Question 1

Specific performance may be available for the breach of a contract to sell

Accepted Answer

A) an original painting. 
B) 20 shares of Walmart stock. 
C) a Nintendo Wii video game system. 
D) a 2007 Mustang in mint condition. 
A) an original painting. 
B) 20 shares of Walmart stock. 
C) a Nintendo Wii video game system. 
D) a 2007 Mustang in mint condition.

Question 2

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, may not attempt to rent the apartment until the date of the lease expiration, and so has no recourse to minimize damages.

Accepted Answer

A) True 
 B)False

Question 3

Expectation interest can best be described as money spent in reliance upon the agreement.

Accepted Answer

A) True 
 B)False

Question 4

M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by

Accepted Answer

A) full performance. 
B) agreement. 
C) rescission. 
D) accord and satisfaction. 
A) full performance. 
B) agreement. 
C) rescission. 
D) accord and satisfaction.

Question 5

Alice signs a contract with Bob to buy Bob's house for $150,000, with the clause, "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years." Assume that Alice tries but is unable to obtain the described loan, and therefore refuses to proceed with the purchase. Alice is in breach of the contract.

Accepted Answer

A) True 
 B)False

Question 6

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

Accepted Answer

A) True 
 B)False

Question 7

Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Banner insists that he is entitled to the house. Banner can successfully sue for specific performance.

Accepted Answer

A) True 
 B)False

Question 8

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

Accepted Answer

A) True 
 B)False

Question 9

In which case would true impossibility NOT apply?

Accepted Answer

A) Nelson contracted with a local restaurant to supply 10,000 pounds of potatoes, but a tornado tore through his field, completely destroying it. 
B) A record company contracted with Darlene to produce a CD of traditional folk ballads; unfortunately, Darlene died before recording began. 
C) Reed agrees to purchase an expensive piece of jewelry for $25,000; a week later, he tells the jeweler that he simply does not have that kind of money. 
D) None of these are correct. 
A) Nelson contracted with a local restaurant to supply 10,000 pounds of potatoes, but a tornado tore through his field, completely destroying it. 
B) A record company contracted with Darlene to produce a CD of traditional folk ballads; unfortunately, Darlene died before recording began. 
C) Reed agrees to purchase an expensive piece of jewelry for $25,000; a week later, he tells the jeweler that he simply does not have that kind of money. 
D) None of these are correct.

Question 10

In breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for

Accepted Answer

A) specific performance requiring Trimble to return to work for Morris, Newt, and Oppie, Ltd. 
B) an injunction to prevent Trimble from working in competition with the former partners. 
C) special damages under the rule of Hadley v. Baxendale . 
D) liquidated damages as compensation for the breach. 
A) specific performance requiring Trimble to return to work for Morris, Newt, and Oppie, Ltd. 
B) an injunction to prevent Trimble from working in competition with the former partners. 
C) special damages under the rule of Hadley v. Baxendale . 
D) liquidated damages as compensation for the breach.

Question 11

The goal of expectation interest is to

Accepted Answer

A) serve as a penalty for breaching a contract. 
B) award damages under the UCC when the sale of goods is the subject of the contract. 
C) put the non-breaching party in the position it would have been in had the contract never been formed. 
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached. 
A) serve as a penalty for breaching a contract. 
B) award damages under the UCC when the sale of goods is the subject of the contract. 
C) put the non-breaching party in the position it would have been in had the contract never been formed. 
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached.

Question 12

Ernest operates an ice cream stand during the months of May, June, July, and August. Ernest's ice cream machine is broken and needs a new part to run. He contracts to have the part shipped to him by special carrier. Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees, knowing that Ernest intends to open his stand May 1. If the shipper fails to deliver the part on April 25, Ernest will be able to recover consequential damages caused by the delay.

Accepted Answer

A) True 
 B)False

Question 13

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Accepted Answer

An injunction is a court order that requ

Question 14

Tina and Leroy have a contract for the sale of a vinyl record album. Tina, the seller, breaches the contract. A court will be most likely to order specific performance if there are __________ identical copies of the record album available for sale on the market.

Accepted Answer

A) 2 
B) 2,000 
C) 20,000 
D) 200,000 
A) 2 
B) 2,000 
C) 20,000 
D) 200,000

Question 15

Specific performance is available when the subject matter of the contract is unique.

Accepted Answer

A) True 
 B)False

Question 16

A court may, at times, discharge a party who has not performed.

Accepted Answer

A) True 
 B)False

Question 17

The legal right to sue for a breach of contract is subject to a statute of limitations.

Accepted Answer

A) True 
 B)False

Question 18

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly canceled because of concern over a terrorist attack. Harry is

Accepted Answer

A) obligated to pay the $100. 
B) not obligated to pay under the commercial impracticability doctrine. 
C) not obligated to pay under the force majeure doctrine. 
D) not obligated to pay under the frustration of purpose doctrine. 
A) obligated to pay the $100. 
B) not obligated to pay under the commercial impracticability doctrine. 
C) not obligated to pay under the force majeure doctrine. 
D) not obligated to pay under the frustration of purpose doctrine.

Question 19

In a construction contract, there is a $1,000 per day estimate of damages for each day that the contract runs over the completion date. The contractor is 30 days late when the job is completed, resulting in a prospective damage award of $30,000. What is this type of clause, and when will it be enforced?

Accepted Answer

This type of clause is known as a liquid

Exam 12: Performance, Discharge, and Remedies

Specific performance may be available for the breach of a contract to sell

Tess, a tenant, moves from her apartment in breach of the lease agreement. The landlord, Lenny, may not attempt to rent the apartment until the date of the lease expiration, and so has no recourse to minimize damages.

Expectation interest can best be described as money spent in reliance upon the agreement.

M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

Banner enters into a contract with Sylvia to buy her house for $150,000. Sylvia decides later not to sell because she is so emotionally attached to the house. Banner insists that he is entitled to the house. Banner can successfully sue for specific performance.

Liquidated damages are awarded to parties who have experienced an injury to their legal rights but have no actual loss.

In which case would true impossibility NOT apply?

In breach of the partnership agreement, Trimble, a partner in the partnership of Morris, Newt, and Oppie, Ltd. quits the partnership and goes to work for a competitor. The former partners may ask the court for

The goal of expectation interest is to

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Tina and Leroy have a contract for the sale of a vinyl record album. Tina, the seller, breaches the contract. A court will be most likely to order specific performance if there are __________ identical copies of the record album available for sale on the market.

Specific performance is available when the subject matter of the contract is unique.

A court may, at times, discharge a party who has not performed.

The legal right to sue for a breach of contract is subject to a statute of limitations.

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities. The festivities were unexpectedly canceled because of concern over a terrorist attack. Harry is

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