Question 1

A party with the power to avoid a contract will not lose that power by delaying the avoidance.

Accepted Answer

A) True 
 B)False

Question 2

Equitable remedies result in money awards to the plaintiff.

Accepted Answer

A) True 
 B)False

Question 3

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 ask for:

Accepted Answer

A)  punitive damages, but not out-of-pocket damages. 
B)  out-of-pocket damages, plus consequential damages. 
C)  out-of-pocket damages plus punitive damages. 
D)  nominal damages because Howard should have known the capacity of the truck. 
A)  punitive damages, but not out-of-pocket damages. 
B)  out-of-pocket damages, plus consequential damages. 
C)  out-of-pocket damages plus punitive damages. 
D)  nominal damages because Howard should have known the capacity of the truck.

Question 4

Under the rule in Hadley v. Baxendale , only damages foreseeable at the time of entering into the contract can be recovered.

Accepted Answer

A) True 
 B)False

Question 5

Punitive damages are not always awarded as a deterrent in breach of contract cases.

Accepted Answer

A) True 
 B)False

Question 6

The test of foreseeable damages is subjective.

Accepted Answer

A) True 
 B)False

Question 7

AllMed Corporation may obtain an injunction against its head chemical engineer, Dwight, if they have an employment contract with Dwight and Dwight accepts a consulting job offer from AllMed's major competitor.

Accepted Answer

A) True 
 B)False

Question 8

Harry said to Marge, "I have a ring once owned by Marilyn Monroe. Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local store. Marge enjoys wearing the ring and wears it constantly for twelve months. Finally, she goes to Harry and says, "Here is the ring you lied about. Give me my $500." Most likely Marge will:

Accepted Answer

A)  get her money back since Harry's statement was fraudulent. 
B)  not get her money back since she should have investigated the facts about the ring more carefully. 
C)  not get her money back since she is a good faith purchaser of merchandise. 
D)  not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm. 
A)  get her money back since Harry's statement was fraudulent. 
B)  not get her money back since she should have investigated the facts about the ring more carefully. 
C)  not get her money back since she is a good faith purchaser of merchandise. 
D)  not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.

Question 9

Specific performance is the usual judicially granted remedy for breach of contract.

Accepted Answer

A) True 
 B)False

Question 10

A party with the power to avoid a contract may lose that power by affirming the contract.

Accepted Answer

A) True 
 B)False

Question 11

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

Accepted Answer

A) True 
 B)False

Question 12

If Alex cannot prove a particular element of his loss with reasonable certainty, he cannot recover any of the loss arising from breach of contract.

Accepted Answer

A) True 
 B)False

Question 13

What principle did the court apply in the case of Madison Square Garden Corp., Ill. v. Carnera ?

Accepted Answer

A)  When damages are not adequate, an injunction may be used to enforce a negative covenant regarding exclusive services that are unique and extraordinary. 
B)  When services contracted for are unusual or extraordinary, the injured party cannot obtain injunctive relief. 
C)  An injured party's damages may not be reduced by mitigation for his failure to accept or seek other employment of a different or inferior kind. 
D)  Damages are recoverable only if they were foreseeable at the time of entering into the contract. 
A)  When damages are not adequate, an injunction may be used to enforce a negative covenant regarding exclusive services that are unique and extraordinary. 
B)  When services contracted for are unusual or extraordinary, the injured party cannot obtain injunctive relief. 
C)  An injured party's damages may not be reduced by mitigation for his failure to accept or seek other employment of a different or inferior kind. 
D)  Damages are recoverable only if they were foreseeable at the time of entering into the contract.

Question 14

Scott, a minor, sells his digital camera to Hadley, who then sells it to Sherry. Under these circumstances:

Accepted Answer

A)  Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry. 
B)  if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted. 
C)  Hadley and Sherry both received a voidable title regardless of whether they contracted in good faith. 
D)  if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse. 
A)  Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry. 
B)  if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted. 
C)  Hadley and Sherry both received a voidable title regardless of whether they contracted in good faith. 
D)  if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse.

Exam 18: Contract Remedies

A party with the power to avoid a contract will not lose that power by delaying the avoidance.

Equitable remedies result in money awards to the plaintiff.

Under the rule in Hadley v. Baxendale , only damages foreseeable at the time of entering into the contract can be recovered.

Punitive damages are not always awarded as a deterrent in breach of contract cases.

The test of foreseeable damages is subjective.

AllMed Corporation may obtain an injunction against its head chemical engineer, Dwight, if they have an employment contract with Dwight and Dwight accepts a consulting job offer from AllMed's major competitor.

Specific performance is the usual judicially granted remedy for breach of contract.

A party with the power to avoid a contract may lose that power by affirming the contract.

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

If Alex cannot prove a particular element of his loss with reasonable certainty, he cannot recover any of the loss arising from breach of contract.

What principle did the court apply in the case of Madison Square Garden Corp., Ill. v. Carnera ?

Scott, a minor, sells his digital camera to Hadley, who then sells it to Sherry. Under these circumstances:

Introduction to Law

Business Ethics

Civil Dispute Resolution

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Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

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Conduct Invalidating Assent

Consideration

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Third Parties to Contracts

Performance Breach and Discharge

Introduction to Sales and Leases

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Transfer of Title and Risk of Loss

Product Liability Warranties and Strict Liability

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Form and Content

Transfer and Holder in Due Course

Liability of Parties

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Relationship of Principal and Agent

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Formation and Internal Relations of General Partnerships

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Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

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Secured Transactions and Suretyship

Bankruptcy

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