Question 1

Which of the following is classified as an equitable remedy?

Accepted Answer

A)  consequential damages 
B)  reformation 
C)  restitution 
D)  liquidated damages 
A)  consequential damages 
B)  reformation 
C)  restitution 
D)  liquidated damages B

Question 2

A court order to refrain from performing a particular act is known as _______.

Accepted Answer

Injunctive Relief

Question 3

In an assignment or delegation,any third party rights or duties occur after the contract is formed.

Accepted Answer

A) True 
 B)False  True

Question 4

A party to a contract may be discharged from performance due to operation of law if the other party unilaterally alters the contract.

Accepted Answer

A) True 
 B)False

Question 5

In Hadley v.Baxendale,when Hadley sued because Baxendale took unnecessary time to get a crankshaft repaired causing Hadley's mill to close for an extended time,the court found:

Accepted Answer

A)  Baxendale owed Hadley compensatory damages because the mill was shut down for an extended time directly as a result of Baxendale's delayed delivery. 
B)  Baxendale owed Hadley consequential damages because the mill was shut down for an extended time as a result of Baxendale's delayed delivery and the shutdown was a foreseeable indirect result of Baxendale's delay. 
C)  Baxendale did not owe Hadley consequential damages because the extended closing time was not foreseeable despite Baxendale's delay in delivery. 
D)  Baxendale did not owe Hadley either compensatory or consequential damages but did owe punitive damages due to the unreasonable delay in delivery 
A)  Baxendale owed Hadley compensatory damages because the mill was shut down for an extended time directly as a result of Baxendale's delayed delivery. 
B)  Baxendale owed Hadley consequential damages because the mill was shut down for an extended time as a result of Baxendale's delayed delivery and the shutdown was a foreseeable indirect result of Baxendale's delay. 
C)  Baxendale did not owe Hadley consequential damages because the extended closing time was not foreseeable despite Baxendale's delay in delivery. 
D)  Baxendale did not owe Hadley either compensatory or consequential damages but did owe punitive damages due to the unreasonable delay in delivery

Question 6

Pete has been fired from his job and believes that he has been wrongfully terminated.As he decides how to fight the perceived injustice,how can he best mitigate damages?

Accepted Answer

A)  file his suit as soon as possible while the evidence is available and witnesses recollections are fresh 
B)  file for unemployment insurance as quickly as possible so he doesn't sink too far into debt 
C)  call his former employer to determine the real reason he was fired 
D)  actively seek new employment as soon as possible 
A)  file his suit as soon as possible while the evidence is available and witnesses recollections are fresh 
B)  file for unemployment insurance as quickly as possible so he doesn't sink too far into debt 
C)  call his former employer to determine the real reason he was fired 
D)  actively seek new employment as soon as possible

Question 7

Language such as "provided that" or "unless" in a contract which triggers a performance obligation is called a _______.

Accepted Answer

The answer of Language such as "provided that" or "unless"...

Question 8

Kent Corp.(KC),general contractors building a new dorm at a university,contracted with Fine Rugs Inc.(FRI)to have certain grade of industrial rugs installed in the dorm.The contract price was $180,000.After the rugs were installed,KC was dissatisfied with the rug quality.FRI insisted that the rugs installed were appropriate to the contract specifications and demanded full payment.KC sends FRI a check for $120,000 which they believe is the proper value for the rugs installed and they mark the check,"Paid in Full".FRI writes "Under Protest" and deposits the check.FRI may now,in most states,successfully sue KC for the balance of $60,000.

Accepted Answer

A) True 
 B)False

Question 9

Lon has just come home from serving in the Marines and contracts with a local car dealership to purchase a car.The car must be ordered and payment is to be made when the car arrives.The next day,Lon receives orders to return to active duty.Realizing that he doesn't need the car,he brings Tony to the dealership and asks that Tony substitute for him.Lon will take delivery and ownership of the car and Lon will pay the dealership upon delivery.The dealership agrees to have Tony substitute for Lon.What has occurred?

Accepted Answer

A)  an assignment 
B)  a novation 
C)  a delegation 
D)  an accord and satisfaction 
A)  an assignment 
B)  a novation 
C)  a delegation 
D)  an accord and satisfaction

Question 10

When examining and enforcing conditions precedent and conditions subsequent,courts:

Accepted Answer

A)  give stricter enforcement to conditions precedent and find conditions subsequent rarely enforceable. 
B)  give stricter enforcement to conditions subsequent and find conditions precedent rarely enforceable. 
C)  maintain that procedurally, with respect to who bears the burden of proof, conditions subsequent and conditions precedent differ. 
D)  hold that under modern law, both conditions subsequent and conditions precedent should only rarely be enforced 
A)  give stricter enforcement to conditions precedent and find conditions subsequent rarely enforceable. 
B)  give stricter enforcement to conditions subsequent and find conditions precedent rarely enforceable. 
C)  maintain that procedurally, with respect to who bears the burden of proof, conditions subsequent and conditions precedent differ. 
D)  hold that under modern law, both conditions subsequent and conditions precedent should only rarely be enforced

Question 11

Clyde contracts with Seaside Resorts to rent an oceanfront room for a romantic weekend with his girlfriend Anne.In fact,Clyde intends to propose to Anne on the beach under the full moon during their stay.He made this decision after booking the room.The contract with Seaside Resorts requires a $250 deposit with the remaining $250 due upon check-in.The deposit is nonrefundable unless the reservation is cancelled at least 48 hours prior to check in.The day before they are to leave for the resort Clyde and Anne have a huge fight and break up.Clyde calls Seaside and cancels the reservation and demands a refund of his deposit.

Accepted Answer

A)  Clyde will get the refund because of impossibility; he can't propose if they are no longer speaking. 
B)  Clyde will get the refund because of impracticability; he can't stay at a romantic seaside room if he has no one to share it with. 
C)  Clyde will get the refund because of frustration of purpose; his intention was to propose and it is no longer possible. 
D)  Seaside is not required to provide a refund 
A)  Clyde will get the refund because of impossibility; he can't propose if they are no longer speaking. 
B)  Clyde will get the refund because of impracticability; he can't stay at a romantic seaside room if he has no one to share it with. 
C)  Clyde will get the refund because of frustration of purpose; his intention was to propose and it is no longer possible. 
D)  Seaside is not required to provide a refund

Question 12

Assignments require the consent and agreement of all parties to the contract.

Accepted Answer

A) True 
 B)False

Question 13

Moe has entered into a contract with Larry.Subsequently,Moe assigns his rights in that contract to Curley.Which of the following would not prevent that assignment?

Accepted Answer

A)  the contract contains an anti-assignment clause 
B)  the assignment would materially alter Larry's duties and cause an increased burden or risk to Larry 
C)  Larry protests the assignment and demands that Moe not make the assignment 
D)  the assignment would violate public policy matters 
A)  the contract contains an anti-assignment clause 
B)  the assignment would materially alter Larry's duties and cause an increased burden or risk to Larry 
C)  Larry protests the assignment and demands that Moe not make the assignment 
D)  the assignment would violate public policy matters

Question 14

A delegation will be allowed in which of the following situations?

Accepted Answer

A)  a surgeon performing brain surgery 
B)  an actor hired to perform in a play 
C)  a sculptor hired to sculpt your bust 
D)  a painter hired to paint your home 
A)  a surgeon performing brain surgery 
B)  an actor hired to perform in a play 
C)  a sculptor hired to sculpt your bust 
D)  a painter hired to paint your home

Question 15

When an assignment is made,the assignee has the right to reform the contract and change the obligor's rights and duties as they wish.

Accepted Answer

A) True 
 B)False

Question 16

In what way do legal remedies and equitable remedies differ?

Accepted Answer

Legal remedies provide for compensation

Question 17

Craig is a licensed plumber and has a contract to install a replacement toilet for Mary.When Craig realizes that he has booked two appointments simultaneously,he calls Brian,another licensed plumber and asks him to install Mary's toilet.Craig has assigned his duties to Brian.

Accepted Answer

A) True 
 B)False

Question 18

You have booked a hotel room for conference at a rate of $100 per day for five days.When you arrive to check in you are told that the hotel is full and that they overbooked and cannot supply you with a room.You are forced to go to the only hotel in town with available rooms and pay $150 per night.If you sue for damages:

Accepted Answer

A)  you are entitled to compensatory damages in the amount of $250. 
B)  you are entitled to consequential damages in the amount of $250. 
C)  you are not entitled to any damages because the additional costs were not foreseeable. 
D)  you are entitled to liquidated damages in the amount of $250 
A)  you are entitled to compensatory damages in the amount of $250. 
B)  you are entitled to consequential damages in the amount of $250. 
C)  you are not entitled to any damages because the additional costs were not foreseeable. 
D)  you are entitled to liquidated damages in the amount of $250

Question 19

A rescission of a contract may occur when either party chooses to end the agreement.

Accepted Answer

A) True 
 B)False

Question 20

Lisa is doing some landscaping around her house and ordered a delivery of top soil.Her agreement says that the delivery will be made on Wednesday and payment for the soil will be due when the truck arrives at her house.This is an example of a concurrent condition.

Accepted Answer

A) True 
 B)False

Exam 7: Contract Performance: Conditions, Breach, and Remedies

Which of the following is classified as an equitable remedy?

A court order to refrain from performing a particular act is known as _______.

In an assignment or delegation,any third party rights or duties occur after the contract is formed.

A party to a contract may be discharged from performance due to operation of law if the other party unilaterally alters the contract.

In Hadley v.Baxendale,when Hadley sued because Baxendale took unnecessary time to get a crankshaft repaired causing Hadley's mill to close for an extended time,the court found:

Pete has been fired from his job and believes that he has been wrongfully terminated.As he decides how to fight the perceived injustice,how can he best mitigate damages?

Language such as "provided that" or "unless" in a contract which triggers a performance obligation is called a _______.

When examining and enforcing conditions precedent and conditions subsequent,courts:

Assignments require the consent and agreement of all parties to the contract.

Moe has entered into a contract with Larry.Subsequently,Moe assigns his rights in that contract to Curley.Which of the following would not prevent that assignment?

A delegation will be allowed in which of the following situations?

When an assignment is made,the assignee has the right to reform the contract and change the obligor's rights and duties as they wish.

In what way do legal remedies and equitable remedies differ?

Craig is a licensed plumber and has a contract to install a replacement toilet for Mary.When Craig realizes that he has booked two appointments simultaneously,he calls Brian,another licensed plumber and asks him to install Mary's toilet.Craig has assigned his duties to Brian.

A rescission of a contract may occur when either party chooses to end the agreement.

Lisa is doing some landscaping around her house and ordered a delivery of top soil.Her agreement says that the delivery will be made on Wednesday and payment for the soil will be due when the truck arrives at her house.This is an example of a concurrent condition.

Legal Foundations

Business and the Constitution

The American Judicial System,Jurisdiction,and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution Options

Business,Societal,and Ethical Contexts of Law

Overview and Formation of Contracts

Contracts for the Sale of Goods

Torts and Product Liability

Agency and Employment Relationships

Employment Regulation and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Partnerships, limited Liability Companies, and Other Business Arrangements

Corporations

Regulation of Securities, corporate Governance, and Financial Markets

Administrative Law

Environmental Law

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

Intellectual Property

International Law and Global Commerce

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