Question 1

What is the result of a breach of a minor contractual term?

Accepted Answer

The other party must

Question 2

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Accepted Answer

A)  This clause requires the injured party to take all reasonable steps to lessen (mitigate) his losses. 
B)  The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow from the breach." 
C)  The court will award the amount specified only if it accurately reflects the losses that actually took place. 
D)  The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of a breach. 
E)  Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves. 
A)  This clause requires the injured party to take all reasonable steps to lessen (mitigate) his losses. 
B)  The plaintiff will likely be awarded a judgment for all the damages that "naturally and directly flow from the breach." 
C)  The court will award the amount specified only if it accurately reflects the losses that actually took place. 
D)  The court will likely award the amount set out in the clause if it considers that to be a genuine estimate by the parties of the likely consequences of a breach. 
E)  Liquidated damages only apply to losses caused by excess water, such as floods or tidal waves.

Question 3

A breaching party is responsible for all lost profits flowing from a breach of contract.

Accepted Answer

A) True 
 B)False

Question 4

An agreement to end a contract,with extra consideration to be supplied by the party benefiting from the discharge,is known as ________.

Accepted Answer

accord and

Question 5

When a contract has been performed in all but a minor aspect of it,this is known as ________.

Accepted Answer

substantia

Question 6

If a supplier failed to honour a contract to supply parts to Mr.Matheson and the court finds the supplier in breach of contract,which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?

Accepted Answer

A)  Liquidated damages must be an honest attempt by the parties to pre-estimate damages. 
B)  The victim of the breach must take all reasonable steps to keep those damages as low as possible. 
C)  The supplier would not be responsible for any unusual losses lost by Mr. Matheson because of some special use not told to the supplier. 
D)  If a deposit is involved, the damages will be restricted to that deposit. 
E)  The supplier is responsible for all damages suffered by Matheson. 
A)  Liquidated damages must be an honest attempt by the parties to pre-estimate damages. 
B)  The victim of the breach must take all reasonable steps to keep those damages as low as possible. 
C)  The supplier would not be responsible for any unusual losses lost by Mr. Matheson because of some special use not told to the supplier. 
D)  If a deposit is involved, the damages will be restricted to that deposit. 
E)  The supplier is responsible for all damages suffered by Matheson.

Question 7

Which of the following is true with regard to tender of performance?

Accepted Answer

A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract, but the buyer refuses delivery, the seller will have to make another attempt to deliver before she can sue for breach of contract. 
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
C)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
D)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
E)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline. 
A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract, but the buyer refuses delivery, the seller will have to make another attempt to deliver before she can sue for breach of contract. 
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
C)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
D)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
E)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline.

Question 8

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Accepted Answer

A)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
E)  The exemption clause that covers the situation was posted in plain view and was brought to their attention at the place and time of contract. 
A)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
E)  The exemption clause that covers the situation was posted in plain view and was brought to their attention at the place and time of contract.

Question 9

Explain what is meant by "quantum meruit."

Accepted Answer

When a person requests a service such as

Question 10

Monroe sold computers.On the purchase of a new IBM computer the buyer signed the written contract that contained the following clause: "The seller is not liable for any breach of condition or warranty express or implied in this contract." The buyer was a businessman who intended to use the machine in his business for a while and then resell it.The machine was used properly but didn't operate well,and within one week it would not work at all.Monroe refused to take back the machine or to refund any money by relying on the exemption clause.Which of the following would be the buyer's best argument for avoiding the effect of the exemption clause in this case?

Accepted Answer

A)  Such clauses are prohibited under contract law and are therefore void. 
B)  The buyer had no notice of the clause; therefore, it is not a term of the contract. 
C)  On a narrow interpretation of the words used in the exemption clause, they do not cover his complaint. 
D)  There is a fundamental breach of contract. 
E)  There is a breach of a non-essential term of the contract. 
A)  Such clauses are prohibited under contract law and are therefore void. 
B)  The buyer had no notice of the clause; therefore, it is not a term of the contract. 
C)  On a narrow interpretation of the words used in the exemption clause, they do not cover his complaint. 
D)  There is a fundamental breach of contract. 
E)  There is a breach of a non-essential term of the contract.

Question 11

Adams signed a contract in which he promised to sell his house to Jefferson for $225 000.The "deposit" to be paid was set at $4000,and the liquidated damages clause provided that the deposit would be forfeited in the event that the buyer breached the contract.The buyer did breach the contract.Because the cost of housing was falling,it was difficult,even after a reasonable time had passed,to find a new buyer.The highest offer was $218 000.Adams accepted.Which of the following is true with regard to Adams's remedies?

Accepted Answer

A)  He would be entitled to damages for money lost-$7000 plus selling costs. 
B)  He would be entitled to the $4000 only, if the court held that the deposit was an honest attempt of the parties to estimate damages. 
C)  He could sue for an injunction to stop him from buying another house. 
D)  He could ask the court to order an accounting. 
E)  Adams must sue for specific performance, which is the only remedy, an equitable remedy, available to the parties in land transactions. 
A)  He would be entitled to damages for money lost-$7000 plus selling costs. 
B)  He would be entitled to the $4000 only, if the court held that the deposit was an honest attempt of the parties to estimate damages. 
C)  He could sue for an injunction to stop him from buying another house. 
D)  He could ask the court to order an accounting. 
E)  Adams must sue for specific performance, which is the only remedy, an equitable remedy, available to the parties in land transactions.

Question 12

What is the result of a breach of a significant term of a contract where there is a minor failure to perform?

Accepted Answer

The other party must

Question 13

When an anticipatory breach has taken place (where a person,before performance is due,states that he will not perform the contract)

Accepted Answer

A)  The victim may sue immediately and not wait to see if the contract is performed or not. 
B)  The victim must wait to see if the contract is performed, but damages are calculated from the time of the refusal. 
C)  The victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
D)  Such a statement made before performance is due has no effect on the contractual obligations of the parties. 
E)  The victim may not be able to recover damages that occur after the anticipatory breach. 
A)  The victim may sue immediately and not wait to see if the contract is performed or not. 
B)  The victim must wait to see if the contract is performed, but damages are calculated from the time of the refusal. 
C)  The victim can get someone else to do the job but then cannot sue the original party to the contract if it costs more. 
D)  Such a statement made before performance is due has no effect on the contractual obligations of the parties. 
E)  The victim may not be able to recover damages that occur after the anticipatory breach.

Question 14

If neighbours have a contract agreeing not to erect a building that blocks the other's view,which remedy might the court impose if that agreement is breached?

Accepted Answer

A)  accounting 
B)  quantum meruit 
C)  mandatory injunction 
D)  laches 
E)  punitive damages 
A)  accounting 
B)  quantum meruit 
C)  mandatory injunction 
D)  laches 
E)  punitive damages

Question 15

Explain how the principle of remoteness affects the availability of damages in a breach of contract action.

Accepted Answer

The victim of a breach can onl

Question 16

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Accepted Answer

A) True 
 B)False

Question 17

Joe agreed to buy a car from Sam at Sam's Used Car Lot for $10 000 with a $100 deposit.The next day,before he took delivery,he changed his mind and refused to go through with the deal.Sam kept the deposit and sued Joe for breach of contract.Indicate what kind of remedy he would be entitled to.

Accepted Answer

He's entitled to keep the $100 deposit,a

Question 18

Dagney was an author of a popular series of children's books.She signed an agreement with her publisher,in which she agreed to have a new book in the series written by October 15.As noted in the contract,the timing was critical to ensuring the books would be on the shelves before Christmas and in order to coincide with a massive promotion the publisher had been planning.Faran had a terrible case of writer's block.By October 3,she realized that there was no way that she would have the book finished by the deadline.She emailed her publisher,admitting that she would not have the book finished in time.What are the publisher's options?

Accepted Answer

A)  The publisher cannot take any steps until October 15, assuming Dagney does not deliver. 
B)  The publisher has no recourse, because Dagney's case of writer's block has made performance impossible. 
C)  The publisher has the right to demand performance or sue. 
D)  The contract is voidable at the option of the publisher. 
E)  The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach. 
A)  The publisher cannot take any steps until October 15, assuming Dagney does not deliver. 
B)  The publisher has no recourse, because Dagney's case of writer's block has made performance impossible. 
C)  The publisher has the right to demand performance or sue. 
D)  The contract is voidable at the option of the publisher. 
E)  The date set out in the contract is not an enforceable term; if Dagney gets the manuscript to the publisher in a reasonable time, she will not be in breach.

Question 19

Which of the following is false with regard to remedies for breach of contract?

Accepted Answer

A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  If the court holds that the liquidated damages clause in the contract is an honest attempt to estimate damages, the amount stated will be forfeited to the victim of the breach, even if he suffered no loss in fact. 
C)  As a general rule, a person who breaches a contract is liable for all of the foreseeable loss that directly and naturally flows from the breach. 
D)  Damages are awarded by the court to a person who has suffered loss because of a breach of a condition of the contract, but are not awarded for a breach of a warranty. 
E)  A person who disobeys a court order-e.g., an order for specific performance can be cited for contempt of court. 
A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  If the court holds that the liquidated damages clause in the contract is an honest attempt to estimate damages, the amount stated will be forfeited to the victim of the breach, even if he suffered no loss in fact. 
C)  As a general rule, a person who breaches a contract is liable for all of the foreseeable loss that directly and naturally flows from the breach. 
D)  Damages are awarded by the court to a person who has suffered loss because of a breach of a condition of the contract, but are not awarded for a breach of a warranty. 
E)  A person who disobeys a court order-e.g., an order for specific performance can be cited for contempt of court.

Question 20

Rick was a talented computer programmer and had agreed to work for Bill in his successful computer software business,signing a one-year contract to that effect.On the day he was to start work,and after a week of training where he learned a considerable amount of confidential information about Bill's operation,he phoned Bill and announced that he was going to work for Bill's competitor instead.Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  specific performance 
B)  accounting 
C)  injunction 
D)  no remedy 
E)  rescission 
A)  specific performance 
B)  accounting 
C)  injunction 
D)  no remedy 
E)  rescission

What is the result of a breach of a minor contractual term?

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

A breaching party is responsible for all lost profits flowing from a breach of contract.

An agreement to end a contract,with extra consideration to be supplied by the party benefiting from the discharge,is known as ________.

When a contract has been performed in all but a minor aspect of it,this is known as ________.

If a supplier failed to honour a contract to supply parts to Mr.Matheson and the court finds the supplier in breach of contract,which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?

Which of the following is true with regard to tender of performance?

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Explain what is meant by "quantum meruit."

What is the result of a breach of a significant term of a contract where there is a minor failure to perform?

When an anticipatory breach has taken place (where a person,before performance is due,states that he will not perform the contract)

If neighbours have a contract agreeing not to erect a building that blocks the other's view,which remedy might the court impose if that agreement is breached?

Explain how the principle of remoteness affects the availability of damages in a breach of contract action.

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Joe agreed to buy a car from Sam at Sam's Used Car Lot for $10 000 with a $100 deposit.The next day,before he took delivery,he changed his mind and refused to go through with the deal.Sam kept the deposit and sued Joe for breach of contract.Indicate what kind of remedy he would be entitled to.

Which of the following is false with regard to remedies for breach of contract?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

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Exam 9: The End of the Contractual Relationship

What is the result of a breach of a minor contractual term?

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

A breaching party is responsible for all lost profits flowing from a breach of contract.

An agreement to end a contract,with extra consideration to be supplied by the party benefiting from the discharge,is known as ________.

When a contract has been performed in all but a minor aspect of it,this is known as ________.

If a supplier failed to honour a contract to supply parts to Mr.Matheson and the court finds the supplier in breach of contract,which of the following would be incorrect with respect to how the court determines the amount of money to award to Matheson?

Which of the following is true with regard to tender of performance?

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Explain what is meant by "quantum meruit."

What is the result of a breach of a significant term of a contract where there is a minor failure to perform?

When an anticipatory breach has taken place (where a person,before performance is due,states that he will not perform the contract)

If neighbours have a contract agreeing not to erect a building that blocks the other's view,which remedy might the court impose if that agreement is breached?

Explain how the principle of remoteness affects the availability of damages in a breach of contract action.

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Joe agreed to buy a car from Sam at Sam's Used Car Lot for $10 000 with a $100 deposit.The next day,before he took delivery,he changed his mind and refused to go through with the deal.Sam kept the deposit and sued Joe for breach of contract.Indicate what kind of remedy he would be entitled to.

Which of the following is false with regard to remedies for breach of contract?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters