Contracts: Breach of Contract 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. How do liquidated damages clauses benefit the parties?

Question 2 2. 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?

Question 3 3. John could have easily made copies of his family photos. In fact, Jill suggested that John make copies and keep the originals for himself. She told John that she could construct the collage from copies. If Jill loses the copies and is unable to create the collage by March 1, she'll likely still owe John $3,000 in damages since that's what he paid for the collage. Because of _, Jill won't likely owe special damages since the photos weren't priceless and they are replaceable.

Question 4 4. 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 5 5. For a breach of contract claim, the court will normally award:

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Question 6 6. Why are there statutes of limitations?

Question 7 7.

Sam hires Stacy to build his beautiful new house for $100,000. The payment is due to Stacy in four installments of $25,000 each. The first installment is due next month. Stacy purchases $10,000 worth of building supplies and starts building Sam's house. After she completes the foundation, Sam refuses to make the first payment. He denies that he has a contract with Stacy.

If the court awards reliance damages, Sam will have to pay Stacy _.

Question 8 8.

Let's say that you agree to purchase my farm. We execute our contract for $50,000. We both know that you're purchasing it in order to use it as a working farm. I've used it as a working farm in the past, and believe it's in working order. However, since I've last used it, the land has been condemned. Neither of us knew it at the time of the contract, but a local power plant accidentally contaminated the land and now the land can't be farmed.

This is a:

1. mutual mistake

2. material mistake

3. mistake of law

Question 9 9. What is specific performance?

Question 10 10.

Let's say that the Krysa family asked a car dealer if a truck had only one previous owner. The salesperson didn't know the history of the truck, and said, 'Sure. It's only had one owner.'

This is:

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Question 11 11. A court needs to determine the appropriate award in a breach of contract case. What will it use to determine the award?

Question 12 12. A court needs to calculate expectation damages. Which formula will it use?

Question 13 13. What is a requirement for a liquidated damages clause?

Question 14 14.

Sam hires Stacy to build his beautiful new house for $100,000. The payment is due to Stacy in four installments of $25,000 each. The first installment is due next month. Stacy purchases $10,000 worth of building supplies and starts building Sam's house. After she completes the foundation, Sam refuses to make the first payment. He denies that he has a contract with Stacy.

If the court awards restitution, Sam will have to pay Stacy _.

Question 15 15. 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?

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Question 16 16. Sometimes a court will award money damages to an innocent party for the actual losses he or she suffered due to reasonably trusting the terms of a contract. These damages are called:

Question 17 17. Which of the following scenarios would emotional distress NOT be considered in the case of a breach of contract?

Question 18 18.

You called to check on our contract, and I told you that I couldn't fulfill your order for 100 pairs of custom sunglasses by the contract deadline. I used some of the needed supplies to complete another order. Now I'll need to order more supplies, and that will take longer than the contract deadline. A few days later, I call you back to say that I've located the needed supplies, and will now be able to meet my obligations under our contract.

This is a:

Question 19 19. This type of remedy is used when a party wishes to halt a particular act for a short period of time, usually while the party prepares a more formal lawsuit. These orders typically last a week or ten days.

Question 20 20. 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 21 21. Calvin and Carrie execute a contract for the sale of nine bushels of oranges. Their written contract states that any claim for breach of contract must be brought within four years. Their state law states that any claim for breach of contract must be brought within three years. Which statement accurately reflects the statute of limitations for this contract?

Question 22 22. Why are any damages that an innocent party could have reasonably avoided or minimized not recoverable?

Question 23 23. Sometimes a court will award money damages to an innocent party to compensate for the benefit that party gave. These damages are called:

Question 24 24. 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 25 25. Fraud is an intentional misrepresentation of a fact. Which of the following is also a requirement for fraud?

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Question 26 26. When a court determines that a contract mistake is incidental, what will the remedy be?

Question 27 27. Benjamin is a homebuilder. Bonnie, his attorney, represented Benjamin in a personal injury lawsuit. During the suit, Bonnie repeatedly tells Benjamin that if they win, he is going to owe her big. In the end, Bonnie helped Benjamin receive a large money judgment. Benjamin, feeling the pressure, enters a contract with Bonnie to build her a new home for a substantially low rate. Which of the following is true?

Question 28 28.

True or false:

1. Liquidated damages are intended to serve as a punishment or as a deterrent against a breach of contract.

2. Instead, the clauses are meant to protect and benefit both parties.

Question 29 29.

I run a flower shop and agree to supply you with 100 bouquets of a dozen roses each, for only $12 a dozen. Let's say that I deliver the roses, and you pay me the full amount, which is $1,200. After I leave, you discover that one dozen is too wilted for you to use. We argue the matter, and eventually, you sue me in court for breach of contract. The court agrees with you, and I'm ordered to refund your money for one dozen roses.

This is called a:

Question 30 30. Money damages are an example of which of the following?

Contracts: Breach of Contract 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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