Ch 10. T/F Contract Performance, Breach, Remedies
A contract will be discharged if foreseeable circumstances make it difficult or expensive to attain the contract's purpose.
F
A duty to perform under a contract is never absolute.
F
A mistake in judgment as to value is a ground to avoid a contract.
F
An anticipatory repudiation is not a material breach of contract.
F
An event must be certain to occur to constitute a contractual condition.
F
Any breach excuses a nonbreaching party from the duty to perform.
F
Damages are designed to punish a breaching party and deter others from similar conduct.
F
Most contracts are discharged by rescission.
F
On the breach of a contract involving the sale of land, money damages is always the most appro¬priate remedy.
F
The four broad categories of damages in contract law are conciliatory, consecutive, punctual, and nominative.
F
The purpose of the doctrine of election of remedies is to permit a double recovery.
F
When a contract party materially alters a written contract, the other party must adapt his or her performance accordingly.
F
A contract entered into under undue influence is voidable.
T
A contract is substantially performed when performance creates sub¬stan¬tially the same benefits as those promised in the contract.
T
A contract may include a clause stating that no damages can be recovered for a certain type of breach.
T
A liquidated damages clause typically requires a party who breaches a con¬tract to pay a certain amount to the nonbreaching party.
T
A novation revokes and discharges a prior contract.
T
A party who substantially performs his or her duties under a con¬tract can enforce the contract against the other party.
T
A transfer of contract rights to a third party is an assignment.
T
After a contract is made, performance may become impossible in an objective sense and discharge the contract.
T
An innocent party can rescind a fraudulent contract.
T
An intended beneficiary can sue directly to enforce a contract.
T
Any breach entitles the nonbreaching party to sue for damages.
T
Complete performance occurs when conditions in a contract are fully satisfied.
T
Consequential damages are foreseeable damages that arise from a party's breach of a contract.
T
Damages compensate a party for harm suffered as a result of another's wrongful act.
T
Expenses that are caused directly by a breach of contract—such as those in¬curred to obtain performance from another source—are inci¬dental dam¬ages.
T
If a contract condition is not satisfied, the obligations of the contracting parties are discharged.
T
Misrepresentation of a material fact is an element of fraud.
T
On a breach of contract, compensatory damages compensate the nonbreaching party for the loss of a bargain.
T
On the breach of a contract, the innocent injured party has a duty to reduce the damages that he or she suffers.
T
Performance of an accord discharges an original contractual obligation.
T
Reformation allows a court to rewrite a contract to reflect the parties' true intentions.
T
Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.
T
Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that the clause excuses.
T
