FiltersDone

Question type

Essay

Multiple Choice

Short Answer

True False

Matching

Exam 18: Contract Remedies

Show Answer

Share

---

All types

Filters

Study FlashcardsPractice ExamLearn

Question 1

True/False

Review LaterAdd Note

Review Later

Gina contracts with Lonnie to build a fence around her backyard in the next three weeks. If Lonnie breaches the contract, Gina can elect the remedy of damages or the remedy of injunctive relief to prevent Lonnie from providing his fencing services for anyone else until he completes her fence.

A) True
B) False

Correct Answer

verified

False

Question 2

Multiple Choice

Review LaterAdd Note

Review Later

Bartow signed a contract to coach baseball for Washington High for a period of three years. After two years he is offered and accepts an assistant coaching position at State University. Contract law will not allow Washington High to ask for:

A) specific performance of his contract.
B) payment of compensatory damages.
C) an injunction against coaching at the university.
D) liquidated damages.

E) B) and C)
F) B) and D)

Correct Answer

verified

Show Answer

Question 3

Essay

Review LaterAdd Note

What interests of injured parties are protected by remedies for a breach of contract?

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.

Wayne breaches a contract with Tim causing damages of $25,000 in lost profits, when damages under ordinary circumstances would be $17,000. Explain under what circumstances a court would award $25,000.

Bob's brother, Steve, planned to visit over Labor Day weekend. Together they planned to build a deck in Bob's backyard. Bob ordered the lumber, concrete, nails, and other supplies to be delivered on Friday. He also arranged to rent a saw for the weekend (Sat., Sun., and Mon.) at a cost of $20 a day. When he went to pick up the saw, the store had already rented it. He drove all over town trying to borrow another but could only get one for Sunday, Monday, and Tuesday at a cost of $50 per day. Because they couldn't work on Saturday without a saw, Bob had to hire Mac at a cost of $80 to work with him on Tuesday and, of course, Bob had to take off from work. Calculate the damages to which Bob is entitled. Why? Explain.

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.

Under the law of restitution, a remedy for misrepresentation is rescission (avoidance) of the contract by the deceived party, though when appropriate, the courts also will require restitution.

Which of the following is NOT true regarding specific performance?

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.

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

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

Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000. Marcella then repudiates the contract. Hugh sells the houseboat to Lloyd in good faith for $60,000. Marcella may recover from Hugh:

Arlene signs an employment contract to work for a local business, Davis Restoration, for one year but is wrongfully discharged after three months. In order to recover from Davis full pay for the remaining nine months of her contract, Arlene:

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

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 following remedies available to Vladimir?

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

In which of the following situations will a court grant specific performance?

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

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.