Question 1

Liquidated damages provisions are generally unenforceable.

Accepted Answer

Liquidated damages provisions are generally enforceable, as long as they are reasonable and not intended as a penalty. These provisions are commonly used in contracts to establish the amount of damages that will be owed in the event of a breach. However, if the provision is found to be excessive or punitive, it may be deemed unenforceable by a court.

Question 2

Berry enters into a contract with Clyde for a guided tour of Deep Canyon.Clyde represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Berry is most likely a victim of​
A)undue influence.
B)fraud.
C)mistake.
D)unconscionability.

Accepted Answer

Clyde's misrepresentation of his experience and knowledge is an intentional act of deceit, and therefore constitutes fraud.

Question 3

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head.Unknown to either party,an unforeseen storm has struck the herd and many of the cattle have died.David is​
A)entitled to recover the value of the lost cattle.
B)not required to pay due to the bilateral mistake.
C)not required to pay due to the unilateral mistake.
D)required to pay because he assumed the risk the cattle might die.

Accepted Answer

The answer of Carlos and David contract for the sale...

Question 4

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been in if the contract had not been breached.

Accepted Answer

Damages for a breach of contract are intended to compensate the nonbreaching party for losses suffered due to the breach, not to put them in a better position than they would have been if the contract had been performed as agreed.

Question 5

Punitive damages are generally not awarded in an action for breach of contract.

Accepted Answer

Punitive damages are typically only awarded in cases of intentional harm or extreme negligence, and are not typically granted in contract disputes where the focus is on fulfilling the terms of the agreement rather than punishing wrongdoing.

Question 6

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Accepted Answer

Restitution is indeed the process by which one party recovers a benefit that another party has obtained through unjust enrichment. This could occur in a variety of situations, such as when someone is mistakenly paid for work they did not perform, or when someone knowingly receives property that was stolen from another person. The goal of restitution is to restore the unjustly enriched party to their previous financial state before the benefit was obtained.

Question 7

Damages that compensate the nonbreaching party for the loss of a bargain are known as consecutive damages.

Accepted Answer

Damages that compensate the nonbreaching party for the loss of a bargain are known as consequential damages, not consecutive damages.

Question 8

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Accepted Answer

Reformation is an equitable remedy that allows a court to rewrite a contract to correct mistakes and reflect the true intentions of the parties, not to suit itself.

Question 9

Under the doctrine of mitigation of damages,the duty owed depends on the nature of the contract.

Accepted Answer

Under the doctrine of mitigation of damages, the duty owed depends on the nature of the contract. The purpose of this doctrine is to require a party who has suffered a loss to take reasonable steps to mitigate the damage, such as seeking alternative sources of income or reducing expenses. However, the extent of this duty will depend on the nature of the contract and the specific circumstances of the case.

Question 10

Normally,specific performance will not be granted unless the party's legal remedy is inadequate.

Accepted Answer

This is because specific performance is a discretionary remedy that courts will grant only if damages or other legal remedies are inadequate or inadequate to compensate the injured party.

Question 11

When a waiver of a breach of contract occurs,the party waiving the breach cannot take any later action on it.

Accepted Answer

A waiver of a breach of contract means that the non-breaching party has chosen to overlook the breach and continue with the contract as if the breach did not occur, effectively relinquishing their right to take action on that specific breach in the future.

Question 12

When a change in the law renders the performance of a contract illegal,the nonperforming party is normally held in breach of contract.

Accepted Answer

The answer of When a change in the law renders...

Question 13

In most situations,when a breach of contract occurs,the innocent injured party is held to a duty to mitigate the damages.

Accepted Answer

This means that even though one party has breached the contract, the other party must take reasonable steps to prevent further damages and losses from occurring. Failure to mitigate damages may decrease the amount of compensation the innocent party can receive in a lawsuit.

Question 14

Expenses that are caused directly by a breach of a contract are known as primary damages.

Accepted Answer

The answer of Expenses that are caused directly by a...

Question 15

When a contract party materially alters a written contract without consent,the other party must adapt his or her performance accordingly.

Accepted Answer

When a contract party materially alters a written contract without consent, it is considered a breach of contract. The other party can choose to either refuse to perform or to treat the contract as repudiated and sue for damages. The other party is not required to adapt their performance to the altered contract.

Question 16

The failure of one party to perform a contract entitles the other party to rescind it.

Accepted Answer

This is a basic principle of contract law, known as the doctrine of anticipatory repudiation. If one party fails to perform their obligations under a contract, it is considered a breach, and the other party is allowed to rescind the contract and seek damages.

Question 17

In selling 300 acres of rural land to Organic Farms,Peyton tells the buyer that the land "will be worth twice as much by next year." This is
A)adhesion.
B)fraud.
C)mistake.
D)opinion.

Accepted Answer

Peyton's statement is an opinion, which is subjective and not necessarily factual. While it may be exaggerated or unsubstantiated, it does not necessarily constitute fraud or mistake. Adhesion refers to a situation where one party has unequal bargaining power and is forced to accept terms that are unfavorable to them.

Question 18

Car Lot's salesperson Dick offers to sell Ernie,who is twenty years old,a car.Dick intentionally misrepresents the vehicle's use and repairs.In reliance,Ernie buys the car.To prove fraud,Ernie does not have to show that​
A)Dick intentionally deceived Ernie.
B)Dick misrepresented material facts.
C)Ernie is under twenty-one.
D)Ernie justifiably relied on Dick's misrepresentations.

Accepted Answer

The fact that Ernie is under twenty-one is irrelevant to proving fraud. The other three options are crucial to proving fraud: Dick's intentional deception, misrepresentation of material facts, and Ernie's justifiable reliance on the misrepresentations.

Question 19

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant.Alan knowingly misrepresents a number of material features about the restaurant and the business.When Beth discovers the truth,she can rescind the contract on the basis of​
A)fraud.
B)undue influence.
C)mistake.
D)none of the choices.

Accepted Answer

Alan's misrepresentation of material features about the restaurant and business constitutes fraud, which would allow Beth to rescind the contract. Undue influence involves a situation where a person is unduly pressured or coerced into entering into a contract, while mistake involves a situation where there is an error in understanding a material aspect of the contract. Neither of these scenarios apply to the situation described.

Question 20

The measure of compensatory damages often varies by type of contract.

Accepted Answer

The measure of compensatory damages can vary depending on the terms and provisions of the contract, as well as the type of contract involved. For example, the measure of damages for breach of a construction contract may be different than the measure of damages for breach of a sale of goods contract.

Quiz 13: Contract Performance, Breach, and Remedies

Liquidated damages provisions are generally unenforceable.

Berry enters into a contract with Clyde for a guided tour of Deep Canyon.Clyde represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Berry is most likely a victim of​

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head.Unknown to either party,an unforeseen storm has struck the herd and many of the cattle have died.David is​

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been in if the contract had not been breached.

Punitive damages are generally not awarded in an action for breach of contract.

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Damages that compensate the nonbreaching party for the loss of a bargain are known as consecutive damages.

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Under the doctrine of mitigation of damages,the duty owed depends on the nature of the contract.

Normally,specific performance will not be granted unless the party's legal remedy is inadequate.

When a waiver of a breach of contract occurs,the party waiving the breach cannot take any later action on it.

When a change in the law renders the performance of a contract illegal,the nonperforming party is normally held in breach of contract.

In most situations,when a breach of contract occurs,the innocent injured party is held to a duty to mitigate the damages.

Expenses that are caused directly by a breach of a contract are known as primary damages.

When a contract party materially alters a written contract without consent,the other party must adapt his or her performance accordingly.

The failure of one party to perform a contract entitles the other party to rescind it.

In selling 300 acres of rural land to Organic Farms,Peyton tells the buyer that the land "will be worth twice as much by next year." This is

Car Lot's salesperson Dick offers to sell Ernie,who is twenty years old,a car.Dick intentionally misrepresents the vehicle's use and repairs.In reliance,Ernie buys the car.To prove fraud,Ernie does not have to show that​

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant.Alan knowingly misrepresents a number of material features about the restaurant and the business.When Beth discovers the truth,she can rescind the contract on the basis of​

The measure of compensatory damages often varies by type of contract.

Berry enters into a contract with Clyde for a guided tour of Deep Canyon.Clyde represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Berry is most likely a victim of

Carlos and David contract for the sale of five hundred head of Carlos's cattle for $95 per head.Unknown to either party,an unforeseen storm has struck the herd and many of the cattle have died.David is

Car Lot's salesperson Dick offers to sell Ernie,who is twenty years old,a car.Dick intentionally misrepresents the vehicle's use and repairs.In reliance,Ernie buys the car.To prove fraud,Ernie does not have to show that

Alan induces Beth to enter into a contract for the purchase of a Chef's Burger House restaurant.Alan knowingly misrepresents a number of material features about the restaurant and the business.When Beth discovers the truth,she can rescind the contract on the basis of