fee. 
B)  will collect the late fee at a later date. 
C)  is ignorant of the late fee. 
D)  allows the tenant to repudiate the lease.

Exam 19: Breach of Contract and Remedies

Between experienced businesspersons,exculpatory clauses are generally:

If one party to a contract breaks the contract,the other party generally is under a duty to stop any further performance to avoid sustaining greater damages.

A firm request for additional payment under an existing contract without refusal to perform until the additional payment is made is considered a repudiation of a contract.

An antimodification clause specifies that a waiver to any breach automatically modifies the contract.

The rule of mitigation of damages requires that a party injured by a breach of contract must:

Punitive damages are generally recoverable in contract actions.

Damages in excess of actual loss,imposed for the purpose of punishing or making an example of the defendant,are known as compensatory damages.

When one party commits a non-material breach of contract,the other party may rescind the contract.

A waiver is based on the subjective opinion of the innocent party.

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

Consequential damages are those that necessarily flow from the breach.

When a written contract does not correctly state the agreement already made but the parties either party make seek a(n):

In some cases the court may require specific performance,whereby the court will order the contractual performance to be carried out.

If one of the parties retains money or a legal benefit in a breach of contract,that person is obligated to make restitution to the person conferring the benefit.

Contract provisions that limit the remedies of the parties are generally unenforceable.

An injured party that does not suffer an actual loss from the breach of a contract is entitled to consequential damages.

Ordinarily,contracts for the performance of personal services are specifically ordered.

If an exculpatory clause limits liability for damages caused by negligent conduct,the tortfeasor's liability is:

Repeated breaches and waivers are generally interpreted to indicate:

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

The Nature and Sources of Law

The Court System and Dispute Resolution

Business Ethics, Social Forces and the Law

The Constitution as the Foundation of the Legal Environment

Government Regulation of Competition and Prices

Administrative Agencies

Crimes

Torts

Intellectual Property Rights and the Internet

The Legal Environmental of International Trade

Nature and Classes of Contracts: Contracting on the Internet

Formation of Contracts: Offer and Acceptance

Capacity and Genuine Assent

Consideration

Legality and Public Policy

Writing, Electronic Forms, and Interpretation of Contracts

Third Persons and Contracts

Discharge of Contracts

Personal Property and Bailments

Legal Aspects of Supply Chain Management

Nature and Form of Sales

Title and Risk of Loss

Product Liability: Warranties and Torts

Obligations and Performance

Remedies for Breach of Sales Contracts

Kinds of Negotiable Instruments and Negotiability

Transfers of Negotiable Instruments and Warranties of Parties

Liability of the Parties Under Negotiable Instruments

Checks and Funds Transfers

Nature of the Debtor Creditor Relationship

Consumer Protection

Secured Transactions in Personal Property

Bankruptcy

Insurance

Agency

Third Persons in Agency

Regulation of Employment

Equal Employment Opportunity Law

Types of Business Organizations

Partnerships

LPs, LLCs, and LLPs

Corporate Formation

Shareholder Rights in Corporations

Securities Regulation

Accountants' Liability and Malpractice

Management of Corporations

Real Property

Environmental Law and Land Use Controls

Leases

Decedents' Estates and Trusts

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