chapter 13, 19

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is specific performance.

true

Specific performance will not be granted unless the party's legal remedy is inadequate.

true

The measure of compensatory damages often varies by type of contract.

true

For consideration to have "legally sufficient value," it must consist of goods or money.

False

Legal sufficiency of consideration is the same as adequacy of consideration

False

Rescission is the remaking of a contract so as to enrich one party at the expense of the other.

False

Forbearance is the act of refraining from doing something that one has a legal right to do.

True

If, during the performance of a contract, extraordinary difficulties arise that were totally unforeseen at the time the contract was formed, a court may allow an exception to the preexisting duty rule.

True

Parties are usually free to bargain as they wish.

True

Promissory estoppel requires that justice will be better served by the enforcement of the promise

True

Punitive damages are generally not awarded in an action for breach of contract

True

Rescission is the unmaking of a contract so as to return the parties to the positions they occupied before the contract was made.

True

The element of bargained- for exchange distinguishes contracts from gifts.

True

The most common remedies available to a nonbreaching party include damages, rescission and restitution, and specific performance

True

An illusory promise is an unenforceable promise.

True

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

False

A liquidated damages provision specifies that a certain amount is to be paid on a breach of contract when the nonbreaching party elects to receive cash.

False

A promise to do what one already has a legal duty to do constitutes legally sufficient consideration

False

A breach of contract entitles the nonbreaching party to sue for monetary damages.

True

A contract that one party retains the exclusive right to cancel at any time is unenforceable

True

A party seeking to recover compensatory damages can also recover incidental damages.

True

A promise by one party to pay another for refraining from an action that one has a legal right to undertake is enforceable.

True

A promise made in return for an act or event that has not yet taken place can be fully enforceable

True

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

True

A transaction that lacks a bargained-for exchange lacks an element of consideration.

True

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been in if the contract had not been breached.

false

Expenses that are caused directly by a breach of a contract are known as primary damages.

false

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

false