Deck 18: Contract Remedies

Question 1

Specific performance is an equitable remedy.

Answer 1

True

Question 2

Specific performance is the usual remedy for breach of contract.

Answer 2

False

Question 3

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

Answer 3

False

Question 4

Consequential damages include lost profits and injury to person or property.

Question 5

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Question 6

A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

Question 7

Courts of equity will grant specific performance of contracts for personal services.

Question 8

Equitable remedies are available any time the plaintiff chooses them over money damages.

Question 9

Where a party has been induced by fraud to enter a contract, the Restatement of Torts permits the injured party to recover out-of-pocket damages but expressly excludes recovery of benefit-of-the-bargain damages.

Question 10

Punitive damages are not always awarded as a deterrent in breach of contract cases.

Question 11

Damages are not recoverable for loss beyond an amount that the injured party can establish with reasonable certainty.

Question 12

A court's protecting a reliance interest results in its putting the aggrieved party in a position as good as the one they would have been in had the contract not been made.

Question 13

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Question 14

Equitable remedies result in money awards to the plaintiff.

Question 15

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

Question 16

Incidental damages include lost profits and injury to person or property resulting from defective performance.

Question 17

Restitution requires a return of value to the aggrieved party.

Question 18

Under the rule in Hadley v.Baxendale, only damages foreseeable at the time of entering into the contract can be recovered.

Question 19

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor.Sean's promise to Inmett of his exclusive personal services may be enforced by injunction.

Question 20

The remedy for misrepresentation is specific performance of the contract.

Question 21

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

Question 22

Incidental damages are those that arise directly out of the breach.

Question 23

Restitution can be obtained where a voidable contract is avoided.

Question 24

A contractor and Southampton, Inc.have a contract, which calls for the contractor to build a building with the completion by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

A)punitive damages.
B)nominal damages.
C)liquidated damages.
D)an illegal penalty.

Question 25

A small damage amount fixed without regard to the amount of loss is known as:

A)reliance damages.
B)out-of-pocket damages.
C)nominal damages.
D)None of the above.

Question 26

A remedy available for breach of contract is:

A)restitution.
B)monetary damages.
C)the equitable remedies of specific performance and injunction.
D)All of the above.

Question 27

Delay will have no effect on the power of avoidance.

Question 28

A liquidated damages provision sets forth the amount of damages the parties agree in advance to be paid in the event of breach.

Question 29

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Question 30

Miller made a contract to sell his condominium to Jefferson for $80,000.Two days later Miller changes his mind after discovering that he could have sold the property to another buyer for an additional $20,000.Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000.Jefferson is seeking:

A)restitution.
B)punitive damages.
C)specific performance.
D)valid tender.

Question 31

Equitable remedies will not be granted when:

A)the terms of the contract are fair.
B)monetary damages would adequately compensate the injured party.
C)fraud, duress, undue influence, or mistake are not present.
D)All of the above.

Question 32

If West and Burton designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty, the injured party will be left without a remedy.

Question 33

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

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

Question 34

Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000.Marcella then repudiates the contract.Hugh sells the houseboat to Lloyd in good faith for $60,000.Marcella may recover from Hugh:

A)nothing, since she was the one who repudiated the contract.
B)her $12,000 down payment since Hugh's contract with Lloyd created a novation and discharged any duty Marcella had to pay anything toward the houseboat.
C)$8,000 in restitution, which represents Marcella's $12,000 down payment less the $4,000 in damages Hugh sustained because of Marcella's breach.
D)nothing based on the principle illustrated in Arrowhead School District No.75, Park County, Montana v.James A.Klyap, Jr.

Question 35

One possible equitable remedy is reformation, whereby a court creates a new, enforceable agreement for the parties.

Question 36

Contract remedies are available to protect which of the following interests of the injured parties?

A)Restitution.
B)Expectation.
C)Reliance.
D)All of the above.

Question 37

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Question 38

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

Question 39

The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made.

Question 40

Monetary damages are the most frequently granted remedy for breach of contract.

Question 41

Harry said to Marge, "I have a ring once owned by Marilyn Monroe.Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local store.Marge enjoys wearing the ring and wears it constantly for twelve months.Finally, she goes to Harry and says, "Here is the ring you lied about.Give me my $500." Most likely Marge will:

A)get her money back since Harry's statement was fraudulent.
B)not get her money back since she should have investigated the facts about the ring more carefully.
C)not get her money back since she is a good faith purchaser of merchandise.
D)not get her money back since she has affirmed the contract by taking an unduly long time to disaffirm.

Question 42

Scott, a minor, sells his digital camera to Megan, who then sells it to Sherry.Under these circumstances:

A)Scott retains the power of avoidance of the contract, since he is a minor, even after the property is sold to Sherry.
B)if Sherry is a good faith purchaser for value and she buys the camera before Scott elects to rescind, no rescission is permitted.
C)Megan and Sherry both received a voidable title regardless of whether they contracted in good faith.
D)if Scott wants to rescind the transaction after the sale to Sherry, a good-faith purchaser for value, he has no remedy or recourse.

Question 43

The majority of states follow the __________ rule in awarding damages for fraud.

A)benefit-of-the-bargain
B)out-of-pocket
C)liquidated
D)restitution

Question 44

Contract damages that put the injured party in as good a position as if the other party had performed are:

A)compensatory damages.
B)incidental damages.
C)consequential damages.
D)liquidated damages.

Question 45

Which of the following is correct with respect to election of remedies?

A)The Code rejects any doctrine of election of remedies in contracts for the sale of goods; its remedies are cumulative.
B)The remedy of specific performance is inconsistent with that of restitution.
C)A person who seeks an injunction may also seek incidental damages for the breach.
D)All of the above are correct.

Question 46

A power of avoidance held by a party may be lost if:

A)the contract is affirmed.
B)there are unreasonable delays in exercising the power.
C)the rights of third parties intervene.
D)All of the above.

Question 47

Damages for reliance include expenses for:

A)lost profits.
B)injury to the person.
C)preparing to perform.
D)punishment of the breaching party.

Question 48

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is worth $2,500.In a state that uses the "out-of-pocket" rule, Margaret's damage award would be:

A)$3,500.
B)$3,000.
C)$500.
D)$2,500.

Question 49

In the case of Hadley v.Baxendale, the plaintiff was seeking damages for:

A)restitution.
B)lost profits.
C)failure to convey land.
D)failure to specifically perform a contract.

Question 50

What principle did the court apply in the case of Madison Square Garden Corp., Ill.v.Carnera?

A)When damages are not adequate, an injunction may be used to enforce an agreement to perform exclusive services that are unusual and extraordinary.
B)When services contracted for are unusual or extraordinary, the injured party cannot obtain injunctive relief.
C)An injured party's damages may not be reduced by mitigation for his failure to accept or seek other employment of a different or inferior kind.
D)Damages are recoverable only if they were foreseeable at the time of entering into the contract.

Question 51

Wayne Busby contracts to build a house for Mary Ann Connell.Busby finishes approximately half of the house and quits.Connell files suit against Busby.Which remedy is not available to her?

A)Compensatory damages.
B)Specific performance.
C)Special damages.
D)Nominal damages.

Question 52

Which of the following is NOT true regarding specific performance?

A)It will not be granted if money damages would be adequate to compensate the injured party.
B)It is granted in contracts involving unique items of personal property.
C)It will be granted frequently in contracts involving the sale of goods.
D)The courts will not order directly the specific performance of contracts for personal services.

Question 53

Bartow signed a contract to coach baseball for Washington High for a period of three years.After two years he is offered and accepts an assistant coaching position at State University.Contract law will not allow Washington High to ask for:

A)specific performance of his contract.
B)payment of compensatory damages.
C)an injunction against coaching at the university.
D)liquidated damages.

Question 54

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down.Then Lynne learns she is allergic to hay and repudiates the contract.If Harriette can sell the farm for $190,000 a month later, she may:

A)keep Lynne's $20,000.
B)keep $10,000 of Lynne's down payment.
C)not keep any of the down payment money.
D)sue for specific performance.

Question 55

Howard needs a truck to pull a 2,000-pound trailer.Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer.If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for:

A)punitive damages, but not out-of-pocket damages.
B)out-of-pocket damages, plus consequential damages.
C)out-of-pocket damages plus punitive damages.
D)nominal damages because Howard should have known the capacity of the truck.

Question 56

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the following remedies available to Vladimir?

A)Restitution: Yes; Specific Performance: Yes
B)Restitution: Yes; Specific Performance: No
C)Restitution: No; Specific Performance: Yes
D)Restitution: No; Specific Performance: No

Question 57

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500.When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne.Marianne can ask the court to order:

A)injunctive relief.
B)specific performance.
C)restitution.
D)equitable rescission.

Question 58

David enters into a contract to give Edward the right of first refusal on a tract of land owned by David.David subsequently offers the land to Fred without first offering it to Edward.An appropriate remedy for Edward to seek would be:

A)injunction.
B)liquidated damages.
C)reformation.
D)punitive damages.

Question 59

In which of the following situations will a court grant specific performance?

A)In a case involving breach of contract for the sale of real property.
B)In contracts for personal services.
C)Where goods are unique or rare.
D)Two of the above, (a) and (c).

Question 60

In which of the following situations is restitution available as a remedy?

A)As an alternative remedy for a party injured by breach.
B)For a party in default.
C)For a party who may not enforce the contract because of the statute of frauds.
D)All of the above are situations in which restitution is available.

Question 61

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
delegation

Question 62

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
contract

Question 63

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
executory contract

Question 64

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
novation

Question 65

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
unilateral contract

Question 66

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
quasi contract

Question 67

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
option contract

Question 68

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
voidable contract

Question 69

Explain consequential damages.Give an example.

Question 70

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
executed contract

Question 71

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

A)Foreseeability.
B)Certainty.
C)Mitigation.
D)Restitution.

Question 72

Define incidental damages and give an example.

Question 73

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
assignment

Question 74

Bob's brother, Steve, planned to visit over Labor Day weekend.Together they planned to build a deck in Bob's backyard.Bob ordered the lumber, concrete, nails, and other supplies to be delivered on Friday.He also arranged to rent a saw for the weekend (Sat., Sun., and Mon.) at a cost of $20 a day.When he went to pick up the saw, the store had already rented it.He drove all over town trying to borrow another but could only get one for Sunday, Monday, and Tuesday at a cost of $50 per day.Because they couldn't work on Saturday without a saw, Bob had to hire Mac at a cost of $80 to work with him on Tuesday and, of course, Bob had to take off from work.Calculate the damages to which Bob is entitled.Why? Explain.

Question 75

Explain three limitations on monetary damages.

Question 76

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
breach

Question 77

When will a court enforce a liquidated damage clause? When will a court refuse to enforce one?

Question 78

What interests of injured parties are protected by remedies for a breach of contract?

Question 79

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits, when damages under ordinary circumstances would be $17,000.Explain under what circumstances a court would award $25,000.

Question 80

MATCHING
Part III Matching
Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer.
bilateral contract