BUL 3320 FINAL EXAM 328 QUESTIONS AND
ANSWERS 2025-2026 WITH COMPLETE SOLUTION!!
What would be a provision by which the parties agree in advance to the
damages to be paid in the event of a breach of the contract?
Punitive damage provision
Reliance damage provision
Consequential damage provision
liquidated damage provision Answer - Liquidated damage provision
When is an agent normally not liable for a contracting agent entering into
when the agent had and acted within their authority
undisclosed
disclosed
partially disclosed principal? Answer - Disclosed Principle
If a company only hires women as sales representatives because they believe
that customers relate better to women, would this be a violation of the
Federal age discrimination in employment act
Violation of the Equal Pay Act
Not violating any
Federal Age Discrimination in Employment Act
,Title 7 of the 1964 Civil Rights Act Answer - Title 7 of the 1964 Civil Rights Act
What are the levels of performance of a contract?
complete performance
substantial performance
inferior performance of a contract.
All of the above Answer - all of the above
T/F: Does tender of performance discharge a party's contractual obligation?
Answer - True
T/F: Complete or strict performance by a party discharges that party's duties
under the contract. Answer - True
T/F: Fully performed contract is called an executed contract; Not fully
performed is executory contract. Answer - True
T/F: If you have a minor breach of the contract, there has been substantial
performance. Answer - True
What rights do a non-breaching party have? Answer - Able to sue to recover
damages to recover the cost of repairing a defect. Could NOT sue for specific
performance.
When would inferior performance of a contract occur? Answer - When there's
a major breach of a contract.
,If there is a breach in a contract, would the non-breaching party be discharged
from any further performance under the contract? Can they rescind the
contract and seek restitution of any compensation paid under the contract to
the breaching party? Answer - Yes, they are discharged; Second part is a
benefit of an inferior breach of a contract where they can rescind.
T/F: Anticipatory breach can be implied in the conduct of a party. When
someone is supposed to perform some duty and they don't show up, while
stop answering your phone calls. Answer - True
T/F: A non-breaching party has to wait until performance is due until they can
sue. Answer - False, if someone is supposed to perform in 30 days and they tell
you that they have no intention of performing you do not have to wait 30 days.
What is the non-breaching party's obligation in the event of anticipatory
repudiation? Answer - The non-breaching party can discharge at that point
preventing any further duties under contract.
What are your damages when there's a breach of a sales contract involving
goods normally governed by? Answer - Uniform Commercial Code, not
common law.
A contractor can recover the profits they would have made on a contract if the
owner breaches the contract before construction begins. (Think anticipatory
repudiation.) If Sam is supposed to start building a house for Lisa in a week and
Lisa isn't going to be following the contract by not allowing them on the
property, pay them money etc. Can Sam sue? Answer - Sam can then sue at
this point to recover damages of the profits they would have made if the
contract was fulfilled.
If an employer hires someone to work and their employee doesn't show up,
what damages can the employer recover for breaches of an employee
, contract? Answer - Cost to hire a new employee and the increase in salary for
the replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. Answer - False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in
most instances. Answer - True
T/F: Most courts do not favor nominal damages lawsuits such as $1. Answer -
True
T/F: If an employer breaches their contract, the employee still owes a duty to
find substitute comparable employment. The employee can't wait a year and
then decide to sue for the whole year of damages. Answer - True
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or
impractical to determine. Law
doesn't favorite liquidated damage provisions. Answer - True
T/F: If the court finds out that liquidated damage provision amounts to a
penalty it is not enforceable. Answer - True
Under what circumstances would remedy of precision be available?
Material breach of a contract
Fraud
ANSWERS 2025-2026 WITH COMPLETE SOLUTION!!
What would be a provision by which the parties agree in advance to the
damages to be paid in the event of a breach of the contract?
Punitive damage provision
Reliance damage provision
Consequential damage provision
liquidated damage provision Answer - Liquidated damage provision
When is an agent normally not liable for a contracting agent entering into
when the agent had and acted within their authority
undisclosed
disclosed
partially disclosed principal? Answer - Disclosed Principle
If a company only hires women as sales representatives because they believe
that customers relate better to women, would this be a violation of the
Federal age discrimination in employment act
Violation of the Equal Pay Act
Not violating any
Federal Age Discrimination in Employment Act
,Title 7 of the 1964 Civil Rights Act Answer - Title 7 of the 1964 Civil Rights Act
What are the levels of performance of a contract?
complete performance
substantial performance
inferior performance of a contract.
All of the above Answer - all of the above
T/F: Does tender of performance discharge a party's contractual obligation?
Answer - True
T/F: Complete or strict performance by a party discharges that party's duties
under the contract. Answer - True
T/F: Fully performed contract is called an executed contract; Not fully
performed is executory contract. Answer - True
T/F: If you have a minor breach of the contract, there has been substantial
performance. Answer - True
What rights do a non-breaching party have? Answer - Able to sue to recover
damages to recover the cost of repairing a defect. Could NOT sue for specific
performance.
When would inferior performance of a contract occur? Answer - When there's
a major breach of a contract.
,If there is a breach in a contract, would the non-breaching party be discharged
from any further performance under the contract? Can they rescind the
contract and seek restitution of any compensation paid under the contract to
the breaching party? Answer - Yes, they are discharged; Second part is a
benefit of an inferior breach of a contract where they can rescind.
T/F: Anticipatory breach can be implied in the conduct of a party. When
someone is supposed to perform some duty and they don't show up, while
stop answering your phone calls. Answer - True
T/F: A non-breaching party has to wait until performance is due until they can
sue. Answer - False, if someone is supposed to perform in 30 days and they tell
you that they have no intention of performing you do not have to wait 30 days.
What is the non-breaching party's obligation in the event of anticipatory
repudiation? Answer - The non-breaching party can discharge at that point
preventing any further duties under contract.
What are your damages when there's a breach of a sales contract involving
goods normally governed by? Answer - Uniform Commercial Code, not
common law.
A contractor can recover the profits they would have made on a contract if the
owner breaches the contract before construction begins. (Think anticipatory
repudiation.) If Sam is supposed to start building a house for Lisa in a week and
Lisa isn't going to be following the contract by not allowing them on the
property, pay them money etc. Can Sam sue? Answer - Sam can then sue at
this point to recover damages of the profits they would have made if the
contract was fulfilled.
If an employer hires someone to work and their employee doesn't show up,
what damages can the employer recover for breaches of an employee
, contract? Answer - Cost to hire a new employee and the increase in salary for
the replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. Answer - False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in
most instances. Answer - True
T/F: Most courts do not favor nominal damages lawsuits such as $1. Answer -
True
T/F: If an employer breaches their contract, the employee still owes a duty to
find substitute comparable employment. The employee can't wait a year and
then decide to sue for the whole year of damages. Answer - True
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or
impractical to determine. Law
doesn't favorite liquidated damage provisions. Answer - True
T/F: If the court finds out that liquidated damage provision amounts to a
penalty it is not enforceable. Answer - True
Under what circumstances would remedy of precision be available?
Material breach of a contract
Fraud
