Exam 20: Breach of Contract and Remedies

A party must mitigate damages at all costs.

The measure of monetary damages when there has been a breach of contract is the sum of money that will place the injured party in the same position that would have been attained if the contract had been performed.

An action for injunctive relief may be granted:

The failure to act or perform in the manner called for by a contract is a:

When one party breaks the contract, the contract is said to be breached.

When the plaintiff seeks the remedy of specific performance, the plaintiff wants the other party to carry out the terms of the contract and not pay damages.

If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the damages would most likely be classified as:

Damages in excess of actual loss, imposed for the purpose of punishing or making an example of the defendant, are known as compensatory damages.

When a party waives compliance with one provision of a contract, the other party may thereafter ignore other provisions of that contract.

Which is not a correct statement concerning the remedy of specific performance?

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

Contract provisions that limit the remedies of the parties are generally unenforceable.

A party that rescinds a contract without proper grounds for rescission is liable for damages for breach of the contract.

An injured party that does not suffer an actual loss from the breach of a contract is entitled to nominal damages.

When one party has broken a contract, there are several remedies available to the non-breaching party, including:

When the contract requires that both parties submit disputes to arbitration, this is an example of a limitation-of-remedies clause.

If a liquidated damages clause demands an unusually large sum that is not related to reasonably-anticipated actual damages, the clause will be held to be void as a(n):

If an exculpatory clause or limitation of liability clause limits liability for damages caused only by negligent conduct, liability is neither excluded nor limited if the conduct alleged is found to be grossly negligent, willful, or wanton.

An anticipatory repudiation must be clear, absolute, and unequivocal.