breach of contract
An acceptance with a reservation of right must be in writing. (T/F)
FALSE
Consequential damages are those that necessarily flow from the breach.(T/F)
FALSE
Contract provisions that limit the remedies of the parties generally are unenforceable.(T/F)
FALSE
For damages to be recovered for breach of contract, the exact amount of the loss must be established with mathematical certainty.(T/F)
FALSE
If monetary damages would be an adequate remedy, then an action for specific performance would be appropriate.(T/F)
FALSE
A party that rescinds a contract without proper grounds for rescission is liable for damages for breach of the contract.(T/F)
TRUE
A rescinding party must restore the other party to that party's original position.(T/F)
TRUE
An anticipatory repudiation must be clear, absolute, and unequivocal.(T/F)
TRUE
Damages recoverable in a breach-of-contract action are designed to place the injured party in the same position that would have been attained if the contract had been performed.(T/F)
TRUE
Repeated breaches and waivers may be construed as a modification of the contract.(T/F)
TRUE
The normal remedy for breach of contract where the plaintiff has suffered a loss is compensatory damages.(T/F)
TRUE
When one party breaks the contract, the contract is said to be breached (T/F)
TRUE
If a seller delivers defective goods, the buyer does not lose the right to object to the breach of contract if the buyer: accepts the goods. accepts the goods with a reservation of right. agrees to a modification of the contract. accepts the performance without protest.
accepts the goods with a reservation of right
When an anticipatory repudiation of a contract occurs, the aggrieved person's option(s) include: bringing an action for damages. rescinding the contract. seeking specific performance. all of the above.
all of the above
When one party has broken a contract, there are several remedies, which include: bringing an action for damages. rescinding the contract. seeking specific performance. all of the above.
all of the above
The failure to act or perform in the manner called for by a contract is a: waiver. breach. forbearance. reservation of right.
breach
The damages that are typically recoverable when a contract has been breached and one party has suffered loss are called bringing an action for damages. rescinding the contract. seeking specific performance. all of the above.
compensatory damages
Failure to mitigate damages limits recovery to: damages for direct loss. nominal damages. damages for consequential loss. exemplary damages
damages for direct loss
Which is not a correct statement concerning the remedy of specific performance? The subject matter of the contract generally must be unique. An award of monetary damages would be an inadequate remedy. The granting of specific performance is discretionary with the court. It generally is available in all breach-of-contract cases.
it generally is available in all breach-of- contract cases
The rule of mitigation of damages requires that a party injured by a breach of contract must: take any and all steps possible to reduce the damages that will be sustained because of the breach. discharge the contract before filing suit for breach. hire someone else to perform the contract. take reasonable steps to reduce the damages that would otherwise be sustained because of the breach.
take reasonable steps to reduce the damages that would otherwise be sustained because of the breach
Consequential damages may be recovered if: the damages were not a foreseeable consequence of the breach. the damages reasonably follow the breach. the breach did not cause the damages. the loss exceeds $500.
the damages reasonably follow the breach
Which is not a correct statement concerning liquidated-damages clauses? Where the clause is valid, the injured party can collect no more than the amount specified. Where the clause is valid, the injured party has the choice of choosing compensatory damages or liquidated damages. The amount of liquidated damages must not be excessive. Liquidated damages are set by the parties in the contract.
where the clause is valid, the injured party has the choice of choosing compensatory damages or liquidated damages
