Question 1

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Accepted Answer

A) True 
 B)False

Question 2

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover

Accepted Answer

A)  the cost of new pools.
B)  the difference between the contract and market prices for the work.
C)  the loss of profit from the delayed opening.
D)  nothing-the work is done.E) B) and D)
F) C) and D)

Question 3

Jet enters into a contract to buy a certain commercial building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jet should seek specific performance to

Accepted Answer

A)  return the parties to the positions they occupied before the contract.
B)  obtain the exact bargain promised in the contract.
C)  reform the contract to reflect the parties' true intentions.
D)  make the terms reasonable and enforce the contract as reformed.E) A) and B)
F) A) and C)

Question 4

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.E) B) and D)
F) B) and C)

Question 5

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

Accepted Answer

A) True 
 B)False

Question 6

A contract clause that provides the only remedy for breach is repair, replacement, or refund of the purchase price is invalid and unenforceable.

Accepted Answer

A) True 
 B)False

Question 7

Shi's lease of retail premises from Thuy requires Shi to pay certain fees, subject to the landlord's proof of the correct amount. Thuy overcharges Shi for the fees, without explanation. Most likely, the tenant can rescind the lease

Accepted Answer

A)  after paying the overcharge.
B)  by finding a new tenant for the premises.
C)  with prompt notice.
D)  under no circumstances.E) B) and C)
F) A) and C)

Question 8

Normally, a court will not award damages unless the appropriate equitable remedy is inadequate.

Accepted Answer

A) True 
 B)False

Question 9

Metro Holdings Inc. contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is

Accepted Answer

A)  meant to pay for additional work in the event of damage.
B)  a reasonable estimate of the loss on the breach.
C)  designed to penalize Metro.
D)  intended to quickly provide cash to New Property.E) None of the above
F) B) and D)

Question 10

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.E) None of the above
F) All of the above

Question 11

A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely

Accepted Answer

A)  damages.
B)  reformation.
C)  a quasi contract.
D)  specific performance.E) C) and D)
F) B) and D)

Question 12

When a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land.

Accepted Answer

A) True 
 B)False

Question 13

To induce the sale of an auto parts business, Carmel fraudulently represents the worth of the inventory to Drew, who offers an inflated price. They enter into a contract to close the deal. On closer inspection, the buyer learns the true value of the goods. Drew can

Accepted Answer

A)  impose a penalty on the seller.
B)  force the seller to accept a more reasonable price.
C)  rescind the contract.
D)  none of the choices.E) None of the above
F) A) and B)

Question 14

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would

Accepted Answer

A)  be restored to the status quo.
B)  be unjustly enriched.
C)  obtain a reasonable exchange of values.
D)  profit from Max's performance.E) A) and C)
F) A) and B)

Question 15

If a surgeon breaches a contract by refusing to perform an operation, a court will normally compel performance through an award of specific performance.

Accepted Answer

A) True 
 B)False

Question 16

Guy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Hec and sends $2,500 as an initial payment. When Guy pays the rest of the price, Hec refuses to ship the collection. In a suit for breach, Guy should seek

Accepted Answer

A)  damages.
B)  restitution.
C)  a quasi contract.
D)  specific performance.E) A) and C)
F) A) and D)

Question 17

When both an owner and a contractor breach a construction contract, a court will attempt to strike a fair balance in awarding damages.

Accepted Answer

A) True 
 B)False

Question 18

The remedy available when a court imposes a quasi contract is the recovery of the reasonable value of a benefit conferred or detriment suffered.

Accepted Answer

A) True 
 B)False

Question 19

Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to

Accepted Answer

A)  establish, as a matter of principle, that Repair acted wrongfully.
B)  provide Soapy with funds for a loss beyond the contract.
C)  provide Soapy with funds for its loss of the bargain.
D)  punish Repair and deter others from similar acts.E) All of the above
F) C) and D)

Question 20

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

Exam 19: Breachapter of Contract and Remedies

A contract for a sale of land from Beachfront Properties Inc. to City Development Corporation contains an erroneous legal description. The appropriate remedy for these parties is most likely

Correct AnswerverifiedShow Answer

Guy orally agrees to buy a unique collection of sports memorabilia for $10,000 from Hec and sends $2,500 as an initial payment. When Guy pays the rest of the price, Hec refuses to ship the collection. In a suit for breach, Guy should seek

Correct AnswerverifiedShow Answer

Max orally agrees to construct two outbuildings on Ned's ranch for a stated price. Max performs, but Ned does not pay. To recover on a theory of quasi contract, Max must show that if Ned were allowed to retain the benefit of their bargain, Ned would

Correct AnswerverifiedShow Answer

Normally, a court will not award damages unless the appropriate equitable remedy is inadequate.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Restore Inc. contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely, Swim Park will have to delay its seasonal opening. Restore finishes the job June 15. In a suit for breach, Swim Park can recover

Correct AnswerverifiedShow Answer

To induce the sale of an auto parts business, Carmel fraudulently represents the worth of the inventory to Drew, who offers an inflated price. They enter into a contract to close the deal. On closer inspection, the buyer learns the true value of the goods. Drew can

Correct AnswerverifiedShow Answer

When a buyer breaches a contract for a sale of land, the seller can recover the difference between the contract price and the market price of the land.

Correct AnswerverifiedShow Answer

Metro Holdings Inc. contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is

Correct AnswerverifiedShow Answer

Jet enters into a contract to buy a certain commercial building from Kim. At the closing, Kim refuses to transfer title. In a suit for breach, Jet should seek specific performance to

Correct AnswerverifiedShow Answer

Shi's lease of retail premises from Thuy requires Shi to pay certain fees, subject to the landlord's proof of the correct amount. Thuy overcharges Shi for the fees, without explanation. Most likely, the tenant can rescind the lease

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Correct AnswerverifiedShow Answer

Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin-operated laundries. Repair breaches the contract. Soapy is awarded compensatory damages. The purpose is to

Correct AnswerverifiedShow Answer

The remedy available when a court imposes a quasi contract is the recovery of the reasonable value of a benefit conferred or detriment suffered.

Correct AnswerverifiedShow Answer

If a surgeon breaches a contract by refusing to perform an operation, a court will normally compel performance through an award of specific performance.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When both an owner and a contractor breach a construction contract, a court will attempt to strike a fair balance in awarding damages.

Correct AnswerverifiedShow Answer

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.

Correct AnswerverifiedShow Answer

A contract clause that provides the only remedy for breach is repair, replacement, or refund of the purchase price is invalid and unenforceable.

Correct AnswerverifiedShow Answer

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