Question 1

The four broad types of damages in contract law are conciliatory,consecutive,punctual,and nominative.

Accepted Answer

A) True 
 B)False  False

Question 2

Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment.When Ira sends her the rest of the price,Jane refuses to ship Ira the collection.Ira should seek

Accepted Answer

A)  damages. 
B)  reformation. 
C)  rescission. 
D)  specific performance. 
A)  damages. 
B)  reformation. 
C)  rescission. 
D)  specific performance. D

Question 3

Office Accounting,Inc.,hires Perry to repair a computer on site for $400,but Perry does not show up as agreed.Office Accounting hires Raul to do the job for $350.Office Accounting may recover from Perry

Accepted Answer

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

Question 4

Mona contracts to repair a computer for NuData,Inc.(NDI).Mona knows that without the computer,NDI will lose a sale.Mona does not perform as promised.NDI files a suit against Mona.As consequential damages,NDI can recover

Accepted Answer

A)  the cost of a new computer. 
B)  the difference between Mona's price and the actual cost of repair. 
C)  the loss of profit from the lost sale. 
D)  nothing. 
A)  the cost of a new computer. 
B)  the difference between Mona's price and the actual cost of repair. 
C)  the loss of profit from the lost sale. 
D)  nothing.

Question 5

Fashion Retail Center enters into a contract with Great Promotions,Inc.,to provide Fashion with a plan to retool its merchandising strategy.If Great Promotions breaches the contract,Fashion has a duty to

Accepted Answer

A)  reduce the damages that Fashion might otherwise suffer. 
B)  reduce the loss that Great Promotions might otherwise suffer. 
C)  punish Great Promotions and deter others from similar acts. 
D)  take no action. 
A)  reduce the damages that Fashion might otherwise suffer. 
B)  reduce the loss that Great Promotions might otherwise suffer. 
C)  punish Great Promotions and deter others from similar acts. 
D)  take no action.

Question 6

Pure Oil Company enters into a contract with QuikBilt,Inc.,to construct an oil pipeline to withstand specific conditions.If QuikBilt fails to meet this standard,which is construed as a breach of contract and a breach of a duty of care,Pure might be awarded punitive damages to

Accepted Answer

A)  establish, as a matter of principle, that QuikBilt acted wrongfully. 
B)  provide Pure with funds for a foreseeable loss beyond the contract. 
C)  provide Pure with funds for its loss of the bargain. 
D)  punish QuikBilt and deter others from similar acts. 
A)  establish, as a matter of principle, that QuikBilt acted wrongfully. 
B)  provide Pure with funds for a foreseeable loss beyond the contract. 
C)  provide Pure with funds for its loss of the bargain. 
D)  punish QuikBilt and deter others from similar acts.

Question 7

Rig Heli-Pads,Inc.,enters into a contract to employ Scott as an on-site project manager for two years.If Rig breaches the contract,Scott has a duty to

Accepted Answer

A)  do nothing. 
B)  reduce the damages that Scott might otherwise suffer. 
C)  rescind the contract with Rig. 
D)  punish Rig and set an example to deter others from similar acts. 
A)  do nothing. 
B)  reduce the damages that Scott might otherwise suffer. 
C)  rescind the contract with Rig. 
D)  punish Rig and set an example to deter others from similar acts.

Question 8

The measure of damages on a breach of contract is the amount that will impress on the breaching party the harm that has been done.

Accepted Answer

A) True 
 B)False

Question 9

Nominal damages normally establish that the defendant acted wrongly.

Accepted Answer

A) True 
 B)False

Question 10

Refined Commodities,Inc.,agrees to deliver ten tons of sheet metal to Select Builders Corporation.The agreement states that delivery is to be within "3" days,although the parties intend "30" days.Refined cannot convince Select to amend the contract.Refined should seek

Accepted Answer

A)  damages. 
B)  reformation. 
C)  rescission. 
D)  specific performance. 
A)  damages. 
B)  reformation. 
C)  rescission. 
D)  specific performance.

Question 11

A contract can include a provision stating that no damages can be recovered for certain types of breaches.

Accepted Answer

A) True 
 B)False

Question 12

Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.

Accepted Answer

A) True 
 B)False

Question 13

The duty owed under the mitigation of damages doctrine depends on the situation.

Accepted Answer

A) True 
 B)False

Question 14

Damages are awarded for whatever injury a nonbreaching party suffers,whether or not the breaching party could have foreseen the injury.

Accepted Answer

A) True 
 B)False

Question 15

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch.If Hollis breaches the contract,Grady's normal remedy would be

Accepted Answer

A)  damages. 
B)  quasi contract. 
C)  reformation. 
D)  specific performance. 
A)  damages. 
B)  quasi contract. 
C)  reformation. 
D)  specific performance.

Question 16

Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons.After Jaime prepares the land and plants the first crop,Karson says that their deal is off.Jaime can most likely recover

Accepted Answer

A)  in quasi contract. 
B)  in reformation. 
C)  in restitution. 
D)  on the parties' existing contract. 
A)  in quasi contract. 
B)  in reformation. 
C)  in restitution. 
D)  on the parties' existing contract.

Question 17

Fact Pattern 14-1 (Questions 7-8 apply)
Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development.
-Refer to Fact Pattern 14-1.If Estelle breaches the contract,Desmond's remedy would most likely be

Accepted Answer

A)  a certain ratio of the amount that Estelle has in liquid funds. 
B)  a percentage of Estelle's unrealized profit. 
C)  the difference between the land's contract and market prices. 
D)  specific performance. 
A)  a certain ratio of the amount that Estelle has in liquid funds. 
B)  a percentage of Estelle's unrealized profit. 
C)  the difference between the land's contract and market prices. 
D)  specific performance.

Question 18

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Accepted Answer

A) True 
 B)False

Question 19

Quasi contracts allow the courts to act as if a contract exists when there is no contract.

Accepted Answer

A) True 
 B)False

Question 20

Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation.Fresh Food does not pay for the storage.Earl sells the fruit to Green Grocers,Inc.This sale represents

Accepted Answer

A)  a breach of contract. 
B)  a mitigation of damages. 
C)  rescission and restitution. 
D)  specific performance. 
A)  a breach of contract. 
B)  a mitigation of damages. 
C)  rescission and restitution. 
D)  specific performance.

Exam 14: Breach and Remedies

The four broad types of damages in contract law are conciliatory,consecutive,punctual,and nominative.

Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment.When Ira sends her the rest of the price,Jane refuses to ship Ira the collection.Ira should seek

Office Accounting,Inc.,hires Perry to repair a computer on site for $400,but Perry does not show up as agreed.Office Accounting hires Raul to do the job for $350.Office Accounting may recover from Perry

Mona contracts to repair a computer for NuData,Inc.(NDI).Mona knows that without the computer,NDI will lose a sale.Mona does not perform as promised.NDI files a suit against Mona.As consequential damages,NDI can recover

Fashion Retail Center enters into a contract with Great Promotions,Inc.,to provide Fashion with a plan to retool its merchandising strategy.If Great Promotions breaches the contract,Fashion has a duty to

Pure Oil Company enters into a contract with QuikBilt,Inc.,to construct an oil pipeline to withstand specific conditions.If QuikBilt fails to meet this standard,which is construed as a breach of contract and a breach of a duty of care,Pure might be awarded punitive damages to

Rig Heli-Pads,Inc.,enters into a contract to employ Scott as an on-site project manager for two years.If Rig breaches the contract,Scott has a duty to

The measure of damages on a breach of contract is the amount that will impress on the breaching party the harm that has been done.

Nominal damages normally establish that the defendant acted wrongly.

Refined Commodities,Inc.,agrees to deliver ten tons of sheet metal to Select Builders Corporation.The agreement states that delivery is to be within "3" days,although the parties intend "30" days.Refined cannot convince Select to amend the contract.Refined should seek

A contract can include a provision stating that no damages can be recovered for certain types of breaches.

Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.

The duty owed under the mitigation of damages doctrine depends on the situation.

Damages are awarded for whatever injury a nonbreaching party suffers,whether or not the breaching party could have foreseen the injury.

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch.If Hollis breaches the contract,Grady's normal remedy would be

Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons.After Jaime prepares the land and plants the first crop,Karson says that their deal is off.Jaime can most likely recover

Fact Pattern 14-1 (Questions 7-8 apply) Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development. -Refer to Fact Pattern 14-1.If Estelle breaches the contract,Desmond's remedy would most likely be

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Quasi contracts allow the courts to act as if a contract exists when there is no contract.

Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corporation.Fresh Food does not pay for the storage.Earl sells the fruit to Green Grocers,Inc.This sale represents

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