Question 1

Consequential damages:

Accepted Answer

A)  occur when the special circumstances of the plaintiff cause him or her to suffer losses that would not ordinarily be foreseeable as a result of the breach. 
B)  are recoverable unless the defendant had reason to foresee them at the time the contract was created. 
C)  are measured by the loss in value of the promised performance. 
D)  are very small damages that the court may award the plaintiff when a technical breach of contract has occurred without causing any actual loss. 
A)  occur when the special circumstances of the plaintiff cause him or her to suffer losses that would not ordinarily be foreseeable as a result of the breach. 
B)  are recoverable unless the defendant had reason to foresee them at the time the contract was created. 
C)  are measured by the loss in value of the promised performance. 
D)  are very small damages that the court may award the plaintiff when a technical breach of contract has occurred without causing any actual loss. A

Question 2

A liquidated damage provision will be enforced when:

Accepted Answer

A)  a technical breach of contract has occurred without causing any actual loss. 
B)  the amount specified is reasonable and actual damages are difficult to determine. 
C)  the nature of the contract is such that damages are easy to determine. 
D)  the amount agreed on is not the injured party's exclusive remedy. 
A)  a technical breach of contract has occurred without causing any actual loss. 
B)  the amount specified is reasonable and actual damages are difficult to determine. 
C)  the nature of the contract is such that damages are easy to determine. 
D)  the amount agreed on is not the injured party's exclusive remedy. B

Question 3

If the contract calls for the parties to perform their duties at the same time, each party's duty to perform is conditioned on the other party's performance. These conditions are called conditions subsequent.

Accepted Answer

A) True 
 B)False  False

Question 4

What is the duty to mitigate damages?

Accepted Answer

Plaintiffs who have been injured by a br

Question 5

Punitive damages:

Accepted Answer

A)  are recoverable only when extreme circumstances justify penalizing the defendant. 
B)  are ordinarily available in contract cases. 
C)  do not allow plaintiffs to collect damages for injuries such as emotional distress. 
D)  are not available if the plaintiff can sue in tort for a bad faith breach. 
A)  are recoverable only when extreme circumstances justify penalizing the defendant. 
B)  are ordinarily available in contract cases. 
C)  do not allow plaintiffs to collect damages for injuries such as emotional distress. 
D)  are not available if the plaintiff can sue in tort for a bad faith breach.

Question 6

Robert was under contract to play football for the United Lions in May 2007. However, he died in an accident before he could perform his contract. His death will terminate his contract.

Accepted Answer

A) True 
 B)False

Question 7

If an event must occur before a party's duty to perform arises, it is called a concurrent condition.

Accepted Answer

A) True 
 B)False

Question 8

Punitive damages are recoverable for breach of contract.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following statements is true of personal service contracts?

Accepted Answer

A)  Specific performance is generally granted for personal service contracts because it does not require a form of involuntary servitude. 
B)  Personal service contracts are the only contracts that terminate with the promisor's death. 
C)  Personal service contracts include destruction to subject matter that can result in nonperformance. 
D)  Personal service contracts recognize commercial impracticability as an excuse when unforeseeable developments take place. 
A)  Specific performance is generally granted for personal service contracts because it does not require a form of involuntary servitude. 
B)  Personal service contracts are the only contracts that terminate with the promisor's death. 
C)  Personal service contracts include destruction to subject matter that can result in nonperformance. 
D)  Personal service contracts recognize commercial impracticability as an excuse when unforeseeable developments take place.

Question 10

Which of the following statements is true about discharge by alteration?

Accepted Answer

A)  When a parties' agreement is represented by a written instrument, a material, intentional alteration of the instrument by one of the parties does not discharge the other party. 
B)  When a party does not consent to an alteration or objects to it after learning of it, he or she is not discharged. 
C)  Alterations by third parties without the knowledge or consent of either contracting party do not affect the parties' rights. 
D)  Discharge by alteration involves statutorily establishing reasonable time within which a lawsuit must be brought. 
A)  When a parties' agreement is represented by a written instrument, a material, intentional alteration of the instrument by one of the parties does not discharge the other party. 
B)  When a party does not consent to an alteration or objects to it after learning of it, he or she is not discharged. 
C)  Alterations by third parties without the knowledge or consent of either contracting party do not affect the parties' rights. 
D)  Discharge by alteration involves statutorily establishing reasonable time within which a lawsuit must be brought.

Question 11

The promisor who substantially performs is generally entitled to the contract price less any damage the other party has suffered as a result of the defective performance.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following is true of discharge of contracts?

Accepted Answer

A)  Both parties to a contract are discharged when they have completely performed their contractual duties. 
B)  A contract created by mutual agreement between two parties cannot be discharged by mutual agreement. 
C)  A party who has breached a contractual duty may be discharged from liability for breach if the other party brings suit within the statute of limitations. 
D)  If a party consents to an alteration, he or she is discharged. 
A)  Both parties to a contract are discharged when they have completely performed their contractual duties. 
B)  A contract created by mutual agreement between two parties cannot be discharged by mutual agreement. 
C)  A party who has breached a contractual duty may be discharged from liability for breach if the other party brings suit within the statute of limitations. 
D)  If a party consents to an alteration, he or she is discharged.

Question 13

_____ damages are very small damages that the court may award the plaintiff when a technical breach of contract has occurred without causing any actual loss.

Accepted Answer

A)  Nominal 
B)  Punitive 
C)  Liquidated 
D)  Compensatory 
A)  Nominal 
B)  Punitive 
C)  Liquidated 
D)  Compensatory

Question 14

Shawn and Harry signed a contract for Shawn to build a house for Harry according to the specifications provided by Harry. The contract stated that Shawn would be paid $125,000. Shawn unintentionally deviated from the specifications in several minor respects. The house was soundly constructed, and Shawn completed the work within the promised time. Harry refused to pay Shawn any of the $125,000, arguing that the house did not conform to the specifications. In this case,

Accepted Answer

A)  Harry will get a decree of specific performance. 
B)  Shawn has no right to be paid for any of his work because he breached the contract. 
C)  if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised. 
D)  if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused to him because of the delay in payment. 
A)  Harry will get a decree of specific performance. 
B)  Shawn has no right to be paid for any of his work because he breached the contract. 
C)  if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused by his failure to perform as promised. 
D)  if the court finds that Shawn has substantially performed, he will be able to recover the contract price less any damages caused to him because of the delay in payment.

Question 15

Which of the following is the most common subject of specific performance decrees?

Accepted Answer

A)  Real estate 
B)  Automobiles 
C)  Personal service 
D)  Internet software 
A)  Real estate 
B)  Automobiles 
C)  Personal service 
D)  Internet software

Question 16

Generally, a party's contractual duty to perform arises at the time the contract is formed, even though the time for performing is set for a future date. The parties may, however, provide that a party's duty to perform is qualified by the happening of some event, or condition.

Accepted Answer

A) True 
 B)False

Question 17

If the happening of a condition discharges an existing duty to perform, this is called a condition precedent.

Accepted Answer

A) True 
 B)False

Question 18

_____ damages are not recoverable unless the defendant had reason to foresee them at the time the contract was created.

Accepted Answer

A)  Compensatory 
B)  Consequential 
C)  Liquidated 
D)  Punitive 
A)  Compensatory 
B)  Consequential 
C)  Liquidated 
D)  Punitive

Question 19

An employee with special skills who has agreed not to work for a competitor may be enjoined from breaching his or her contract and working for that competitor by:

Accepted Answer

A)  a mandatory injunction. 
B)  liquidated damage provisions. 
C)  a prohibitory injunction. 
D)  nominal damage provisions. 
A)  a mandatory injunction. 
B)  liquidated damage provisions. 
C)  a prohibitory injunction. 
D)  nominal damage provisions.

Question 20

If the parties' agreement is represented by a written instrument, a non-material, negligent alteration of the instrument by one of the parties discharges the other party.

Accepted Answer

A) True 
 B)False

Exam 18: Performance and Remedies

Consequential damages:

A liquidated damage provision will be enforced when:

If the contract calls for the parties to perform their duties at the same time, each party's duty to perform is conditioned on the other party's performance. These conditions are called conditions subsequent.

What is the duty to mitigate damages?

Punitive damages:

Robert was under contract to play football for the United Lions in May 2007. However, he died in an accident before he could perform his contract. His death will terminate his contract.

If an event must occur before a party's duty to perform arises, it is called a concurrent condition.

Punitive damages are recoverable for breach of contract.

Which of the following statements is true of personal service contracts?

Which of the following statements is true about discharge by alteration?

The promisor who substantially performs is generally entitled to the contract price less any damage the other party has suffered as a result of the defective performance.

Which of the following is true of discharge of contracts?

_____ damages are very small damages that the court may award the plaintiff when a technical breach of contract has occurred without causing any actual loss.

Which of the following is the most common subject of specific performance decrees?

Generally, a party's contractual duty to perform arises at the time the contract is formed, even though the time for performing is set for a future date. The parties may, however, provide that a party's duty to perform is qualified by the happening of some event, or condition.

If the happening of a condition discharges an existing duty to perform, this is called a condition precedent.

_____ damages are not recoverable unless the defendant had reason to foresee them at the time the contract was created.

An employee with special skills who has agreed not to work for a competitor may be enjoined from breaching his or her contract and working for that competitor by:

If the parties' agreement is represented by a written instrument, a non-material, negligent alteration of the instrument by one of the parties discharges the other party.

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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