CHAPTER 20 - BREACH OF CONTRACT & REMEDIES QUIZ

       1. Paul is hired to build a fence for $500. Before he starts, the man who hired him tells Paul he doesn't want the fence built after all. Paul is able to find another fence-building job, but it pays only $400. Further, the new job is far away, and it will cost Paul $50 in gas to travel back and forth. What is the total amount that Paul could receive in punitive damages from the man who breached the original contract?

a. $0
b. $150
c. $500
d. $550

2. A football player overextends his knee, and requires surgery. A rehabilitation specialist later seeks the player's business. He promises the player that he will, after his therapy, have a 100% perfect knee. The player hires him. A year later, the player can walk, but his leg is far from perfect. If the player sues the therapist, what will he receive in damages?

a. his salary for one season
b. the value of a perfect knee less the value of his knee as it really is
c. the value of a perfect knee
d. nothing

3. Leslie has a contract to sell her 1990 Volvo to Jennifer. At the last minute, Leslie decides she wants to keep her car and refuses to sell it. If Jennifer sues for breach of contract, what remedies will be available to her?

a. monetary damages
b. specific performance (a court order for leslie to sell her the car)
c. an injunction preventing leslie from selling the car to anyone else
d. all of the above

4. Paul is hired to build a fence for $500. Before he starts, the man who hired him tells Paul he doesn't want the fence built after all. Paul is able to find another fence-building job, but it pays only $400. Further, the new job is far away, and it will cost Paul $50 in gas to travel back and forth. This $50 in gas is an example of

a. incidental damages.
b. compensatory damages.
c. punitive damages.
d. both A and B

5. Mr. Tallyman orders 100 8-foot bunches of bananas from Chiquita for $2,000. They are never delivered. The market price of the bananas is $2,000. What amount can Tallyman seek from Chiquita in compensatory damages?

a. $0
b. $200
c. $2,000
d. none of the above

6. In all of the following cases, the seller breached a contract to sell. The buyer isLEAST likely to receive monetary damages if the contract involved

a. a car.
b. a construction contract.
c. a piece of land.
d. a computer.

7. Dillard's hires BigCo. to build a two-story new store. BigCo. is to be paid $200,000 for the job, and will see a profit of $50,000. After the first story is complete and BigCo. has spent $75,000, Dillard's breaches the contract. What amount of damages will BigCo. receive in court in this case?

a. $200,000
b. $275,000
c. $125,000
d. $50,000

8. Dillard's hires BigCo. to build a two-story new store. BigCo. is to be paid $200,000 for the job, and will see a profit of $50,000. Before they start work or receive payment, BigCo. breaches the contract. Dillard's has to pay another company $240,000 to do the job. How much can Dillard's receive in damages in an action against BigCo.?

a. $0
b. $40,000
c. $200,000
d. $240,000

9. Al buys a tractor from John Deer. It is not delivered on time and, as a result, much of Al's crops are damaged. Will Al be able to recover damages for his lost crops?

a. no, because they were not mentioned in the contract
b. yes, because all damages that result from a breached contract must be paid by the breaching party
c. yes, but only if the damages were foreseeable
d. yes, because a company is strictly liable for its negligence

10. Stan breaches his contract with Al. If Al sues under a contract theory only, will he get punitive damages?

a. yes, if Stan acted unreasonably
b. yes, if Stan willfully broke the contract
c. nes, if Stan maliciously broke the contract
d. no

11. Ann is wrongfully fired from a three-year employment contract. She does not find a new job during the three years, and brings a lawsuit. To reduce their damages, what must the defendants who fired her prove?

a. that Ann did not look for another job
b. that similar jobs were available in Ann's area
c. that Ann could have gotten a similar job
d. both B and C

12. Mel orders a lobster at a restaurant. The menu lists the price as $29.95. This is an example of a(n)

a. liquidated debt.
b. unliquidated debt.
c. negotiable debt.
d. none of the above

13. Al signs an apartment lease for one with Landlord Lennie, starting in January. In July, Al tells Lennie he can go to hell, and that he is moving out immediately. Al can usually find replacement tenants in about two months, but he does not find one until Al's lease expires because he is angry. How many of the six months (August-December) will a court likely order Al to pay?

a. 0
b. 2
c. 6
d. none of the above

14. Mr. Tallyman orders 100 8-foot bunches of bananas from Chiquita for $2000. They are never delivered. The market price of the bananas falls in the meantime to $1800. What type of damages are available to Mr. Tallyman in a breach of contract action?

a. compensatory damages
b. punitive damages
c. nominal damages
d. both A and C

15. Manny and Bert enter into a construction contract which is to be completed by November 1. The contract states, "For every day after November 1 that the building remains uncompleted, Bert must pay Manny $1,000." For this clause to be enforceable, it must be found that

a. it is reasonable in amount.
b. actual damages were hard to estimate when the contract was signed.
c. both A and B
d. none of the above

16. Which of the following statements about rescission is accurate?

a. A party may never rescind a contract on his own.
b. For rescission to occur, all parties must always agree to the rescission.
c. A rescission can sometimes be done unilaterally.
d. both A and B

17. Ben makes an agreement to sell a painting for $300. The buyer gives Ben a $100 deposit, but Ben never delivers the painting. If a court orders Ben to make restitution, what will he have to give the buyer?

a. nothing
b. $100
c. $300
d. the painting

18. Ben makes an agreement to sell a painting for $300. The buyer gives Ben a $100 deposit, but Ben never delivers the painting. If a court issues Ben an order of specific performance, what will he have to give the buyer?

a. nothing
b. $100
c. $300
d. the painting

19. Al and Greg have a contract for the sale of a car. Al, the seller, breaches the contract. A court will be most likely to order specific performance if there are _______________ identical cars in running condition in the United States.

a. 100,000
b. 10,000
c. 1,000
d. 100

20. Al hires U2 to play at his Christmas party for $200,000. At the last minute, the Edge gets sick, and the show is canceled, breaching the contract. Al is crushed, as in his mind (and everyone else's) there is no substitute for U2. What remedies is a court likely to consider assessing against the band?

a. damages
b. specific performance
c. both A and B
d. none of the above

21. Al orally agrees to buy a piece of land from Joel for $10,000. Joel turns over the land, but Al never pays him. What amount may Joel seek in court?

a. $10,000
b. the reasonable value of the land
c. both A and B
d. none of the above

22. Amy contracts to buy a piece of land from Harold. Harold breaches the contract. What remedies may Amy actually seek in her lawsuit?

a. specific performance
b. damages
c. either specific performance or damages, but not both
d. both specific performance and damages in the same lawsuit

23. To which of the following contracts does the election of remedies doctrine apply?

a. sale of a piece of land
b. sale of a computer
c. sale of a car
d. all of the above

24. Al is to deliver 100 computers to Ben on March 1. He breaches the contract by arriving late on March 10, and by delivering only 50 computers at that time. Ben, on March 10, signs a waiver. Which of the following is true?

a. Al may rescind the contract.
b. Al may not rescind the contract.
c. Al may not sue for damages.
d. both A and C

25. Al and Ben have a contract which says, "Al will not sue Ben for any damages arising from any breach of this contract." In which of these situations has Ben really lost his rights to sue? Assume Al and Ben have equal bargaining positions.

a. Ben innocently breaches the contract.
b. Ben negligently breaches the contract.
c. Ben intentionally breaches the contract.
d. both A and B