LENB 3135 Chapter 11: Contract Performance,
Breach, and Remedies (Qs & As)
What is the standard measure of compensatory damages when a contract is
breached? Correct Ans-The difference between the value of the breaching party's promised
performance under the contract and the value of his/her actual performance
What equitable remedies can a court grant, and in what circumstances will a court consider
granting them? Correct Ans-Recission and Restitution, Specific Performance, and
Reformation. Granted when damages are an inadequate remedy for a breach of contract
Fraudulent Misrepresentation Correct Ans-When fraud occurs, usually the innocent party can
enforce or avoid the contract
Undue Influence Correct Ans-Lacks voluntary consent and is voidable
Duress Correct Ans-A party forced to enter a contract under this (compulsion/force by threat)
can rescind the contract
Correct Ans-
Discharge by agreement Correct Ans-By Recission, Novation, Settlement Agreement, Accord
and Satisfaction, or Release
Settlement Agreement Correct Ans-The parties agree to a new contract that replaces the old
contract as a means of settling a dispute
Compensatory Damages Correct Ans-Compensate the nonbreaching party for injuries
actually sustained and proved to have arisen directly from the loss of the bargain resulting from
the breach of contract
, Punitive Damages Correct Ans-Punish and deter wrongdoing
Nominal Damages Correct Ans-Recognize wrongdoing when no monetary loss is shown
Contract provisions limiting Remedies Correct Ans-A contract may provide that no damages
(or only a limited amt.) can be recovered in the event the contract is breached
The enforceability of a liquidated damages clause normally requires two things: 1) When the
contract was entered into, was it apparent that the damages would be _______ to estimate the
event of a breach; 2) The amount set was________. Correct Ans-Difficult; Reasonable
Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and
theft between 6 p.m. and 6 a.m. nightly for six months. At the end of the term, if there has been
no vandalism or theft in the Park, Safe-T's performance will have been:
- conditional.
-substantial.
-absolute.
-complete. Correct Ans--complete.
True/False: An assignee can compel the obligor to perform. Correct Ans-True
True/False: An obligor is a person to whom a duty is owed. Correct Ans-False
Luciano Pavarotti was an opera tenor of unparalleled talent, but also a temperamental one. He
became known as the "King of Cancellations" for his failure to appear at contracted
performances at opera houses and other venues, sometimes mere days before sold-out
performances. Why didn't the opera houses sue Pavarotti for specific performance?
-Because of laws prohibiting involuntary servitude
Breach, and Remedies (Qs & As)
What is the standard measure of compensatory damages when a contract is
breached? Correct Ans-The difference between the value of the breaching party's promised
performance under the contract and the value of his/her actual performance
What equitable remedies can a court grant, and in what circumstances will a court consider
granting them? Correct Ans-Recission and Restitution, Specific Performance, and
Reformation. Granted when damages are an inadequate remedy for a breach of contract
Fraudulent Misrepresentation Correct Ans-When fraud occurs, usually the innocent party can
enforce or avoid the contract
Undue Influence Correct Ans-Lacks voluntary consent and is voidable
Duress Correct Ans-A party forced to enter a contract under this (compulsion/force by threat)
can rescind the contract
Correct Ans-
Discharge by agreement Correct Ans-By Recission, Novation, Settlement Agreement, Accord
and Satisfaction, or Release
Settlement Agreement Correct Ans-The parties agree to a new contract that replaces the old
contract as a means of settling a dispute
Compensatory Damages Correct Ans-Compensate the nonbreaching party for injuries
actually sustained and proved to have arisen directly from the loss of the bargain resulting from
the breach of contract
, Punitive Damages Correct Ans-Punish and deter wrongdoing
Nominal Damages Correct Ans-Recognize wrongdoing when no monetary loss is shown
Contract provisions limiting Remedies Correct Ans-A contract may provide that no damages
(or only a limited amt.) can be recovered in the event the contract is breached
The enforceability of a liquidated damages clause normally requires two things: 1) When the
contract was entered into, was it apparent that the damages would be _______ to estimate the
event of a breach; 2) The amount set was________. Correct Ans-Difficult; Reasonable
Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and
theft between 6 p.m. and 6 a.m. nightly for six months. At the end of the term, if there has been
no vandalism or theft in the Park, Safe-T's performance will have been:
- conditional.
-substantial.
-absolute.
-complete. Correct Ans--complete.
True/False: An assignee can compel the obligor to perform. Correct Ans-True
True/False: An obligor is a person to whom a duty is owed. Correct Ans-False
Luciano Pavarotti was an opera tenor of unparalleled talent, but also a temperamental one. He
became known as the "King of Cancellations" for his failure to appear at contracted
performances at opera houses and other venues, sometimes mere days before sold-out
performances. Why didn't the opera houses sue Pavarotti for specific performance?
-Because of laws prohibiting involuntary servitude
