Question 1

A party with the power to avoid a contract may lose that power by being subordinated to the intervening rights of third parties.

Accepted Answer

A) True 
 B)False

Question 2

Jimmy made a contract to sell his townhouse to Thomas for $180,000. Two days later Jimmy changed his mind after discovering that he could have sold the property to another buyer for an additional $30,000. Thomas sues and asks the court to have the property conveyed to him at the price of $180,000. Thomas is seeking:

Accepted Answer

A)  restitution. 
B)  punitive damages. 
C)  specific performance. 
D)  valid tender. 
A)  restitution. 
B)  punitive damages. 
C)  specific performance. 
D)  valid tender.

Question 3

Glen enters into a contract giving Woody the right of first refusal on a tract of land owned by Glen . Glen subsequently offers the land to Leif without first offering it to Woody . An appropriate remedy for Woody to seek would be:

Accepted Answer

A)  an injunction. 
B)  liquidated damages. 
C)  reformation. 
D)  punitive damages. 
A)  an injunction. 
B)  liquidated damages. 
C)  reformation. 
D)  punitive damages.

Question 4

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Accepted Answer

A) True 
 B)False

Question 5

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order:

Accepted Answer

A)  injunctive relief. 
B)  specific performance. 
C)  restitution. 
D)  equitable rescission. 
A)  injunctive relief. 
B)  specific performance. 
C)  restitution. 
D)  equitable rescission.

Question 6

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

Accepted Answer

A) True 
 B)False

Question 7

Incidental damages are those that arise directly out of the breach.

Accepted Answer

A) True 
 B)False

Question 8

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may:

Accepted Answer

A)  keep Lynne's $20,000. 
B)  keep $10,000 of Lynne's down payment. 
C)  not keep any of the down payment money. 
D)  sue for specific performance. 
A)  keep Lynne's $20,000. 
B)  keep $10,000 of Lynne's down payment. 
C)  not keep any of the down payment money. 
D)  sue for specific performance.

Question 9

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

Accepted Answer

An agreement setting forth liquidated da

Question 10

A small breach of contract damage amount fixed without regard to the amount of loss is known as:

Accepted Answer

A)  reliance damages. 
B)  out-of-pocket damages. 
C)  nominal damages. 
D)  minimal damages. 
A)  reliance damages. 
B)  out-of-pocket damages. 
C)  nominal damages. 
D)  minimal damages.

Question 11

a. When is specific performance available to enforce a contract? 
b. Under what circumstances will a court grant specific performance to enforce a contract involving personal services? 
c. What remedy did the court award in the Madison Square Garden case? Explain why the court chose this remedy.

Accepted Answer

a. Specific performance is available in

Question 12

Eve agrees to sell her boutique to Shelley for $150,000. Shelley spends $60,000 on inventory and fixtures for the store, but then Eve repudiates the contract. Shelley is able to sell the inventory and fixtures for $45,000. Since Shelley cannot establish her lost profits with reasonable certainty, discuss what damages she should seek for Eve's breach of contract.

Accepted Answer

Shelley may seek reimbursement for fores

Question 13

In which of the following situations is restitution available as a remedy?

Accepted Answer

A)  As an alternative remedy for a party injured by breach. 
B)  For a party in default. 
C)  For a party who may not enforce the contract because of the statute of frauds. 
D)  All of these are situations in which restitution is available. 
A)  As an alternative remedy for a party injured by breach. 
B)  For a party in default. 
C)  For a party who may not enforce the contract because of the statute of frauds. 
D)  All of these are situations in which restitution is available.

Question 14

Courts of equity generally will not grant specific performance of contracts for personal services.

Accepted Answer

A) True 
 B)False

Question 15

Bonnie has an employment contract with QualNeed Corporation which includes a clause requiring exclusive personal services.  If Bonnie takes on contract work with QualNeed's primary competitor, she is not breaching her agreement, as long as her status remains as an independent contractor with the competitor.

Accepted Answer

A) True 
 B)False

Question 16

The usual remedy for breach of contract is:

Accepted Answer

A)  injunction. 
B)  specific performance. 
C)  punitive damages. 
D)  money damages. 
A)  injunction. 
B)  specific performance. 
C)  punitive damages. 
D)  money damages.

Question 17

A power of avoidance held by a party may be lost if:

Accepted Answer

A)  the contract is disaffirmed. 
B)  there are delays in exercising the power. 
C)  the party lacks contractual capacity. 
D)  the rights of third parties are terminated. 
A)  the contract is disaffirmed. 
B)  there are delays in exercising the power. 
C)  the party lacks contractual capacity. 
D)  the rights of third parties are terminated.

Question 18

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available?

Accepted Answer

A)  Compensatory damages. 
B)  Specific performance. 
C)  Reformation. 
D)  Nominal damages. 
A)  Compensatory damages. 
B)  Specific performance. 
C)  Reformation. 
D)  Nominal damages.

Question 19

Explain consequential damages. Give an example.

Accepted Answer

Consequential damages are those that do

Question 20

A deceived party may seek a remedy under tort law, contract law, and restitution,  and may be compensated under more than one of these remedies.

Accepted Answer

A) True 
 B)False

Exam 18: Contract Remedies

A party with the power to avoid a contract may lose that power by being subordinated to the intervening rights of third parties.

Glen enters into a contract giving Woody the right of first refusal on a tract of land owned by Glen . Glen subsequently offers the land to Leif without first offering it to Woody . An appropriate remedy for Woody to seek would be:

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500. When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne. Marianne can ask the court to order:

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

Incidental damages are those that arise directly out of the breach.

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may:

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

A small breach of contract damage amount fixed without regard to the amount of loss is known as:

a. When is specific performance available to enforce a contract? b. Under what circumstances will a court grant specific performance to enforce a contract involving personal services? c. What remedy did the court award in the Madison Square Garden case? Explain why the court chose this remedy.

In which of the following situations is restitution available as a remedy?

Courts of equity generally will not grant specific performance of contracts for personal services.

The usual remedy for breach of contract is:

A power of avoidance held by a party may be lost if:

Busby contracts to build a house for Connell. Busby finishes approximately half of the house and quits. Connell files suit against Busby. Which remedy is not available?

Explain consequential damages. Give an example.

A deceived party may seek a remedy under tort law, contract law, and restitution, and may be compensated under more than one of these remedies.

Introduction to Law

Business Ethics

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Performance Breach and Discharge

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits Collections and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

Environmental Law

International Business Law

Introduction to Property Property Insurance Bailments and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Wills

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