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Exam 20: Breach of Contract and Remedies

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Question 1

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Whether there has been a waiver is a question of fact.

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verified

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Question 2

Multiple Choice

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The party that breaks a contract may be required to pay damages to the other party to compensate for:

A) losses that could have been avoided by hiring someone else to perform the contract.
B) emotional disturbance caused by the breach of contract.
C) a heart attack induced by the emotional disturbance caused by the breach of contract.
D) damages resulting necessarily and directly from the breach of contract.

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D

Question 3

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If a liquidated damages clause demands an unusually large sum that is not related to reasonably-anticipated actual damages, the clause will be held to be void as a(n) :

An anticipatory repudiation must be clear, absolute, and unequivocal.

The remedy of specific performance will most likely be granted in the case of a(n) :

A party that rescinds a contract without proper grounds for rescission is liable for damages for breach of the contract.

Repeated breaches and waivers are generally interpreted to indicate:

Consequential damages are those that necessarily flow from the breach.

Contract provisions that limit the remedies of the parties are generally unenforceable.

If a plaintiff seeking damages in a breach of contract action receives $1 in damages, the damages would most likely be classified as:

When a party expressly declares that performance will not be made when required, this declaration is a(n) :

A provision stipulating the amount of money damages to be paid in the event of default or breach of contract is known as a __________ damages clause.

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

The normal remedy for breach of contract where the plaintiff has suffered a loss is compensatory damages.

When one party has broken a contract, there are several remedies available to the non-breaching party, including:

When one party commits a non-material breach of contract, the other party may rescind the contract.

If one party to a contract breaks the contract, the other party generally is under a duty to stop any further performance to avoid sustaining greater damages.

If there is a breach of contract, the law requires that the other party terminate the contract and bring a lawsuit.

If monetary damages would be an adequate remedy, then an action for specific performance would be appropriate.

Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor's 1957 Ford Thunderbird. Each contract was definite and clear in all respects. As to the house painting, Cyril inquired with the painter as to when the work could begin. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted the house, but at a higher price. Cyril then sued the painter, claiming that there was an anticipatory repudiation of the contract by the painter. With regard to the automobile purchase contract, after signing the contract, the neighbor decided that she did not wish to sell her car and refused to complete the transaction. Cyril attempted to purchase a similar car elsewhere, but the car was a vintage automobile which was not available on the open market. Cyril sued the neighbor for specific performance of the contract. Discuss the probable outcomes of the lawsuits.