Question 1

A(n) ________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

Accepted Answer

A)   material
B)   minor
C)   anticipatory
D)   defensive

Question 2

When a party to a contract renders substantial performance,the nonbreaching party ________.

Accepted Answer

A)   cannot deduct the cost of repairing the damage from the contract price
B)   can sue to recover damages from the breaching party, if the breach is not corrected
C)   is discharged of its rights to receive performance under the contract
D)   has to incur the cost of repairing the damage in addition to the contract price

Question 3

Which of the following is true of monetary damages?

Accepted Answer

A)   Nominal damages are paid once the nonbreaching party has suffered a financial loss.
B)   Anticipatory breaches cannot be awarded monetary damages.
C)   Liquidated damages are set by the court towards the breaching party.
D)   Consequential damages are considered as monetary damages.

Question 4

When a party commits an anticipatory breach,the nonbreaching party ________.

Accepted Answer

A)   must wait until the performance was due before suing
B)   is immediately discharged from his or her own duties
C)   cannot seek damages because he or she received advance notice of the breach
D)   loses his or her right to sue after the due-date for performance is reached

Question 5

QuickClicks,an online advertising company makes a contract to purchase six computers from Comptail,a local retailer,for $20,000.However,Comptail breaches the contract by not delivering the computers on time.The next day,QuickClicks manages to purchase six computers from another retailer for $18,000 and receives immediate delivery.QuickClicks can bring a lawsuit against Comptail and recover ________ damages.

Accepted Answer

A)   consequential
B)   compensatory
C)   nominal
D)   liquidated

Question 6

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Accepted Answer

A)   injunction
B)   writ of garnishment
C)   tender of performance
D)   pro forma

Question 7

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Accepted Answer

A)   nominal
B)   compensatory
C)   liquidated
D)   consequential

Question 8

An employee who has been dismissed improperly accepts a job that is less comparable.Which of the following is a subsequent course of action?

Accepted Answer

A)   The employee can sue the prior employer for compensatory damages.
B)   The previous employer must offer salary compensation on a monthly basis, until the employee's new salary becomes comparable to that offered by the previous job.
C)   The employee can sue the former employer to recover his or her salary for three years.
D)   The employee can take no legal action against his or her formal employer after accepting a different job.

Question 9

Liquidated damages are enforceable only if the actual damages are easy and practical to determine.

Accepted Answer

A) True 
 B)False

Question 10

Kimberly,Inc.,a jewelry store,and JKCent,a retailer,draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However,the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

Accepted Answer

A)   restitution
B)   rescission
C)   injunction
D)   reformation

Question 11

How can the breaching party of a contract be made to perform the acts promised in the contract? This remedy would apply for which types of contracts?

Accepted Answer

An award of specific performance orders ...

Question 12

What are the consequences of a breaching party refusing to pay the judgment on a breach of contract?

Accepted Answer

If a nonbreaching party brings a success...

Question 13

Which of the following is used in case of a breach of contract that cannot be adequately compensated through monetary awards?

Accepted Answer

A)   mitigation of damages
B)   liquidation of damages
C)   equitable remedies
D)   tort remedies

Question 14

Kinlin,a furniture retailer has a contract with William Woods,a carpenter.The contract states that Woods must deliver five tables and that Kinlin would pay $2,000 per table.However,Woods manages to deliver only four tables and Kinlin needs to buy the fifth table from another supplier for $3,000.How much money can Kinlin recover from Woods as compensatory damages?

Accepted Answer

A)   $5,000
B)   $2,000
C)   $3,000
D)   $1,000

Question 15

________ damages are usually awarded in a small amount.

Accepted Answer

A)   Consequential
B)   Compensatory
C)   Nominal
D)   Liquidated

Question 16

Which of the following statements is true of discharge of contracts?

Accepted Answer

A)   Anticipatory breach discharges the breaching party's obligations to the contract.
B)   Substantial performance is sufficient to discharge a contract.
C)   Tender of performance discharges a party's contractual obligations.
D)   Tender is a conditional offer by contracting party to perform his or her obligations under the contract.

Question 17

"A nonbreaching party can sue the breaching party without making efforts to reduce the damages caused by the breach of contract." Discuss this statement with an example.

Accepted Answer

If a contract has been breached,the law ...

Question 18

Why would a buyer want to rescind an existing contract with a seller?

Accepted Answer

Rescission is an action to undo a contra...

Question 19

A ________ is an order of the court that enables a government officer to seize property of a breaching party and sell it at an auction to satisfy a judgment.

Accepted Answer

A)   writ of attachment
B)   writ of garnishment
C)   specific performance
D)   liquidation of damages

Question 20

Nett Labs orders 30 desktop computers from iDeal,a local computer dealer.Nett Labs requires that each computer has a 2.6 GHz processor,500 GB hard disk,and Windows operating system.iDeal supplies 30 desktop computers,each with a 2 GHz processor,500 GB hard disk and Windows operating system.Which of the following terms hold true for iDeal's performance?

Accepted Answer

A)   complete performance
B)   material breach
C)   substantial performance
D)   anticipatory breach

Exam 14: Breach of Contract and Remedies

When a party commits an anticipatory breach,the nonbreaching party ________.

Correct Answer
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Correct Answer
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Why would a buyer want to rescind an existing contract with a seller?

Correct Answer
verified
Rescission is an action to undo a contra...
View Answer

Liquidated damages are enforceable only if the actual damages are easy and practical to determine.

Correct Answer
verified

What are the consequences of a breaching party refusing to pay the judgment on a breach of contract?

Correct Answer
verified
If a nonbreaching party brings a success...
View Answer

A ________ is an order of the court that enables a government officer to seize property of a breaching party and sell it at an auction to satisfy a judgment.

Correct Answer
verified

Correct Answer
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"A nonbreaching party can sue the breaching party without making efforts to reduce the damages caused by the breach of contract." Discuss this statement with an example.

Correct Answer
verified
If a contract has been breached,the law ...
View Answer

A(n) ________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

Correct Answer
verified

How can the breaching party of a contract be made to perform the acts promised in the contract? This remedy would apply for which types of contracts?

Correct Answer
verified
An award of specific performance orders ...
View Answer

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Correct Answer
verified

Kimberly,Inc.,a jewelry store,and JKCent,a retailer,draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However,the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

Correct Answer
verified

When a party to a contract renders substantial performance,the nonbreaching party ________.

Correct Answer
verified

Which of the following is used in case of a breach of contract that cannot be adequately compensated through monetary awards?

Correct Answer
verified

Which of the following is true of monetary damages?

Correct Answer
verified

Which of the following statements is true of discharge of contracts?

Correct Answer
verified

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Correct Answer
verified

Correct Answer
verified

An employee who has been dismissed improperly accepts a job that is less comparable.Which of the following is a subsequent course of action?

Correct Answer
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________ damages are usually awarded in a small amount.

Correct Answer
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Exam 14: Breach of Contract and Remedies

When a party commits an anticipatory breach,the nonbreaching party ________.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Why would a buyer want to rescind an existing contract with a seller?

Correct AnswerverifiedRescission is an action to undo a contra...View AnswerShow Answer

Liquidated damages are enforceable only if the actual damages are easy and practical to determine.

Correct AnswerverifiedShow Answer

What are the consequences of a breaching party refusing to pay the judgment on a breach of contract?

Correct AnswerverifiedIf a nonbreaching party brings a success...View AnswerShow Answer

A ________ is an order of the court that enables a government officer to seize property of a breaching party and sell it at an auction to satisfy a judgment.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

"A nonbreaching party can sue the breaching party without making efforts to reduce the damages caused by the breach of contract." Discuss this statement with an example.

Correct AnswerverifiedIf a contract has been breached,the law ...View AnswerShow Answer

A(n) ________ breach of a contract occurs when a party renders inferior performance of his or her contractual obligations.

Correct AnswerverifiedShow Answer

How can the breaching party of a contract be made to perform the acts promised in the contract? This remedy would apply for which types of contracts?

Correct AnswerverifiedAn award of specific performance orders ...View AnswerShow Answer

Parties to a contract agree in advance to pay ________ damages if the contract is breached.

Correct AnswerverifiedShow Answer

Kimberly,Inc.,a jewelry store,and JKCent,a retailer,draft a contract that permits JKCent to retail Kimberly's jewelry in its stores.However,the parties discover a minor clerical error six months into the contract and the court rewrites their contract.This is an instance of ________.

Correct AnswerverifiedShow Answer

When a party to a contract renders substantial performance,the nonbreaching party ________.

Correct AnswerverifiedShow Answer

Which of the following is used in case of a breach of contract that cannot be adequately compensated through monetary awards?

Correct AnswerverifiedShow Answer

Which of the following is true of monetary damages?

Correct AnswerverifiedShow Answer

Which of the following statements is true of discharge of contracts?

Correct AnswerverifiedShow Answer

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

An employee who has been dismissed improperly accepts a job that is less comparable.Which of the following is a subsequent course of action?

Correct AnswerverifiedShow Answer

________ damages are usually awarded in a small amount.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Rescission is an action to undo a contra...
View Answer

Correct Answer
verified

Correct Answer
verified
If a nonbreaching party brings a success...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
If a contract has been breached,the law ...
View Answer

Correct Answer
verified

Correct Answer
verified
An award of specific performance orders ...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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