Deck 16: Remedies

Question 1

Courts will enforce a liquidated damages provision as long as the actual amount of damages is difficult to ascertain and the sum is reasonable in light of the expected harm.

Answer 1

True

Question 2

A substitute transaction is possible under any given circumstance.

Answer 2

False

Question 3

A party entitled to a legal remedy is required to pursue it.

Answer 3

False

Question 4

A reliance interest is that which restores to the promisee any benefit he conferred on the promisor.

Question 5

An) _____ is that which restores to the promisee any benefit he conferred on the promisor.

A) expectation interest
B) anticipatory breach
C) compensatory damage
D) reliance interest
E) restitution interest

Question 6

_____ is putting the parties back into the position they were in before the contract was made.

A) Retribution
B) Injunction
C) Rescission
D) Restitution
E) Foreseeability

Question 7

Nominal damages are those awarded for the purpose of punishing a defendant in a civil action.

Question 8

Specific performance is a legal remedy where a person is ordered to deliver a unique thing to the damaged party.

Question 9

A promise by a person not to do something is called a negative covenant.

Question 10

The remedy for _____ is to put the promisee in a position as good as that which he would have been in had the contract been performed.

A) reliance interest
B) expectation interest
C) lost volume
D) restitution interest
E) compensatory damages

Question 11

A promisee cannot choose which interest to pursue.

Question 12

Punitive damages are not fixed by law.

Question 13

Mitigation of damages is when the contract law encourages the nonbreaching party to avoid loss wherever possible.

Question 14

There are two general categories of remedies-legal and equitable.

Question 15

An) _____ interest is the benefit for which the promisee bargained, and the remedy is to put him in a position as good as that which he would have been in had the contract been performed.

A) reliance
B) restitution
C) expectation
D) compensatory
E) quantum

Question 16

An expectation interest is the benefit for which the promisee bargained, and the remedy is to put him in a position as good as that which he would have been in had the contract been performed.

Question 17

The doctrine of election of remedy has been approved by the UCC.

Question 18

Which of the following is a legal remedy?

A) Specific performance
B) Injunction
C) Restitution
D) Damages
E) Expectation interest

Question 19

Damages paid to directly compensate the nonbreaching party for the value of what was not done or performed are incidental damages.

Question 20

Most statutes of limitations prescribe longer periods for contract than for tort actions.

Question 21

Damages paid to directly compensate the nonbreaching party for the value of what was not done or performed are _____.

A) consequential damages
B) incidental damages
C) compensatory damages
D) nominal damages
E) liquidated damages

Question 22

What are consequential damages?

Question 23

The nature of a loss resulting from a contract breach may be such as to entitle one party to a choice among two or more means to redress the grievance, where the choices are mutually exclusive. This is known as _____.

A) restitution
B) waiver
C) foreseeability
D) election of remedies
E) consequential damage

Question 24

_____ arises) when the nonbreaching party, a supplier of goods or services, enters a second contract when the buyer repudiates.

A) A negative covenant
B) An injunction
C) Liquidated damages
D) Consequential loss
E) Lost volume

Question 25

Jenny contracts to buy a new washing machine from a dealer; however, the dealer breaches the contract. Jenny finds and buys the same washing machine from another dealer at the same price that the first one was to sell it for. In this case, Jenny is entitled to _____.

A) incidental damages
B) punitive damages
C) nominal damages
D) consequential damages
E) liquidated damages

Question 26

Loss from _____ damages includes expenditures that the nonbreaching party incurs in attempting to minimize the loss that flows from the breach.

A) punitive
B) liquidated
C) nominal
D) incidental
E) consequential

Question 27

What are the three different interests that contract remedies serve to protect?

Question 28

An injunction is an) _____.

A) court order directing a person to stop doing that which he/she should not do
B) judicial order to the promisor that he undertake the performance to which he obligated himself in a contract
C) alternative remedy to damages and may be issued at the discretion of the court
D) restoring to one party of what he gave to the other
E) award for the purpose of punishing a defendant in a civil action

Question 29

In a situation where there has been a breach but the nonbreaching party has really suffered no loss or cannot prove what his loss is, he is entitled to _____.

A) liquidated damages
B) nominal damages
C) punitive damages
D) consequential damages
E) incidental damages

Question 30

Which of the following equitable remedies is a judicial order to the promisor that he undertake the performance to which he obligated himself in a contract?

A) Foreseeability
B) Restitution
C) Negative covenant
D) Injunction
E) Specific performance

Question 31

If the damages that flow from a breach of contract lack _____, they will not be recoverable.

A) novation
B) specific performance
C) injunction
D) mitigation of damages
E) foreseeability

Question 32

A promise by a person not to do something is called an) _____.

A) specific performance
B) easement
C) restitution
D) negative covenant
E) lost volume