Deck 18: Performance and Remedies

Question 1

Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party.Yvonne does not produce the advertisement until July 6.Here,Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence.

Answer 1

False
Explanation: In some contracts that do not specifically state the time for performance,the time can be inferred from the circumstances surrounding the contract.In this case,it is a 4th of July celebration and the court would consider this a material breach of contract by Yvonne.

Question 2

When a promisor's performance is an express condition of the promisee's duty to perform,that performance must meet a strict performance standard.

Answer 2

True
Explanation: When a party's duty is subject to an express condition,that condition must be strictly and completely complied with to give rise to a duty of performance.

Question 3

A condition subsequent cannot be a valid reason for the discharge of a duty.

Answer 3

False
Explanation: A condition subsequent is a future,uncertain event that discharges the duty to perform.When a duty is subject to a condition subsequent,the duty to perform arises but is discharged if the future,uncertain event occurs.

Question 4

Bill contracts to build a building for Harvey.A few changes in the building code that were made after the contract was signed will increase Bill's costs in performing his duties.He is excused from performance under the contract.

Question 5

In general,an employee who has been fired and who wants to sue for breach of contract need not do anything to limit or mitigate his damages,such as looking for another job.This would unfairly benefit an employer who has wrongfully breached a contract.

Question 6

There cannot be subjective standards of personal taste and comfort when determining a promisee's performance.

Question 7

An accountant who substantially performs her duties to her client triggers the client's duty to pay the contract price,less any damages resulting from defects in her performance.

Question 8

Specific performance is almost never awarded in contracts for the sale of land.

Question 9

Mr.Green contracts to repair his roof with Mr.Brown.Prior to the work starting a tornado destroys Mr.Green's home.Mr.Brown fails to perform under the contract,but the court will not consider Mr.Brown to be in breach due to impossibility.

Question 10

If Grant promises to sell his regular season football tickets to Carson on condition that Indiana University wins the Rose Bowl,Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.

Question 11

In the eyes of law, all breaches of contract are of equal seriousness.

Question 12

In a contract for Adam to sell Carrie a steam boiler,Carrie's obligation to pay is conditioned upon her personal satisfaction with the boiler.Even though the boiler meets every mechanical test imaginable,Carrie refuses to pay because she just does not like the boiler for some reason.She is not obligated to pay,because the contract said that he must be personally satisfied,and a contract is a contract.

Question 13

Arthur and Brian have entered into a contract with an enforceable liquidated damages provision that states that Ben's recovery will be $10,000 in the event of Arthur's breach.Arthur breaches the contract.Ben loses $50,000 in consequential damages as a result.Ben's recovery is limited to $10,000.

Question 14

There is prescribed formal language that must be used to create an express condition as part of a contract.

Question 15

If there is no time specified in contract by the parties,then it is presumed that performance shall be completed whenever possible.

Question 16

The substantial performance standard is more lenient than the strict performance standard of judicial contract legal interpretation.

Question 17

When a person owes an unconditional duty to another,then he/she must perform it unless the performance is excused.

Question 18

Ms.White is contracted by Mr.Green to make her "world famous" apple pies.Ms.White has an accident,falls into a coma and the pies are not delivered to Mr.Green by the time stated in the contract.Ms.White will be considered in breach of her contract to Mr.Green.

Question 19

The term condition means an event that may affect a party's duty to perform under a contract.

Question 20

Pat promises to install granite countertops in the home at 123 Main Street that Bruce is purchasing "provided that the escrow on the sale of 123 Main Street closes." The close of escrow on the sale of 123 Main Street is a condition precedent to Pat's promise.

Question 21

Which of the following is a condition subsequent?

A)"I promise to do X if I succeed in getting a loan."
B)"I promise to do X on the condition that the Cubs win the World Series."
C)"I promise to do X unless Al Gore is elected President in 2000."
D)"I promise to do X assuming that inflation stays below 3% in 1997."

Question 22

Mr.Green contracts with Mr.Brown to repair his roof.Mr.Brown is about 75% done when the deadline of the contract occurs.Which legal standard would prevent Mr.Brown from being considered to be in breach of his agreement with Mr.Green?

A)Substantial performance standard
B)Strict performance standard
C)Reasonable person standard
D)Egg shell person standard

Question 23

What is the term for a condition that is specified in a contract?

A)Express condition
B)Implied condition
C)Corporate condition
D)Bilateral condition

Question 24

Nina breached a contract between Milo and her,but not so materially.This means that Milo can:

A)sue only for damages caused by the breach
B)sue for damages for a total breach of the contract
C)cancel the contract
D)withhold his performance,even if the breach is remedied

Question 25

When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition,the condition will be excused because of  ________.

A)waiver
B)estoppel
C)rescission
D)liability

Question 26

For which of the following contracts,is a party's subjective dissatisfaction sufficient to excuse his performance under a "personal satisfaction" clause in a contract?

A)A contract to construct an intercontinental ballistic missile
B)A contract to paint someone's portrait
C)A contract to build a steam boiler
D)A contract to rebuild an automobile engine

Question 27

Which of the following is subject to the "substantial performance" standard in the absence of an express condition?

A)A promise to pay money
B)A promise to deliver a deed
C)A promise to build a house
D)A promise to deliver some goods

Question 28

Which of the following is also known as an implied-in-law condition since they are imposed by law rather than by agreement of the parties?

A)Condition precedent
B)Express condition
C)Constructive condition
D)Subsequent condition

Question 29

Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform.

A)A promise to build a road
B)A promise to paint a house
C)A promise to destroy a building
D)A promise to deliver a deed

Question 30

Performance under a contract must be within a reasonable time when:

A)the value of the contract is high.
B)one of the parties is a government agency.
C)a specific time is implied in the contract.
D)no time for performance is expressly stated in the contract.

Question 31

An uncertain future event,the occurrence of which is necessary for the existence of a contractual obligation is called:

A)a condition precedent
B)a condition subsequent
C)a concurrent condition
D)a constructive condition

Question 32

Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promisee?

A)Quasi-contract
B)Anticipatory repudiation
C)Specific performance
D)Accord and satisfaction

Question 33

Which of the following is a remedy for a party that is in material breach of a contract but has incurred economic harm by already performing substantially for the contract?

A)Liquidated damages
B)Quasi-contract
C)Bilateral contract
D)Incorporation

Question 34

What is the term for a condition that is not stated in the contract but is created by the nature of the transaction between parties?

A)Express condition
B)Implied-in-fact condition
C)Corporate condition
D)Bilateral condition

Question 35

What is the law's main purpose in imposing the implied covenant of good faith and fair dealing?

A)Providing adequate remedial measures to injured parties
B)Punishing the breaching parties in a contract
C)Encouraging litigation regarding breach of contracts
D)Encouraging ethical behavior in contracts

Question 36

Which of the following is true of the materiality of breach?

A)Courts generally adopt strict standards to determine materiality.
B)The magnitude of the breach is of relatively less importance.
C)There is no concern about compensating the nonbreaching party.
D)The timing of the breach is generally taken into consideration.

Question 37

A(n)________ is a future,uncertain event that creates or extinguishes a duty of performance.

A)condition
B)promise
C)assurance
D)warranty

Question 38

Justin agrees to start a life-size portrait of Julia beginning November 2.On October 28 he writes to Julia that due to unforeseeable circumstances,he would not be able to perform his promise.Justin has used the doctrine of:

A)accord and satisfaction.
B)anticipatory repudiation.
C)specific performance.
D)quasi-contract.

Question 39

Kyle promised to mow Heidi's lawn for $20 and clean her gutters for $50,but only mowed the lawn.Which of the following is true of Kyle?

A)He is the nonbreaching party and can,therefore,sue Heidi.
B)Heidi cannot sue him because he has performed one of the promises.
C)He can recover the contract price for the activity he performed.
D)He will be directed by the court to complete the entire contract for free.

Question 40

Roe promises to build a house for Crown for which,Crown agrees to pay him $10,000 when the house is complete.This example is related to the concept of:

A)express condition.
B)constructive condition.
C)subsequent condition.
D)implied condition.

Question 41

Adrienne contracted to convey real estate to Rich.However Adrienne died before the conveyance is completed.What is the status of the parties?

A)Adrienne is excused for nonperformance.
B)Rich will be directed by the court to end the contract.
C)Adrienne's performance was impossible.
D)Rich can enforce the contract against Adrienne's estate.

Question 42

Damages that are agreed upon at the time the contract is entered into are called ________.

A)compensatory damages
B)consequential damages
C)liquidated damages
D)mitigation of damages

Question 43

Sklar,an accountant,purchased two computers from Wiz Corp.Sklar discovered material defects in the computers 10 months after taking delivery.Three years after discovering the defects,Sklar commenced an action for breach of warranty against Wiz.Wiz raised the statute of limitations as a defense.The original contract between Wiz and Sklar contained a conspicuous clause providing that the statute of limitations for breach of warranty actions would be limited to 18 months.Under the circumstances,Sklar will:

A)win because the action was commenced within the four-year period as measured from the date of delivery.
B)win because the action was commenced within the four-year period as measured from the time he discovered the breach or should have discovered the breach.
C)lose because the clause providing that the statute of limitations would be limited to 18 months is enforceable.
D)lose because the statute of limitations is three years from the date of delivery with respect to written contracts.

Question 44

Winston contracts to sell a plot of land called Blackacre to Paris for $500,000.Winston breaches the contract and Paris sues him.Blackacre's reasonable market value at the time of the breach was $525,000.Paris can recover:

A)nothing,for he hasn't really suffered any harm.
B)nothing,because specific performance is his only remedy here.
C)only $25,000.
D)the entire $500,000.

Question 45

Price signed a contract to sell Wyatt a parcel of land for $90,000.The entire sales price was payable at the closing.Price decided to keep the land.If Wyatt commences an action against Price,what relief is Wyatt most likely to receive?

A)Specific performance
B)Compensatory damages and specific performance
C)Punitive damages
D)Compensatory damages and punitive damages

Question 46

Someone who attempts to recover for breach of contract:

A)can recover only for those losses that he can prove with reasonable certainty.
B)can recover for all consequences of the breach,whether foreseeable or not.
C)can only do so for consequential damages.
D)has no duty to mitigate (or minimize)damages.

Question 47

Maria and Joe entered into a contract for the sale of Maria's car.Delivery of the car and payment were to be made on March 1.Joe clarified that he needed the car so that he can commute between San Francisco and Oakland to his new job that is starting on March 2.Maria breached the contract and failed to deliver the car on March 1.Joe needed a car to commute so he rented a car at $30 per day for 20 days,which was the reasonable amount of time it took him to locate and buy another car.Joe sued Maria for his losses,including the $600 car rental.The $600 makes up the ________ damages.

A)liquidated
B)consequential
C)punitive
D)specific performance

Question 48

Which of the following characterizes the statute of limitations?

A)The time period fixed by the statute of limitations is uniform throughout the states.
B)The recording of the contract stops the running of the statute of limitations.
C)The time period fixed by the statute of limitations begins when the contract is recorded.
D)The time period for oral contracts is different from that of written ones.

Question 49

Upon ________,each party who has been benefited by the other's performance must compensate the other for the value of the benefit conferred.

A)rescission
B)novation
C)accord and satisfaction
D)revocation

Question 50

The legal remedy of ________ requires the defendant to pay the value of the benefits that the plaintiff has conferred on him.

A)restitution
B)waiver
C)compensatory damages
D)accord and satisfaction

Question 51

The equitable remedy of specific performance is most likely to be awarded by a court in which of the following circumstances?

A)Sale of a Da Vinci original where the seller refuses to deliver
B)Sale of a perfume bottle which the seller refuses to deliver
C)A promisee's failure to perform at a charity event
D)A promisee's failure to deliver a contract of employment

Question 52

Which of the following circumstances is a valid reason for the delay of a lawsuit once the statutory period is over?

A)Illegality of the contract
B)Change of mind of the nonbreaching party
C)Minority of the nonbreaching party
D)Addition of a third party

Question 53

When a promisee who has an existing claim agrees with the promisor that he will accept some performance different from that which was originally agreed on,both parties can use the remedy of:

A)specific performance.
B)accord and satisfaction.
C)waiver.
D)rescissions.

Question 54

When is a person's duty to perform discharged on grounds of impossibility?

A)When a substitute is available
B)When there is a delay in the delivery of goods
C)In the presence of supervening illegality
D)A promisee's dissatisfaction with the performance

Question 55

On May 2,1972,Mix,an accountant,entered into an oral contract with Dell to provide certain accounting services to Dell.The contract was fully performed by both parties in 1974.On April 25,1988,Dell commenced a breach of contract action against Mix claiming that Mix improperly performed the accounting services.Mix's best defense to the action would likely be:

A)Parol evidence rule
B)Statute of limitations
C)Statute of frauds
D)Lack of consideration

Question 56

A party cannot recover for losses that he could have avoided without undue risk,burden,or humiliation.This is an example of:

A)Incidental damages
B)Consequential damages
C)Liquidated damages
D)Mitigating damages

Question 57

The relinquishment of rights by a party in a contract is called a(n)________.

A)waiver
B)rescission
C)impossibility
D)reliance interest

Question 58

Which of the following instances is a sufficient reason to cause commercial impracticability?

A)Increased cost
B)War
C)Collapse of market
D)Shortage of good

Question 59

Which form of damages involves a court ordering a party to a contract to perform his/her obligations under the contract?

A)Quasi-contract
B)Specific performance
C)Rescission
D)Promissory estoppel

Question 60

Which form of damages is intended to give the victim of the breach of contract the "benefit of his bargain"?

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

Question 61

In Killian v.Ricchetti,the case in the text,the agreement between the parties is an example of a:

A)concurrent condition.
B)constructive condition.
C)condition subsequent.
D)condition precedent.

Question 62

Gayle agrees to pay Pat $1,000 for painting her house "on condition that" Pat finish the job no later than October 1,2016.Which of the following statements is false?

A)A standard of strict or complete performance would be applied to Pat's performance.
B)If Pat does not finish the job by October 1,2016,he is not discharged from performing.
C)If Pat does not finish the job by October 1,2016,he will have breached the contract.
D)Gayle does not have a duty to pay the contract price.

Question 63

Stacey wanted someone to paint her house.Jessica offered to do it for $300 while Nancy offered to do it for $250.A few days after Stacey entered into a contract with Nancy,Nancy increased her fee to $400.By this time,Jessica was not interested in entering into a contract with Stacey anymore.Stacey can seek to be compensated on the basis of a ________.

A)quasi-contract
B)part performance
C)reliance interest
D)compensatory damages

Question 64

A ________ occurs when the contract calls for the parties to perform at the same time.

A)concurrent condition
B)condition subsequent
C)condition precedent
D)constructive condition

Question 65

Which of the following statements about courts determining the materiality of a breach is false?

A)The standard for determining materiality is a flexible one that takes into account the facts of each individual case.
B)A breach that occurs later in the parties' relationship is more likely to be viewed as material than is one that occurs early.
C)They key question is whether the breach deprives the injured party of the benefits that he reasonably expected.
D)Courts take into account the extent to which the breaching party will suffer forfeiture if the breach is held to be material.

Question 66

A ________ is a future,uncertain event that discharges the duty to perform.

A)concurrent condition
B)condition precedent
C)condition subsequent
D)constructive condition

Question 67

Which of the following is a doctrine under which a party to a contract is relieved of his duty to perform when that performance can no longer be completed because of the occurrence of an event unforeseen at the time of contracting?

A)Waiver
B)Impracticability
C)Impossibility
D)Good faith and fair dealing

Question 68

Which of the following are also called special damages?

A)Nominal damages
B)Liquidated damages
C)Punitive damages
D)Consequential damages

Question 69

When an anticipatory repudiation occurs,what must the nonbreaching party show to recover damages right away for total breach of the contract?

A)He was ready,willing,and able to perform his part of the contract.
B)The anticipatory repudiation was made in bad faith.
C)The breaching party failed to notify him within a reasonable amount of time.
D)The breaching party could have performed but arbitrarily decided not to regardless.

Question 70

Which of the following is generally taken to mean neither party to a contract will do anything to prevent the other from obtaining the benefits that she has the right to expect from the parties' agreement or their contractual relationship?

A)Implied covenant of candor
B)Implied covenant of fairness
C)Implied covenant of good faith and fair dealing
D)Implied covenant of loyalty

Question 71

Chris contracts to buy David's house on condition that Small Town Bank approves Chris's application for a mortgage loan by July 1.If Chris is not approved for the loan,then:

A)he still has a duty to buy the house.
B)he is discharged from further obligation under the contract.
C)his inability to get the loan constitutes a breach of contract.
D)he must renegotiate with David.

Question 72

Frank hires Saul to landscape his yard,but when Saul attempts to begin landscaping,Frank refuses to allow Saul to enter the land.Which of the following statements is true?

A)Frank's duty to pay is subject to a constructive condition that Saul completes the landscaping job.
B)Any claim Saul would bring would be made in bad faith.
C)Saul can only be excused from performance if the parties mutually agree to rescind the contract.
D)Saul can sue Frank for damages for breach of contract.

Question 73

Sherry and Gretchen orally agree that Sherry will begin paying Gretchen $500 per month,but if ABC Corp.dissolves,Sherry will no longer have to pay Gretchen.ABC Corp.dissolves and Sherry promptly stops making any future payments to Gretchen.Which of the following statements is true?

A)If Gretchen sues Sherry,Sherry will bear the burden of proving the occurrence of the condition.
B)This is an example of a condition precedent.
C)Gretchen cannot sue Sherry because the agreement was not in writing.
D)Gretchen's only course of redress is to bring an action against ABC Corp.

Question 74

What is an injunction?

A)The awarding of compensatory damages
B)A court's order requiring a person to do something or refrain from doing something
C)The cancellation of a contract regarding real estate
D)A lawsuit for damages brought by the nonbreaching party

Question 75

Which of the following is the starting point in calculating the compensatory damages that the plaintiff had the right to expect?

A)Loss in value of the performance
B)Loss in value of the contract
C)Time taken for the performance
D)Delay from the expected time of performance

Question 76

In the case in the text,Harrison v.Family Home Builders,LLC,the court held that:

A)FHB failed to perform the work in a workmanlike manner.
B)FHB failed to perform the work in accordance with the plans and specifications provided by the Harrisons.
C)FHB failed to render substantial performance of the contract.
D)FHB was entitled to a reasonable time to perform the contract.

Question 77

Which of the following occurs when the promisor indicates before the time for his performance that he is unwilling or unable to carry out the contract?

A)Anticipatory repudiation
B)Waiver
C)Estoppel
D)Accord and satisfaction

Question 78

A contract is ________ when each party's performance can be divided in two or more parts and each part is exchanged for some corresponding consideration from the other party.

A)whole
B)divisible
C)unenforceable
D)material

Question 79

If Jack promises to unload landscaping rock from Harry's truck,the truck's arrival would be a(n)________ of Jack's duty to unload the rock.

A)express condition
B)implied-in-fact condition
C)corporate condition
D)bilateral condition

Question 80

Bing engaged Dill to perform personal services for $2,200 a month for a period of four months.The contract was entered into orally on July 1,1984,and performance was to commence on September 1,1984.On August 10,Dill anticipatorily repudiated the contract.As a result,Bing:

A)may not assign his rights to damages under the contract to a third party.
B)can obtain specific performance.
C)may not enforce the contract against Dill since the contract is oral.
D)can immediately sue for breach of contract.