Connect_ECONOMICS Learning. Contains 90 Q&A Plus Raionale

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Connect_ECONOMICS Learning. Contains 90 Q&A Plus Raionale 1. Award: 10.00 points Under ordinary circumstances, a party's duty to perform a promise agreed to in a contract is absolute. True False ... Under ordinary circumstances, a party's duty to perform the promise agreed to in a contract is absolute. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium    2. Award: 10.00 points Contractual conditions may be expressly inserted into the contract by the parties but may not be implied by law. True False Contracts containing conditions affecting the performance obligations of the parties are called conditional contracts. The conditions may be either implied by law or expressly inserted into the contract by the parties. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium    3. Award: 10.00 points There are two types of conditions that can be placed on contracts and affect a party’s duty to perform the promise agreed to in the contract. True False There are three types of conditions that affect a party’s duty to perform under a contract: a condition precedent, a condition subsequent, and concurrent conditions. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium    4. Award: 10.00 points 5. Award: 10.00 points Parties can discharge their duty under a contract by tendering performance. True False Parties discharge their duty by making an offer to perform, and being ready, willing, and able to perform. This offer of performance is known as a tender. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium There are two primary kinds of performance. True False There are two primary kinds of performance: complete performance and substantial performance. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       6. Award: 10.00 points 7. Award: 10.00 points Completion of all of the terms of a contract is required for substantial performance. True False Completion of NEARLY all the terms of the agreement is a condition of substantial performance. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard A material breach does not discharge the non-breaching party from his obligations under the contract. True False A material breach discharges the non-breaching party from his obligations under the contract. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       8. Award: 10.00 points 9. Award: 10.00 points When there is a substitution of a party to a contract, it is called rescission. True False Sometimes the parties to the agreement want to replace one of the parties with a third party. This substitution of a party is called novation. References True / False Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy Compensatory damages are frequently awarded damages. True False The most frequently awarded damages are compensatory damages. References True / False Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 2 Medium       10. Award: 10.00 points The court may award the plaintiff nominal damages in a case where no actual damages result from the breach of a contract. True False In a case where no actual damages result from the breach of a contract, the court may award the plaintiff nominal damages. References True / False Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 2 Medium    11. Award: 10.00 points Liquidated damages will be enforced based upon the free-will concept of contracts, even if the liquidated damages amount is unreasonable. True False The courts generally enforce a liquidated damages clause as long as the award appears to bear a reasonable relationship to what the actual costs will be. If the amount specified is so unreasonable as to not seem to bear any logical relationship to foreseeable costs, the courts declare the clause a penalty clause and do not enforce it. References True / False Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 2 Medium    12. Award: 10.00 points Rewriting a contract to reflect what the parties had agreed on is referred to as rescission. True False Reformation occurs when a written contract does not reflect the parties' actual agreement or there are inconsistencies in the contract, and the written document is rewritten to reflect what the parties had agreed on. References True / False Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium    13. Award: 10.00 points The court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring when one party thought there was an enforceable contract, but an enforceable contract does not actually exist. True False When an enforceable contract does not, in fact, exist, the court may grant a recovery based on quasi-contract. This means the court may impose a contract-like obligation on a party to prevent an injustice from occurring. References True / False Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium    14. Award: 10.00 points Restitution is the return of any property given up under the contract. True False Restitution is the return of any property given up under a contract. References True / False Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 1 Easy    15. Award: 10.00 points An order requiring that the breaching party fulfill the terms of the agreement is called specific performance. True False Specific performance is sometimes called specific enforcement. It is an order requiring that the breaching party fulfill the terms of the agreement. References True / False Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 1 Easy    16. Award: 10.00 points Hector's house was damaged by fire. He obtained three independent appraisals to repair the damage, and submitted the appraisals to his insurer, informing the insurer that he was willing to accept use of the lowest appraisal as a basis for his insurance reimbursement. The adjuster for the insurance company asked Hector to submit to an oral examination under oath concerning the fire, but Hector refused. The insurance company denied reimbursement based on Hector's refusal to provide the examination under oath. If the court follows the case in the text Hamilton v. State Farm Fire & Casualty Insurance Company, will Hector recover under the policy? No, the insurer will prevail if it can establish actual prejudice based on Hector's refusal to provide an examination under oath. No, the insurer will prevail based on Hector's refusal to provide an examination under oath regardless of whether or not it can establish actual prejudice. Yes, Hector will prevail even if he refuses to provide an examination under oath, but he will not be allowed to recover penalties or attorney fees. Yes, Hector will prevail only if he is able to establish that the insurer was not prejudiced by his refusal to provide an examination under oath; and, assuming he is able to do so, he will be allowed to recover penalties and attorney fees. Yes, Hector will prevail without any obligation to establish that the insurer was not prejudiced by his refusal to provide an examination under oath, and he will also be allowed to recover penalties and attorney fees. According to the court in Hamilton v. State Farm Fire & Casualty Insurance Company failure to cooperate with an insurer when requested to provide an examination under oath has been held to be a material breach and a defense to suit on the policy. The court also recognized that the burden is on the insurer to show actual prejudice. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard       17. Award: 10.00 points When a party's obligations under a contract are terminated, the party is said to be ____. Finished Terminated Completed Discharged Recoursed When a party's obligations under a contract are terminated, the party is said to be discharged. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       18. Award: 10.00 points How may a party's contractual obligations be discharged? Performance is the only way a party's contractual obligations may be discharged. Performance or the failure of a condition to occur are the only ways a party's contractual obligations may be discharged. Operation of law is the only way a party's contractual obligations may be discharged. Discharge may occur through material breach by one or both parties. Discharge may not occur through the failure of a condition to occur. Discharge may occur through performance, the happening of a condition or its failure to occur, material breach by one or both parties, agreement of the parties, and operation of law. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       19. Award: 10.00 points Contracts containing conditions affecting the performance obligations of the parties are called ______ contracts. Uncertain Conditional Unreasonable Voidable Void Contracts containing conditions affecting the performance obligations of the parties are called conditional contracts. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       20. Award: 10.00 points Which of the following is true regarding types of contractual conditions? There is only one type of condition: precedent. There are two types of conditions: precedent and subsequent. There are three types of conditions: precedent, subsequent, and concurrent. There are four types of conditions: precedent, subsequent, concurrent, and timeliness. There are at least ten types of conditions, and their identification varies based upon the subject matter. There are three types of contractual conditions: precedent, subsequent, and concurrent. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       21. Award: 10.00 points A condition ______ is a particular event that must occur in order for a party's duty to arise. Precedent Subsequent Concurrent At large Certain A condition precedent is a particular event that must occur in order for a party's duty to arise. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       22. Award: 10.00 points A condition ______ is a future event that terminates the obligations of the parties when it occurs. Precedent Subsequent Concurrent At large Certain A condition subsequent is a future event that terminates the obligations of the parties when it occurs. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       23. Award: 10.00 points When each party's performance is conditioned on the performance of the other, which of the following conditions occur? Precedent Subsequent Concurrent At large Certain Concurrent conditions occur when each party's performance is conditioned on the performance of the other. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       24. Award: 10.00 points Carrie and Peter enter into a contract in which Carrie agrees to wash Peter’s car if Peter tutors her son in math and her son gets at least a B+. This is an example of which type of conditional contract? Condition Precedent Condition Subsequent Condition Concurrent Implied condition The contract is not conditional. A condition precedent is a particular event that must occur in order for a party's duty to arise. The condition precedent is Carrie’s son getting a B+. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       25. Award: 10.00 points Carrie and Peter enter into a contract in which Carrie agrees to wash Peter’s car as long as Peter tutors Carrie’s son in math during the entire time Carrie is washing the car. This is an example of which type of conditional contract? Condition precedent Condition subsequent Condition concurrent Implied condition The contract is not conditional. Concurrent conditions occur when each party's performance is conditioned on the performance of the other. The concurrent conditions include Carrie washing the car and Peter tutoring her son. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       26. Award: 10.00 points Carrie and Peter enter into a contract in which Carrie agrees to wash Peter’s car once a week as long as Peter tutors Carrie’s son in math and Peter never comes home with a grade below B+. This is an example of which type of conditional contract? Condition Precedent Condition Subsequent Condition Concurrent Implied condition The contract is not conditional. A condition subsequent is a future event that terminates the obligations of the parties when it occurs. Carrie’s son coming home with a grade below B+ is a condition subsequent that would discharge Carrie from her obligation. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       27. Award: 10.00 points Which of the following describes conditions explicitly stated in the contract? Express Implied Conditional Concurrent Certain Express conditions are explicitly stated in the contract and are usually preceded by words such as “conditioned on,” “if,” “provided that,” or “when.” References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       28. Award: 10.00 points Conditions that are not explicitly stated, but are inferred from the nature and language of the contract are known as _________ conditions. Express Implied Conditional Concurrent At large Implied conditions are those that are not explicitly stated but are inferred from the nature and language of the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       29. Award: 10.00 points What is the key difference between an express and an implied condition? There are no differences; express and implied conditions are the same. Express conditions are clearly stated while implied conditions are inferred. Implied conditions are clearly stated while express conditions are inferred. Only implied conditions are enforceable. Only express conditions are enforceable. Express conditions are explicitly stated in the contract. Implied conditions are those that are not explicitly stated but are inferred from the nature and language of the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       30. Award: 10.00 points An offer for the sale of a vehicle contained the condition that the buyer must return the signed offer with a $1,000 deposit upon acceptance. The requirement to send $1,000 is an example of what type of condition? Express Implied Conditional Concurrent At large Express conditions are explicitly stated in the contract. For example, in a situation involving the potential sale of a house, the offer expressly required a buyer make a deposit of $1,000 on acceptance. When the buyer wrote “accepted” on the offer but returned it with no deposit, the court found in a subsequent dispute that the payment of $1,000 was an express condition of acceptance. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       31. Award: 10.00 points Juan and Carlos enter into a contract which states: “Carlos will paint Juan’s bedroom in Juan’s house white and Juan promises to pay Carlos $100 upon completion.” Which is an example of an implied condition? That Carlos will paint Juan’s bedroom. That Carlos will use white paint when painting Juan’s bedroom. That Juan will pay Carlos $100. That Juan will pay Carlos upon completion of the painting. That Juan will allow Carlos access to his bedroom Express conditions are explicitly stated in the contract. Implied conditions are those that are not explicitly stated but are inferred from the nature and language of the contract. The painting, the use of white paint, the $100 payment, and the time of payment are all express conditions. However, it is an implied condition that Carlos must be provided access to Juan’s house in order to be able to paint. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard       32. Award: 10.00 points ____ occurs when the parties' discharge their obligations by doing what they respectively agreed to do under the contract terms. Discharge by tender Discharge by performance Discharge by finishing Discharge by absolution Discharge by reason When parties discharge their obligations by doing what they respectively agreed to do under the terms of the contract, this is called discharge by performance. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       33. Award: 10.00 points How do parties generally discharge their obligations in most situations where there is a contract? Discharge by performance Discharge by tender. Discharge by finishing Discharge by absolution Discharge by reason In most situations, parties discharge their obligations by doing what they respectively agreed to do under the terms of the contract. This is called discharged by performance. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       34. Award: 10.00 points An offer of performance is known as ____ when parties offer to perform and are ready, willing, and able to perform. Offering Showing Tender Completer Implied acceptance Parties discharge their duty by making an offer to perform and being ready, willing, and able to perform. This offer of performance is known as a tender. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       35. Award: 10.00 points What is the difference between performance and tender? There is no difference. Performance involves fulfilling contractual obligations, while tender involves offering performance. Tender is required when there is a conditional contract, while performance is required for all other contracts. Performance is required when there is a conditional contract, while tender is required for all other contracts. Tender is substantial performance, while performance refers only to complete performance Performance occurs when parties do what they respectively agreed to under the terms of a contract. The offer of performance is known as tender. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       36. Award: 10.00 points Yolef and Stacia enter into a contract for Stacia to cook a meal for Yolef and Yolef to pay Stacia $50. Yolef shows up at Stacia’s house with $100. Yolef’s actions are an example of: Tender. Performance. Complete performance. Incomplete performance. Implied performance The offer of performance is known as tender. Yolef has offered to perform, or tendered performance, by coming to Stacia’s house with the money References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard       37. Award: 10.00 points Yolef and Stacia enter into a contract for Stacia to cook a meal for Yolef and Yolef to pay Stacia $50. Yolef shows up at Stacia’s house with $100 and hands it to Stacia. Stacia refuses to accept the money. Yolef has: Discharged his duties under the contract. Performed subject to satisfaction of a contracting party Substantially performed his duties. Breached the contract Not yet performed his duties under the contract The offer of performance is known as tender. Paul has offered to perform, or tendered performance, by coming to Stacia’s house with the money. Paul has now discharged his duties. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard       38. Award: 10.00 points Which of the following are the two primary kinds of performance? Partial and significant Partial and complete Partial and substantial Complete and substantial Complete and significant There are two primary kinds of performance: complete performance and substantial performance. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       39. Award: 10.00 points When all aspects of the parties' duties under the contract are executed perfectly, which of the following occurs? Complete performance Substantial performance Significant performance Absolute performance Approved performance Complete performance occurs when all aspects of the parties' duties under the contract are carried out perfectly. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       40. Award: 10.00 points Alexandra and Tomas enter into a contract in which Tomas agrees to install a new door for Alexandra and to install a new silver doorknob. Tomas installs the door, but silver doorknobs are out of stock so he finds a chrome knob that he believes looks silver and he installs it. Which of the following describes Tomas’ performance of his duties? Complete performance Substantial performance Significant performance Absolute performance Approved performance Substantial performance occurs when nearly all of the terms of the agreement are complete, an honest effort to complete all the terms has occurred, and no willful departure form the terms of the agreement has occurred. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard       41. Award: 10.00 points A contractual condition of satisfaction is considered a[n] ______ condition that must be met before the other party's obligation to pay for the performance arises. Partial Conditional Express Implied Concurrent Satisfaction is considered an express condition that must be met before the other party's obligation to pay for the performance arises. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       42. Award: 10.00 points A contractual condition of satisfaction may be judged by either a[n] ______ or ______ standard. Objective; express Subjective; express Objective; absolute Absolute; express Objective; subjective Satisfaction may be judged according to either a subjective or an objective standard. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       43. Award: 10.00 points If a contract does not clearly specify that the satisfaction is to be personal, the ______ standard applies. Express Subjective Objective Absolute Unbiased If a contract does not clearly specify that the satisfaction is to be personal, the objective standard applies. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       44. Award: 10.00 points If a woman is having a dress custom made for her, the ______ standard applies. Subjective satisfaction Express satisfaction Objective satisfaction Absolute satisfaction Unbiased satisfaction When the judgment involved is a matter of personal taste, such as when a woman is having a dress custom made for her, the court apply a subjective satisfaction standards. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       45. Award: 10.00 points Whenever a party fails to perform his or her obligations under the contract, a _____ occurs. Split Break Breach Misdeed Mistake A breach occurs whenever a party fails to perform his or her obligations under the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       46. Award: 10.00 points A[n] _____ discharges the non–breaching party from his or her obligations under the contract. Immaterial breach Substantial breach Material breach Delineated breach Crossed breach A material breach discharges the non-breaching party from his or her obligations under the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       47. Award: 10.00 points Which term describes when a party unjustifiably fails to substantially perform his or her obligations under the contract? Immaterial breach Substantial breach Material breach Delineated breach Crossed breach A material breach occurs when a party unjustifiably fails to substantially perform his or her obligations under the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       48. Award: 10.00 points Which of the following occurs when a contracting party refuses to complete the contract before the actual time of performance? Immaterial breach Substantial breach Material breach Delineated breach Crossed breach An anticipatory repudiation occurs when a contracting party decides not to complete the contract before the actual time of performance. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       49. Award: 10.00 points Penelope agrees to sell 100 pounds of sugar to Vito in June. In May, Penelope discovers there is a major sugar shortage and she would have to pay her supplier 1000 times more than expected. She alerts Vito in May that she does not intend to sell him the sugar. This is an example of: Anticipatory repudiation Tendered repudiation Advance refusal Advance repudiation Preparatory refusal An anticipatory repudiation occurs when a contracting party decides not to complete the contract before the actual time of performance. The breaching party may convey the anticipatory breach by making an obvious indication of the intent to no longer perform. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       50. Award: 10.00 points Which of the following is NOT a way to discharge contractual obligations by mutual agreement? Accord and satisfaction Novation Substituted contract Mutual rescission Anticipatory repudiation Mutual rescission; substituted contract; accord and satisfaction; and novation are all ways to discharge contractual obligations by mutual agreement. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       51. Award: 10.00 points 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? Accord and satisfaction Novation Substituted contract Mutual rescission Alteration Mutual rescission occurs when parties agree that they simply wish to discharge each other from their mutual obligations and therefore rescind or cancel the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       52. Award: 10.00 points When the parties substitute a new agreement in place of the original, instead of canceling a contract, the parties have a[n] _____________. Accord and satisfaction Novation Substituted contract Mutual rescission Alteration The parties may enter into a substituted contract in place of the original contract instead of canceling the contract and terminating their relationship. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       53. Award: 10.00 points Which of the following is used when, by agreement, one of the parties substitutes a different performance for his or her original duty under the contract? Accord and satisfaction Novation Substituted contract Mutual rescission Alteration An accord and satisfaction is used when one of the parties wishes to substitute a different performance for his or her original duty under the contract. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       54. Award: 10.00 points Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party? Accord and satisfaction Novation Substituted contract Mutual rescission Alteration Sometimes the parties to the agreement want to replace one of the parties with a third party. This substitution of a party is called novation. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       55. Award: 10.00 points Kelly contracts with Raphael for Raphael to bring a pony to her daughter’s birthday party in exchange for $100. Kelly later learns her daughter is frightened of ponies. She contacts Raphael and Raphael agrees to bring a donkey to the party for $50 instead. Which of the following is true of the original agreement involving the pony and the $100? It was discharged by accord and satisfaction It was discharged by novation It was discharged by substituted contract It was discharged by mutual rescission It was breached Substituted contract occurs when parties mutually agree to discharge each other from the contract by substituting a new agreement. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       56. Award: 10.00 points Which of the following is NOT a way in which a contract may be discharged by operation of law? Alteration of the contract Bankruptcy Impossibility of performance Accord and satisfaction Commercial impracticability Alteration of the contract, bankruptcy, tolling of the statute of limitations, impossibility of performance, commercial impracticability, and frustration of purpose are situations in which a contract may be discharged by operation of law. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       57. Award: 10.00 points 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? Frustration of purpose Commercial impracticability Alteration of the contract Anticipatory repudiation Anticipatory renunciation Commercial impracticability is used for discharge when performance is still objectively possible but would be extraordinarily injurious or expensive to one party. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       58. Award: 10.00 points In England, parties who had contracted for rooms along a parade route for a king's coronation were refunded their money when the coronation was canceled because the king became ill. Which of the following doctrines arose from this decision? Frustration of purpose Commercial impracticability Alteration of the contract Anticipatory repudiation Anticipatory renunciation The doctrine of frustration of purpose arose from coronation cases in England. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 1 Easy       59. Award: 10.00 points Monetary damages are also referred to as ______ damages. Equitable Fair Public Legal Injunctive Monetary damages are also referred to as legal damages or legal remedies. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 1 Easy       60. Award: 10.00 points Damages that are designed to put the plaintiff in the position he or she would have been in had the contract been fully performed are known as which of the following? Equitable Compensatory Public Legal Punitive Compensatory damages are damages designed to put the plaintiff in the position he or she would have been in had the contract been fully performed. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 2 Medium       61. Award: 10.00 points Under the UCC, how are compensatory damages calculated when a seller breaches a contract for the sale of goods? By the liquidated damage clause, which the Uniform Commercial Code requires buyers and sellers must include in all contracts for the sale of goods. By calculating the degree of inconvenience the buyer incurred as a result of the seller’s breach of contract. By the price the seller had agreed to sell the goods for, multiplied by 1.5 to account for the buyer’s inconvenience. By finding the difference between what the buyer would have paid for goods under the contract and the amount the buyer will have to pay to obtain the goods from another seller. By calculating the value of the buyer’s actual losses and adding punitive damages. Under the UCC, the measure of damages is the difference between what the buyer would have paid for the goods under the contract and what he or she is now going to have to pay to obtain the goods from another seller. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 2 Medium       62. Award: 10.00 points Which type of damages are foreseeable damages that result from special facts and circumstances arising outside the contract itself, and are within the contemplation of the parties at the time the contract was made? Consequential Punitive Liquidated Nominal Repugnant Consequential damages are foreseeable damages that result from special facts and circumstances arising outside the contract itself. These damages must be within the contemplation of the parties at the time the breach occurs. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 2 Medium       63. Award: 10.00 points Which of the following types of damages are designed to punish the defendant and deter him and others from engaging in similar behavior in the future? Consequential Punitive Liquidated Nominal Repugnant Just as in tort law, punitive damages in contract law are designed to punish the defendant and deter him and others from engaging in similar behavior in the future. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 1 Easy       64. Award: 10.00 points Which is an example of a situation in which the court would likely award punitive damages after a breach of contract? When fraud occurred. When anticipatory breach occurred When anticipatory repudiation occurred When substantial performance occurred. When only nominal damages occurred. Punitive damages in contract law are designed to punish the defendant and deter him and others from engaging in similar behavior in the future. Most jurisdictions award punitive damages only when the defendant has engaged in reprehensible conduct, such as fraud References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 1 Easy       65. Award: 10.00 points The court may award the plaintiff ______ damages when no actual damages result from the breach of a contract. Consequential Punitive Liquidated Nominal Repugnant In a case where no actual damages resulted from the breach of a contract, the court may award the plaintiff nominal damages. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 1 Easy       66. Award: 10.00 points The damages parties specify in advance in a contract, in contemplation of a particular kind of breach, are known as ___________ damages. Consequential Punitive Liquidated Nominal Repugnant Liquidated damages are a type of damages that the parties specify in advance in a contract in contemplation of a particular kind of breach. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 1 Easy       67. Award: 10.00 points The obligation to use reasonable efforts to minimize damage resulting from a breach is referred as the duty to ______ one's damages. Reduce Remit Reform Mitigate Migrate To recover damages in a breach-of-contract case, the plaintiff must demonstrate that he or she used reasonable efforts to minimize the damage resulting from the breach. This obligation is referred to as the duty to mitigate one's damages. References Multiple Choice Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? Difficulty: 1 Easy       68. Award: 10.00 points Equitable remedies, as applied in the U.S., developed from the court’s authority in which country? France Italy England Spain Portugal Equitable remedies grew out of the English court's authority. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium       69. Award: 10.00 points Why did equitable remedies come into being? To fashion remedies when the existing laws did not provide any adequate ones. To supplement compensatory damages with punitive damages. To provide a way to award nominal damages. To provide a way to award consequential damages. To provide a way to award certain parties liquidated damages. Equitable remedies grew out of the English court's authority to fashion remedies when the existing laws did not provide any adequate ones. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium       70. Award: 10.00 points Which is NOT an example of a common equitable remedy used today? Rescission. Restitution. Anticipatory breach. Orders for specific performance. Injunction. The most common equitable remedies used today include rescission, restitution, orders for specific performance, and injunction. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium       71. Award: 10.00 points ______ is the termination of the contract, and ______ is the return of any property given up under the contract. Rescission; restitution Rescission; reformation Reformation; restitution Reformation; rescission Rescission; compensation Rescission is the termination of the contract, and restitution is the return of any property given up under the contract. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium       72. Award: 10.00 points In the text case Thrifty Rent-A-Car System v. South Florida Transport, the plaintiffs sued the defendant, the operator of a Thrifty franchise, for amounts owed, but the defendant resisted payment on the basis that several hurricanes rendered the business operations commercially impractical. How did the court rule in the case? The court ruled that the bad weather completely excused the defendant's performance. The court ruled that the parties had to jointly bear the burden of bad weather and that 50% of what the defendant owed would be excused. The court ruled that the defendant was legally entitled to additional time in which to pay, but that the defendant would be required to pay all amounts owed. The court ruled that the plaintiffs were entitled to recover because the defendant failed to anticipatorily repudiate the contract. The court ruled that the plaintiffs were entitled to recover for reasons including that the nonoccurrence of hurricanes was not a basic assumption of the agreement. The court ruled that the non-occurrence of hurricanes was not a basic assumption of the parties' agreements. Additionally, there was no evidence that hurricanes made the cost of performance unduly burdensome, and the defendant was behind on its payments before the arrival of the hurricanes. References Multiple Choice Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       73. Award: 10.00 points College president Robert contracted with Denise to teach business law. Alice did a good job teaching, but became upset with Robert and refused to turn in her grades. What type of order should Robert seek to compel Denise to abide by her contract? An order of specific performance A compensatory order A nominal order A consequential order A demand order Specific performance is sometimes called specific enforcement. It is an order requiring that the breaching party fulfill the terms of the agreement. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 3 Hard       74. Award: 10.00 points Which of the following requires that the breaching party fulfill the terms of the agreement? Specific obligation Specific performance Absolute obligation Identified obligation Absolute performance Specific performance is sometimes called specific enforcement. It is an order requiring that the breaching party fulfill the terms of the agreement. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 1 Easy       75. Award: 10.00 points Which of the following is an order either forcing a person to do something or prohibiting a person from doing something? Specification Directive Instructional edict Demand Injunction An injunction is an order either forcing a person to do something or prohibiting a person from doing something. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium       76. Award: 10.00 points Caroline goes to work for a soft drink company who own a proprietary recipe. She signs a nondisclosure agreement. When she is fired, she threatens to go public with the company’s recipe. The company wants to stop her. They should seek a(n) __________ . Injunction Directive Instructional edict Demand Order for specific performance An injunction is an order either forcing a person to do something or prohibiting a person from doing something. The company wants to prohibit Caroline from releasing their secret recipe. References Multiple Choice Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? Difficulty: 2 Medium [Dream Home] Jacob finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home provided that he can obtain a loan. Jacob also includes a clause in the contract with the seller stating that if he loses his job before the date the purchase contract is signed, the seller will release him from any obligation. After obtaining a loan and buying the home, Jacob decides he wants to have new windows installed. He enters into a contract with a window contractor. The window contractor visits the home, but never finds Jacob there. The contractor makes several attempts to reach Jacob, but Jacob does not return phone calls and makes no attempt to assist the contractor in arranging the window installation.       77. Award: 10.00 points The provision that the seller will release Jacob unless he is able to obtain a loan is a _____________. A condition subsequent A condition precedent A bona fide condition A condition concurrent An exculpatory condition A condition precedent is a particular event that must occur in order for a party's duty to arise. Express conditions are explicitly stated in the contract and are usually preceded by words such as conditioned on, if, provided that, or when. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract?       78. Award: 10.00 points The provision that the seller will release Jacob from any obligation if he loses his job is a _____________. A condition subsequent A condition precedent A bona fide condition A condition concurrent An exculpatory condition A condition subsequent is a future event that terminates the obligations of the parties when it occurs. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract?       79. Award: 10.00 points The responsibility of Jacob to make arrangements to give the window installer access to the home is a[n] ______________. A condition subsequent A condition precedent An implied condition An express condition An acknowledged condition Implied conditions are those that are not explicitly stated but are inferred from the nature and language of the contract. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract? [Bathroom Mess] For $300,000, Michael agreed to build a new home for Ashton, who is very picky. Michael built the home to Ashton's specifications with one exception: the faucets and flooring in the upstairs bathroom were not exactly what Ashton specified. That was a mistake on Michael’s part, but he did not intentionally fail to follow the specifications. When Ashton saw the bathroom, she went ballistic and told Michael that she would not pay Michael anything for the house. It will take $300 to put in the correct faucets and flooring. Michael responded that he is willing to pay $300 to put Ashton in the position she would have been in had the correct faucets and flooring been used, but that is all he is willing to pay       80. Award: 10.00 points Which statement is true regarding the breach, if any, that occurred between Michael and Ashton? Michael did not breach the contract. Michael materially breached the contract. Michael substantially breached the contract. Michael breached the contract. Michael committed an anticipatory breach of the contract. A breach occurs whenever a party fails to perform his or her obligations under the contract. A breach may be a minor breach. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract?       81. Award: 10.00 points Regarding the appropriate amount of damages, if any, which of the following statements is true regarding the effect Michael’s failure to meet his obligations under the building contract? There are no damages because Michael did not breach the contract. Ashton will not have to pay for the house because Michael failed to perform as required. Even though Michael substantially performed, Ashton will not have to pay for the house because Michael materially breached the contract. Ashton is released from paying for the house because of the anticipatory breach. Any damages awarded would be in the range of $300, the amount it would take to fix the breach. A breach occurs whenever a party fails to perform his or her obligations under the contract. If the breach is a minor one, it may entitle the non-breaching party to damages but a minor breach does not discharge the non-breaching party from the contract. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract?       82. Award: 10.00 points Michael’s offer to put Ashton in the position she would have been in had the proper faucets and flooring been used is based on the measure used for what type of damages? Nominal Punitive Compensatory Liquidated Consequential The most frequently awarded damages are compensatory damages, which are damages designed to put the plaintiff in the position he or she would have been in had the contract been fully performed. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-02 What are the primary legal remedies available for a breach of contract? [Hawaiian Adventure] Hannah decides to go on a fun trip to Hawaii. While she is gone, she needs someone to take care of her two dogs, Champ and Sage. She hires Amir three months in advance, and they reach a contractual arrangement whereby he will be paid $200 for taking care of the dogs for two weeks. Amir comes over two months before Hannah is set to leave, takes one look at Champ and Sage, and declares that they are too difficult to handle so he will not care for them. Hannah then hires Alisha who agrees to care for Champ and Sage. Two weeks before Hannah is set to leave, however, Alisha calls and tells her that she just broke both her legs in an automobile accident and has been put on bed rest for two months. Finally, Hannah hires Kelsey to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Hannah returns home, she finds that Kelsey has disappeared with Champ and Sage. Later, they are found in good health at an exclusive resort visited by Kelsey. Kelsey refuses to return Champ and Sage to Hannah, claiming that they were all enjoying the resort and that she has become quite attached to them.       83. Award: 10.00 points What was the effect of Amir's refusal to keep Champ and Sage? He committed an anticipatory repudiation. He is not guilty of any breach because he gave Hannah sufficient warning that he was not willing to perform. He is not guilty of any breach because the contract is not over $1,000 in amount. He is guilty of an immaterial breach because of the low value of the contract. He is guilty of a nominal breach. Anticipatory repudiation occurs when a contracting party announces his refusal not to complete a contract before the actual time of performance. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract?       84. Award: 10.00 points What was the effect of Alisha's refusal to keep Champ and Sage? She is discharged from performance because of frustration of purpose. She is discharged from performance because of impossibility of performance. She committed a material breach. She failed to substantially perform but only committed an immaterial breach. She is guilty of only a nominal breach because she had a good excuse for breaching. Sometimes an unforeseen event occurs that makes it physically or legally impossible for a party to carry out the terms of the contract. In such a situation, the party will be discharged on grounds of impossibility of performance. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-01 What are the primary methods of discharging a contract?       85. Award: 10.00 points 86. Award: 10.00 points What will Hannah seek in order to force Kelsey to return Champ and Sage? An injunction Compensation Punitive damages Nominal performance Adequate performance An injunction is an order either forcing a person to do something or prohibiting a person from doing something. References Multiple Choice Difficulty: 3 Hard Learning Objective: 20-03 What are the primary equitable remedies available for a breach of contract? List the ways by which a party's contractual obligations can be terminated. A party's contractual obligations can be terminated by performance, the happening of a condition or its failure to occur, material breach by one or both parties, agreement of the parties, and operation of law. References Essay Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium       87. Award: 10.00 points Courtney and Jonathan agreed that Jonathan would paint Courtney's home for $800 with Courtney supplying the paint. Jonathan went to Courtney's home on several occasions to do the job, but she never had the paint. Finally, he moved on to other jobs. Six months later, Courtney sued Jonathan for not painting her home. Who is likely to win and why? Include the legal term for Jonathan's offer of performance. Jonathan is most likely to win because Jonathan offered to perform by being ready, willing, and able to perform. His offer of performance is called tender. Courtney delayed excessively. References Essay Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 3 Hard 88. Award: 10.00 points Describe the elements of substantial performance of a contract and the effect of a finding of substantial performance on damages. Substantial performance occurs when the following conditions have been met: (1) completion of nearly all the terms of the agreement, (2) an honest effort to complete all the terms, and (3) no willful departure from the terms of the agreement. Substantial performance discharges the party's responsibilities under the contract, although the court may require that the party compensate the other party for any loss in value caused by the failure to meet all the standards set forth in the contract. References Essay Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium 89. Award: 10.00 points Describe the actions that bring about an anticipatory repudiation of a contract, and the rights of a non-breaching party when faced with anticipatory repudiation. Anticipatory repudiation occurs when a contracting party refuses to complete a contract before the actual time of performance. When an anticipatory repudiation occurs, the non-breaching party is discharged from his or her obligations under the contract. The non-breaching party is free to go ahead and sue for breach, as well as find another similar contract elsewhere. However, if the nonbreaching party wishes, they may decide to give the party who repudiated the opportunity to change their mind and still perform. References Essay Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium 90. Award: 10.00 points Describe the three main situations in which the courts find objective impossibility. The first situation in which courts find objective impossibility is the destruction of the subject matter. The second situation of objective impossibility is the death or incapacity of a party whose personal services are necessary to fulfill the terms of the contract. The third situation is subsequent illegality. References Essay Learning Objective: 20-01 What are the primary methods of discharging a contract? Difficulty: 2 Medium [Show More]

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