Deck 14: Breach of Contract and Remedies

Question 1

Substantial performance occurs when there has been a material breach of contract.

Answer 1

False

Question 2

Ancillary breach of contract occurs when a contracting party informs the other party in advance that he or she will not perform his or her contractual duties when due.

Answer 2

False

Question 3

Anticipatory breach of a contract is also known as anticipatory reconciliation.

Answer 3

False

Question 4

Where there has been a material breach of contract,the non-breaching party is discharged from any further performance under the contract.

Question 5

A fully performed contract is called an executed contract.

Question 6

The term monetary damages refers to an award of money.

Question 7

Where there is an anticipatory repudiation,the non-breaching party's obligations under the contract are discharged immediately.

Question 8

Substantial performance is performance that is complete enough that there is no breach.

Question 9

A material breach allows the other party to rescind a contract.

Question 10

A material breach of a contract occurs when a party renders inferior performance of his or her contractual obligations that impairs or destroys the essence of the contract.

Question 11

Most contracts are discharged by the complete performance of the contracting parties.

Question 12

Complete performance is also known as strict performance.

Question 13

If an anticipatory breach of contract has occurred,the non-breaching party must wait until performance is due to sue the repudiating party.

Question 14

If a contractual duty has not been discharged or excused,the contracting party owes a conditional obligation to perform the duty.

Question 15

There are three (3)types of performance of a contract: 1)superior performance; 2)partial performance; and 3)subordinate performance.

Question 16

Several types of monetary damages are recoverable in a breach of contract action,including conciliatory,exponential,liquidated,and nominal damages.

Question 17

Tender is a conditional offer by a contracting party to perform his or her obligations under the contract.

Question 18

A breach of a contract cannot occur until the time for performance of the duty in question.

Question 19

Monetary damages are recoverable only when a material breach of contract has occurred.

Question 20

Tender of performance is another term for completion of performance.

Question 21

A buyer can generally recover the additional cost of acquiring substitute goods if the seller breaches by not delivering the goods.

Question 22

Compensatory damages for a breach of a sales contract involving goods are governed by the Uniform Commercial Code (UCC).

Question 23

To be liable for consequential damages,the breaching party must know or have reason to know that the breach will cause special damages to the other party.

Question 24

When property is attached to satisfy a judgment,the property is seized by the sheriff and given to the plaintiff in satisfaction of the judgment.

Question 25

Cases involving nominal damages are usually brought on principle.

Question 26

If a contract has been breached,the law related to mitigation of damages places a subsequent duty on the breaching party to make reasonable efforts to mitigate the resulting damages.

Question 27

An employee whose employer breaches an employment contract can recover lost wages or salary as compensatory damages.

Question 28

Nominal damages are awarded in order to return the non-breaching party to the status quo.

Question 29

Compensatory damages are intended to compensate a non-breaching party for the loss of the bargain.

Question 30

Nominal damages are usually awarded in a moderate amount well within the jurisdiction of a small claims court,such as $1,000.

Question 31

If an employee breaches an employment contract,the employer can recover the costs to hire a new employee,but cannot recover any increase in salary paid to the replacement.

Question 32

Compensatory damages for a breach of a sales contract involving goods are governed by federal law.

Question 33

Only those consequential damages that are known or foreseeable can be collected.

Question 34

As it relates to mitigation of damages,the word mitigate means "to allocate."

Question 35

Compensatory damages for a breach of a sales contract involving goods are governed by the common law of contracts.

Question 36

Consequential damages are also known as spurious damages.

Question 37

When an employer breaches an employment contract,if the employer offers substitute,non-comparable employment to the employee,the doctrine of mitigation places a duty on the employee to accept the work so long as the employee is capable of doing the work.

Question 38

A contractor is generally entitled to recover any lost profits on a contract breached by the client.

Question 39

The primary goal of compensatory damages is to place the parties in the position that they were in prior to the formation of the contract.

Question 40

If a builder breaches a construction contract either before or during construction,the owner can recover the increased cost above the contract price that he or she has to pay to have the work completed by another contractor.

Question 41

Rescission is available for a contract involving fraud.

Question 42

If a liquidated damages clause is found to be a penalty,the non-breaching party may then recover actual damages.

Question 43

If the goods or property have been consumed or are otherwise unavailable,restitution must be made by conveying a cash equivalent.

Question 44

Rescission is an action to undo a contract.

Question 45

Rescission is not available where there has been a material breach of contract.

Question 46

Mitigation of damages is a doctrine that requires a non-breaching party to minimize damages.

Question 47

A plaintiff is automatically entitled to a writ of garnishment if execution of a writ of attachment fails to produce proceeds sufficient to satisfy a breach-of-contract judgment in favor of the plaintiff.

Question 48

Rescission is not available for a contract involving undue influence.

Question 49

In order for a liquidated damages clause in a contract to be upheld,the actual damages must be difficult or impracticable to determine.

Question 50

A liquidated damages provision will be invalidated if it is considered to be a penalty.

Question 51

Restitution consists of returning the goods,property,money,or other consideration received from the other party.

Question 52

An enforceable liquidated damages clause is a non-exclusive remedy.

Question 53

When used to enforce the collection of a judgment,a writ of garnishment is used to access property that is in the hands of someone other than the judgment debtor.

Question 54

Rescission is available for a contract involving duress.

Question 55

If the exchanged consideration is consumed or otherwise unavailable,there cannot be a valid restitution following a rescission of the contract.

Question 56

Liquidated damages will be invalidated if they are unreasonably large or small.

Question 57

Rescission and restitution are designed to give the parties the benefit of the bargain.

Question 58

Rescission is not available for a contract involving mistake.

Question 59

Generally,to rescind a contract,the parties have no duty to make restitution.

Question 60

A writ of garnishment orders the sheriff to seize property in the possession of the breaching party and sell the property at auction to satisfy the judgment.

Question 61

Equitable remedies are available to result in unjust enrichment.

Question 62

Suing based on a breach of good faith is not recognized by the courts because good faith is such an abstract term that it cannot be measured.

Question 63

An insurer may not be held liable under any circumstances for refusing to settle a case,because that decision is within the sole discretion of the insurer.

Question 64

Specific performance is the primary remedy used to make a party live up to his or her obligations under a personal services contract.

Question 65

The doctrine of reformation holds that the only way to correct a contractual provision that does not reflect the intentions of the parties is by mutual agreement of the parties.

Question 66

Specific performance is usually available for the buyer in a contract for the sale of land.

Question 67

A third party can contract with a breaching party without becoming liable for the tort of intentional interference with contractual relations if the contracting party has already breached the contract; in such a situation,the third party cannot be held to have induced a breach of the other parties' contract.

Question 68

Under contract law,the general purpose of equitable remedies is to provide a fair remedy when the legal remedy of damages does not adequately compensate the non-breaching party.

Question 69

Courts have the absolute discretion to award a remedy of specific performance if the subject matter of the contract is common.

Question 70

Equitable remedies are designed to supplement all legal remedies available to a plaintiff.

Question 71

You have been offered and accepted a job with a salary of $50,000.When the contract of employment is typed,an error is made and the salary is listed as $55,000.Since your employer made the mistake,it has no remedy and you get the $55,000.

Question 72

The tort of intentional interference with contractual relations usually arises when a third party induces a contracting party to breach a contract with another party.

Question 73

The general standard to obtain an injunction is that the party seeking the injunction would suffer irreparable injury without the injunction.

Question 74

The most common equitable remedies are general performance,restitution,and conjunction.

Question 75

An award of specific performance orders the breaching party to perform the acts promised in a contract.

Question 76

The doctrine of reformation is a legal doctrine.

Question 77

Specific performance of personal service contracts is not granted,because the courts would find it difficult or impracticable to supervise or monitor performance of such a contract.

Question 78

Intentional interference with contractual relations requires a showing of bad faith before liability can be imposed.

Question 79

Generally,punitive damages are not recoverable for breach of contract.

Question 80

To prove intentional interference with contractual relations,the plaintiff must demonstrate the following elements: 1)a valid,enforceable contract between the contracting parties; 2)third-party knowledge of the contract; and 3)third-party inducement to breach the contract.