BLAW 243 Final Exam || A+ GRADED!!
Breach of Contract correct answers Failure to perform a contractually imposed legal
obligation
Remedy correct answers The relief a court provides an innocent party to enforce a right or to
compensate for the violation of a right
Types of Potential Remedies correct answers 1.) Remedies at Law
2.) Equitable Remedies
Remedies at Law correct answers Monetary Damages
Equitable Remedies correct answers awarded when remedies at law is deemed inadequate
Types of Equitable Remedies correct answers 1.) Rescission
2.) Restitution
3.) Specific Performance
4.) Reformation
Types of Damages correct answers 1.) Compensatory
2.) Consequential
3.) Nominal
4.) Punitive Damages (rarely never awarded in contract law)
Standard Measure of Compensatory Damages correct answers (Direct Losses + Incidental
Damages) - Mitigated Damages
Direct Losses correct answers The difference between the value of the breaching party's
promised performance and the value of the breaching party's actual performance
Incidental Damages correct answers Any expenses directly incurred due to the breach
Mitigated Damages correct answers Any loss the injured party has avoided or mitigated
Types of Special Measures for Compensatory Damages correct answers 1.) Damages for
Breach of Contract for Sale of Goods
2.) Damages for Breach of Contract for Sale of Land
3.) Damages for Breach of Contract of a Construction Contract
Damages for Seller breaching and failing to produce the goods correct answers (Difference
between contract price and market price) + Incidentals
Damages for when the Buyer breaches contract but the producer hasn't produced the goods
correct answers Seller's lost profits on sale + incidentals
Damages for when the Buyer breaches and the Seller has produced the goods correct answers
Seller can demand for return of goods + (Difference between contract and market price) +
incidentals
, Buyer keep goods and pay contract price + incidentals
Consequential Damages correct answers 'Special' or foreseeable damages that result from a
party's breach of contract but are caused by special circumstances beyond the contract itself.
Nominal Damages correct answers Awarded when a breach has occurred, but the non-
breaching party has not suffered any actual damage or financial loss. (useful for small
amounts of money)
Mitigation of Damages correct answers Post breach, the injured party must exert reasonable
effort under the circumstances to reduce/lessen/mitigate the damage they suffer
Liquidated Damages correct answers Fixed amount stipulated in the contract that a party
agrees to in event of a breach. Enforceable and reasonable estimate of the damages incurred.
Penalties correct answers Fixed amount stipulated in the contact that a party agrees to in the
event of a breach. Unenforceable but designed to penalize the party that breaches.
Rescission correct answers Cancellation or termination of a contract. available at occurrence
of breach but prompt notice must be given.
Restitution correct answers The restoration of a party to the position they were in pre-contract
due to the other party's recision.
Specific Performance correct answers Requires a party to fully perform its duties under the
contract. only available if Remedies at Law are deemed inadequate.
Reformation correct answers The rewriting of a contract (or portions) by a court so that a
contract reflects parties' actual intentions when the parties have expressed their agreement
imperfectly. (used commonly for fraud or mutual mistake)
Provisions that Limit Remedies correct answers 1.) Exculpatory clauses that states no
damages can be recovered.
2.) limited liability clauses
Who do Employment Laws cover? (generally) correct answers Employees NOT Independent
contractors.
Tests to differentiate Employee vs. Independent contractor correct answers 1.) Control Test
2.) Economic Realities Test
Control Test correct answers The traditional IRS test that distinguishes if someone is an
employee or an independent contractor. asks questions regarding: Employer Control,
Financial Questions, Type of Relationship between worker and employer
Employment at Will correct answers A traditional doctrine which states that the employer or
the employee can end the relationship at anytime and for any reason. Termination cannot
violate statutory or common law.
Exceptions to Employment at Will correct answers 1.) Contract Theory
Breach of Contract correct answers Failure to perform a contractually imposed legal
obligation
Remedy correct answers The relief a court provides an innocent party to enforce a right or to
compensate for the violation of a right
Types of Potential Remedies correct answers 1.) Remedies at Law
2.) Equitable Remedies
Remedies at Law correct answers Monetary Damages
Equitable Remedies correct answers awarded when remedies at law is deemed inadequate
Types of Equitable Remedies correct answers 1.) Rescission
2.) Restitution
3.) Specific Performance
4.) Reformation
Types of Damages correct answers 1.) Compensatory
2.) Consequential
3.) Nominal
4.) Punitive Damages (rarely never awarded in contract law)
Standard Measure of Compensatory Damages correct answers (Direct Losses + Incidental
Damages) - Mitigated Damages
Direct Losses correct answers The difference between the value of the breaching party's
promised performance and the value of the breaching party's actual performance
Incidental Damages correct answers Any expenses directly incurred due to the breach
Mitigated Damages correct answers Any loss the injured party has avoided or mitigated
Types of Special Measures for Compensatory Damages correct answers 1.) Damages for
Breach of Contract for Sale of Goods
2.) Damages for Breach of Contract for Sale of Land
3.) Damages for Breach of Contract of a Construction Contract
Damages for Seller breaching and failing to produce the goods correct answers (Difference
between contract price and market price) + Incidentals
Damages for when the Buyer breaches contract but the producer hasn't produced the goods
correct answers Seller's lost profits on sale + incidentals
Damages for when the Buyer breaches and the Seller has produced the goods correct answers
Seller can demand for return of goods + (Difference between contract and market price) +
incidentals
, Buyer keep goods and pay contract price + incidentals
Consequential Damages correct answers 'Special' or foreseeable damages that result from a
party's breach of contract but are caused by special circumstances beyond the contract itself.
Nominal Damages correct answers Awarded when a breach has occurred, but the non-
breaching party has not suffered any actual damage or financial loss. (useful for small
amounts of money)
Mitigation of Damages correct answers Post breach, the injured party must exert reasonable
effort under the circumstances to reduce/lessen/mitigate the damage they suffer
Liquidated Damages correct answers Fixed amount stipulated in the contract that a party
agrees to in event of a breach. Enforceable and reasonable estimate of the damages incurred.
Penalties correct answers Fixed amount stipulated in the contact that a party agrees to in the
event of a breach. Unenforceable but designed to penalize the party that breaches.
Rescission correct answers Cancellation or termination of a contract. available at occurrence
of breach but prompt notice must be given.
Restitution correct answers The restoration of a party to the position they were in pre-contract
due to the other party's recision.
Specific Performance correct answers Requires a party to fully perform its duties under the
contract. only available if Remedies at Law are deemed inadequate.
Reformation correct answers The rewriting of a contract (or portions) by a court so that a
contract reflects parties' actual intentions when the parties have expressed their agreement
imperfectly. (used commonly for fraud or mutual mistake)
Provisions that Limit Remedies correct answers 1.) Exculpatory clauses that states no
damages can be recovered.
2.) limited liability clauses
Who do Employment Laws cover? (generally) correct answers Employees NOT Independent
contractors.
Tests to differentiate Employee vs. Independent contractor correct answers 1.) Control Test
2.) Economic Realities Test
Control Test correct answers The traditional IRS test that distinguishes if someone is an
employee or an independent contractor. asks questions regarding: Employer Control,
Financial Questions, Type of Relationship between worker and employer
Employment at Will correct answers A traditional doctrine which states that the employer or
the employee can end the relationship at anytime and for any reason. Termination cannot
violate statutory or common law.
Exceptions to Employment at Will correct answers 1.) Contract Theory
