Question 1

Identify and describe the principal contract interests a court may seek to protect.

Accepted Answer

The principal contract interests a court may seek to protect are:
a.Expectation interest.The intent is to put the injured party in the position he would have been in if both parties had fully performed their obligations.Expectation damages include direct,consequential,and incidental damages.
b.Reliance interest.The intent is to put the plaintiff in the position he would have been in if the parties had never entered into a contract.
c.Restitution interest.The objective is to return to the injured party a benefit that he has conferred on the other party which it would be unjust to leave with that person.
d.Equitable interest.In some cases,money damages will not suffice to help the injured party.Something more is needed.

Question 2

Carswell,a contractor,enters into a contract with Helen,a homeowner,to remodel her bathroom.The contract provides a specific completion date.The contract provides that if Carswell does not have the job finished by the date,Helen may deduct $200 per day from the contract price until the job is finished.This is an example of liquidated damages.

Accepted Answer

A) True 
 B)False  True

Question 3

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days.The parties negotiated and meant to say in the written agreement,delivery in 50 days.If the two cannot settle this dispute,and Archie still wants to deliver the champagne,then Archie should sue for the remedy of

Accepted Answer

A) reformation. 
B) rescission. 
C) restitution. 
D) reliance. 
A) reformation. 
B) rescission. 
C) restitution. 
D) reliance. A

Question 4

Expectation interest can best be described as money spent in reliance upon the agreement.

Accepted Answer

A) True 
 B)False

Question 5

To win expectation damages,the injured party must prove the breach of contract caused damages that can be quantified with reasonable certainty.

Accepted Answer

A) True 
 B)False

Question 6

Someone breaches a contract when he or she fails to perform a duty,even with a valid excuse.

Accepted Answer

A) True 
 B)False

Question 7

The goal of expectation interest is to

Accepted Answer

A) serve as a penalty for breaching a contract. 
B) award damages under the UCC when the sale of goods is the subject of the contract. 
C) put the non-breaching party in the position it would have been in had the contract never been formed. 
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached. 
A) serve as a penalty for breaching a contract. 
B) award damages under the UCC when the sale of goods is the subject of the contract. 
C) put the non-breaching party in the position it would have been in had the contract never been formed. 
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached.

Question 8

Reformation is

Accepted Answer

A) a type of restitution. 
B) the most common of all remedies. 
C) a form of quasi-contract. 
D) the least common of all remedies. 
A) a type of restitution. 
B) the most common of all remedies. 
C) a form of quasi-contract. 
D) the least common of all remedies.

Question 9

Ernest operates an ice cream stand during the months of May,June,July,and August.Ernest's ice cream machine is broken and needs a new part to run.He contracts to have the part shipped to him by special carrier.Ernest emphasizes that the part needs to be delivered by April 25 and the carrier agrees,knowing that Ernest intends to open his stand May 1.If the shipper fails to deliver the part on April 25,Ernest will be able to recover consequential damages caused by the delay.

Accepted Answer

A) True 
 B)False

Question 10

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

Accepted Answer

A) True 
 B)False

Question 11

Most courts hold that a seller of goods is NOT entitled to consequential damages.

Accepted Answer

A) True 
 B)False

Question 12

Carlos is hired to paint a house for $700.Before he starts,the woman who hired Carlos tells him she does not want the job done after all.Carlos finds another house-painting job that afternoon,but it pays only $500.If Carlos sues the woman for damages and is awarded $200,that amount is an example of

Accepted Answer

A) direct damages. 
B) nominal damages. 
C) consequential damages. 
D) incidental damages. 
A) direct damages. 
B) nominal damages. 
C) consequential damages. 
D) incidental damages.

Question 13

All Seasons,Inc.ordered $5,000 worth of Christmas decorations from Santa,Inc.The shipment of decorations was to arrive no later than October 1,but did not arrive until December 1.All Seasons was able to purchase some of the unfulfilled order through other suppliers,but had to pay 15% more than the price under contract with Santa,Inc.As a result of the delay,All Seasons' sales were down 25%.All Seasons can recover

Accepted Answer

A) punitive damages. 
B) nominal damages. 
C) compensatory damages and consequential damages. 
D) compensatory damages,consequential damages,and punitive damages. 
A) punitive damages. 
B) nominal damages. 
C) compensatory damages and consequential damages. 
D) compensatory damages,consequential damages,and punitive damages.

Question 14

Specific performance is always available in

Accepted Answer

A) agreements involving farm goods. 
B) agreements involving vehicles. 
C) real estate contracts. 
D) employment contracts. 
A) agreements involving farm goods. 
B) agreements involving vehicles. 
C) real estate contracts. 
D) employment contracts.

Question 15

Ralph is a professional football player.He signs a valid contract with the Jets.Later,the Giants offer him more money,so he signs a contract with them.If the Jets sue Ralph,what would the most likely result be?

Accepted Answer

A) The court will order Ralph to play with the Jets. 
B) The court will order Ralph to play with the Jets,but Ralph is entitled to be paid the amount he negotiated under the Giants contract. 
C) The court will issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit. 
D) The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts. 
A) The court will order Ralph to play with the Jets. 
B) The court will order Ralph to play with the Jets,but Ralph is entitled to be paid the amount he negotiated under the Giants contract. 
C) The court will issue a preliminary injunction barring Ralph from playing with any team other than the Jets during the course of the lawsuit. 
D) The court will order Ralph to pay compensatory damages in the amount of the difference between the two contracts.

Question 16

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

Accepted Answer

An injunction is a court order that requ

Question 17

​Which of the following statements concerning liquidated damages is NOT TRUE?

Accepted Answer

A) ​A liquidated damages clause will be enforced,if,when the contract was made,it was difficult to estimate actual damages. 
B) ​The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. 
C) ​Nominal damages are not the same thing as liquidated damages. 
D) ​Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party. 
A) ​A liquidated damages clause will be enforced,if,when the contract was made,it was difficult to estimate actual damages. 
B) ​The amount of liquidated damages must be a reasonable estimation of the actual harm resulting from a breach. 
C) ​Nominal damages are not the same thing as liquidated damages. 
D) ​Liquidated damages are enforceable even if the amount is considered to be a penalty on the breaching party.

Question 18

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.

Accepted Answer

A) True 
 B)False

Question 19

Tina and Leroy have a contract for the sale of a vinyl record album.Tina,the seller,breaches the contract.A court will be most likely to order specific performance if there are __________ identical copies of the record album available for sale on the market.

Accepted Answer

A) 2 
B) 2,000 
C) 20,000 
D) 200,000 
A) 2 
B) 2,000 
C) 20,000 
D) 200,000

Question 20

To "undo" a contract and put the parties where they were before they made the agreement is called

Accepted Answer

A) restitution. 
B) rescission. 
C) reliance. 
D) remediation. 
A) restitution. 
B) rescission. 
C) reliance. 
D) remediation.

Exam 19: Remedies

Identify and describe the principal contract interests a court may seek to protect.

Expectation interest can best be described as money spent in reliance upon the agreement.

To win expectation damages,the injured party must prove the breach of contract caused damages that can be quantified with reasonable certainty.

Someone breaches a contract when he or she fails to perform a duty,even with a valid excuse.

The goal of expectation interest is to

Reformation is

Injunctions are frequently used by courts to force employees to complete their contractual obligations with their employers.

Most courts hold that a seller of goods is NOT entitled to consequential damages.

Carlos is hired to paint a house for $700.Before he starts,the woman who hired Carlos tells him she does not want the job done after all.Carlos finds another house-painting job that afternoon,but it pays only $500.If Carlos sues the woman for damages and is awarded $200,that amount is an example of

Specific performance is always available in

Ralph is a professional football player.He signs a valid contract with the Jets.Later,the Giants offer him more money,so he signs a contract with them.If the Jets sue Ralph,what would the most likely result be?

Discuss the purpose of an injunction and how the two types of injunctions covered in the textbook are used.

​Which of the following statements concerning liquidated damages is NOT TRUE?

Tess,a tenant,moves from her apartment in breach of the lease agreement.The landlord,Lenny,may not attempt to rent the apartment until the date of the lease expiration,and so has no recourse to minimize damages.

Tina and Leroy have a contract for the sale of a vinyl record album.Tina,the seller,breaches the contract.A court will be most likely to order specific performance if there are __________ identical copies of the record album available for sale on the market.

To "undo" a contract and put the parties where they were before they made the agreement is called

Introduction to Law

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International Law

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Introduction to Contracts

Agreement: Offers and Acceptances

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Voidable Contracts: Capacity and Consent

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Contract Termination

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Introduction to Sales

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Filters

Which of the following statements concerning liquidated damages is NOT TRUE?