Deck 10: Contract Performance,breach,and Remedies

Question 1

In most contracts,promises of performance are not expressly conditioned.

Answer 1

True

Question 2

Specific performance is the remedy customarily used when one party has breached a contract for the sale of goods.

Answer 2

False

Question 3

A party who substantially performs his or her duties under a con?tract can enforce the contract against the other party.

Answer 3

True

Question 4

Most contracts are discharged by rescission.

Question 5

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

Question 6

If no time for performance is stated in a contract,any time is acceptable.

Question 7

Most contracts need to be performed to per?sonally satisfy the party to whom per?formance is owed.

Question 8

Special damages are awarded for damage caused by special circumstances beyond a contract.

Question 9

Any breach excuses the nonbreaching party's duty to perform.

Question 10

Most parties settle their lawsuits for damages or other remedies prior to trial.

Question 11

Anticipatory repudiation discharges a contract.

Question 12

Damages are designed to punish a breaching party and deter others from similar conduct.

Question 13

A contract may include a clause stating that no damages can be recovered for a certain type of breach.

Question 14

The duty owed under the mitigation of damages doctrine depends on the nature of the contract.

Question 15

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Question 16

Compensatory damages are foreseeable damages that arise from a party's breach of a contract.

Question 17

The purpose of the doctrine of election of remedies is to permit a double recovery.

Question 18

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

Question 19

A party who knowingly accepts defective performance of a contract waives the breach.

Question 20

A duty to perform under a contract is never absolute.

Question 21

Lark enters into a contract to mine limestone in Milena's quarry,sell it,and share the profits on its sale with Milena.If the duties under this contract are discharged like those under most contracts,the duties will be

A)repudiated.
B)breached.
C)performed.
D)rescinded.

Question 22

Fact Pattern
Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
Refer to Fact Pattern 10-A1.With respect to Mutual's duties,Neil's performance most likely

A)discharges Mutual from the contract.
B)has no effect on Mutual's performance.
C)increases Mutual's duties under the contract.
D)suspends Mutual's duty to perform.

Question 23

Real Cheap Painters,Inc. ,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely

A)an absolute excuse for Quint's refusal to pay.
B)a material breach.
C)complete performance.
D)substantial performance.

Question 24

Refined Commodities,Inc. ,agrees to deliver ten tons of sheet metal to Select Builders Corporation.The agreement states that delivery is to be within "3" days,although the parties intend "30" days.Refined cannot convince Select to amend the contract.Refined should seek

A)damages.
B)reformation.
C)rescission.
D)specific performance.

Question 25

Clyde contracts with Deephole Excavation,Inc. ,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is

A)breached.
B)discharged.
C)not affected.
D)suspended.

Question 26

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair,Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages,Carousel can recover

A)the cost of new turf.
B)the difference between Damon's price and the actual cost of repair.
C)the loss of profit from the canceled game.
D)nothing.

Question 27

Vacation Vistas,Inc. ,agrees to sell certain acreage to Umiko,who intends to develop a destination resort.Vacation Vistas repudiates the deal.Umiko sues Vacation Vistas and recovers dam?ages.She can now obtain

A)a double recovery.
B)damages representing restitution.
C)specific performance of the deal.
D)nothing more.

Question 28

Jane and Kelly want Lucy to replace Kelly as a party to their con?tract.They can best accomplish this by

A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)an alteration of the contract.

Question 29

SFX Paintball Games,Inc. ,and Truck & Trailer Delivery Corporation sign an agree?ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti?mate but approximately $1,000." This is

A)a liquidated damages clause.
B)a mitigation of damages clause.
C)a nominal damages clause.
D)a penalty clause.

Question 30

Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Janet and sends her $250 as a down payment.When Ira sends her the rest of the price,Janet refuses to ship Ira the collection.Ira should seek

A)damages.
B)reformation.
C)rescission.
D)specific performance.

Question 31

Lester and Myrtle want to rescind their contract under which Lester sold an MP3 player for $40.To rescind the contract

A)Lester must return the $40 and Myrtle must return the player.
B)Lester must return the $40 only.
C)Myrtle must return the player only.
D)the parties can keep the "benefits" of their bargain.

Question 32

Development Associates (DA)agrees to buy five acres of land from Eastside Properties for $15,000.Eastside fails to go through with the deal on the agreed date,when the market price of the land is $17,000.DA may recover

A)$17,000.
B)$15,000.
C)$2,000.
D)$0.

Question 33

Dondi contracts to buy a custom espresso maker from Caffee Specialties,Inc. ,for $4,500,but Caffee fails to deliver.Dondi buys the appliance else?where for $5,500.Dondi's measure of damages is

A)$1,000.
B)$1,000 plus incidental damages.
C)incidental damages only.
D)$0.

Question 34

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

A)complete.
B)substantial.
C)tender.
D)tough.

Question 35

Fact Pattern
Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
Refer to Fact Pattern 10-A1.Neil's performance is most likely

A)a material breach.
B)a minor breach.
C)Mutual's breach.
D)no breach.

Question 36

Rural Power Utility,Inc. ,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

A)a penalty.
B)liquidated damages.
C)restitution.
D)a breach of contract.

Question 37

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6
A)absolute.

A)m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been
B)complete.
C)conditional.
D)substantial.

Question 38

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch.If Hollis breaches the contract,Grady's normal remedy would be

A)damages.
B)reformation.
C)rescission.
D)specific performance.

Question 39

Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek's apartment complex.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

A)a limitation-of-liability clause.
B)an exculpatory clause.
C)a liquidated damages clause.
D)a penalty clause.

Question 40

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term.In some states,Sunny would have to

A)avoid reletting the premises to recover damages from Ray.
B)make reasonable efforts to relet the premises to mitigate dam?ages.
C)relet the premises to recover damages from Ray.
D)sell the premises to recover damages from Ray.

Question 41

Elin contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Elin's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,and no wine is delivered that day.On the morning of May 2,Elin buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Elin's residence.Elin refuses tender.Grapes & Vines sues Elin for breach of contract.How is the court most likely to rule?

Question 42

National Drilling Company ships its only pump to American Hydraulics Corporation,the manufacturer,for repair.National hires Overland Transport,Inc. ,to take the pump to American Hydraulics and to return it to National as soon as the repair is complete.National is forced to sus?pend operations without a pump,but Overland does not know this.National expects to be without the pump for five days and to lose profits of $5,000.When the pump is not returned by the end of the fifth day,National rents a pump at a cost of $100 per day.Overland delays five more days before returning the pump.National files a suit against Overland,asking for compensatory,consequential,and punitive damages.Will National recover?