EXAM 3 MULTIPLE CHOICE EXAM QUESTIONS AND ANSWERS
When one party substantially, but not completely, performs a contract, thus creating a minor breach,
which of the following remedies may the injured party choose?
a. Deduct the cost necessary to fix the minor beach from the payment due to the breaching party.
b. File an actual lawsuit against the beaching party to fix the minor beach.
c. Refuse to pay the full payment due to the breaching party
d. None of the above - CORRECT ANSWER✅✅A
When one party commits an anticipatory breach, the non-breaching party:
a. must wait until performance was due before suing the breaching party.
b.
c.
d. none of the above - CORRECT ANSWER✅✅B is immediately discharged from his contractual
obligations.
What distinguishes an anticipatory breach from other breaches?
a. It involves a breach by each party to the contract.
b. It occurs only in connection with substantial performance issues
c. It is a foreseeable breach
d. It occurs prior to the time performance is due. - CORRECT ANSWER✅✅D
What is the most basic or common remedy for a breach of contract?
a. Compensatory damages
b. Consequential damages
c. Punitive damages
d. Nominal damages - CORRECT ANSWER✅✅A
What is the general goal in awarding compensatory damages in a breach of contract situation?
a. Return both parties to the situation they were in prior to the contract
, b. Punish the breaching party for the wrongdoing
c. Place the nonbreaching party in the same position as if the contract had been fully performed.
d. Modify the contract terms to be more equitable to the parties. - CORRECT ANSWER✅✅Cis not able
to sue at all because he received advanced notice of the breach.
Which of the following must be foreseeable to be collected from a breaching party?
a. Consequential damages
b. Liquidated damages
c. Nominal damages
d. None of the above - CORRECT ANSWER✅✅A
Which of the following is NOT a characteristic of consequential damages?
a. They arise from circumstances outside of the contract.
b. They can be recovered in addition to compensatory damages
c. They can be collected only if they are foreseeable or known to the other party.
d. They are fixed in amount at the time the contract is formed. - CORRECT ANSWER✅✅D
Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known
as:
a. Punitive damages
b. Liquidated damages
c. Consequential damages
d. None of the above - CORRECT ANSWER✅✅B
A court will not enforce a liquidated damages clause when:
a. The amount specified is too small and considered to be unfair
b. The amount of actual damages is significantly greater than the amount specified as liquidated
damages
c. The amount was agreed to by the parties prior to the existence of an actual breach
When one party substantially, but not completely, performs a contract, thus creating a minor breach,
which of the following remedies may the injured party choose?
a. Deduct the cost necessary to fix the minor beach from the payment due to the breaching party.
b. File an actual lawsuit against the beaching party to fix the minor beach.
c. Refuse to pay the full payment due to the breaching party
d. None of the above - CORRECT ANSWER✅✅A
When one party commits an anticipatory breach, the non-breaching party:
a. must wait until performance was due before suing the breaching party.
b.
c.
d. none of the above - CORRECT ANSWER✅✅B is immediately discharged from his contractual
obligations.
What distinguishes an anticipatory breach from other breaches?
a. It involves a breach by each party to the contract.
b. It occurs only in connection with substantial performance issues
c. It is a foreseeable breach
d. It occurs prior to the time performance is due. - CORRECT ANSWER✅✅D
What is the most basic or common remedy for a breach of contract?
a. Compensatory damages
b. Consequential damages
c. Punitive damages
d. Nominal damages - CORRECT ANSWER✅✅A
What is the general goal in awarding compensatory damages in a breach of contract situation?
a. Return both parties to the situation they were in prior to the contract
, b. Punish the breaching party for the wrongdoing
c. Place the nonbreaching party in the same position as if the contract had been fully performed.
d. Modify the contract terms to be more equitable to the parties. - CORRECT ANSWER✅✅Cis not able
to sue at all because he received advanced notice of the breach.
Which of the following must be foreseeable to be collected from a breaching party?
a. Consequential damages
b. Liquidated damages
c. Nominal damages
d. None of the above - CORRECT ANSWER✅✅A
Which of the following is NOT a characteristic of consequential damages?
a. They arise from circumstances outside of the contract.
b. They can be recovered in addition to compensatory damages
c. They can be collected only if they are foreseeable or known to the other party.
d. They are fixed in amount at the time the contract is formed. - CORRECT ANSWER✅✅D
Damages that are fixed in the contract for the amount to be awarded in the event of a breach are known
as:
a. Punitive damages
b. Liquidated damages
c. Consequential damages
d. None of the above - CORRECT ANSWER✅✅B
A court will not enforce a liquidated damages clause when:
a. The amount specified is too small and considered to be unfair
b. The amount of actual damages is significantly greater than the amount specified as liquidated
damages
c. The amount was agreed to by the parties prior to the existence of an actual breach
