Question 1

The breach of a contract for a sale of goods qualifies for specific performance only when substantially identical goods can be bought or sold in the market.

Accepted Answer

A) True 
 B)False

Question 2

A contract clause that excludes liability for willful misconduct is enforceable if the provision is sufficiently prominent in the body of the contract.

Accepted Answer

A) True 
 B)False

Question 3

In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.

Accepted Answer

A) True 
 B)False

Question 4

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak's manager immediately accepts. The seller

Accepted Answer

A)  is bound to the deal at the offered price. 
B)  can rescind the deal. 
C)  is bound to the deal but can charge the intended price. 
D)  can rescind the deal and recover damages for the mistake.

Question 5

The measure of compensatory damages does not vary by type of contract.

Accepted Answer

A) True 
 B)False

Question 6

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

Accepted Answer

A)  discharged. 
B)  breached. 
C)  altered. 
D)  performed.

Question 7

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to

Accepted Answer

A)  continue to store the fruit until Produce pays. 
B)  do whatever is reasonable to minimize the damages. 
C)  dispose of the fruit immediately. 
D)  set an example to deter similar misconduct in the future.

Question 8

A covenant not to compete that is imposed as part of a sale of an ongoing business will be enforced even if the restraints are unreasonable.

Accepted Answer

A) True 
 B)False

Question 9

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

Accepted Answer

A)  a mutual agreement to rescind. 
B)  an accord and satisfaction. 
C)  a novation. 
D)  specific performance.

Question 10

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Accepted Answer

A) True 
 B)False

Question 11

Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely

Accepted Answer

A)  a quasi contract. 
B)  reformation. 
C)  rescission. 
D)  specific performance.

Question 12

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

Accepted Answer

A)  conditional. 
B)  complete. 
C)  material. 
D)  substantial.

Question 13

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Accepted Answer

A) True 
 B)False

Question 14

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Accepted Answer

A)  conditional. 
B)  complete. 
C)  material. 
D)  substantial.

Question 15

To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.

Accepted Answer

A) True 
 B)False

Question 16

Dory enters into a contract with Eton for the construction of a Fast Food franchise, according to a certain schedule. The parties perform some preparatory steps, but Eton materially and willfully fails to begin work on the specified date. To rescind the contract, Dory must show that the parties can

Accepted Answer

A)  be restored to the status quo. 
B)  realize at least some of the benefit of their bargain. 
C)  obtain a reasonable exchange of values for the preparatory steps. 
D)  profit from the partial performance.

Question 17

Only contracts that have been fully executed can be rescinded by agreement.

Accepted Answer

A) True 
 B)False

Question 18

When a contract mistakenly specifies a crane instead of a forklift, a court could reform the contract to reflect the parties' original intent as to the equipment.

Accepted Answer

A) True 
 B)False

Question 19

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Accepted Answer

A)  execute a bill of sale. 
B)  exchange the horse for the money. 
C)  sign a receipt. 
D)  agree that the deal is fair.

Question 20

On the breach of a contract for a sale of land when the seller has sold the property to someone else, an award of specific performance is unavailable.

Accepted Answer

A) True 
 B)False

Exam 13: Contract Performance Breachapter and Remedies

The breach of a contract for a sale of goods qualifies for specific performance only when substantially identical goods can be bought or sold in the market.

A contract clause that excludes liability for willful misconduct is enforceable if the provision is sufficiently prominent in the body of the contract.

In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak's manager immediately accepts. The seller

The measure of compensatory damages does not vary by type of contract.

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to

A covenant not to compete that is imposed as part of a sale of an ongoing business will be enforced even if the restraints are unreasonable.

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.

Dory enters into a contract with Eton for the construction of a Fast Food franchise, according to a certain schedule. The parties perform some preparatory steps, but Eton materially and willfully fails to begin work on the specified date. To rescind the contract, Dory must show that the parties can

Only contracts that have been fully executed can be rescinded by agreement.

When a contract mistakenly specifies a crane instead of a forklift, a court could reform the contract to reflect the parties' original intent as to the equipment.

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

On the breach of a contract for a sale of land when the seller has sold the property to someone else, an award of specific performance is unavailable.