Deck 18: Performance and Remedies

Question 1

If time is not of the essence of a contract,the promisee must accept late performance rendered within a reasonable time of when performance was due.

Answer 1

True

Question 2

Emma had contracted with Queen Arts to perform a ballet.A day before the program there was a fire and the dance floor was burnt and Emma could not perform.Since Emma cannot perform her contractual duties,she is liable for material breach.

Answer 2

False

Question 3

A promisor who is guilty of material breach has no right of action under the contract.

Answer 3

True

Question 4

Metz and Desman contracted for Metz to build a house for Desman on Desman's lot according to specifications provided by Desman.The contract provided that Metz would be paid $125,000 for this.Metz unintentionally deviated from the specifications in several minor respects.The house is soundly constructed and Metz completed the work within the promised time.Desman refused to pay Metz any of the $125,000,arguing that the house did not conform to the specifications.In this case:

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

Question 5

Tim and Sam entered into a bilateral contract that does not state a time for performance.In this case the law infers that each party's performance is a:

A)condition subsequent.
B)constructive concurrent condition of the other party's duty to perform.
C)constructive condition precedent of the other party's duty to perform.
D)condition concurrent.

Question 6

Which of the following is true of "anticipatory repudiation"?

A)It occurs if promisors,prior to the time for performance,indicate an intent not to perform their duties under the contract.
B)Its indication can arise only from implicit actions and the other party can sue after two weeks for breach of contract.
C)It occurs when the promisee's performance fails to reach the degree of perfection the other party is justified in expecting under the circumstances.
D)Its indication can arise only in the form of an express statement by the promisor and the other party can sue for the breach immediately.

Question 7

Conditions in contracts:

A)must be created in writing to be binding.
B)can be created only by the use of special words.
C)can be implied.
D)must always occur concurrently.

Question 8

Tony contracted to buy wheat from farmer Brown.It was contracted that Tony would pay farmer Brown,three days after the delivery of the wheat.Brown's delivery would be a _____ of Tony's duty to pay.

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

Question 9

The destruction of items that the promisor intended to use in performing would not excuse nonperformance if it just made performance more difficult for the promisor.

Question 10

Punitive damages are recoverable for breach of contract.

Question 11

Promisors in complete performance contracts who do not completely perform can always recover the contract price.

Question 12

Anticipatory repudiation may never be implied.

Question 13

The plaintiff in a contract action has no duty to mitigate his damages because he is the injured party.

Question 14

Normally,both parties to a contract are discharged when they have completely performed their contractual duties.

Question 15

Contracts can be created by mutual agreement,but cannot be discharged by mutual agreement.

Question 16

Rob's construction firm did not give Casey a certificate issued by Timothy Engineering Firm indicating that the work has been done to satisfaction.Casey has no duty to pay Rob's firm.

Question 17

The doctrine of substantial performance applies when a promisor willfully fails to completely perform.

Question 18

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

Question 19

Rob contracted to play football for the United Lions in May 2007.However,he had an accident and he died.His death will terminate his contract.

Question 20

A building that deviates slightly from the contract's specifications would not qualify as substantial performance.

Question 21

The duty to mitigate damages:

A)is a non-equitable doctrine frowned upon by modern courts.
B)requires the non-breaching party to take steps only in case of physical injuries.
C)holds the non-breaching party liable to a minimal amount.
D)requires the non-breaching party to take steps to minimize the damage.

Question 22

An award for loss in value of a promised performance is:

A)nominal.
B)punitive.
C)liquidated.
D)compensatory.

Question 23

In which of the following situation a party's duty to perform cannot be discharged?

A)The nonoccurrence of a condition subsequent
B)The nonoccurrence of a condition precedent
C)Anticipatory breach
D)Material breach

Question 24

The time limit set by the UCC statute of limitations for contracts involving the sale of goods is:

A)four years.
B)five years.
C)ten years.
D)twenty years.

Question 25

The word "Mitigate" denotes:

A)a legal scandal in the early 1970's which established remedies for breaches made in bad faith.
B)a legal term which means to reduce,avoid,or minimize.
C)a legal term which means to sue or take to trial.
D)a legal term which means to recover damages for injuries that could have been avoided.

Question 26

A liquidated damages provision will be enforced only when:

A)the subject matter of the contract has a value which cannot be put in monetary terms.
B)the amount specified is reasonable and actual damages would be difficult to determine.
C)the nature of the contract is such that damages would not be difficult to determine.
D)the amount agreed on is not the injured party's only remedy.

Question 27

Farmer Logan had agreed to supply maize to Roxy Inc.There was a terrible winter in his state which destroyed his crop and later he fell sick and ultimately died.Farmer Logan can be excused for nonperformance on grounds of:

A)commercial impracticability.
B)illness or death of the promisor.
C)nonoccurrence of condition subsequent.
D)destruction of subject matter.

Question 28

Adam contracts to sell Ben 100 widgets for $100 for use in Ben's factory.Adam does not know that Ben's factory is closed as it is waiting for supply of widgets from Adam.Will Adam be liable for the damages caused due to late delivery?

A)Will be liable for compensatory damages.
B)Will be liable for consequential damages.
C)Will not be liable for any damages.
D)Will be liable for nominal damages.

Question 29

Which of the following statements is not true about discharge by alteration?

A)If the parties' agreement is represented by a written instrument,a material,intentional alteration of the instrument by one of the parties discharges the other party.
B)If a party consents to an alteration or does not object to it after learning of it,even then he or she will be discharged.
C)Alterations by third parties without the knowledge or consent of either contracting party will affect the parties' rights.
D)Since contracts are created by mutual agreement,they are not allowed to be altered by either of the parties.

Question 30

Kids Corner ordered for a supply of stuffed toys looking like Santa Claus from Toyland Inc.The toys were to be supplied by 1^st of December but were sent to Kids Corner on 25^th of December.There has been a _____ of contract.

A)compensatory breach
B)anticipatory breach
C)material breach
D)non-occurrence of concurrent condition

Question 31

Ronny hires a car from Greens Transport with global positioning system (GPS)for his holiday in Las Vegas.The rent for the car was $175 a day and was hired for 7 days.The contract did not state anything regarding speed.At times Ronny drove at a high speed of which the GPS kept a record and Greens imposed damages worth $4000 for the wear and tear caused due to high speed.What kind of damage is this?

A)Compensatory damages.
B)Penalty damages.
C)Liquidated damages.
D)Punitive damages.

Question 32

Consequential damages:

A)occur when the special circumstances of the plaintiff cause him to suffer losses that would not ordinarily be foreseeable as a result of breach.
B)are usually 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 not limited to losses that would occur as a result of breach of contract.

Question 33

Roy was doing repair work in the apartment of Melinda.He saw a deep crack in the floor but did not repair it at the time.Later while doing ceiling work,his ladder got stuck in the crack and he injured himself.Can he recover damages from Melinda?

A)He can impose consequential damages on Melinda.
B)He can recover under the specific performance provision.
C)No,he cannot recover for injuries that could be easily avoided.
D)No,he cannot recover damages till he gets an injunction.

Question 34

"Frustration of venture":

A)is the same as "commercial frustration."
B)is the same the same as "commercial impracticability."
C)occurs when the return performance becomes worthless for the promisee.
D)occurs when the promisor expressly assumes the risk that the event occurred.

Question 35

Which of the following statements is true?

A)Personal service contracts,like all contracts,terminate with the promisor's death.
B)Personal service contracts are the only contracts which terminate with the promisor's death.
C)Personal service contracts are the only contracts which cannot terminate with the promisor's death.
D)Personal service contracts can terminate under any circumstance.

Question 36

Punitive damages:

A)are usually unavailable.They are sometimes awarded for bad faith breach.
B)are so called because they are small in amount,not more than $10.00.
C)usually punish and are frequently available as a performance remedy.
D)are so called because they are small in amount and are usually specified in the contract.

Question 37

Which of the following is true about building and construction contracts?

A)The promisee who is dissatisfied with the mechanical fitness,utility,or marketability may reject the performance without liability,even if doing so is unreasonable.
B)The engineer's or architects certificates,which are often issued at each stage of completion,indicate that the work is done to the satisfaction of the architect or engineer.
C)These contracts require the builder to give the owner an engineer's certificate for satisfactory performance after the owner has paid the builder for the project.
D)In contracts involving matters of personal taste and comfort most courts require the promisee to accept performance that would satisfy a reasonable person.

Question 38

is:

A)nominal.
B)punitive.
C)liquidated.
D)compensatory.

Question 39

Rebecca contracted Matthew Properties to repair her apartment for $20,000.Matthew Properties repaired the apartment and handed it over to her.She saw that the garages and the attic had not been properly worked upon.She filed a suit against them but the court said that Matthew Properties had been discharged from obligations by a(n):

A)statute of limitations.
B)waiver.
C)occurrence of condition subsequent.
D)altercation.

Question 40

In which of the following situations can a party's duty to perform be discharged?

A)Statutes and legislation that make a performance more difficult.
B)When something that is essential to the promisor's performance is destroyed through no fault of the promisor but its substitute is available.
C)When events occur after the formation of the contract that would make the return performance of the other party worthless to the promisor.
D)When the promisor impliedly assumed the risk that the event would occur.

Question 41

Explain the meaning of discharge in legal terms.Mention the different situations in which a party's duty to perform could be discharged.

Question 42

Kent Construction Company contracted to build four garages for Magnum,Inc.,for $100,000 according to specifications provided by Magnum.Kent substituted two-by-fours for the more expensive two-by-sixes called for in the contract.An inspection reveals that the garages are sturdy,but that they are worth only $85,000 due to Kent's failure to conform to Magnum's specifications.To what is Kent entitled,if anything,and why?

Question 43

Injunctions are:

A)never used to compel specific performance.
B)not a form of equitable relief,which is granted depending on the equities of a case.
C)used to compel personal service,like specific performance.
D)available when a breach of contract threatens to produce an irreparable injury.

Question 44

Explain destruction of subject matter as an excuse for nonperformance with an example.Under what circumstance will it not be used as an excuse for nonperformance?

Question 45

Fully explain the concept of substantial performance.

Question 46

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:

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

Question 47

Which of the following may require specific performance?

A)Sale of a real estate (a house or tract of land).
B)Sale of a very expensive personal property (a car or big-screen TV).
C)Personal service.
D)Anything that may cause irreparable injury.

Question 48

Martha entered into a contract with Terry,an art dealer.According to the contract Terry was to supply 18^th century artifacts to Martha for the play she was directing.Martha was paying $50,000 for this.Another director needed the same wigs and was ready to pay $60,000.Terry decided not to sell the artifacts to Martha.In this case,the court may order Terry to:

A)specifically perform the contract.
B)repudiate the contract.
C)pay nominal damages.
D)substantially perform the contract.

Question 49

Maxwell construction made an apartment block for Riverside.After 5 years of the construction Riverside sued Maxwell for the leakages in its ceiling.Is this lawsuit valid?

Question 50

A mandatory injunction:

A)occurs when a court orders a party to refrain from doing a certain act.
B)occurs when a court orders a party to do a certain act.
C)is ordered to induce irreparable injury.
D)is used to compel personal service.