Question 1

Restitution is

Accepted Answer

A) a cause of action that sometimes is available in a contractual context. 
B) a remedy that may require the defendant to give up a benefit that it acquired from a third party as a result of committing a wrong against the plaintiff. 
C) a more appropriate name for an account of profits. 
D) never able to exceed the value of expectation damages. 
E) available as a remedy for unjust enrichment. 
A) a cause of action that sometimes is available in a contractual context. 
B) a remedy that may require the defendant to give up a benefit that it acquired from a third party as a result of committing a wrong against the plaintiff. 
C) a more appropriate name for an account of profits. 
D) never able to exceed the value of expectation damages. 
E) available as a remedy for unjust enrichment. E

Question 2

An intangible loss

Accepted Answer

A) is a loss that has market value. 
B) traditionally resulted in expectation damages. 
C) usually triggers the remedy of an account of profits. 
D) usually leads to reliance damages. 
E) may be the subject of damages if the contract was intended to provide "peace of mind" to the plaintiff. 
A) is a loss that has market value. 
B) traditionally resulted in expectation damages. 
C) usually triggers the remedy of an account of profits. 
D) usually leads to reliance damages. 
E) may be the subject of damages if the contract was intended to provide "peace of mind" to the plaintiff. E

Question 3

Which of the following statements is TRUE?

Accepted Answer

A) Liquidated damages are always available if the defendant breached a contract for the sale of land. 
B) Liquidated damages are enforceable if they represent a genuine estimate of the losses that the plaintiff might have suffered as a result of the defendant's breach. 
C) A judge will award more than a liquidated damages clause provides for, but only if the plaintiff suffered a larger loss as a result of the defendant's breach. 
D) The plaintiff cannot recover the full amount of liquidated damages if it suffered a smaller loss as a result of the defendant's breach. 
E) Because of the risk of unfairness, liquidated damages are never allowed unless the defendant received independent legal advice at the time that the contract was created. 
A) Liquidated damages are always available if the defendant breached a contract for the sale of land. 
B) Liquidated damages are enforceable if they represent a genuine estimate of the losses that the plaintiff might have suffered as a result of the defendant's breach. 
C) A judge will award more than a liquidated damages clause provides for, but only if the plaintiff suffered a larger loss as a result of the defendant's breach. 
D) The plaintiff cannot recover the full amount of liquidated damages if it suffered a smaller loss as a result of the defendant's breach. 
E) Because of the risk of unfairness, liquidated damages are never allowed unless the defendant received independent legal advice at the time that the contract was created. B

Question 4

If defendants in a private law case refuse to obey orders for specific performance, they can be sent to jail for contempt of court.

Accepted Answer

A) True 
 B)False

Question 5

Eleni agreed to act as an investment adviser for Gnuhigh Ltd.After completing her first project for Gnuhigh, she asked for payment of $10 000, as calculated under the terms of the parties' agreement.Gnuhigh refused to pay.In support of its position, it pointed to the Financial Industry Standards Act, which says that a contract for investment advice is unenforceable unless it is registered with a government official.The agreement between Eleni and Gnuhigh is not registered.Eleni is most likely entitled to receive

Accepted Answer

A) $10 000 as restitution for unjust enrichment. 
B) $10 000 as reliance damages. 
C) $10 000 as liquidated damages. 
D) $10 000 as expectation damages. 
E) an order for specific performance. 
A) $10 000 as restitution for unjust enrichment. 
B) $10 000 as reliance damages. 
C) $10 000 as liquidated damages. 
D) $10 000 as expectation damages. 
E) an order for specific performance.

Question 6

Mountain City Construction Company (M3C) contractually agreed to build a recreational complex for Valley City.The City agreed to pay $20 million upon completion of the project.Shortly after starting the project, M3C realized that it had entered into a very bad bargain.It would have to provide $40 million in services and materials in order to build the recreational complex.It decided to nevertheless fulfill its obligations.After M3C had finished 75 per cent of the project, at a total cost of $30 million, a new mayor was elected.True to the new mayor's campaign promise, the City immediately locked M3C out of the work site.The City then hired Valley City Construction Incorporated (VCCI) to complete the recreational complex at a cost of $10 million.The City refuses to pay anything to M3c.M3C therefore has discharged the contract and taken its case to court.A judge most likely would award

Accepted Answer

A) expectation damages worth $40 million. 
B) reliance damages worth $30 million. 
C) restitution worth $30 million. 
D) an account of profits worth $10 million. 
E) expectation damages worth $30 million. 
A) expectation damages worth $40 million. 
B) reliance damages worth $30 million. 
C) restitution worth $30 million. 
D) an account of profits worth $10 million. 
E) expectation damages worth $30 million.

Question 7

Manny contractually agreed with Akio Inc to present a series of ten lectures to that company's employees.The total price of $5000 was to be paid after the last lecture.The work turned out to be far more complicated and far more expensive than Manny first expected.He nevertheless carried on with the agreement because he did not want to damage his reputation for reliability and professionalism.Manny spent $12 000 preparing and delivering five lectures.It would have cost the same amount to prepare and deliver the remaining lectures.At that point, however, Akio breached the contract and prevented Manny from completing the contract.Which of the following statements is TRUE?

Accepted Answer

A) Manny is entitled to receive $5000 as expectation damages. 
B) Manny is entitled to receive $12 000 as reliance damages. 
C) Manny is entitled to receive an order for specific performance. 
D) Manny is entitled to receive $12 000 as restitution. 
E) Manny is not entitled to any remedy. 
A) Manny is entitled to receive $5000 as expectation damages. 
B) Manny is entitled to receive $12 000 as reliance damages. 
C) Manny is entitled to receive an order for specific performance. 
D) Manny is entitled to receive $12 000 as restitution. 
E) Manny is not entitled to any remedy.

Question 8

On May 1, George contractually agreed to purchase a painting from Laura for $50 000.On that date, George prepaid half of the purchase price and promised to pay the other half upon delivery.Laura promised to deliver the painting to George on June 1.In anticipation of receiving the painting, George spent $10 000 building a special display case in his home.On May 15, the artist who created the painting died and the value of the painting immediately increased to $75 000.Laura therefore refused to deliver the painting to George.George is entitled to receive

Accepted Answer

A) no more than $10 000 as reliance damages. 
B) $25 000 in expectation damages. 
C) $50 000 in expectation damages. 
D) $75 000 in expectation damages. 
E) $35 000 in expectation damages. 
A) no more than $10 000 as reliance damages. 
B) $25 000 in expectation damages. 
C) $50 000 in expectation damages. 
D) $75 000 in expectation damages. 
E) $35 000 in expectation damages.

Question 9

Dave was contractually required to deliver a widget to Pam by July 1.He failed to do so.At that point, Pam predicted that she would suffer a loss of $100 000 during the next six months because her factory cannot operate efficiently without a widget.Which of the following statements is TRUE?

Accepted Answer

A) Because she is under a duty to mitigate, Pam cannot receive any damages unless she purchases a widget from another supplier. 
B) Because she is under a duty to mitigate, Pam will be denied damages to the extent that she could reasonably avoid a loss flowing from Dave's breach. 
C) Because he is under a duty to mitigate, Dave will be held liable for $100 000 unless he takes reasonable steps to help Pam purchase a widget from another supplier. 
D) Because Dave is under a duty to mitigate, the damages that he must pay will be reduced to the extent that he reasonably spends money trying to help Pam purchase a widget from another supplier. 
E) Because she is under a duty to mitigate, Pam must do everything possible to acquire a widget from another supplier. 
A) Because she is under a duty to mitigate, Pam cannot receive any damages unless she purchases a widget from another supplier. 
B) Because she is under a duty to mitigate, Pam will be denied damages to the extent that she could reasonably avoid a loss flowing from Dave's breach. 
C) Because he is under a duty to mitigate, Dave will be held liable for $100 000 unless he takes reasonable steps to help Pam purchase a widget from another supplier. 
D) Because Dave is under a duty to mitigate, the damages that he must pay will be reduced to the extent that he reasonably spends money trying to help Pam purchase a widget from another supplier. 
E) Because she is under a duty to mitigate, Pam must do everything possible to acquire a widget from another supplier.

Question 10

Which of the following statements is TRUE?

Accepted Answer

A) Cost of cure damages will never be awarded unless the plaintiff has already spent money to cure the defect in the defendant's performance. 
B) Cost of cure damages will always be less than loss of value damages. 
C) Cost of cure damages will always be awarded if the plaintiff's only loss is intangible. 
D) Cost of cure damages are more likely to be awarded if the innocent party has a reasonable and legitimate reason for wanting to have a defect actually cured. 
E) Cost of cure damages are a form of reliance damages. 
A) Cost of cure damages will never be awarded unless the plaintiff has already spent money to cure the defect in the defendant's performance. 
B) Cost of cure damages will always be less than loss of value damages. 
C) Cost of cure damages will always be awarded if the plaintiff's only loss is intangible. 
D) Cost of cure damages are more likely to be awarded if the innocent party has a reasonable and legitimate reason for wanting to have a defect actually cured. 
E) Cost of cure damages are a form of reliance damages.

Question 11

As a general rule, punitive damages will not be awarded for a breach of contract unless

Accepted Answer

A) monetary damages would not adequately compensate the plaintiff. 
B) the plaintiff committed an independently actionable wrong. 
C) the contract expressly allows for such relief. 
D) the plaintiff seeks equitable relief. 
E) as a result of that breach, the defendant obtained a benefit that exceeded the value of the plaintiff's loss. 
A) monetary damages would not adequately compensate the plaintiff. 
B) the plaintiff committed an independently actionable wrong. 
C) the contract expressly allows for such relief. 
D) the plaintiff seeks equitable relief. 
E) as a result of that breach, the defendant obtained a benefit that exceeded the value of the plaintiff's loss.

Question 12

Harold agreed to sell a widget to Sheila for $10 000.Sheila paid the purchase price immediately and Harold was required to deliver the widget on June 1.In fact, Harold did not deliver the widget until June 21.As a result, Sheila was unable to perform a contract for ABC Inc on June 19 that would have paid her $15 000.Which of the following statements is TRUE?

Accepted Answer

A) Sheila is entitled to recover $15 000 in damages from Harold as long as she knew, or should have known, that late delivery would cause her to lose her contract with ABC Inc. 
B) Sheila's loss of $15 000 is best described as an intangible loss. 
C) Sheila is liable to Harold for $15 000 as long as he knew, or should have known, of the possibility of that loss when he breached the contract. 
D) Damages will be reduced to the extent that Harold failed to mitigate the loss that was caused by the breach. 
E) Depending upon the facts, Sheila's damages may be reduced on the basis of both the concept of remoteness and the concept of mitigation. 
A) Sheila is entitled to recover $15 000 in damages from Harold as long as she knew, or should have known, that late delivery would cause her to lose her contract with ABC Inc. 
B) Sheila's loss of $15 000 is best described as an intangible loss. 
C) Sheila is liable to Harold for $15 000 as long as he knew, or should have known, of the possibility of that loss when he breached the contract. 
D) Damages will be reduced to the extent that Harold failed to mitigate the loss that was caused by the breach. 
E) Depending upon the facts, Sheila's damages may be reduced on the basis of both the concept of remoteness and the concept of mitigation.

Question 13

Alexi agreed to sell a particular type of car to Carole for $15 000.He breached the contract by refusing to deliver the car and complete the sale.She bought another car of the same type from Ivan for $18 000.These facts most clearly illustrate the concept of

Accepted Answer

A) remoteness. 
B) mitigation. 
C) cost of cure. 
D) loss of value. 
E) intangible losses. 
A) remoteness. 
B) mitigation. 
C) cost of cure. 
D) loss of value. 
E) intangible losses.

Question 14

Joel rented his business premises from Crow Enterprises at a rate of $10 000 per month.Joel intended to deliver last month's rent to Crow, but as a result of a clerical error, the money went instead to Crow's neighbour, Tom.After the mistake came to light, Joel paid another $10 000 to Crow and asked Tom for repayment.Tom refuses.If the dispute is resolved by a judge, which of the following statements is most likely to be TRUE?

Accepted Answer

A) Tom will be ordered to make restitution to Joel. 
B) Joel will be entitled to receive an account of profits from Tom. 
C) Joel will receive an injunction that requires Tom to repay the money. 
D) Joel will receive an order for specific performance that requires Tom to repay the money. 
E) Tom was not unjustly enriched by the payment because the contract between Joel and Crow Enterprises provides a juristic reason for the error. 
A) Tom will be ordered to make restitution to Joel. 
B) Joel will be entitled to receive an account of profits from Tom. 
C) Joel will receive an injunction that requires Tom to repay the money. 
D) Joel will receive an order for specific performance that requires Tom to repay the money. 
E) Tom was not unjustly enriched by the payment because the contract between Joel and Crow Enterprises provides a juristic reason for the error.

Question 15

Millennium Properties created a contract to purchase land from Oxford Management.Unfortunately, Oxford has a poor reputation for reliability.Millennium therefore insisted upon the inclusion of the following contractual clause: "If either party breaches this contract by failing to perform as required, the innocent party shall be entitled to receive $650 000 as compensation." As feared, Oxford did refuse to fulfill its contractual obligations.As a result, Millennium suffered a loss of $1 200 000.If the dispute is resolved by a judge, which of the following statements is most likely to be TRUE?

Accepted Answer

A) Millennium will receive $1 200 000 in damages. 
B) Millennium will receive $650 000 in liquidated damages. 
C) Millennium will receive $1 200 000 in penalties. 
D) Millennium will receive $650 000 in penalties. 
E) Oxford will be given the choice of either paying $650 000 or transferring the land to Millennium. 
A) Millennium will receive $1 200 000 in damages. 
B) Millennium will receive $650 000 in liquidated damages. 
C) Millennium will receive $1 200 000 in penalties. 
D) Millennium will receive $650 000 in penalties. 
E) Oxford will be given the choice of either paying $650 000 or transferring the land to Millennium.

Question 16

Berner Building Inc agreed to build a house to certain specifications for Kendra.The total contract price was $500 000.A term in that contract required Berner to use marble from a certain region in northern Italy in the main bathroom.By mistake, Berner used marble from a region in southern Italy instead.The value of the marble was the same in either event.Kendra nevertheless is unhappy.Because she had once enjoyed a wonderful honeymoon in northern Italy, she was very upset that her demands were not met.She insists that Berner should be required to renovate her bathroom using proper materials.That job would cost $25 000 and it would not increase the value of the house at all.Is Kendra entitled to any remedy? Explain your answer.

Accepted Answer

The question is focused on the differenc

Question 17

On March 26, Sanjeev agreed to sell a widget to Anita for $50 000.She paid $10 000 immediately and promised to pay the remainder when he made delivery on August 30.Sanjeev breached the contract, however, by refusing to deliver the widget.On August 30, its market value had dropped to $47 000.Anita cannot recover expectation damages, but she can recover a maximum of $3000 in reliance damages.

Accepted Answer

A) True 
 B)False

Question 18

While damages in tort are always backward-looking, damages in contract are always forward-looking.

Accepted Answer

A) True 
 B)False

Question 19

Provide four reasons as to why courts generally award monetary damages, rather than specific performance, if one party breaks a sales contract by refusing to make delivery.

Accepted Answer

First, courts of law-as opposed to court

Question 20

On March 1, Shoshanah agreed to manufacture and sell a widget to Marshall for a total price of $50 000.He paid $20 000 immediately and promised to pay the remainder on June 15.The contract required Shoshanah to deliver the widget to Marshall on June 1.On April 15, Marshall spent $10 000 altering his production plant in a way that would accommodate the widget that he expected to receive from Shoshanah.On May 20, Shoshanah informed Marshall that she would not be able to deliver as promised.On June 1, the market value of a widget was $65 000.Marshall can acquire a similar widget for that amount, but he will have to once again spend $10 000 in renovations to his production plant to accommodate that substitute.(No two widgets are exactly alike and each one has unique requirements.) ??Is Marshall entitled to receive expectation damages? If so, on what basis and in what amount? Is Marshall entitled to receive reliance damages? If so, on what basis and in what amount? Is Marshall entitled to receive restitution? If so, on what basis and in what amount? If Marshall has an option between several types of damages, which one should he choose?

Accepted Answer

Marshall can claim expectation damages u

Restitution is

An intangible loss

Which of the following statements is TRUE?

If defendants in a private law case refuse to obey orders for specific performance, they can be sent to jail for contempt of court.

Dave was contractually required to deliver a widget to Pam by July 1.He failed to do so.At that point, Pam predicted that she would suffer a loss of $100 000 during the next six months because her factory cannot operate efficiently without a widget.Which of the following statements is TRUE?

Which of the following statements is TRUE?

As a general rule, punitive damages will not be awarded for a breach of contract unless

Alexi agreed to sell a particular type of car to Carole for $15 000.He breached the contract by refusing to deliver the car and complete the sale.She bought another car of the same type from Ivan for $18 000.These facts most clearly illustrate the concept of

While damages in tort are always backward-looking, damages in contract are always forward-looking.

Provide four reasons as to why courts generally award monetary damages, rather than specific performance, if one party breaks a sales contract by refusing to make delivery.

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Special Contracts: Sale of Goods

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

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Exam 12: Contractual Remedies

Restitution is

An intangible loss

Which of the following statements is TRUE?

If defendants in a private law case refuse to obey orders for specific performance, they can be sent to jail for contempt of court.

Dave was contractually required to deliver a widget to Pam by July 1.He failed to do so.At that point, Pam predicted that she would suffer a loss of $100 000 during the next six months because her factory cannot operate efficiently without a widget.Which of the following statements is TRUE?

Which of the following statements is TRUE?

As a general rule, punitive damages will not be awarded for a breach of contract unless

Alexi agreed to sell a particular type of car to Carole for $15 000.He breached the contract by refusing to deliver the car and complete the sale.She bought another car of the same type from Ivan for $18 000.These facts most clearly illustrate the concept of

While damages in tort are always backward-looking, damages in contract are always forward-looking.

Provide four reasons as to why courts generally award monetary damages, rather than specific performance, if one party breaks a sales contract by refusing to make delivery.

Risk Management and Sources of Law

Litigation and Alternative Dispute Resolution

Introduction to Torts

Intentional Torts

Miscellaneous Torts Affecting Business

Negligence

The Nature and Creation of Contracts

Consideration and Privity

Representations and Terms

Contractual Defects

Discharge and Breach

Special Contracts: Sale of Goods

Real Property: Interests and Leases

Real Property: Sales and Mortgages

Personal Property: Bailment and Insurance

Intellectual Property

Electronic Commerce

Agency and Other Methods of Carrying on Business

Basic Forms of Business Organizations

Legal Rules for Corporate Governance

Secured Transactions

Dealing With Bankruptcy and Insolvency

Government Regulation of Business

Individual Employment

Organized Labour

Online: Special Contracts: Negotiable Instruments

Filters