Question 1

The remedy for misrepresentation is specific performance of the contract.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A)  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. 
B)  When services contracted for are unusual or extraordinary, the injured party cannot obtain injunctive relief. 
C)  When damages are not adequate, an injunction may be used to enforce a negative covenant regarding exclusive services that are unique and extraordinary. 
D)  Damages are recoverable only if they were foreseeable at the time of entering into the contract. 
A)  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. 
B)  When services contracted for are unusual or extraordinary, the injured party cannot obtain injunctive relief. 
C)  When damages are not adequate, an injunction may be used to enforce a negative covenant regarding exclusive services that are unique and extraordinary. 
D)  Damages are recoverable only if they were foreseeable at the time of entering into the contract.

Question 3

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

Question 4

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

Question 5

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 6

Under contract law, the deceived party can elect either to affirm and enforce the contract despite the misrepresentation or to disaffirm the contract and seek rescission.

Accepted Answer

A) True 
 B)False

Question 7

The test of foreseeable damages is subjective.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

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

Question 9

Contract damages that put the injured party in as good a position as if the other party had performed are:

Accepted Answer

A)  consequential damages. 
B)  incidental damages. 
C)  liquidated damages. 
D)  compensatory damages. 
A)  consequential damages. 
B)  incidental damages. 
C)  liquidated damages. 
D)  compensatory damages.

Question 10

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 11

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits, when damages under ordinary circumstances would be $17,000.Explain under what circumstances a court would award $25,000.

Accepted Answer

If a plaintiff's expected profit is extr

Question 12

If Wallace and Bruce designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty, the injured party will be left without a remedy.

Accepted Answer

A) True 
 B)False

Question 13

Bob's brother, Steve, planned to visit over Labor Day weekend.Together they planned to build a deck in Bob's backyard.Bob ordered the lumber, concrete, nails, and other supplies to be delivered on Friday.He also arranged to rent a saw for the weekend (Sat., Sun., and Mon.) at a cost of $20 a day.When he went to pick up the saw, the store had already rented it.He drove all over town trying to borrow another but could only get one for Sunday, Monday, and Tuesday at a cost of $50 per day.Because they couldn't work on Saturday without a saw, Bob had to hire Mac at a cost of $80 to work with him on Tuesday and, of course, Bob had to take off from work.Calculate the damages to which Bob is entitled.Why? Explain.

Accepted Answer

(1) Cost of rental of a replacement saw

Question 14

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 c

Question 15

According to the "American Rule," when contracting parties litigate over a breach:

Accepted Answer

A)  attorney fees are considered consequential damages. 
B)  a provision for attorney fees in the written contract will not be given effect. 
C)  the losing party has to pay the winner's attorney fees. 
D)  each party pays its own attorney fees, regardless of who wins. 
A)  attorney fees are considered consequential damages. 
B)  a provision for attorney fees in the written contract will not be given effect. 
C)  the losing party has to pay the winner's attorney fees. 
D)  each party pays its own attorney fees, regardless of who wins.

Question 16

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 17

Where a party has been induced by fraud to enter a contract, the Restatement of Torts permits the injured party to recover out-of-pocket damages but expressly excludes recovery of benefit-of-the-bargain damages.

Accepted Answer

A) True 
 B)False

Question 18

Under the law of restitution, a remedy for misrepresentation is rescission (avoidance) of the contract by the deceived party, though when appropriate, the courts also will require restitution.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

A) True 
 B)False

Question 20

The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made.

Accepted Answer

A) True 
 B)False

Exam 18: Contract Remediespart Iv: Sales

The remedy for misrepresentation is specific performance of the contract.

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

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:

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. ​

Under contract law, the deceived party can elect either to affirm and enforce the contract despite the misrepresentation or to disaffirm the contract and seek rescission.

The test of foreseeable damages is subjective.

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

Contract damages that put the injured party in as good a position as if the other party had performed are:

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

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits, when damages under ordinary circumstances would be $17,000.Explain under what circumstances a court would award $25,000.

If Wallace and Bruce designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty, the injured party will be left without a remedy.

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.

According to the "American Rule," when contracting parties litigate over a breach:

Where a party has been induced by fraud to enter a contract, the Restatement of Torts permits the injured party to recover out-of-pocket damages but expressly excludes recovery of benefit-of-the-bargain damages.

Under the law of restitution, a remedy for misrepresentation is rescission (avoidance) of the contract by the deceived party, though when appropriate, the courts also will require restitution.

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

The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made.

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

Filters

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.