Q&A Hero

Q: The obligation to use reasonable efforts to minimize damage resulting from a breach are referred as the duty to ______ one's damages. A. reduce B. remit C. reform D. mitigate E. None of these because there is no such obligation

Q: From what country did equitable remedies as applied in the U.S. grow out? A. France B. Italy C. England D. Spain E. Portugal

Q: Why did equitable remedies come into being? A. To fashion remedies when the existing laws did not provide any adequate ones. B. To supplement compensatory damages with punitive damages. C. To provide a way by which to award nominal damages. D. To provide a way by which to award consequential damages. E. To provide a way by which to award certain parties liquidated damages.

Q: If the plaintiff is seeking legal damages that are designed to punish the defendant and deter him and others from engaging in similar behavior in the future, the plaintiff is seeking ______________ damages. A. consequential B. punitive C. liquidated D. nominal E. repugnant

Q: Monetary damages awarded to a plaintiff in a very small amount are _________. A. consequential B. punitive C. liquidated D. nominal E. None of these because no damages are available if no actual damages are incurred.

Q: Which of the following is not an equitable remedy? A. Rescission B. Restitution C. Reformation D. Injunction E. Novation

Q: Which of the following are foreseeable damages within the contemplation of the parties at the time the breach occurs and that result from special facts and circumstances arising outside the contract itself? A. Consequential B. Punitive C. Liquidated D. Nominal E. Repugnant

Q: Monetary damages are also referred to as ______ damages. A. equitable B. fair C. public D. legal E. injunctive

Q: If the plaintiff is seeking legal damages which would put him in the same position he would have been in had the contract been fully performed, he is suing for _____________ damages. A. equitable B. compensatory C. deserved D. learned E. punitive

Q: A contract may be discharged by operation of law through _______________. A. alteration of the contract B. bankruptcy C. objective impossibility of performance D. alteration of the contract, bankruptcy, and objective impossibility of performance E. alteration of the contract and bankruptcy, but not objective impossibility of performance

Q: Which of the following is used as a basis for discharge by operation of law when performance is still objectively possible but would be extraordinarily injurious or expensive to one party? A. Frustration of purpose B. Commercial impracticability C. Alteration of the contract D. Anticipatory repudiation E. None of these because there is no such concept.

Q: What doctrine arose from cases in England in which parties, who had contracted for rooms along a parade route for the king's coronation, received their money back when the coronation was canceled because the king became ill? A. Frustration of purpose B. Commercial impracticability C. Alteration of the contract D. Anticipatory repudiation E. Anticipatory renunciation

Q: If the parties of a contract put a new agreement in place of the original agreement it is called a(n) _____________________. A. accord and satisfaction B. novation C. substituted contract D. mutual rescission E. alteration

Q: When one of the parties to an agreement wants to substitute a different performance for his original duty under the contract, he is seeking a(n) _____________. A. accord and satisfaction B. novation C. substituted contract D. mutual rescission E. alteration

Q: Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party? A. Accord and satisfaction B. Novation C. Substituted contract D. Mutual rescission E. Alteration

Q: Which of the following occurs when a party unjustifiably fails to substantially perform his obligations under the contract? A. Material breach B. Substantial breach C. Immaterial breach D. Delineated breach E. Crossed breach

Q: When a contracting party refuses to complete the contract before the actual time of performance, it is called a(n) __________________________________. A. preemptive repudiation B. anticipatory repudiation C. advance refusal D. advance repudiation E. preparatory refusal

Q: Which is not considered a discharge of contractual obligations by mutual agreement? A. Mutual rescission B. Substituted contract C. Accord and satisfaction D. Novation E. Bankruptcy

Q: Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and, therefore, rescind or cancel the contract? A. Accord and satisfaction B. Novation C. Substituted contract D. Mutual rescission E. Alteration

Q: If a contract does not clearly specify that the satisfaction is to be personal, the ______ standard applies. A. express B. subjective C. objective D. absolute E. unbiased

Q: A _____ occurs whenever a party fails to perform her obligations under the contract. A. mishap B. misoccurrence C. breach D. misdeed E. mistake

Q: A(n) _____ discharges the nonbreaching party from his obligations under the contract. A. immaterial breach B. substantial breach C. material breach D. delineated breach E. crossed breach

Q: A contractual condition of satisfaction may be judged by either a(n) ______ or ______ standard depending on the issue involved. A. objective; express B. subjective; express C. objective; absolute D. absolute; express E. objective; subjective

Q: Which of the following occurs when all aspects of the parties' duties under the contract are carried out perfectly? A. Complete performance B. Substantial performance C. Significant performance D. Absolute performance E. Approved performance

Q: A contractual condition of satisfaction is considered a(n) ______ condition(s) that must be met before the other party's obligation to pay for the performance arises. A. partial B. conditional C. express D. implied E. partial and express

Q: The discharge by parties of their obligations by doing what they respectively agreed to do under the terms of the contract is called ______. A. discharge by tender B. discharge by performance C. discharge by finishing D. discharge by absolution E. discharge by reason

Q: An offer of performance by being ready, willing, and able to perform is known as ______. A. offering B. showing C. tender D. completer E. implied acceptance

Q: Which of the following are the two primary kinds of performance? A. Partial and significant B. Partial and complete C. Partial and substantial D. Complete and substantial E. Complete and significant

Q: Which of the following describes conditions explicitly stated in the contract? A. Express B. Definite C. Conditional D. Concurrent E. Both express and conditional

Q: Express conditions are usually preceded by which words? A. Conditioned on or if B. If or when C. Provided that, if, or when D. When or provided that E. Conditioned on, if, when, or provided that

Q: Which of the following describes conditions that are inferred from the nature and language of the contract? A. Express B. Implied C. Conditional D. Concurrent E. Both express and conditional

Q: Which of the following are types of conditions that affect the performance obligations of the parties? A. Precedent and complete B. Subsequent and complete C. Concurrent and subsequent D. Precedent, subsequent, and concurrent E. Precedent and conditional

Q: A condition ______ is a particular event that must occur in order for a party's duty to arise. A. precedent B. subsequent C. concurrent D. at large E. certain

Q: A condition ______ is a future event that terminates the obligations of the parties when it occurs. A. precedent B. subsequent C. concurrent D. at large E. certain

Q: Which of the following conditions occur when each party's performance is conditioned on the performance of the other? A. Precedent B. Subsequent C. Concurrent D. At large E. Certain

Q: When a party's obligations under a contract are terminated, the party is said to be ______. A. finished B. terminated C. completed D. discharged E. recoursed

Q: A party's contractual obligations are terminated through _______________. A. performance B. the failure of a condition to occur C. operation of law D. performance, the failure of a condition to occur, and operation of law E. performance and the failure of a condition to occur, but not operation of law

Q: Contracts containing conditions affecting the performance obligations of the parties are called ______ contracts. A. uncertain B. conditional C. unreasonable D. voidable E. void

Q: To recover damages on a quasi-contract, the plaintiff only has to show that the defendant received a benefit from the plaintiff and that the plaintiff has reasonably expected to be compensated for the benefit received by the defendant.

Q: An injunction is a court order that either forces or prohibits a party from doing something.

Q: The court will not award recovery on a quasi-contract.

Q: When an enforceable contract does not exist, the court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring.

Q: Rescission is the return of any property given up under the contract.

Q: Specific performance is an order requiring that the breaching party fulfill the terms of the agreement.

Q: Specific performance is the same relief sought as a reformation.

Q: All real property is considered unique.

Q: Liquidated damages will be enforced based upon the free-will concept of contracts even if the liquidated damages amount is unreasonable.

Q: Rewriting a contract to reflect what the parties had agreed on is referred to as rescission.

Q: Accord and satisfaction is used when one of the parties wants to substitute a difference performance for his original duty under the contract.

Q: Japanese law prohibits agreements relating to liquidated damages.

Q: The most frequently awarded damages are compensatory damages.

Q: Express conditions are conditions that are not specifically stated but inferred from the nature and language of the agreement.

Q: A breach occurs whenever a party fails to perform her obligations under the contract.

Q: An anticipatory repudiation must be in writing to be enforceable.

Q: A concurrent condition occurs when each party's performance is conditioned on the performance of the other.

Q: A conditional contract is an agreement that becomes enforceable only on the happening or termination of a specific condition.

Q: If the contract contains a clause in which an event must occur in order for a party's duty to arise, then that contract contains a condition subsequent.

Q: Set forth the circumstances resulting in a finding of anticipatory repudiation as well as the rights of a nonbreaching party when faced with anticipatory repudiation.

Q: Set forth the three main situations in which the courts find objective impossibility.

Q: Under ordinary circumstances, a party's duty to perform the promise agreed to in a contract is absolute.

Q: Contractual conditions may be expressly inserted into the contract by the parties but may not be implied.

Q: List the ways by which a party's contractual obligations can be terminated.

Q: Yolanda and Rodney agreed that Rodney would paint Yolanda's home for $800 with Yolanda supplying the paint. Rodney went to Yolanda's home on several occasions to do the job, but she never had the paint ready. Finally, he moves on to other jobs. Six months later Yolanda sues Rodney for not painting the home. Who is likely to win and why? Set forth the legal term for Rodney's offer of performance.

Q: Set forth the elements for a finding of substantial performance and the effect of a finding of substantial performance on damages.

Q: Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel that he would complete renovations on her upper scale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area; and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Which of the following is Stewart's best defense? A. Impossibility B. Commercial impracticability C. Frustration of purpose D. Profit reduction E. Material breach

Q: Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel that he would complete renovations on her upper scale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area; and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Which of the following is the appropriate term for the agreement that Stewart would pay Joan $50,000 for each day he was late in completion? A. Mitigated damages term B. Liquidated damages clause C. Stipulated damages D. Acknowledged damages clause E. Approved and acknowledged damages clause

Q: Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel that he would complete renovations on her upper scale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area; and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Assuming the earthquake does not affect Stewart's liability for damages, which of the following is true regarding the provision that he will pay $50,000 for each day he is late? A. It will be upheld based on freedom of contract. B. It will be upheld because the penalty per day is less than one half the amounts due for the job. C. It will be upheld as a stipulated amount. D. It will be struck because parties are prohibited as a matter of law from specifying damages. E. It will be struck as a penalty.

Q: Creaky and Toady. Beverly decides to go on a great trip to Hawaii. She needs someone, however, to take care of her two dogs, Creaky and Toady, while she is gone. Creaky has hives, and Toady passes gas frequently because of a digestive problem. Beverly hires Frank three months in advance and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks. Frank comes over two months before Beverly is set to leave, takes one look at Creaky and Toady, and declares that they are too creepy to be around. Beverly then hires Alice who agrees to care for Creaky and Toady. Two weeks before Beverly is set to leave, however, Alice calls and tells her that she just broke both her legs in an automobile accident, sustained other injuries, and has been put on bed rest for two months. Finally, Alice hires Betty to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Beverly returns home, she finds that Betty fell in love with Creaky and Toady and has absconded with them. It was a month before Beverly was able to get a court order requiring their return. Which of the following is true regarding Frank's refusal to keep Creaky and Toady? A. He committed an anticipatory repudiation. B. He is not guilty of any breach because he gave Beverly sufficient warning that he was not willing to perform. C. He is not guilty of any breach because of the frustration of purpose doctrine. D. He is guilty of an immaterial breach because of the low value of the contract. E. He is guilty of a nominal breach.

Q: Creaky and Toady. Beverly decides to go on a great trip to Hawaii. She needs someone, however, to take care of her two dogs, Creaky and Toady, while she is gone. Creaky has hives, and Toady passes gas frequently because of a digestive problem. Beverly hires Frank three months in advance and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks. Frank comes over two months before Beverly is set to leave, takes one look at Creaky and Toady, and declares that they are too creepy to be around. Beverly then hires Alice who agrees to care for Creaky and Toady. Two weeks before Beverly is set to leave, however, Alice calls and tells her that she just broke both her legs in an automobile accident, sustained other injuries, and has been put on bed rest for two months. Finally, Alice hires Betty to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Beverly returns home, she finds that Betty fell in love with Creaky and Toady and has absconded with them. It was a month before Beverly was able to get a court order requiring their return. Which of the following is true regarding Alice's refusal to keep Creaky and Toady? A. She is discharged from performance because of frustration of purpose. B. She is discharged from performance because of impossibility of performance. C. She committed a material breach. D. She failed to substantially perform but only committed an immaterial breach. E. She is guilty of only a nominal breach because she had a good excuse for breaching.

Q: Creaky and Toady. Beverly decides to go on a great trip to Hawaii. She needs someone, however, to take care of her two dogs, Creaky and Toady, while she is gone. Creaky has hives, and Toady passes gas frequently because of a digestive problem. Beverly hires Frank three months in advance and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks. Frank comes over two months before Beverly is set to leave, takes one look at Creaky and Toady, and declares that they are too creepy to be around. Beverly then hires Alice who agrees to care for Creaky and Toady. Two weeks before Beverly is set to leave, however, Alice calls and tells her that she just broke both her legs in an automobile accident, sustained other injuries, and has been put on bed rest for two months. Finally, Alice hires Betty to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Beverly returns home, she finds that Betty fell in love with Creaky and Toady and has absconded with them. It was a month before Beverly was able to get a court order requiring their return. Which of the following would be an order from the court requiring that Betty return Creaky and Toady to Beverly? A. An injunction B. A conciliation C. A mitigation D. A directive E. A specific

Q: Powder Room Mess. For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Willis' offer to put Robert in the position he would have been in had the proper faucets and linoleum been used is based on the measure used for what type of damages? A. Nominal B. Punitive C. Compensatory D. Liquidated E. Consequential

Q: List and discuss the questions and factors considered by a court in determining whether a party is an intended or incidental beneficiary.

Q: Powder Room Mess. For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Which of the following is true regarding whether Willis breached the contract? A. Willis did not breach the contract. B. Willis materially breached the contract. C. Willis substantially breached the contract. D. Willis breached the contract, but the breach was not material. E. Willis committed an anticipatory breach of the contract.

Q: Powder Room Mess. For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Which of the following is most likely true regarding Robert's entitlement to damages from Willis? A. There are no damages because Willis did not breach the contract. B. Robert will not have to pay for the house because Willis failed to substantially perform. C. Even though Willis substantially performed, Robert will not have to pay for the house because Willis materially breached the contract. D. Robert is released from paying for the house because of an anticipatory breach. E. Any damages awarded would be in the range of $300, the amount it would take to fix the breach.

Q: Lists four situations under which contractual rights cannot be assigned.

Q: Against whom may a donee beneficiary generally enforce rights and why?

Q: Maurice is excited because a developer plans a subdivision full of high priced homes that will adjoin his property. Maurice is so pleased that he puts in a new swimming pool to celebrate. Maurice believes that the subdivision will significantly increase the value of his property. The developer, however, changes his mind and decides not to develop the subdivision. Maurice is angry and asks if he can sue the developer, particularly since he can establish reliance. What would you tell Maurice and why? Discuss whether you agree with the law on this issue and why or why not.

Q: Set forth the eight exceptions to the parol evidence rule.

Q: Richard has insurance with ABC Insurer. Richard has a wreck with Susie. The adjuster for ABC Insurer orally agrees to pay Susie $1,000 for the damage to her car. The adjuster, however, gets in trouble with his boss for agreeing to pay too much. He tells Susie that he is backing out of the deal because the agreement is unenforceable on the basis that the statute of frauds requires that a contract to pay the debt of another be in writing. Is the adjuster correct? Why or why not?

Q: List and discuss two reasons why notice of assignment should be given.