Question 1

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

Accepted Answer

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 2

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

Accepted Answer

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

Question 3

Where the parties to a contract wish to cancel their contract and be in the same position as they were prior to forming the contract, they should seek to obtain a(n) _____.

Accepted Answer

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

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

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.

Accepted Answer

A) True 
 B)False

Question 6

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

Accepted Answer

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

Question 7

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 promise?

Accepted Answer

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

Question 8

In the eyes of law, breach of any contract is of equal seriousness.

Accepted Answer

A) True 
 B)False

Question 9

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?

Accepted Answer

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 10

Mike contracts with Bob to purchase Bob's boat. Mike promises to pay Bob $5,000 upon delivery of the boat to Mike's beach house. Bob arrives at Mike's house without the boat, and demands full payment before the boat is to be delivered. Is Mike obligated to pay Bob the money? Why or why not?

Accepted Answer

The answer of Mike contracts with Bob to purchase Bob's...

Question 11

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:

Accepted Answer

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 12

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

Accepted Answer

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 13

Paul contracts to sell his home to Dee for $100,000. The sale, which was negotiated by a broker for two parties who never met, was set to close on September 1. On July 15, Paul discovers the identity of the buyer, and immediately writes Dee to tell him that there's no way he'll ever sell his house to "some hippy." Must Dee wait until September 1 to sue Paul for breach of contract?

Accepted Answer

The answer of Paul contracts to sell his home to...

Question 14

Which of the following is a condition subsequent?

Accepted Answer

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 15

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, the latter increased her fees 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(n) _____.

Accepted Answer

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

Question 16

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

Accepted Answer

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

Question 17

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

Accepted Answer

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

Question 18

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:

Accepted Answer

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

Question 19

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

Accepted Answer

A)  compensatory damages 
B)  consequential damages 
C)  liquidated damages 
D)  mitigated damages

Question 20

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

Accepted Answer

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

Exam 18: Performance and Remedies

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

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

Where the parties to a contract wish to cancel their contract and be in the same position as they were prior to forming the contract, they should seek to obtain a(n) _____.

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

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.

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

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 promise?

In the eyes of law, breach of any contract is of equal seriousness.

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?

Mike contracts with Bob to purchase Bob's boat. Mike promises to pay Bob $5,000 upon delivery of the boat to Mike's beach house. Bob arrives at Mike's house without the boat, and demands full payment before the boat is to be delivered. Is Mike obligated to pay Bob the money? Why or why not?

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:

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

Which of the following is a condition subsequent?

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

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

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:

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

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