Exam 20: Breach of Contract and Remedies

Only direct losses from a breach of contract may be recovered by an injured party.

A party injured by the other party's anticipatory repudiation of a contract has the right to bring suit at the time of the repudiation, and before the date on which performance is due.

Damages representing annoyance ordinarily may not be recovered in a breach-of-contract action.

Beth Roberts purchased a "new" car from Honest John's Car Lot six months ago. The sales agreement expressly described the vehicle as a new car, and all usual factory papers accompanied the sale. However, Beth discovered that the car actually was acquired by Honest John's from another dealer who had used it as a demonstrator and loaned it to business friends on a regular basis. The car had more than 10,000 miles on it, a fact that had been concealed by turning back the odometer. Beth also discovered that Honest John's apparently had engaged in this practice before. Beth is suing for breach of contract. She is asking for compensatory damages equal to the difference between the new car price she paid and the average price the vehicle would have brought as a used car. In addition, she is asking for damages in the amount of $5,000. Honest John's attorney has told Beth that she will fight both claims and has advised Beth that the court will not award $5,000 as punitive damages for such a suit. What do you think?

The remedy of specific performance will most likely be granted in the case of a(n):

The party that breaks a contract may be required to pay damages to the other party to compensate for:

The normal remedy for breach of contract where the plaintiff has suffered a loss is compensatory damages.

Which is not a correct statement concerning rescission of a contract?

If one party to a contract breaks the contract, the other party generally is under a duty to stop any further performance to avoid sustaining greater damages.

An acceptance with a reservation of right must be in writing.

When an anticipatory repudiation of a contract occurs, the aggrieved person's option(s) include:

Punitive damages are generally recoverable in contract actions.

When a party expressly declares that performance will not be made when required, this declaration is a(n):

Damages in excess of actual loss are called:

A reservation of rights is an assertion by a party to a contract that even though a tendered performance is accepted, the right to damages for the nonconformity to the contract is reserved.

Consequential damages may be recovered if:

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

When one party commits a non-material breach of contract, the other party may rescind the contract.