Question 1

Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down.Then Lynne learns she is allergic to hay and repudiates the contract.If Harriette can sell the farm one month later for $90,000, she may:

Accepted Answer

A)  keep Lynne's $20,000.
B)  keep $10,000 of Lynne's down payment.
C)  not keep any of the down payment money.
D)  sue for specific performance.E) A) and B)
F) A) and C)

Question 2

Restitution involves a return of consideration or its value to the aggrieved party.

Accepted Answer

A) True 
 B)False

Question 3

Courts of equity will grant specific performance of contracts for personal service.

Accepted Answer

A) True 
 B)False

Question 4

What interests of an injured party are protected by contract remedies?

Accepted Answer

The following interests are protected by...

Question 5

Miller made a contract to sell his condominium to Jefferson for $80,000.Two days later Miller changed his mind after discovering that he could have sold the property to another buyer for an additional $20,000.Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000.Jefferson is seeking:

Accepted Answer

A)  restitution.
B)  punitive damages.
C)  specific performance.
D)  valid tender.E) C) and D)
F) A) and B)

Question 6

Consequential damages include lost profits and injury to person or property resulting from defective performance.

Accepted Answer

A) True 
 B)False

Question 7

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is correct with respect to election of remedies?

Accepted Answer

A)  The Code rejects any doctrine of election of remedies; its remedies are cumulative.
B)  The remedy of specific performance is inconsistent with that of restitution.
C)  A person who seeks an injunction may also seek incidental damages for the breach.
D)  All of these are correct.E) B) and C)
F) A) and B)

Question 9

In which of the following situations will a court grant specific performance?

Accepted Answer

A)  In a case involving breach of contract for the sale of real property or rare goods.
B)  In contracts for personal services.
C)  Where goods have been identified to the contract.
D)  Where goods are mixed with other goods of the same type.E) A) and B)
F) None of the above

Question 10

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

Accepted Answer

A)  injunction.
B)  reformation.
C)  specific performance.
D)  rescission.E) All of the above
F) A) and D)

Question 11

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Accepted Answer

A) True 
 B)False

Question 12

A power of avoidance held by a party may be lost if:

Accepted Answer

A)  the contract is affirmed.
B)  there are unreasonable delays in exercising the power.
C)  the rights of third parties intervene.
D)  All of these.E) A) and B)
F) A) and C)

Question 13

The majority of states follow the rule in awarding damages for fraud.

Accepted Answer

A)  benefit-of-the-bargain
B)  out-of-pocket
C)  liquidated
D)  restitutionE) B) and C)
F) A) and D)

Question 14

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Accepted Answer

A) True 
 B)False

Question 15

An employee's promise of providing ordinary personal services may be enforced by an injunction against serving
another employer.

Accepted Answer

A) True 
 B)False

Question 16

Define incidental damages and give an example.

Accepted Answer

Incidental damages are damages that aris...

Question 17

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500.When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne.Marianne can ask the court to order:

Accepted Answer

A)  nominal damages.
B)  specific performance.
C)  restitution.
D)  equitable rescission.E) B) and C)
F) B) and D)

Question 18

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Accepted Answer

A) True 
 B)False

Question 19

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward.An appropriate remedy for Edward to seek would be:

Accepted Answer

A)  injunction.
B)  liquidated damages.
C)  reformation.
D)  punitive damages.E) A) and D)
F) All of the above

Question 20

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is:

Accepted Answer

A)  injunction.
B)  restitution.
C)  specific performance.
D)  reformation.E) B) and D)
F) B) and C)

Exam 18: Contract Remedies

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

Correct Answer
verified

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Correct Answer
verified

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is:

Correct Answer
verified

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Correct Answer
verified

Restitution involves a return of consideration or its value to the aggrieved party.

Correct Answer
verified

Courts of equity will grant specific performance of contracts for personal service.

Correct Answer
verified

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward.An appropriate remedy for Edward to seek would be:

Correct Answer
verified

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Correct Answer
verified

An employee's promise of providing ordinary personal services may be enforced by an injunction against serving another employer.

Correct Answer
verified

Define incidental damages and give an example.

Correct Answer
verified
Incidental damages are damages that aris...
View Answer

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500.When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne.Marianne can ask the court to order:

Correct Answer
verified

Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down.Then Lynne learns she is allergic to hay and repudiates the contract.If Harriette can sell the farm one month later for $90,000, she may:

Correct Answer
verified

A power of avoidance held by a party may be lost if:

Correct Answer
verified

Correct Answer
verified

The majority of states follow the rule in awarding damages for fraud.

Correct Answer
verified

Which of the following is correct with respect to election of remedies?

Correct Answer
verified

In which of the following situations will a court grant specific performance?

Correct Answer
verified

What interests of an injured party are protected by contract remedies?

Correct Answer
verified
The following interests are protected by...
View Answer

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

Correct Answer
verified

Consequential damages include lost profits and injury to person or property resulting from defective performance.

Correct Answer
verified

Exam 18: Contract Remedies

Even if a party has the power to avoid a contract for lack of capacity, duress, or undue influence, the party will lose that power by affirming the contract.

Correct AnswerverifiedShow Answer

Where a contract is unenforceable because of the statute of frauds, a party may recover the benefits conferred on the other party in reliance on the contract.

Correct AnswerverifiedShow Answer

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is:

Correct AnswerverifiedShow Answer

The majority of states allow the injured party who has been induced to enter into a contract by fraud to recover only "out-of-pocket" damages equal to the difference between the value of what she has received and the value of what she has given for it.

Correct AnswerverifiedShow Answer

Restitution involves a return of consideration or its value to the aggrieved party.

Correct AnswerverifiedShow Answer

Courts of equity will grant specific performance of contracts for personal service.

Correct AnswerverifiedShow Answer

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by David. David subsequently offers the land to Fred without first offering it to Edward.An appropriate remedy for Edward to seek would be:

Correct AnswerverifiedShow Answer

When a breach of contract occurs, the nonbreaching party is required to take reasonable steps to lessen or mitigate the damages that he may sustain.

Correct AnswerverifiedShow Answer

An employee's promise of providing ordinary personal services may be enforced by an injunction against serving another employer.

Correct AnswerverifiedShow Answer

Define incidental damages and give an example.

Correct AnswerverifiedIncidental damages are damages that aris...View AnswerShow Answer

Carolyn agrees to sell Marianne an antique handmade lace tablecloth for $1,500.When Carolyn discovers that her cousin wants it too, she breaks the contract with Marianne.Marianne can ask the court to order:

Correct AnswerverifiedShow Answer

Lynne agrees to buy Harriette's farm for $100,000 and puts $20,000 down.Then Lynne learns she is allergic to hay and repudiates the contract.If Harriette can sell the farm one month later for $90,000, she may:

Correct AnswerverifiedShow Answer

A power of avoidance held by a party may be lost if:

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

The majority of states follow the rule in awarding damages for fraud.

Correct AnswerverifiedShow Answer

Which of the following is correct with respect to election of remedies?

Correct AnswerverifiedShow Answer

In which of the following situations will a court grant specific performance?

Correct AnswerverifiedShow Answer

What interests of an injured party are protected by contract remedies?

Correct AnswerverifiedThe following interests are protected by...View AnswerShow Answer

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

Correct AnswerverifiedShow Answer

Consequential damages include lost profits and injury to person or property resulting from defective performance.

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Incidental damages are damages that aris...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
verified
The following interests are protected by...
View Answer

Correct Answer
verified

Correct Answer
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