Question 1

To fully compensate a plaintiff for losses suffered for a breach of contract, punitive damages are always awarded.

Accepted Answer

A) True 
 B)False

Question 2

In the case of Hadley v.Baxendale , the plaintiff was seeking damages for:

Accepted Answer

A)  failure to specifically perform a contract. 
B)  failure to convey land. 
C)  lost profits. 
D)  restitution. 
A)  failure to specifically perform a contract. 
B)  failure to convey land. 
C)  lost profits. 
D)  restitution.

Question 3

Bartow signed a contract to coach baseball for Washington High for a period of three years.After two years he is offered and accepts an assistant coaching position at State University.Contract law will not allow Washington High to ask for:

Accepted Answer

A)  an injunction against coaching at the university. 
B)  specific performance of his contract. 
C)  payment of compensatory damages. 
D)  liquidated damages. 
A)  an injunction against coaching at the university. 
B)  specific performance of his contract. 
C)  payment of compensatory damages. 
D)  liquidated damages.

Question 4

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

Question 5

If the parties to a contract stipulate an amount that will be paid in the event of a breach, the courts will always enforce it.

Accepted Answer

A) True 
 B)False

Question 6

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Accepted Answer

A) True 
 B)False

Question 7

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Accepted Answer

A) True 
 B)False

Question 8

Restitution can be obtained where a voidable contract is avoided.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Damages for reliance include expenses for:

Accepted Answer

A)  injury to the person. 
B)  punishment of the breaching party. 
C)  lost profits. 
D)  preparing to perform. 
A)  injury to the person. 
B)  punishment of the breaching party. 
C)  lost profits. 
D)  preparing to perform.

Question 11

In which of the following situations will a court grant specific performance?

Accepted Answer

A)  In a case involving breach of contract for the sale of real property. 
B)  In contracts for personal services. 
C)  Where goods are unique or rare. 
D)  Both in cases involving breach of contract for the sale of real property and w here goods are unique or rare . 
A)  In a case involving breach of contract for the sale of real property. 
B)  In contracts for personal services. 
C)  Where goods are unique or rare. 
D)  Both in cases involving breach of contract for the sale of real property and w here goods are unique or rare .

Question 12

Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000.Marcella then repudiates the contract.Hugh sells the houseboat to Lloyd in good faith for $60,000.Marcella may recover from Hugh:

Accepted Answer

A)  nothing, since she was the one who repudiated the contract. 
B)  $8,000 in restitution, which represents Marcella's $12,000 down payment less the $4,000 in damages Hugh sustained because of Marcella's breach. 
C)  her $12,000 down payment since Hugh's contract with Lloyd created a novation and discharged any duty Marcella had to pay anything toward the houseboat. 
D)  only a nominal amount. 
A)  nothing, since she was the one who repudiated the contract. 
B)  $8,000 in restitution, which represents Marcella's $12,000 down payment less the $4,000 in damages Hugh sustained because of Marcella's breach. 
C)  her $12,000 down payment since Hugh's contract with Lloyd created a novation and discharged any duty Marcella had to pay anything toward the houseboat. 
D)  only a nominal amount.

Question 13

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 14

A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

Accepted Answer

A) True 
 B)False

Question 15

Explain consequential damages.Give an example.

Accepted Answer

Consequential damages are those that do

Question 16

Courts of equity will grant specific performance of contracts for personal services.

Accepted Answer

A) True 
 B)False

Question 17

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

Accepted Answer

A)  nominal damages. 
B)  out-of-pocket damages. 
C)  reliance damages. 
D)  None of these. 
A)  nominal damages. 
B)  out-of-pocket damages. 
C)  reliance damages. 
D)  None of these.

Question 18

A contractor and Southampton, Inc.have a contract, which calls for the contractor to build a building with the completion by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

Accepted Answer

A)  liquidated damages. 
B)  an illegal penalty. 
C)  punitive damages. 
D)  nominal damages. 
A)  liquidated damages. 
B)  an illegal penalty. 
C)  punitive damages. 
D)  nominal damages.

Question 19

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 20

Which of the following is NOT true regarding specific performance?

Accepted Answer

A)  It will be granted frequently in contracts involving the sale of goods. 
B)  It will not be granted if money damages would be adequate to compensate the injured party. 
C)  The courts will not order directly the specific enforcement of contracts for personal services. 
D)  It is granted in contracts involving unique items of personal property. 
A)  It will be granted frequently in contracts involving the sale of goods. 
B)  It will not be granted if money damages would be adequate to compensate the injured party. 
C)  The courts will not order directly the specific enforcement of contracts for personal services. 
D)  It is granted in contracts involving unique items of personal property.

Exam 18: Contract Remediespart Iv: Sales

To fully compensate a plaintiff for losses suffered for a breach of contract, punitive damages are always awarded.

In the case of Hadley v.Baxendale , the plaintiff was seeking damages for:

Bartow signed a contract to coach baseball for Washington High for a period of three years.After two years he is offered and accepts an assistant coaching position at State University.Contract law will not allow Washington High to ask for:

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?

If the parties to a contract stipulate an amount that will be paid in the event of a breach, the courts will always enforce it.

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Restitution can be obtained where a voidable contract is avoided.

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

Damages for reliance include expenses for:

In which of the following situations will a court grant specific performance?

Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000.Marcella then repudiates the contract.Hugh sells the houseboat to Lloyd in good faith for $60,000.Marcella may recover from Hugh:

A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

Explain consequential damages.Give an example.

Courts of equity will grant specific performance of contracts for personal services.

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

A contractor and Southampton, Inc.have a contract, which calls for the contractor to build a building with the completion by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

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

Which of the following is NOT true regarding specific performance?

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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