Question 1

The courts will grant an order of specific performance to compel performance of a contract for personal services.

Accepted Answer

In general, courts will not grant an order of specific performance to compel performance of a contract for personal services because it would involve forcing someone to provide specific personal services which cannot be replicated by someone else. Exceptions may exist, such as in cases involving unique artistic or entertainment performances.

Question 2

Injunction is an example of an equitable remedy.

Accepted Answer

Injunction is a remedy that is granted by a court of equity, and is therefore considered an equitable remedy.

Question 3

Explain under what circumstances the tender of performance and its refusal will be treated as performance of the contractual obligation.

Accepted Answer

The answer of Explain under what circumstances the tender of...

Question 4

In rare circumstances,the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

Accepted Answer

A mandatory injunction is a court order that forces someone to do or stop doing something. It can be issued in rare circumstances, such as when a person violates a contractual term and creates an ongoing problem.

Question 5

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half,he will not be successful in claiming compensation for what he has done.

Accepted Answer

The answer of If a contractor has agreed to build...

Question 6

Victims of breach have a duty to mitigate damages,meaning they must do what they can to keep those damages as low as possible.

Accepted Answer

This statement is true. Victims of breach are expected to take reasonable steps to minimize the damages they suffer as a result of the breach. Failure to do so may limit their ability to recover all of their losses from the party responsible for the breach.

Question 7

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Accepted Answer

The answer of Will anything short of the complete performance...

Question 8

The courts are extremely reluctant to grant any compensation for the breaching party's partial performance of the agreement,unless the contractual obligations have been substantially performed.

Accepted Answer

The statement is true. The courts generally do not grant compensation for partial performance unless there has been substantial performance of the contractual obligations.

Question 9

Joe owed Harry $500,but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment.Explain Joe's legal position.

Accepted Answer

The answer of Joe owed Harry $500,but Harry was confused...

Question 10

A deposit must be returned if no damage has taken place.

Accepted Answer

The answer of A deposit must be returned if no...

Question 11

Damages are an example of an equitable remedy.

Accepted Answer

Damages are a legal remedy, not an equitable remedy. Equitable remedies include injunctions, specific performance, and rescission.

Question 12

An injunction involves a court order to do something (to perform the contract),whereas specific performance usually involves an order to refrain from some offensive conduct.

Accepted Answer

The statement is incorrect. An injunction typically involves an order to refrain from doing something, while specific performance involves an order to perform a contract as agreed upon.

Question 13

Failure to make an installment payment will often trigger an acceleration clause,which makes the entire outstanding debt due and payable immediately.

Accepted Answer

An acceleration clause is typically included in loan agreements and allows the lender to demand immediate payment of the entire outstanding debt if the borrower fails to make a payment on time. This clause is often triggered by a missed installment payment.

Question 14

A breaching party is responsible for all lost profits flowing from a breach of contract.

Accepted Answer

A breaching party is generally responsible for damages caused by the breach of contract, which includes compensating the non-breaching party for their losses. However, lost profits are not always recoverable as damages and may only be awarded if they can be proven with a reasonable degree of certainty. It ultimately depends on the specific terms of the contract and the applicable law.

Question 15

An injunction is designed to punish someone for breaching a contract.

Accepted Answer

An injunction is a court order that requires someone to stop doing something or to do something specific. It is not designed to punish someone for breaching a contract, but rather to protect the rights of the party seeking the injunction.

Question 16

Joe paid Sam a debt owed of $50,000 by giving him 10,000 $5 bills.Sam refused to accept the payment.Explain this legal position.

Accepted Answer

The answer of Joe paid Sam a debt owed of...

Question 17

The victim of a breach cannot recover damages that he could have avoided if he had made a reasonable effort.

Accepted Answer

This is known as the principle of mitigation, which means that the victim has a duty to take reasonable steps to minimize the losses incurred as a result of the breach. Failure to do so may result in the reduction or elimination of damages that can be recovered.

Question 18

Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him on or before the payment due date.

Accepted Answer

The answer of Explain under what circumstances a creditor would...

Question 19

The courts prefer to grant an equitable remedy where a breach of contract has taken place.

Accepted Answer

Courts typically prefer to grant legal remedies, such as monetary damages, for breaches of contract, reserving equitable remedies (like specific performance or injunctions) for cases where legal remedies are inadequate.

Question 20

Indicate the various ways that the contractual relationship can come to an end.

Accepted Answer

The answer of Indicate the various ways that the contractual...

Quiz 9: The End of the Contractual Relationship