Question 1

Which of the following hold true in case of liquidated damages?

Accepted Answer

A)  For liquidated damages to be lawful, the actual damages must be precisely determined.
B)  Liquidated damages are enforceable even if actual damages are later determined to be different.
C)  A liquidated damages clause is considered a penalty if actual damages are not determinable in advance.
D)  If a liquidated damages clause is found to be a penalty, it continues to be enforceable.E) B) and D)
F) B) and C)

Question 2

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100, 000 a year.Two years into the contract, Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

Accepted Answer

A)  Any job that offers $100, 000 or more a year.
B)  Another software applications developer job, irrespective of the salary.
C)  A job in any software firm in any part of the country.
D)  An applications developer job in San Jose for $100, 000 a year or more.E) B) and C)
F) A) and D)

Question 3

Consequential damages are unforeseeable damages.

Accepted Answer

A) True 
 B)False

Question 4

If an employer breaches an employment contract, the employee owes a duty to mitigate damages by trying to find substitute employment.

Accepted Answer

A) True 
 B)False

Question 5

In an anticipatory breach, the nonbreaching party does not have the right to sue the breaching party until performance is due.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following torts arises when a third party induces a contracting party to breach the contract with another party?

Accepted Answer

A)  intentional interference with contractual relations
B)  breach of the covenant of good faith and fair dealing
C)  tort of bad faith
D)  malicious breach of contractual relationsE) A) and B)
F) A) and C)

Question 7

Consequential damages arise from circumstances outside a contract.

Accepted Answer

A) True 
 B)False  True

Question 8

When there is substantial performance of a contract, the nonbreaching party may sue to recover the cost to repair the defect.

Accepted Answer

A) True 
 B)False

Question 9

Specific performance is awarded if the subject matter of the contract is unique.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?

Accepted Answer

A)  tender of performance
B)  mitigation of damages
C)  liquidation of damages
D)  disclaimer of consequential damagesE) A) and D)
F) B) and D) B

Question 11

QuickClicks, an online advertising company makes a contract to purchase six computers from Comptail, a local retailer, for $20, 000.However, Comptail breaches the contract by not delivering the computers on time.The next day, QuickClicks manages to purchase six computers from another retailer for $18, 000 and receives immediate delivery.QuickClicks can bring a lawsuit against Comptail to recover ________ damages.

Accepted Answer

A)  consequential
B)  compensatory
C)  nominal
D)  liquidatedE) B) and C)
F) A) and D)

Question 12

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Accepted Answer

A)  Restitution
B)  Rescission
C)  Anticipatory repudiation
D)  Material breachE) A) and B)
F) C) and D)

Question 13

If the employee breaches the contract, the employer can recover the costs to hire a new employee.

Accepted Answer

A) True 
 B)False

Question 14

A ________ is an order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgment.

Accepted Answer

A)  writ of attachment
B)  writ of garnishment
C)  specific performance
D)  liquidation of damagesE) B) and C)
F) C) and D)

Question 15

In the event of material breach, the nonbreaching party is discharged from further performance under the contract.

Accepted Answer

A) True 
 B)False

Question 16

Harold and Ali enter into a contract where Ali has to ship goods within six weeks of signing the contract.Two weeks later, Ali informs Howard that he cannot provide the shipment in time.What type of contractual breach does this constitute? Suggest Howard's course of action following the breach of contract.

Accepted Answer

Ali's actions constitute an anticipatory breach.An anticipatory breach (or anticipatory repudiation)of a contract occurs when a contracting party informs the other party in advance that he or she will not perform his or her contractual duties when due.Where there is an anticipatory repudiation, the nonbreaching party's-Howard's, in this case-obligations under the contract are discharged immediately.Howard also has the right to sue Ali when the anticipatory breach occurs; there is no need to wait until performance is due.

Question 17

To be liable for consequential damages, the breaching party need not know nor have reason to know that the breach will cause special damages to the other party.

Accepted Answer

A) True 
 B)False

Question 18

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

Accepted Answer

A)  Rescission
B)  Recession
C)  Restitution
D)  RetributionE) None of the above
F) A) and B)

Question 19

Nominal damages are awarded when no financial loss resulted from the breach.

Accepted Answer

A) True 
 B)False

Question 20

An unconditional and absolute offer by a contracting party to perform his or her obligations under the contract is known as an injunction.

Accepted Answer

A) True 
 B)False

Exam 16: Remedies for Breach of Traditional and E-Contracts

Which of the following hold true in case of liquidated damages?

Correct Answer
verified

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100, 000 a year.Two years into the contract, Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

Correct Answer
verified

Consequential damages are unforeseeable damages.

Correct Answer
verified

If an employer breaches an employment contract, the employee owes a duty to mitigate damages by trying to find substitute employment.

Correct Answer
verified

In an anticipatory breach, the nonbreaching party does not have the right to sue the breaching party until performance is due.

Correct Answer
verified

Which of the following torts arises when a third party induces a contracting party to breach the contract with another party?

Correct Answer
verified

Consequential damages arise from circumstances outside a contract.

Correct Answer
verified
True

When there is substantial performance of a contract, the nonbreaching party may sue to recover the cost to repair the defect.

Correct Answer
verified

Specific performance is awarded if the subject matter of the contract is unique.

Correct Answer
verified

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?

Correct Answer
verified
B

Correct Answer
verified

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Correct Answer
verified

If the employee breaches the contract, the employer can recover the costs to hire a new employee.

Correct Answer
verified

A ________ is an order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgment.

Correct Answer
verified

In the event of material breach, the nonbreaching party is discharged from further performance under the contract.

Correct Answer
verified

To be liable for consequential damages, the breaching party need not know nor have reason to know that the breach will cause special damages to the other party.

Correct Answer
verified

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

Correct Answer
verified

Nominal damages are awarded when no financial loss resulted from the breach.

Correct Answer
verified

An unconditional and absolute offer by a contracting party to perform his or her obligations under the contract is known as an injunction.

Correct Answer
verified

Exam 16: Remedies for Breach of Traditional and E-Contracts

Which of the following hold true in case of liquidated damages?

Correct AnswerverifiedShow Answer

Rudy was working as an applications developer in a software firm in San Jose.His employment contract was for three years at $100, 000 a year.Two years into the contract, Rudy's employer fired him as a part of downsizing.Which of the following jobs could Rudy take in order to mitigate damages?

Correct AnswerverifiedShow Answer

Consequential damages are unforeseeable damages.

Correct AnswerverifiedShow Answer

If an employer breaches an employment contract, the employee owes a duty to mitigate damages by trying to find substitute employment.

Correct AnswerverifiedShow Answer

In an anticipatory breach, the nonbreaching party does not have the right to sue the breaching party until performance is due.

Correct AnswerverifiedShow Answer

Which of the following torts arises when a third party induces a contracting party to breach the contract with another party?

Correct AnswerverifiedShow Answer

Consequential damages arise from circumstances outside a contract.

Correct AnswerverifiedTrue

When there is substantial performance of a contract, the nonbreaching party may sue to recover the cost to repair the defect.

Correct AnswerverifiedShow Answer

Specific performance is awarded if the subject matter of the contract is unique.

Correct AnswerverifiedShow Answer

Which of the following terms refers to a nonbreaching party's legal duty to avoid or reduce damages caused by a breach of contract?

Correct AnswerverifiedB

Correct AnswerverifiedShow Answer

________ occurs when one contracting party informs the other that he or she will not perform his or her contractual duties when due.

Correct AnswerverifiedShow Answer

If the employee breaches the contract, the employer can recover the costs to hire a new employee.

Correct AnswerverifiedShow Answer

A ________ is an order of the court that enables a government officer to seize property of the breaching party and sell it at auction to satisfy a judgment.

Correct AnswerverifiedShow Answer

In the event of material breach, the nonbreaching party is discharged from further performance under the contract.

Correct AnswerverifiedShow Answer

To be liable for consequential damages, the breaching party need not know nor have reason to know that the breach will cause special damages to the other party.

Correct AnswerverifiedShow Answer

________ is a term that denotes the return of goods or property received from the other party to undo a contract.

Correct AnswerverifiedShow Answer

Nominal damages are awarded when no financial loss resulted from the breach.

Correct AnswerverifiedShow Answer

An unconditional and absolute offer by a contracting party to perform his or her obligations under the contract is known as an injunction.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
True

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
B

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified