Question 1

A plaintiff who has not sustained any loss resulting from the defendant's breach of contract cannot recover any damages.

Accepted Answer

False

Question 2

Restitution requires a return of value to the aggrieved party.

Accepted Answer

Restitution involves restoring or returning the value or property to the victim or aggrieved party. Therefore, the statement is true.

Question 3

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Accepted Answer

False

Question 4

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

Accepted Answer

This is a correct statement. A court of equity, also known as a court of chancery, has the power to issue an injunction to prevent future breaches of a contractual duty when damages would not be an adequate remedy, such as in cases involving irreparable harm or unique goods.

Question 5

Equitable remedies result in money awards to the plaintiff.

Accepted Answer

Equitable remedies do not typically result in money awards, but rather seek to enforce or protect legal rights, such as specific performance, injunctions or rescission. However, there are some equitable remedies that may result in monetary compensation, such as restitution or an accounting.

Question 6

Bonnie has an employment contract with QualNeed Corporation which includes a clause requiring exclusive personal services.  If Bonnie takes on contract work with QualNeed's primary competitor, she is not breaching her agreement, as long as her status remains as an independent contractor with the competitor.
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Accepted Answer

The clause requiring exclusive personal services would prohibit Bonnie from taking on contract work with QualNeed's primary competitor, even if she is an independent contractor with them.

Question 7

A deceived party may seek a remedy under tort law, contract law, and restitution,  and may be compensated under more than one of these remedies.

Accepted Answer

The answer of A deceived party may seek a remedy...

Question 8

Incidental damages are those that arise directly out of the breach.

Accepted Answer

Incidental damages are a type of damages that arise directly out of a breach of contract, such as the cost of finding a replacement for the goods or services that were not delivered.

Question 9

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Accepted Answer

This is known as the duty to mitigate or the duty to minimize damages. The nonbreaching party cannot simply sit back and let the damages pile up, but must take reasonable steps to reduce them. Failure to mitigate damages could limit the amount of damages the nonbreaching party can recover in a lawsuit.

Question 10

AllMed Corporation may obtain an injunction against its head chemical engineer, Dwight, if they have an employment contract with Dwight and Dwight accepts a consulting job offer from AllMed's major competitor.
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Accepted Answer

If Dwight has an employment contract with AllMed, it may include provisions regarding non-compete clauses or prohibiting him from working with competitors. Violating these provisions may result in legal action, including obtaining an injunction.

Question 11

The test of foreseeable damages is subjective.

Accepted Answer

The test of foreseeable damages in contract law is objective, focusing on what a reasonable person would have foreseen at the time the contract was made, rather than the subjective foresight or intentions of the specific parties involved.

Question 12

Courts of equity will grant specific performance of contracts for personal services.

Accepted Answer

Courts of equity typically do not grant specific performance of contracts for personal services due to the difficulty in supervising the performance and the personal nature of the services.

Question 13

If no performance is rendered at all under a contract, then the damages will be the loss of value of the promised performance.

Accepted Answer

This is known as expectation damages, where the non-breaching party is entitled to the value of the promised performance they did not receive.

Question 14

A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

Accepted Answer

A liquidated damage clause is designed to provide a pre-determined amount of damages in the event of a breach of contract where it would be difficult to calculate the actual damages. As long as the amount specified in the clause is reasonable and reflects a good faith effort to estimate the damages, it will generally be upheld by the courts. However, if the amount is deemed to be excessive or designed to serve as a penalty, it may be struck down as unenforceable.

Question 15

If Nioma cannot prove a particular element of her loss with reasonable certainty, she is barred from recovering any of the loss arising from breach of contract by the other party.

Accepted Answer

While Nioma must prove her losses with reasonable certainty to recover damages, failure to prove one element of her loss does not bar her from recovering other parts of the loss that she can prove with reasonable certainty.

Question 16

In the Arrowhead School District No.75, Park County, Montana, v.James A.Klyap, Jr.case, the court found the liquidated damages clause was void as a penalty because it was unreasonable and unduly oppressive.

Accepted Answer

The answer of In the Arrowhead School District No.75, Park...

Question 17

Equitable remedies are available any time the plaintiff chooses them over money damages.

Accepted Answer

Equitable remedies are only available when legal remedies, such as money damages, are inadequate to resolve the harm suffered by the plaintiff.

Question 18

Under contract law, the deceived party can elect either to affirm and enforce the contract despite the misrepresentation or to disaffirm the contract and seek rescission.

Accepted Answer

This statement is true under contract law. The deceived party has the option to either enforce the contract despite the misrepresentation or seek rescission and disaffirm the contract.

Question 19

A party with the power to avoid a contract will not lose that power by delaying the avoidance.

Accepted Answer

Delaying the avoidance of a contract can lead to the loss of the power to avoid it due to principles such as laches (unreasonable delay that can prejudice the other party) or estoppel (acting in a way that suggests acceptance of the contract), depending on the jurisdiction and specific circumstances.

Question 20

The purpose of reliance damages is to place the injured party in a position as good as he would have held if the contract had not been made.

Accepted Answer

Reliance damages aim to compensate the injured party for any expenses or losses incurred as a result of reliance on the contract, with the goal of restoring them to the position they would have been in had the contract not been made. This distinguishes reliance damages from expectation damages, which aim to put the injured party in the position they would have been in had the breaching party fulfilled their contractual obligations.

Quiz 18: Contract Remediespart Iv: Sales