Question 1

Explain three limitations on monetary damages.

Accepted Answer

To accomplish the basic purposes of contract remedies, the limitations of foreseeability, certainty, and mitigation have been imposed upon monetary damages.(a) The limitation of foreseeability is intended to ensure that damages can be taken into account at the time of contracting.The test of foreseeable damages is objective.(b) Damages are not recoverable for loss beyond an amount that the injured party can establish with reasonable certainty.This limitation is intended to ensure that damages are compensatory and not speculative.(c) The third limitation, mitigation of damages, is the doctrine that the injured party may not recover damages for loss that he could have avoided with reasonable effort and without undue risk, burden, or humiliation.

Question 2

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

Question 3

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

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

Accepted Answer

A) True 
 B)False

Question 6

The usual remedy for breach of contract is:

Accepted Answer

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

Question 7

In the Arrowhead School District No.75, Park County, Montana, v.James A.Klyap, Jr.case, the court found the liquidated damages clause was void as a penalty because it was unreasonable and unduly oppressive.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A)  For a party in default. 
B)  As an alternative remedy for a party injured by breach. 
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)  For a party in default. 
B)  As an alternative remedy for a party injured by breach. 
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 9

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

Accepted Answer

A)  there are unreasonable delays in exercising the power. 
B)  the rights of third parties intervene. 
C)  the contract is affirmed. 
D)  All of these. 
A)  there are unreasonable delays in exercising the power. 
B)  the rights of third parties intervene. 
C)  the contract is affirmed. 
D)  All of these.

Question 10

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

Accepted Answer

A) True 
 B)False

Question 11

What interests of injured parties are protected by remedies for a breach of contract?

Accepted Answer

Contract remedies are available to prote

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

Consequential damages include lost profits and injury to person or property.

Accepted Answer

A) True 
 B)False

Question 14

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 following remedies available to Vladimir?

Accepted Answer

A)  Restitution: No; Specific Performance: Yes 
B)  Restitution: No; Specific Performance: No 
C)  Restitution: Yes; Specific Performance: Yes 
D)  Restitution: Yes; Specific Performance: No 
A)  Restitution: No; Specific Performance: Yes 
B)  Restitution: No; Specific Performance: No 
C)  Restitution: Yes; Specific Performance: Yes 
D)  Restitution: Yes; Specific Performance: No

Question 15

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

Question 16

Incidental damages include lost profits and injury to person or property resulting from defective performance.

Accepted Answer

A) True 
 B)False

Question 17

If Nioma cannot prove a particular element of her loss with reasonable certainty, she is barred from recovering any of the loss arising from breach of contract by the other party.

Accepted Answer

A) True 
 B)False

Question 18

Restitution requires a return of value to the aggrieved party.

Accepted Answer

A) True 
 B)False

Question 19

Gina contracts with Lonnie to build a fence around her backyard in the next three weeks.If Lonnie breaches the contract, Gina can elect the remedy of damages or the remedy of injunctive relief to prevent Lonnie from providing his fencing services for anyone else until he completes her fence.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 18: Contract Remediespart Iv: Sales

Explain three limitations on monetary damages.

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:

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

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.

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

The usual remedy for breach of contract is:

In the Arrowhead School District No.75, Park County, Montana, v.James A.Klyap, Jr.case, the court found the liquidated damages clause was void as a penalty because it was unreasonable and unduly oppressive.

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

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

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

What interests of injured parties are protected by remedies for a breach of contract?

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

Consequential damages include lost profits and injury to person or property.

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 following remedies available to Vladimir?

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.

Incidental damages include lost profits and injury to person or property resulting from defective performance.

If Nioma cannot prove a particular element of her loss with reasonable certainty, she is barred from recovering any of the loss arising from breach of contract by the other party.

Restitution requires a return of value to the aggrieved party.

Gina contracts with Lonnie to build a fence around her backyard in the next three weeks.If Lonnie breaches the contract, Gina can elect the remedy of damages or the remedy of injunctive relief to prevent Lonnie from providing his fencing services for anyone else until he completes her fence.

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.

Introduction to Law

Business Ethicspart Ii: the Legal Environment of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Negligence and Strict Liabilitypart Iii: Contracts

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 Remediespart V: Negotiable Instruments

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transferspart Vi: Agency

Relationship of Principal and Agent

Relationship With Third Partiespart Vii: Business Associations

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 Corporationspart Viii: Debtor and Creditor Relations

Secured Transactions and Suretyship

Bankruptcypart Ix: Regulation of Business

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

International Business Lawpart X: Property

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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