Question 1

A contractor and Buckingham, Inc.have a contract, which calls for the contractor to build a building with the completion of it by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

Accepted Answer

A)  punitive damages.
B)  nominal damages.
C)  liquidated damages.
D)  an illegal penalty.

Question 2

The basic remedy for misrepresentation is restitution.

Accepted Answer

A) True 
 B)False

Question 3

Lost profits can never be recovered as damages since they are speculative and cannot be established with reasonable certainty.

Accepted Answer

A) True 
 B)False

Question 4

Howard needs a truck to pull a 2,000-pound trailer.Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer.If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can recover:

Accepted Answer

A)  punitive damages, but not out-of-pocket damages.
B)  out-of-pocket and consequential damages, but not punitive damages.
C)  out-of-pocket damages plus punitive damages.
D)  nominal damages, because Howard should have known the capacity of the truck.

Question 5

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is worth $2,500.In a state that uses the "benefit-of-the-bargain" rule, Margaret's damage award would be:

Accepted Answer

A)  $3,500.
B)  $3,000.
C)  $500.
D)  $2,500.

Question 6

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the remedies of restitution and specific performance available to Vladimir?

Accepted Answer

A)  Restitution: Yes; Specific Performance: Yes
B)  Restitution: Yes; Specific Performance: No
C)  Restitution: No; Specific Performance: Yes
D)  Restitution: No; Specific Performance: No

Question 7

Contract damages that put the injured party in as good a position as if the other party had performed are:

Accepted Answer

A)  compensatory damages.
B)  incidental damages.
C)  consequential damages.
D)  liquidated damages.

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

Restitution is available as an alternative remedy for a party's repudiation of the contract.

Accepted Answer

A) True 
 B)False

Question 10

Monetary damages are the most frequently granted remedy for breach of contract.

Accepted Answer

A) True 
 B)False

Question 11

What Article of the UCC governs sales of goods?

Accepted Answer

A)  1
B)  2
C)  3
D)  None of these.

Question 12

The expectation interest is protected by the contract remedy of:

Accepted Answer

A)  restitution.
B)  compensatory damages.
C)  reliance damages.
D)  All of these.

Question 13

If a liquidated damage provision is found to be unenforceable, the injured party loses any remedy for breach of contract.

Accepted Answer

A) True 
 B)False

Question 14

If Kenneth signs an employment contract for one year but is fired without cause after two months and spends $500 in reasonable fees trying to find a comparable job, he may recover $500 in incidental damages.

Accepted Answer

A) True 
 B)False

Question 15

Restitution can be obtained where a voidable contract is avoided.

Accepted Answer

A) True 
 B)False  True

Question 16

Specific performance is the usual remedy for breach of contract.

Accepted Answer

A) True 
 B)False

Question 17

Costs incurred to acquire a nondelivered performance from some other source are consequential damages.

Accepted Answer

A) True 
 B)False

Question 18

Delay will have no effect on the power of avoidance.

Accepted Answer

A) True 
 B)False  False

Question 19

In the case of Hadley v.Baxendale, the plaintiff was seeking damages for:

Accepted Answer

A)  restitution.
B)  lost profits.
C)  failure to convey land.
D)  failure to specifically perform a contract.

Question 20

If the parties to a contract stipulate an amount that will be paid in the event of a breach (a liquidated damages clause), the courts will always enforce it.

Accepted Answer

A) True 
 B)False  False

Exam 18: Contract Remedies

A contractor and Buckingham, Inc.have a contract, which calls for the contractor to build a building with the completion of it by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

Correct Answer
verified

The basic remedy for misrepresentation is restitution.

Correct Answer
verified

Lost profits can never be recovered as damages since they are speculative and cannot be established with reasonable certainty.

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the remedies of restitution and specific performance available to Vladimir?

Correct Answer
verified

Contract damages that put the injured party in as good a position as if the other party had performed are:

Correct Answer
verified

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

Correct Answer
verified

Restitution is available as an alternative remedy for a party's repudiation of the contract.

Correct Answer
verified

Monetary damages are the most frequently granted remedy for breach of contract.

Correct Answer
verified

What Article of the UCC governs sales of goods?

Correct Answer
verified

The expectation interest is protected by the contract remedy of:

Correct Answer
verified

If a liquidated damage provision is found to be unenforceable, the injured party loses any remedy for breach of contract.

Correct Answer
verified

If Kenneth signs an employment contract for one year but is fired without cause after two months and spends $500 in reasonable fees trying to find a comparable job, he may recover $500 in incidental damages.

Correct Answer
verified

Restitution can be obtained where a voidable contract is avoided.

Correct Answer
verified
True

Specific performance is the usual remedy for breach of contract.

Correct Answer
verified

Costs incurred to acquire a nondelivered performance from some other source are consequential damages.

Correct Answer
verified

Delay will have no effect on the power of avoidance.

Correct Answer
verified
False

In the case of Hadley v.Baxendale, the plaintiff was seeking damages for:

Correct Answer
verified

If the parties to a contract stipulate an amount that will be paid in the event of a breach (a liquidated damages clause), the courts will always enforce it.

Correct Answer
verified
False

Exam 18: Contract Remedies

A contractor and Buckingham, Inc.have a contract, which calls for the contractor to build a building with the completion of it by June 15.If the building is not completed by that date, the contract calls for the contractor to pay $100 per day in damages.The $100 per day is:

Correct AnswerverifiedShow Answer

The basic remedy for misrepresentation is restitution.

Correct AnswerverifiedShow Answer

Lost profits can never be recovered as damages since they are speculative and cannot be established with reasonable certainty.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Vladimir entered into a contract to buy Daniel's collection of rare stamps.Vladimir mailed payment of $10,000 for the stamps to Daniel, but now Daniel tells Vladimir, "I'll never part with these stamps." Are the remedies of restitution and specific performance available to Vladimir?

Correct AnswerverifiedShow Answer

Contract damages that put the injured party in as good a position as if the other party had performed are:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Restitution is available as an alternative remedy for a party's repudiation of the contract.

Correct AnswerverifiedShow Answer

Monetary damages are the most frequently granted remedy for breach of contract.

Correct AnswerverifiedShow Answer

What Article of the UCC governs sales of goods?

Correct AnswerverifiedShow Answer

The expectation interest is protected by the contract remedy of:

Correct AnswerverifiedShow Answer

If a liquidated damage provision is found to be unenforceable, the injured party loses any remedy for breach of contract.

Correct AnswerverifiedShow Answer

If Kenneth signs an employment contract for one year but is fired without cause after two months and spends $500 in reasonable fees trying to find a comparable job, he may recover $500 in incidental damages.

Correct AnswerverifiedShow Answer

Restitution can be obtained where a voidable contract is avoided.

Correct AnswerverifiedTrue

Specific performance is the usual remedy for breach of contract.

Correct AnswerverifiedShow Answer

Costs incurred to acquire a nondelivered performance from some other source are consequential damages.

Correct AnswerverifiedShow Answer

Delay will have no effect on the power of avoidance.

Correct AnswerverifiedFalse

In the case of Hadley v.Baxendale, the plaintiff was seeking damages for:

Correct AnswerverifiedShow Answer

If the parties to a contract stipulate an amount that will be paid in the event of a breach (a liquidated damages clause), the courts will always enforce it.

Correct AnswerverifiedFalse

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True

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False

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False