Question 1

Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

Accepted Answer

Rescission is an equitable remedy that allows a contract to be canceled and the parties to be returned to the positions they were in before the contract was made, typically used in cases of misrepresentation, fraud, undue influence, or mutual mistake, rather than for imperfect expression of the agreement in writing.

Question 2

Nominal damages are awarded for the breach of a contract to nominate someone or something to a higher office,position,or category.

Accepted Answer

Nominal damages are awarded for a breach of contract where the plaintiff has suffered no actual loss or where the loss is trivial. It is not specifically limited to a breach of contract to nominate someone or something to a higher office, position, or category.

Question 3

Rashi contracts to work for Social Data Analysis Corporation dur-ing June for $4,500. On May 31,Social Data cancels the contract. Rashi declines a job of a different type and rank with Tech Collection,Inc.,which would have paid $3,500. Rashi files a suit against Social Data. As compensatory damages,Rashi can recover
A)$4,500.
B)$4,000.
C)$500.
D)$0.

Accepted Answer

The answer of Rashi contracts to work for Social Data...

Question 4

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

Accepted Answer

Nominal damages are not designed to punish a wrongdoer; rather, they are a small monetary award that is granted when a plaintiff's rights have been technically violated but there has been no actual loss or harm suffered. They are intended to vindicate the plaintiff's rights rather than to punish the defendant.

Question 5

Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that is excused by the provision.

Accepted Answer

A limitation-of-liability clause is a contractual provision that limits the amount of damages that one party can recover from the other in the event of a breach. These provisions are generally enforced, but courts will consider the type and severity of the breach when deciding whether to uphold the clause. For example, if the breach was intentional or resulted from gross negligence, the court may not enforce the limitation-of-liability clause.

Question 6

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.

Accepted Answer

The answer of A liquidated damages provision specifies that a...

Question 7

Restitution is limited to rescission cases.

Accepted Answer

Restitution may be available in rescission cases, but it is not limited to them. Restitution may also be available in cases involving breach of contract, unjust enrichment, and other legal claims.

Question 8

The failure of one party to perform a contract entitles the other party to rescind it.

Accepted Answer

This statement is true according to the basic principles of contract law. If one party fails to perform their obligations under a contract, the other party may have the right to rescind the contract, seek damages, or specific performance.

Question 9

A party seeking to recover in quasi contract must show that the other party has been unjustly enriched.

Accepted Answer

This is the basic principle of quasi contract, which is also known as "implied-in-law contract". It allows a party to recover unjust enrichment from another party even in the absence of an actual contract, if certain conditions are met. These conditions include: (1) the plaintiff has conferred a benefit on the defendant; (2) the defendant has knowledge of the plaintiff's actions; and (3) the defendant would be unjustly enriched if he or she were allowed to retain the benefit without compensating the plaintiff.

Question 10

A party seeking to recover in quasi contract must show that he or she acted as a volunteer in conferring a benefit on another party.

Accepted Answer

A party seeking to recover in quasi contract does not have to prove that they acted as a volunteer, but they must show that they bestowed a benefit on the other party and that it would be unjust for the other party to keep the benefit without compensation.

Question 11

A contract may include a clause stating that damages will be limited to a maximum amount.

Accepted Answer

This type of clause is frequently included in contracts and is known as a limitation of liability clause. It serves to limit the amount of damages that a party can be held responsible for in the event of a breach of contract, intentional wrongdoing, or negligence.

Question 12

Courts order reformation most often when fraud or mutual mistake is present.

Accepted Answer

Reformation is most often ordered by courts when fraud or mutual mistake is present. This allows the court to correct the original agreement to reflect the true intentions of the parties involved.

Question 13

Global Enterprise Corporation enters into a contract with HealthCare Insurance Company to obtain insurance for Global employees. If HealthCare breaches the contract and Global is awarded compensatory damages,the purpose would be to
A)establish,as a matter of principle,that HealthCare acted wrongfully.
B)provideGlobal with funds for a foreseeable loss beyond the contract.
C)provideGlobal with funds for its loss of the bargain.
D)punishHealthCare and deter others from similar acts.

Accepted Answer

Compensatory damages aim to cover the loss of the bargain, putting the injured party in the position they would have been in if the contract had been fulfilled.

Question 14

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

Accepted Answer

This statement is true. Specific performance is a remedy where a court orders a party to perform a specific act or obligation as outlined in a contract. However, this remedy is only granted when the injured party would suffer irreparable harm if the contractual obligation is not performed. If the party has an adequate legal remedy, such as monetary damages, then specific performance will not be granted.

Question 15

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

Accepted Answer

Specific performance is a common remedy for a seller's breach of a contract for a sale of real estate, as it involves the court ordering the seller to fulfill their contractual obligations by transferring the property to the buyer as agreed upon in the contract.

Question 16

Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign. Two days later,Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign. As compensatory damages,Nogales can recover
A)$150,000.
B)$15,000.
C)$1,500.
D)$0.

Accepted Answer

Nogales can recover the amount paid to Omar as compensatory damages, which is $15,000. The fact that Omar accepted a job in Silicon Valley and cannot plan the campaign does not necessarily mean that he breached the contract, as there might be valid reasons for him to do so. Therefore, Nogales cannot recover more than the amount paid to Omar.

Question 17

Sati contracts to work exclusively for Thermal Imaging Company during July for $5,000. On June 30,Thermal Imaging cancels the contract. Sati finds a similar job for the month of July but earns only $3,000. Sati files a suit against Thermal Imaging. As compensatory damages,Sati can recover
A)$3,000.
B)$2,000.
C)$1,000.
D)$0.

Accepted Answer

Sati can recover the difference between the amount she would have earned under the cancelled contract and the amount she actually earned from the similar job, which is $2,000 ($5,000 – $3,000). Therefore, the best choice is (B) $2,000.

Question 18

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches the contract,Scrub n' Dry can
A)do nothing but make a deal with a different service provider.
B)do nothing but temporarily suspend operations and wait.
C)file a criminal complaint against Ready Repair.
D)sue Ready Repair for damages.

Accepted Answer

If Ready Repair breaches the contract, Scrub n' Dry can sue them for damages as a breach of contract is a civil matter, and Scrub n' Dry may seek compensation for any losses incurred due to the breach. Options A and B are not viable options as it would not solve the problem at hand, and option C is not applicable as breach of contract is not a criminal offense.

Question 19

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Accepted Answer

Reformation allows a court to revise, alter or modify a contract to make it more reasonable and enforceable.

Question 20

Restitution involves one party's recapture of a benefit through which another party has been unjustly enriched.

Accepted Answer

Restitution is a legal principle that allows a party to recover a benefit that was obtained by another party through unjust enrichment. This may involve returning property or compensating for a loss or damage caused by the unjust enrichment.

Quiz 17: Breach and Remedies