Deck 16: Remedies

Question 1

A substitute transaction is possible under any given circumstance.

Answer 1

False

Question 2

Most statutes of limitations prescribe longer periods for contract than for tort actions.

Answer 2

True

Question 3

An expectation interest is the benefit for which the promisee bargained, and the remedy is to put him in a position as good as that which he would have been in had the contract been performed.

Answer 3

True

Question 4

When Betty Baker's supplier of organic whole rye grain fails to make contracted deliveries to Betty she has to go on a four-day road trip visiting farms in distant counties to line up an adequate substitute source of supply. These expenses may be recouped by Betty as liquidated damages.

Question 5

Nominal damages are those awarded for the purpose of punishing a defendant in a civil action.

Question 6

A promisee cannot choose which interest to pursue.

Question 7

Specific performance is usually the remedy for breach of contract.

Question 8

There are two general categories of remedies-legal and equitable.

Question 9

Mitigation of damages is when the contract law encourages the nonbreaching party to avoid loss wherever possible.

Question 10

Julian, a soccer player, agrees not to play soccer in any match except those arranged by his team. If he played in an unapproved game, his team's remedy would be an injunction.

Question 11

A party entitled to a legal remedy is required to pursue it.

Question 12

Damages paid to directly compensate the nonbreaching party for the value of what was not done or performed are incidental damages.

Question 13

A promise by a person not to do something is called a negative covenant.

Question 14

Courts will enforce a liquidated damages provision as long as the actual amount of damages is difficult to ascertain and the sum is reasonable in light of the expected harm.

Question 15

Specific performance is a legal remedy where a person is ordered to deliver a unique thing to the damaged party.

Question 16

In equity, specific performance will be ordered for breach of contract of personal services.

Question 17

Punitive damages are not fixed by law.

Question 18

A reliance interest is that which restores to the promisee any benefit he conferred on the promisor.

Question 19

The non-breaching party must mitigate damages or she will not be entitled to any remedy for the contract's breach.

Question 20

The doctrine of election of remedy has been approved by the UCC.

Question 21

Damages paid to directly compensate the nonbreaching party for the value of what was not done or performed are _____.

A) consequential damages
B) incidental damages
C) compensatory damages
D) nominal damages
E) liquidated damages

Question 22

_____ arise(s) when the nonbreaching party, a supplier of goods or services, enters a second contract when the buyer repudiates.

A) A negative covenant
B) An injunction
C) Liquidated damages
D) Consequential loss
E) Lost volume

Question 23

Loss from _____ damages includes expenditures that the nonbreaching party incurs in attempting to minimize the loss that flows from the breach.

A) punitive
B) liquidated
C) nominal
D) incidental
E) consequential

Question 24

In a situation where there has been a breach but the nonbreaching party has really suffered no loss or cannot prove what his loss is, he is entitled to _____.

A) liquidated damages
B) nominal damages
C) punitive damages
D) consequential damages
E) incidental damages

Question 25

A promise by a person not to do something is called a(n) _____.

A) specific performance
B) easement
C) restitution
D) negative covenant
E) lost volume

Question 26

Jenny contracts to buy a new washing machine from a dealer; however, the dealer breaches the contract. Jenny finds and buys the same washing machine from another dealer at the same price that the first one was to sell it for. In this case, Jenny is entitled to _____.

A) incidental damages
B) punitive damages
C) nominal damages
D) consequential damages
E) liquidated damages

Question 27

Which of the following is a legal remedy?

A) Specific performance
B) Injunction
C) Restitution
D) Damages
E) Expectation interest

Question 28

What are consequential damages?

Question 29

Which of the following equitable remedies is a judicial order to the promisor that he undertake the performance to which he obligated himself in a contract?

A) Foreseeability
B) Restitution
C) Negative covenant
D) Injunction
E) Specific performance

Question 30

A(n) _____ is that which restores to the promisee any benefit he conferred on the promisor.

A) expectation interest
B) anticipatory breach
C) compensatory damage
D) reliance interest
E) restitution interest

Question 31

The remedy for _____ is to put the promisee in a position as good as that which he would have been in had the contract been performed.

A) reliance interest
B) expectation interest
C) lost volume
D) restitution interest
E) compensatory damages

Question 32

An injunction is a(n) _____.

A) court order directing a person to stop doing that which he/she should not do
B) judicial order to the promisor that he undertake the performance to which he obligated himself in a contract
C) alternative remedy to damages and may be issued at the discretion of the court
D) restoring to one party of what he gave to the other
E) award for the purpose of punishing a defendant in a civil action

Question 33

16. A non-breaching party is usually entitled-in addition to other remedies-to punitive damages.

Question 34

What are the three different interests that contract remedies serve to protect?

Question 35

The nature of a loss resulting from a contract breach may be such as to entitle one party to a choice among two or more means to redress the grievance, where the choices are mutually exclusive. This is known as _____.

A) restitution
B) waiver
C) foreseeability
D) election of remedies
E) consequential damage

Question 36

If the damages that flow from a breach of contract lack _____, they will not be recoverable.

A) novation
B) specific performance
C) injunction
D) mitigation of damages
E) foreseeability

Question 37

_____ is putting the parties back into the position they were in before the contract was made.

A) Retribution
B) Injunction
C) Rescission
D) Restitution
E) Foreseeability

Question 38

A(n) _____ interest is the benefit for which the promisee bargained, and the remedy is to put him in a position as good as that which he would have been in had the contract been performed.

A) reliance
B) restitution
C) expectation
D) compensatory
E) quantum