Question 1

Dory enters into a contract with Eton for the construction of a Fast Food franchise, according to a certain schedule. The parties perform some preparatory steps, but Eton materially and willfully fails to begin work on the specified date. To rescind the contract, Dory must show that the parties can

Accepted Answer

A)   be restored to the status quo.
B)   realize at least some of the benefit of their bargain.
C)   obtain a reasonable exchange of values for the preparatory steps.
D)   profit from the partial performance.E) B) and C)
F) A) and D)

Question 2

The measure of compensatory damages does not vary by type of contract.

Accepted Answer

A) True 
 B)False

Question 3

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Accepted Answer

A) True 
 B)False

Question 4

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Accepted Answer

A)   conditional.
B)   complete.
C)   material.
D)   substantial.E) C) and D)
F) A) and B)

Question 5

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

Accepted Answer

A)   conditional.
B)   complete.
C)   material.
D)   substantial.E) B) and D)
F) A) and D)

Question 6

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

Accepted Answer

A)   a mutual agreement to rescind.
B)   an accord and satisfaction.
C)   a novation.
D)   specific performance.E) B) and D)
F) B) and C)

Question 7

The breach of a contract for a sale of goods qualifies for specific performance only when substantially identical goods can be bought or sold in the market.

Accepted Answer

A) True 
 B)False

Question 8

Only contracts that have been fully executed can be rescinded by agreement.

Accepted Answer

A) True 
 B)False

Question 9

When a contract mistakenly specifies a crane instead of a forklift, a court could reform the contract to reflect the parties' original intent as to the equipment.

Accepted Answer

A) True 
 B)False

Question 10

In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.

Accepted Answer

A) True 
 B)False

Question 11

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak's manager immediately accepts. The seller

Accepted Answer

A)   is bound to the deal at the offered price.
B)   can rescind the deal.
C)   is bound to the deal but can charge the intended price.
D)   can rescind the deal and recover damages for the mistake.E) B) and D)
F) A) and B)

Question 12

A covenant not to compete that is imposed as part of a sale of an ongoing business will be enforced even if the restraints are unreasonable.

Accepted Answer

A) True 
 B)False

Question 13

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Accepted Answer

A) True 
 B)False

Question 14

Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely

Accepted Answer

A)   a quasi contract.
B)   reformation.
C)   rescission.
D)   specific performance.E) B) and C)
F) None of the above

Question 15

On the breach of a contract for a sale of land when the seller has sold the property to someone else, an award of specific performance is unavailable.

Accepted Answer

A) True 
 B)False

Question 16

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

Accepted Answer

A)   discharged.
B)   breached.
C)   altered.
D)   performed.E) None of the above
F) A) and D)

Question 17

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to

Accepted Answer

A)   continue to store the fruit until Produce pays.
B)   do whatever is reasonable to minimize the damages.
C)   dispose of the fruit immediately.
D)   set an example to deter similar misconduct in the future.E) All of the above
F) None of the above

Question 18

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Accepted Answer

A)   execute a bill of sale.
B)   exchange the horse for the money.
C)   sign a receipt.
D)   agree that the deal is fair.E) C) and D)
F) A) and C)

Question 19

To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.

Accepted Answer

A) True 
 B)False

Question 20

A contract clause that excludes liability for willful misconduct is enforceable if the provision is sufficiently prominent in the body of the contract.

Accepted Answer

A) True 
 B)False

Exam 13: Contract Performance Breachapter and Remedies

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Correct AnswerverifiedShow Answer

To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.

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In the context of fraudulent misrepresentation, an opinion is objective and verifiable, whereas a fact is subject to debate.

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A contract clause that excludes liability for willful misconduct is enforceable if the provision is sufficiently prominent in the body of the contract.

Correct AnswerverifiedShow Answer

The breach of a contract for a sale of goods qualifies for specific performance only when substantially identical goods can be bought or sold in the market.

Correct AnswerverifiedShow Answer

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

Correct AnswerverifiedShow Answer

Ochre holds one ton of perishable fruit in storage for Produce Corporation. If Produce does not pay for the storage, under the doctrine of mitigation of damages, Ochre is held to a duty to

Correct AnswerverifiedShow Answer

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000, Steak's manager immediately accepts. The seller

Correct AnswerverifiedShow Answer

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

Correct AnswerverifiedShow Answer

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Correct AnswerverifiedShow Answer

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Correct AnswerverifiedShow Answer

A covenant not to compete that is imposed as part of a sale of an ongoing business will be enforced even if the restraints are unreasonable.

Correct AnswerverifiedShow Answer

Steel Mill Inc. agrees to deliver a certain quantity of steel to T-Bar Framing Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. The seller cannot convince the buyer to amend the contract. The most appropriate remedy is most likely

Correct AnswerverifiedShow Answer

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Correct AnswerverifiedShow Answer

On the breach of a contract for a sale of land when the seller has sold the property to someone else, an award of specific performance is unavailable.

Correct AnswerverifiedShow Answer

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

Correct AnswerverifiedShow Answer

When a contract mistakenly specifies a crane instead of a forklift, a court could reform the contract to reflect the parties' original intent as to the equipment.

Correct AnswerverifiedShow Answer

The measure of compensatory damages does not vary by type of contract.

Correct AnswerverifiedShow Answer

Only contracts that have been fully executed can be rescinded by agreement.

Correct AnswerverifiedShow Answer

Dory enters into a contract with Eton for the construction of a Fast Food franchise, according to a certain schedule. The parties perform some preparatory steps, but Eton materially and willfully fails to begin work on the specified date. To rescind the contract, Dory must show that the parties can

Correct AnswerverifiedShow Answer

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