Question 1

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

Accepted Answer

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

Question 2

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

Accepted Answer

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

Question 3

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant.If Even-Flo breaches the contract,Fiesta can

Accepted Answer

A) do nothing but make a deal with .a different service provider. 
B) do nothing but temporarily suspend operations and wait. 
C) file a criminal complaint against Even-Flo. 
D) sue Even-Flo for damages. 
A) do nothing but make a deal with .a different service provider. 
B) do nothing but temporarily suspend operations and wait. 
C) file a criminal complaint against Even-Flo. 
D) sue Even-Flo for damages.

Question 4

The purpose of the doctrine of election of remedies is to permit double recovery.

Accepted Answer

A) True 
 B)False

Question 5

Vacation Vistas,Inc. ,agrees to sell certain acreage to Umiko,who intends to develop a destination resort.Vacation Vistas repudiates the deal.Umiko sues Vacation Vistas and recovers dam?ages.She can now obtain

Accepted Answer

A) an amount in a quasi-contractual recovery. 
B) damages representing restitution. 
C) specific performance of the deal. 
D) nothing more. 
A) an amount in a quasi-contractual recovery. 
B) damages representing restitution. 
C) specific performance of the deal. 
D) nothing more.

Question 6

Rural Power Utility,Inc. ,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

Accepted Answer

A) a penalty. 
B) liquidated damages. 
C) restitution. 
D) a breach of contract. 
A) a penalty. 
B) liquidated damages. 
C) restitution. 
D) a breach of contract.

Question 7

A party seeking to recover compensatory damages cannot also recover in?cidental damages.

Accepted Answer

A) True 
 B)False

Question 8

Special damages are awarded for damage caused by special circumstances beyond a contract.

Accepted Answer

A) True 
 B)False

Question 9

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair,Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages,Carousel can recover

Accepted Answer

A) the cost of new turf. 
B) the difference between Damon's price and the actual cost of repair. 
C) the loss of profit from the canceled game. 
D) nothing. 
A) the cost of new turf. 
B) the difference between Damon's price and the actual cost of repair. 
C) the loss of profit from the canceled game. 
D) nothing.

Question 10

SFX Paintball Games,Inc. ,and Truck & Trailer Delivery Corporation sign an agree?ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti?mate but approximately $1,000." This is

Accepted Answer

A) a liquidated damages clause. 
B) a mitigation of damages clause. 
C) a nominal damages clause. 
D) a penalty clause. 
A) a liquidated damages clause. 
B) a mitigation of damages clause. 
C) a nominal damages clause. 
D) a penalty clause.

Question 11

Pure Oil Company enters into a contract with QuikBilt,Inc. ,to construct an offshore 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 12

A party seeking to recover in quasi contract must show that there was an actual contract or agreement between the parties.

Accepted Answer

A) True 
 B)False

Question 13

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 14

The measure of damages for breach of a construction contract depends on which party breaches and when.

Accepted Answer

A) True 
 B)False

Question 15

Rite Contractors,Inc. ,agrees to build a motel for Sleep Inn Corporation.The project proceeds according to plan,but before it is done,Sleep tells Rite to quit.Rite may recover

Accepted Answer

A) the contract price less costs of materials and labor. 
B) the contract price. 
C) the costs needed to complete construction. 
D) profits plus the costs incurred up to the time of the breach. 
A) the contract price less costs of materials and labor. 
B) the contract price. 
C) the costs needed to complete construction. 
D) profits plus the costs incurred up to the time of the breach.

Question 16

Compensatory damages compensate an injured party for damages arising directly from the loss of a bargain caused by a breach of contract.

Accepted Answer

A) True 
 B)False

Question 17

Damages are designed to punish a breaching party and deter others from similar conduct.

Accepted Answer

A) True 
 B)False

Question 18

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Accepted Answer

A) True 
 B)False

Question 19

Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek's apartment complex.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

Accepted Answer

A) a limitation-of-liability clause. 
B) an exculpatory clause. 
C) a liquidated damages clause. 
D) a quasi contract. 
A) a limitation-of-liability clause. 
B) an exculpatory clause. 
C) a liquidated damages clause. 
D) a quasi contract.

Question 20

The failure of one party to perform a contract entitles the other party to rescind it.

Accepted Answer

A) True 
 B)False

Exam 18: A: Breach of Contract and Remedies

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

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

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant.If Even-Flo breaches the contract,Fiesta can

The purpose of the doctrine of election of remedies is to permit double recovery.

Vacation Vistas,Inc. ,agrees to sell certain acreage to Umiko,who intends to develop a destination resort.Vacation Vistas repudiates the deal.Umiko sues Vacation Vistas and recovers dam?ages.She can now obtain

Rural Power Utility,Inc. ,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

A party seeking to recover compensatory damages cannot also recover in?cidental damages.

Special damages are awarded for damage caused by special circumstances beyond a contract.

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair,Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages,Carousel can recover

SFX Paintball Games,Inc. ,and Truck & Trailer Delivery Corporation sign an agree?ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti?mate but approximately $1,000." This is

Pure Oil Company enters into a contract with QuikBilt,Inc. ,to construct an offshore 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

A party seeking to recover in quasi contract must show that there was an actual contract or agreement between the parties.

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

The measure of damages for breach of a construction contract depends on which party breaches and when.

Rite Contractors,Inc. ,agrees to build a motel for Sleep Inn Corporation.The project proceeds according to plan,but before it is done,Sleep tells Rite to quit.Rite may recover

Compensatory damages compensate an injured party for damages arising directly from the loss of a bargain caused by a breach of contract.

Damages are designed to punish a breaching party and deter others from similar conduct.

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek's apartment complex.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

The failure of one party to perform a contract entitles the other party to rescind it.

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

A: Performance and Discharge

B: Performance and Discharge

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course