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Exam 18: Contract Remedies

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Question 21

True/False

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A liquidated damage clause that represents a reasonable approximation of the damages where the actual amount would be very difficult to determine will usually be upheld.

A) True
B) False

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Question 22

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The usual remedy for breach of contract is:

A) injunction.
B) specific performance.
C) punitive damages.
D) money damages.

E) B) and D)
F) B) and C)

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Question 23

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If Nioma cannot prove a particular element of her loss with reasonable certainty, she is barred from recovering any of the loss arising from breach of contract by the other party.

Sean breaches an agreement in his employment contract with Inmett Corporation by also working for Inmett's major competitor. Sean's promise to Inmett of his exclusive personal services may be enforced by injunction.

Specific performance is the usual judicially granted remedy for breach of contract.

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.

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

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.

David enters into a contract giving Edward the right of first refusal on 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:

Howard needs a truck to pull a 2,000-pound trailer. Gordon tells Howard, "My truck will pull a 2,000 pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer. If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for:

a. When is specific performance available to enforce a contract? b. Under what circumstances will a court grant specific performance to enforce a contract involving personal services? c. What remedy did the court award in the Madison Square Garden case? Explain why the court chose this remedy.

Lynne agrees to buy Harriette's farm for $200,000 and puts $20,000 down. Then Lynne learns she is allergic to hay and repudiates the contract. If Harriette can sell the farm in a good faith transaction for $190,000 a month later, she may:

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.

Explain three limitations on monetary damages.

Marcella pays $12,000 down on a houseboat which Hugh had agreed to sell to her for $64,000. Marcella then repudiates the contract. Hugh sells the houseboat to Lloyd in good faith for $60,000. Marcella may recover from Hugh:

In the case of Hadley v. Baxendale , the plaintiff was seeking damages for:

At its discretion, a court of equity may grant an injunction against breach of a contractual duty when damages for a breach would be inadequate.

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

To accomplish the basic purposes of contract remedies, which of the following limitations have not been imposed upon monetary damages?

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: