Question 1

The loss in a breach of contract is not always an economic one. The Court may award damages for non-pecuniary damages due to breach of contract for which of the following:

Accepted Answer

The court may award damages for non-pecuniary losses such as mental suffering when a breach of contract causes emotional distress or disappointment, especially in contracts related to enjoyment or personal matters.

Question 2

Rectification is

Accepted Answer

Rectification is a legal remedy where a court orders the correction of a written document to accurately reflect the true agreement made by the parties involved.

Question 3

Undue influence can be actual or presumed.

Accepted Answer

Undue influence can be actual, where there is evidence of coercion or manipulation, or presumed, where the relationship between the parties suggests a power imbalance that could lead to undue influence.

Question 4

Rescission means amending a contract.

Accepted Answer

Rescission refers to the cancellation or termination of a contract, returning the parties to their pre-contractual position, not amending it.

Question 5

If an "innocent party" fails to mitigate his damages, the court will

Accepted Answer

The court will reduce the damages payable to the "innocent party" if they fail to take reasonable steps to mitigate their losses.

Question 6

A contract can be rescinded if there was fraudulent or negligent misrepresentation, but not if there was innocent misrepresentation.

Accepted Answer

A contract can be rescinded for any type of misrepresentation, including fraudulent, negligent, or innocent, as long as the misrepresentation induced the other party to enter into the contract.

Question 7

Any typographical error in a contract will be rectified by the court if one party requests it.

Accepted Answer

Courts may rectify typographical errors in a contract if both parties agree on the intended terms, but not solely at the request of one party.

Question 8

A presumption in law is something which is presumed to be true without the necessity of having to prove that it is true.

Accepted Answer

The answer of A presumption in law is something which...

Question 9

A representation is a statement made before the contract is made.

Accepted Answer

A representation is a statement of fact made by one party to another before or at the time of making a contract, intended to induce the other party to enter into the contract.

Question 10

If the Court believes that the defendants might move their assets from the jurisdiction before the case comes to trial, it can order them not to do so by granting:

Accepted Answer

A Mareva Injunction is a court order that freezes the assets of a defendant to prevent them from being moved out of the jurisdiction before the case comes to trial.

Question 11

An interlocutory injunction is

Accepted Answer

An interlocutory injunction is a temporary court order that is issued to maintain the status quo until the final decision is made at the trial of a lawsuit.

Question 12

In most situations the seller has a legal duty to disclose facts that might affect the buyer's decision to purchase.

Accepted Answer

The answer of In most situations the seller has a...

Question 13

An Anton Piller order

Accepted Answer

An Anton Piller order is a court order that provides the right to search premises and seize evidence without prior warning, typically used in civil cases to prevent the destruction of evidence.

Question 14

A court can order that one party must produce its private books and records and then permit an expert chosen by the other party to examine these documents and prepare a report. This is called

Accepted Answer

An accounting is a legal process where a court orders a party to produce financial records for examination, often by an expert, to determine financial matters between parties.

Question 15

Undue influence is that type of influence which prevents a party to a contract from exercising independent judgment or decision making when signing a contract.

Accepted Answer

Undue influence occurs when one party exerts excessive pressure on another, undermining their ability to make independent decisions, thus affecting the fairness of the contract.

Question 16

"Specific performance" is

Accepted Answer

Specific performance is a legal remedy in contract law where the court orders the defendant to perform their part of the contract, typically to complete a transaction, rather than paying damages.

Question 17

Syed Iqbal agrees to purchase a house on a hill overlooking a lake from Savia Jahangir for $300,000. The transaction is to close in two months. Just after the agreement is signed, the housing market increases dramatically so that the house is now worth $600,000. Syed wants the house; Savita refuses to complete the deal. Syed does locate a similar house for $600,000, although it lacks the unique view of Savita's house and is not right on the lake. Which of the following statements is true about the remedies available to Syed for breach of contract?

Accepted Answer

Specific performance is a remedy available in real estate transactions because each piece of real estate is considered unique. Syed can seek a court order for Savita to complete the sale as agreed.

Question 18

A dishonest operator has breached his contract with you and owes you about $20,000. He is about to clear out his bank account (or so you have reason to believe). What remedy will you see to protect your interest?

Accepted Answer

A Mareva injunction is a legal remedy used to freeze a defendant's assets to prevent them from being dissipated before a judgment can be enforced.

Question 19

Duress can involve threats of physical harm or threats of economic harm.

Accepted Answer

Duress can involve both physical threats and economic threats, as both can coerce someone into acting against their will.

Question 20

Frustration is an outside event that makes the performance of the contract impossible and excuses a party from performance.

Accepted Answer

The answer of Frustration is an outside event that makes...

Quiz 7: Contract Defects and Breach of Contract