Question 1

Which of the following is correct with respect to election of remedies?

Accepted Answer

A)  The Code follows the doctrine of election of remedies with respect to contracts for the sale of goods. 
B)  The remedy of specific performance is consistent with that of restitution. 
C)  A person who seeks an injunction may also seek incidental damages for the breach. 
D)  All of these are correct. 
A)  The Code follows the doctrine of election of remedies with respect to contracts for the sale of goods. 
B)  The remedy of specific performance is consistent with that of restitution. 
C)  A person who seeks an injunction may also seek incidental damages for the breach. 
D)  All of these are correct.

Question 2

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 3

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 4

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Accepted Answer

A) True 
 B)False

Question 5

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 6

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

Accepted Answer

A) True 
 B)False

Question 7

Explain three limitations on monetary damages.

Accepted Answer

To accomplish the basic purposes of cont

Question 8

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction.

Accepted Answer

A) True 
 B)False

Question 9

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 10

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

Accepted Answer

A)  Foreseeability. 
B)  Certainty. 
C)  Mitigation. 
D)  Restitution. 
A)  Foreseeability. 
B)  Certainty. 
C)  Mitigation. 
D)  Restitution.

Question 11

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

Accepted Answer

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

Question 12

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 13

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 14

Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000. Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson 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 15

David enters into a contract giving Edward the right of first refusal on a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate remedy for Edward 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 16

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 17

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 18

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)  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. 
C)  $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. 
D)  only a nominal amount. 
A)  nothing, since she was the one who repudiated the contract. 
B)  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. 
C)  $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. 
D)  only a nominal amount.

Question 19

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 20

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 .

Exam 18: Contract Remedies

Which of the following is correct with respect to election of remedies?

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 usual remedy for breach of contract is:

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

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.

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

Explain three limitations on monetary damages.

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction.

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.

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

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

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.

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

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.

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.

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:

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:

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

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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