Fin240 Business Law Chap 13 Quiz
Pablo contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pablo buys the computer elsewhere for $6,500. Pablo's measure of damages is
$1,500 plus incidental damages.
Carol pays Dick $10,000 for Dick to design an advertising campaign for Carol's health club. The next day, Dick tells Carol that he has accepted a job in New York and cannot design the campaign. Carol files a suit against Dick. Carol can recover
$10,000
Loyal Engineers, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Loyal tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Loyal can recover
$10,000
Bob contracts to work for Central Construction Corporation (CCC) during July for $4,500. On June 30, CCC cancels the contract. Bob declines a similar job with Design Builders, Inc., which would have paid $4,000. Bob files a suit against CCC. As compensatory damages, Bob can recover
$500
Fiesta Properties, Inc., negotiates with Gusto Maintenance Corporation to include a liquidated damages clause in their contract. To be enforceable, at the time of the contract, an estimate of the damages from a breach must be
Difficult
A breach of contract entitles the breaching party to obtain damages.
False
A person's actions may cause a breach of contract or a tort, but never both.
False
Compensatory damages are foreseeable damages that arise from a party's breach of a contract.
False
Consequential damages are awarded to cover all of the remote consequences of whatever injury a nonbreaching party suffers.
False
In rescinding a contract, the parties essentially advance to the positions they would have been in if the contract had been performed.
False
On an employer's breach of an employment contract, the measure of the employee's damages is his or her salary with no adjustments.
False
Punitive damages are often awarded in breach of contract actions.
False
Specific performance is the remedy customarily used when there is no actual contract or agreement between two parties.
False
The failure of one party to perform a contract entitles the other party to rescind the deal without returning whatever goods, property, or money was previously conveyed.
False
The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages.
False
The measure of damages for the breach of a contract of a sale of land depends on which party breaches and when.
False
Masterwork, Inc., files a suit against National Employment Company (NEC) to recover in quasi contract. Masterwork must show in part that
Masterwork did not voluntarily confer a benefit on NEC.
A contract for a sale of land from Unique Properties, Inc., to Veritas Investments Corporation contains an erroneous legal description. The most appropriate remedy for these parties is
Reformation
Courts generally do not grant specific performance of personal service contracts.
True
Damages compensate a party for harm suffered as a result of another's wrongful act.
True
In a contract for a sale of goods, the usual measure of compensatory damages is the difference between the contract price and the market price.
True
Liquidated damage clauses typically require a party who breaches a contract to pay a certain amount to the nonbreaching party.
True
Nominal damages normally establish that the defendant acted wrongly.
True
Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those damages.
True
Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable.
True
The duty owed under the mitigation of damages doctrine depends on the situation.
True
Stellar Commodities, Inc., agrees to deliver ten tons of sheet metal to Tower Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Stellar cannot convince Tower to amend the contract. Stellar should seek
reformation
For Pete to recover the benefit of his bargain from a breached real estate contract with Quest Properties, Inc., the most appropriate remedy is
specific performance.
Roy contracts to sell his Double-R Ranch to Sam on May 1. On April 20, Roy tells Sam that he will not go through with the deal. Sam files a suit against Roy. Sam can recover
the Double-R Ranch.
Nolan contracts for the sale of an ancient vase, a Renaissance painting, and a modern mansion to Olga. Nolan breaches the contract. Olga files a suit against him. The court will most likely award specific performance for
the mansion, the painting, and the vase.