Question 1

If a party breaches a contract,the other party can choose one or more of several remedies.

Accepted Answer

A) True 
 B)False

Question 2

Ralph contracts to sell his Double-R Ranch to Samantha on May 1.On April 20,Ralph tells Samantha that he will not go through with the deal.Samantha can recover

Accepted Answer

A) the cost of any property that Samantha would find suitable. 
B) the cost of a similar,nearby ranch. 
C) the Double-R Ranch. 
D) nothing. 
A) the cost of any property that Samantha would find suitable. 
B) the cost of a similar,nearby ranch. 
C) the Double-R Ranch. 
D) nothing.

Question 3

A contract between E-Debits,Inc. ,and Fiscal Credit Corporation includes a provision excluding liability as a result of fraud.This provision is

Accepted Answer

A) enforceable because the parties are protected from liability. 
B) enforceable because the parties consented to it. 
C) enforceable if the parties have equal bargaining power. 
D) not enforceable. 
A) enforceable because the parties are protected from liability. 
B) enforceable because the parties consented to it. 
C) enforceable if the parties have equal bargaining power. 
D) not enforceable.

Question 4

Fact Pattern 18-B1 
Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to subdivide and sell in fifth-acre lots for Pristine Acres,a residential development.
-Refer to Fact Pattern 18-B1.If Bella breaches the contract,Watershed's remedy would most likely be

Accepted Answer

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

Question 5

SealCoat Paving enters into a contract with Royal Golf & Tennis Club to provide surface material for Royal's tennis courts by April 1 for a tournament to begin May 1.The contract specifies an amount to be paid if the contract is breached.This is a liquidated damages clause if the amount is

Accepted Answer

A) meant to pay for additional liquid sealant in the event of damage. 
B) a reasonable estimate of the loss on a breach. 
C) designed to penalize the breaching party. 
D) intended to quickly provide cash to the nonbreaching party. 
A) meant to pay for additional liquid sealant in the event of damage. 
B) a reasonable estimate of the loss on a breach. 
C) designed to penalize the breaching party. 
D) intended to quickly provide cash to the nonbreaching party.

Question 6

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched.

Accepted Answer

A) True 
 B)False

Question 7

Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000.On April 30,Little cancels the contract.Kris finds another job dur?ing May but earns only $3,000.Kris files a suit against Little.As compen?satory damages,Kris can recover

Accepted Answer

A) $3,000. 
B) $2,000. 
C) $1,000. 
D) $0. 
A) $3,000. 
B) $2,000. 
C) $1,000. 
D) $0.

Question 8

Drew contracts to sell a residential duplex to Evan.The contract pro?vides that if Drew does not close the deal by September 15,he must pay Evan one-half of the contract price.This provision is not enforceable be?cause it is

Accepted Answer

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

Question 9

Cooper's Brakes,Inc. ,enters into a contract with Byron's Service to fix Cooper's hydraulic equipment.Byron delays the repair for five days,aware that Cooper loses a certain percentage of profit each day.An award to Cooper of consequential damages would

Accepted Answer

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

Question 10

Damages compensate a party for harm suffered as a result of another's wrongful act.

Accepted Answer

A) True 
 B)False

Question 11

Clutch Auto Parts enters into a contract with Bio Health Club for discounted memberships for Clutch's employees.Bio breaches the contract and Clutch enters into a contract with Apex Fitness for the same service at a lower price.Clutch might be awarded nominal damages to

Accepted Answer

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

Question 12

Bret contracts to work for City Construction Corporation (CCC)dur?ing July for $4,500.On June 30,CCC cancels the contract.Bret declines a similar job with Downtown Builders,Inc. ,which would have paid $4,000.Bret files a suit against CCC.As compensatory damages,Bret can recover

Accepted Answer

A) $4,500. 
B) $4,000. 
C) $500. 
D) $0. 
A) $4,500. 
B) $4,000. 
C) $500. 
D) $0.

Question 13

Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corpo?ration.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.

Question 14

Quicksilver Delivery Service contracts to deliver Pete's Pizza Parlor's products to its customers for $5,000,payable in ad?vance.Pete's pays the money,but Quicksilver fails to perform.Can Pete's rescind the contract? Can Pete's also ob?tain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accom?plished? Explain.

Accepted Answer

Yes,Pete's can rescind the contract and

Question 15

Liquidated damages provisions are usually not enforceable.

Accepted Answer

A) True 
 B)False

Question 16

Punitive damages are almost never available in contract disputes.

Accepted Answer

A) True 
 B)False

Question 17

When a breach of contract occurs,the innocent injured party has a duty to mitigate the damages.

Accepted Answer

A) True 
 B)False

Question 18

GroundCover Pools,Inc. ,agrees to build a swimming pool for Franci,but fails to complete the job.Franci hires EquiAqua,Inc. ,to finish the project.Candy may recover from GroundCover

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 19

Most parties go to trial for damages or other remedies rather than settle their lawsuits.

Accepted Answer

A) True 
 B)False

Question 20

A liquidated damages provision specifies that a certain amount is to be paid in the event of a future default or breach of contract.

Accepted Answer

A) True 
 B)False

Exam 18: B: Breach of Contract and Remedies

If a party breaches a contract,the other party can choose one or more of several remedies.

Ralph contracts to sell his Double-R Ranch to Samantha on May 1.On April 20,Ralph tells Samantha that he will not go through with the deal.Samantha can recover

A contract between E-Debits,Inc. ,and Fiscal Credit Corporation includes a provision excluding liability as a result of fraud.This provision is

Fact Pattern 18-B1 Bella Homes enters into a contract to buy 132 acres from Watershed Holdings to subdivide and sell in fifth-acre lots for Pristine Acres,a residential development. -Refer to Fact Pattern 18-B1.If Bella breaches the contract,Watershed's remedy would most likely be

SealCoat Paving enters into a contract with Royal Golf & Tennis Club to provide surface material for Royal's tennis courts by April 1 for a tournament to begin May 1.The contract specifies an amount to be paid if the contract is breached.This is a liquidated damages clause if the amount is

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched.

Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000.On April 30,Little cancels the contract.Kris finds another job dur?ing May but earns only $3,000.Kris files a suit against Little.As compen?satory damages,Kris can recover

Drew contracts to sell a residential duplex to Evan.The contract pro?vides that if Drew does not close the deal by September 15,he must pay Evan one-half of the contract price.This provision is not enforceable be?cause it is

Cooper's Brakes,Inc. ,enters into a contract with Byron's Service to fix Cooper's hydraulic equipment.Byron delays the repair for five days,aware that Cooper loses a certain percentage of profit each day.An award to Cooper of consequential damages would

Damages compensate a party for harm suffered as a result of another's wrongful act.

Clutch Auto Parts enters into a contract with Bio Health Club for discounted memberships for Clutch's employees.Bio breaches the contract and Clutch enters into a contract with Apex Fitness for the same service at a lower price.Clutch might be awarded nominal damages to

Bret contracts to work for City Construction Corporation (CCC)dur?ing July for $4,500.On June 30,CCC cancels the contract.Bret declines a similar job with Downtown Builders,Inc. ,which would have paid $4,000.Bret files a suit against CCC.As compensatory damages,Bret can recover

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

Liquidated damages provisions are usually not enforceable.

Punitive damages are almost never available in contract disputes.

When a breach of contract occurs,the innocent injured party has a duty to mitigate the damages.

GroundCover Pools,Inc. ,agrees to build a swimming pool for Franci,but fails to complete the job.Franci hires EquiAqua,Inc. ,to finish the project.Candy may recover from GroundCover

Most parties go to trial for damages or other remedies rather than settle their lawsuits.

A liquidated damages provision specifies that a certain amount is to be paid in the event of a future default or breach of contract.

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

A: 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

A: Liability,defenses,and Discharge