Contracts - Breach of Contract: Help and Review Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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Question 1 1. Which type of damage is meant to restore the innocent party back to the economic position he or she would have been in had the contract not been breached?

Question 2 2.

A total breach of contract occurs when a party wholly fails to fulfill his or her obligations under a contract. Which of these examples demonstrates a total breach of contract?

For each example, Rick has hired Mitch to build a tree house in the large oak tree in his backyard. The tree house is for his grandchildren. It should have three windows and be completed in time for them to enjoy during their visit for Spring Break.

Question 3 3. A court needs to calculate expectation damages. Which formula will it use?

Question 4 4. A breach of contract involving a bad-faith claim against an insurance company can lead to:

Question 5 5. The innocent party must make a reasonable effort to lessen his or her damages. What is this effort called?

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Question 6 6. Barney and Betty make a contract. Barney's dog is having a litter and Betty is buying one of the puppies. Betty specifically wants a girl dog. While Barney meets Betty at a restaurant to finalize the deal, Barney's dog gives birth to a litter of five boys. Which statement describes this contract?

Question 7 7. Sometimes a court will award money damages to an innocent party to compensate for the benefit that party gave. These damages are called:

Question 8 8. What is the legal remedy for a breach of contract claim?

Question 9 9. A court needs to determine the appropriate award in a breach of contract case. What will it use to determine the award?

Question 10 10. Sam offers to buy some property from Sarah. It appears to include an abandoned lot as part of the property, but Sarah knows she does not own this part of the property. Sam pays Sarah, but when he tries to record the title to the lot, he learns that someone else owns it. What is this an example of?

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Question 11 11. Sometimes a contracting party reasonably believes the other party will breach the contract. What is this known as?

Question 12 12. What is a requirement for a liquidated damages clause?

Question 13 13. Jennifer is injured and can't work. She has bills to pay and debt collectors calling her. A debt service contacts Jennifer and offers to pay her bills for her. In return, Jennifer will pay the debt service $100 every month for the next 20 years. This is much more than Jennifer owes for her bills, but it makes her monthly payments more manageable so she agrees. What is this an example of?

Question 14 14. Roseanne tells Ryan that she'll sue him for every penny he's worth, alleging food poisoning and unsanitary conditions, unless he agrees to sell his restaurant to her. Ryan knows his restaurant is safe and clean, but he's afraid of losing business due to Roseanne's lawsuit. Ryan agrees to the contract. Which of the following is true?

Question 15 15. Carrie is buying a new refrigerator. While at the store, the salesman shows her a popular refrigerator and reassures her that they include a written warranty guaranteeing the functionality of the refrigerator for up to one year. Carrie purchases the refrigerator, and after six months it breaks. She returns to the store looking to get it replaced, but they refuse to honor the warranty. What is this an example of?

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Question 16 16. Contracts are usually made in an effort to formalize an agreement and to protect the parties in the agreement. A contract will place an obligation on each of the contracting parties. In contract law, what is the definition of obligation?

Question 17 17. Jorge hires Glenn to cater his parent's anniversary party. They agree that Glenn will provide barbecue pork ribs, smoked chicken, coleslaw, baked beans and a cake that will serve 60 people. Jorge will pay Glenn $500. Glenn provides the food for the party. However, the meats were partially raw, he forgot the side dishes and the cake was decorated with Happy Birthday. Jorge had to go to the grocery at the last minute to buy a new cake and he also found enough fried chicken to serve all the guests, the cost was significantly higher: $850. Of the remedies ordered below, which would be the appropriate enforcement for this type of contract breach?

Question 18 18. Doug is leasing a new apartment. The apartment is next door to a nightclub. Doug asks the leasing agent if the apartment is loud at night. The leasing agent has never been to the apartment at night, but tells Doug that he won't be able to hear the club. Doug leases the apartment and, unfortunately, it's very loud at night. What is this an example of?

Question 19 19. When a court determines that a contract mistake is incidental, what will the remedy be?

Question 20 20. When one party wholly fails to fulfill his or her obligations under the contract, it is known as:

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Question 21 21. Brent and Mark are brothers. Brent wants the antique rug that their mom is leaving to Mark in her will. Brent holds Mark down and slaps him until he agrees to assign his rights to the rug to Brent. Which of the following is true?

Question 22 22. Bert and Ernie make a contract. Bert hires Ernie as a valet to park cars during a large event at his church. Ernie agrees to the contract and believes he can park the cars one street over from the church. When Ernie tries to park the cars, he learns that the street is a no parking zone. Ernie has no place to park the cars and can't uphold his end of the contract. Which statement describes this contract?

Question 23 23. An equitable remedy might be awarded when:

Question 24 24. Shelly wants to open a smoothie shop in her neighborhood. She hires Wayne to do market research for her. Wayne is obligated to research the need for a smoothie shop in that neighborhood. Wayne conducts the research and delivers his report to Shelly, along with a bill for $1000. Shelly reviews the research and discovers that Wayne accidentally researched the wrong neighborhood. Shelly sues Wayne for breach of contract. The court should enforce a remedy suitable for which type of contract breach?

Question 25 25. Harry was involved in a car accident that wasn't his fault. About five years later he lost his job and was in need of money. He remembered the accident and decided to sue the man who caused the car accident. The court rejected his lawsuit because he didn't bring it to the courts in time. Why was his suit rejected by the court?

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Question 26 26. Ryan sees a chiropractor about a sore back. The chiropractor suggests that Ryan undergo acupuncture treatments, which that chiropractor can administer right away. Ryan asks if the chiropractor is trained in acupuncture and the chiropractor says that he is. Unfortunately, the chiropractor has no acupuncture training and Ryan suffers permanent nerve damage from the botched acupuncture treatment. What is this an example of?

Question 27 27. When a party breaches a contract, what will a court usually do?

Question 28 28. When are liquidated damages clauses enforceable?

Question 29 29. Sometimes a court will award money damages to an innocent party to compensate the loss of future income caused by a breach of contract. These damages are called:

Question 30 30. All breach of contract damages must be foreseeable. This means that:

Contracts - Breach of Contract: Help and Review Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the yellow "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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