Deck 11: Breach and Remedies

Question 1

When a party successfully sues for an equitable remedy for a breach of contract it is because in some instances money damages are insufficient to compensate the nonbreaching party.

Answer 1

True

Question 2

A late fee assessed on an individual when they return a Redbox movie after it is due date/time is an example of a liquidated damage.

Answer 2

True

Question 3

The only time a person may sue for damages is when there has been a substantial breach.

Answer 3

False

Question 4

The parties to a contract must take reasonable steps to avoid damages and losses should someone breach the contract.

Question 5

If a party to a contract breaches a fundamental and material term of the contract, the nonbreaching party may be discharged from any further obligations.

Question 6

When one party fails to perform his or her duties under a contract, that party is said to be in

A) Error
B) Breach
C) Repudiation
D) Substanatial performance

Question 7

A court order to refrain from performing a particular act is known as

A) Specific performance
B) Restraining performance
C) Injunctive relief
D) Damages

Question 8

Compensatory damages cover a broad spectrum of losses for recovery of what type of damages suffered by the non-breaching party?

A) Actual
B) Consequential
C) Unanticipated
D) Equitable

Question 9

Allie hires Christie to knit 55 pairs of socks by April 1. Christie accidentally knits only 53 pairs and mails off the 53 pairs of socks so that it reaches Allie by the due date. When Allie discovers this, she notifies Christie that she did not complete the contract. Can Allie refuse to pay Christie?

A) Yes as Christie breached the contract by not performing the terms of the contract as stated.
B) No if the court rules that the breach was not material and therefore a partial breach.
C) Yes if Allie suffered any damages.
D) No as long as Christie get the additional two pairs of socks to Allie within a reasonable amount of time from April 1.

Question 10

In Thomas v. Montelucia Villas, the court ruled that the non-breaching party, under the legal theory of anticipatory repudiation, is entitled to damages

A) Anytime the non-breaching party claims the other party will be breaching the contract.
B) After the non-breaching party has tendered partial performance.
C) When the non-breaching party show that they were willing and able to perform the contract if the repudiation had not occurred.
D) When there is an unequal bargaining power and the non-breaching party was innocent in the breach.

Question 11

A process of recovery that allows the non-breaching party to recover before the non-performing party actually breaches the contract even before the performance is due is called

A) Restitution
B) Recission
C) Injuction
D) Anticipatory repudiation

Question 12

The goal of awarding damages in a breach of contract case is to

A) Punish the breaching party to the contract.
B) Deter others from future breaching of contracts.
C) To compensate for pain and suffering associated with a breach of contract.
D) To put the non-breaching person in the same position she would have been had the breach not occurred.

Question 13

Paris hires Donald to mow her lawn tomorrow for $50.00. She states she will give him the money tomorrow when he shows up. He never shows up, but Steve, Paris' neighbor steps up and offers to mow her lawn for $50.00 to which Paris agrees. For what damages can Paris recover for Donald's breach?

A) None.
B) $50.00.
C) $50.00 plus punitive damages.
D) $50.00 plus any compensation for any pain and suffering Paris may have felt.

Question 14

Mary's attic is being invaded by raccoons through a hole in the roof. Therefore, she hires Daech Roofing to repair her roof and make the attic raccoon proof for $1000.00 to which they agree. On the day that they were supposed to repair the roof, the worker actually just takes a day long nap in the attic and never completes the job. Mary leaves on her vacation believing that her raccoon problem has been solved. Two weeks later she returns home only to find that the raccoons entered into her house through the attic and proceeded into the rest of the house and destroyed it. The carpet was destroyed as was all of her furniture by the raccoons' activities. Which statement below is correct?

A) She could only sue for the $1000.00 as they did not actually perform the job.
B) She could sue for the actual costs of the contract itself as well as the consequential damages that flowed from that breach which included the destruction by the raccoons of her carpeting and furniture.
C) She could sue for pain and suffering in addition to the $1000.00 actual out of pocket loss.
D) She could sue for $1000.00 actual loss, pain and suffering and the damage to her carpeting, but not her furniture.

Question 15

Foreseeable indirect losses not covered by compensatory damages are called

A) Equitable damages
B) Nominal damages
C) Consequential damages
D) Legal damages

Question 16

A remedy designed to prevent unjust enrichment of one party of an agreement is called

A) Liquidated damages
B) Rescissionary damages
C) Punitive damages
D) Restitution damages

Question 17

Andy pays Tom $50.00 to buy a case of oil. Tom never delivers the oil. Andy sues Tom for specific performance to force Tom to turn over the case of oil. What would most likely be the outcome of this suit?

A) The court will force Tom to turn over the oil.
B) The court will not allow for specific performance as it is a sale of goods that are not unique.
C) The court will arrest Tom to force him to turn over the oil.
D) The court will require Tom to pay punitive damages.

Question 18

Bekah purchased her dream wedding dress from Bridal Couture. Two weeks before her wedding she attempts to pick up the dress only to find that the store has closed. On the window of the store is a note that says they will refund the purchase price of all dresses. However, it is too close to the wedding for Bekah to get a dress and she just wants her dream dress that is hanging in the store rather than the money. What type of remedy would Bekah request?

A) Injunctive relief
B) Reformation
C) Specific Performance
D) Rescission

Question 19

After extensive negotiation Bob agrees to sell Sally his office building for $100,000.00. He has his assistant type up the contract to send to Sally to sign. His assistant accidentally adds and extra zero in the price, making it $1,000,000.00 and sends it off. Sally too overlooks the mistake and signs the agreement. Later Sally requests that the contract be corrected to reflect their true intentions through a process called

A) Reformation
B) Rescission
C) Revocation
D) Reclassification

Question 20

Specific performance will most likely be allowed if

A) The innocent party requests it
B) The performance requires the transfer of generic goods
C) The person required to perform the service has unique and specific skills
D) The guilty party requests it

Question 21

The responsibility of the non-breaching party to take reasonable efforts without undue burden or expense to lesson or avoid damages is called

A) Duty to disclose
B) Fiduciary duty
C) Ethical duty
D) Duty to mitigate

Question 22

Riley rents an apartment from Austin. Her lease begins is one month. Shortly after she signs the lease, she finds out that she is not going to be able to rent the apartment from Austin anymore as she has to move across country. Which statement below is correct?

A) Riley will be in breach of contract and Austin will be able to recover the total amount of the lease.
B) Austin must leave the apartment empty to be able to sue for the cost of the entire lease.
C) Riley will have to give up her security deposit, but will not be held responsible for the lease.
D) Austin must take reasonable steps to lessen the damages by attempting to rent the apartment to another person.

Question 23

The duty to mitigate damages requires the non-breaching party to

A) Take reasonable steps to lessen damages
B) Take any steps necessary to lessen damages
C) Take no steps to lessen damages
D) Take fair steps to lessen damages

Question 24

Another term for a non-breaching party to a contract is

A) Scienter party
B) Innocent party
C) In pari delecto party
D) Reasonable party

Question 25

If a person materially breaches a contract, the non-breaching party

A) Must complete the terms of the contract
B) Must sue for specific performance
C) May be suspended from their obligations
D) May sue for damages immediately

Question 26

Rex tells his buddy Terry that he has decided not to show up to work for him tomorrow but still asks for the money Terry promised to pay him for the day of work. Which statement below is true?

A) Terry must still pay Rex to remain innocent in the breach and then may Terry can sue for damages.
B) Terry must pay a portion of the money owed in good-faith.
C) Rex can be forced by law to work the following day.
D) Based upon Terry's statement, Terry can refuse to pay Rex as promised.

Question 27

Restitution is a damages allowed to prevent

A) Unjust enrichment
B) Unequal enrichment
C) Unwise enrichment
D) Unlawful enrichment

Question 28

Doctor Adams comes across a Callie, a woman who was alone and in active labor and helps her deliver her baby as no medical assistance was available. Two weeks after Doctor Adams delivers the baby, she sends a reasonable bill to the woman for the services she provided in delivering a healthy baby. Callie refuses to pay it stating that she did not voluntarily accept Doctor Adam's services, lacked mental capacity and had no other options. What will most likely be the outcome of the issue?

A) Since Callie was in labor she lacked capacity due to extreme duress.
B) Doctor Adam's actions constituted a gift to Callie and therefore cannot require paperwork.
C) The court will order Callie to pay the reasonable bill because otherwise she would be unjustly enriched.
D) The court will evaluate if Doctor Adam's services provided were reasonable to determine if Callie is required to pay Doctor Adams.