Chapter 18: Breach of Contract and Remedies

David C. Jordan, Esq.

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  1. Paul is hired to build a fence for $500. Before he starts, the man who hired him tells Paul he doesn't want the fence built after all. Paul is able to find another fence-building job, but it pays only $400. Further, the new job is far away, and it will cost Paul $50 in gas to travel back and forth. What is the total amount that Paul could receive in damages from the man who breached the original contract?
  2. Your answer:
    $500
    $550
    $0
    $150


  3. A football player overextends his knee, and requires surgery. A rehabilitation specialist later seeks the player's business. He promises the player that he will, after his therapy, have a 100% perfect knee. The player hires him. A year later, the player can walk, but his leg is far from perfect. If the player sues the therapist, what will he receive in damages?
  4. Your answer:
    His salary for one season.
    The value of a perfect knee.
    Nothing
    The value of a perfect knee less the value of his knee as it really is.


  5. Leslie has a contract to sell her 1990 Volvo to Jennifer. At the last minute Leslie decides she wants to keep her car and refuses to sell it. If Jennifer sues for breach of contract, what remedies will be available to her?
  6. Your answer:
    Monetary damages
    Specific performance (a court order for Leslie to sell her the car)
    An injunction preventing Leslie from selling the car to anyone else
    All of the above


  7. Paul is hired to build a fence for $500. Before he starts, the man who hired him tells Paul he doesn't want the fence built after all. Paul is able to find another fence-building job, but it pays only $400. Further, the new job is far away, and it will cost Paul $50 in gas to travel back and forth. This $50 is gas is an example of
  8. Your answer:
    Incidental damages
    Compensatory damages
    Punitary damages
    Both compensatory and incidental damages


  9. Mr. Tallyman orders 100 8-foot bunches of bananas from Chiquita for $2000. They are never delivered. The market price of the bananas is $2000. What amount can Tallyman seek from Chiquita in compensatory damages?
  10. Your answer:
    $0
    $200
    $2000
    None of the above


  11. In all of the following cases, the seller breached a contract to sell. The buyer is LEAST likely to receive monetary damages if the contract involved
  12. Your answer:
    a computer.
    a construction contract.
    a piece of land.
    a car.


  13. Dillard's hires BigCo. to build a two-story new store. BigCo. is to be paid $200,000 for the job, and will see a profit of $50,000. After the first story is complete and BigCo. has spent $75,000, Dillard's breaches the contract. What amount of damages will BigCo. receive in court in this case?
  14. Your answer:
    $50,000
    $125,000
    $200,000
    $275,000


  15. Dillard's hires BigCo to build a two-story new store. BigCo is to be paid $200,000 for the job, and will see a profit of $50,000. Before they start work or receive payment, BigCo breaches the contract. Dillard's has to pay another company $240,000 to do the job. How much can Dillard's receive in damages in an action against BigCo?
  16. Your answer:
    $200,000
    $0
    $40,000
    $240,000


  17. Al buys a tractor from John Deere. It is not delivered on time and, as a result, much of Al's crops are damaged. Will Al be able to recover damages for his lost crops?
  18. Your answer:
    No, because they were not mentioned in the contract.
    Yes, because all damage that result froma breached contract must be paid by the breaching party.
    Yes, because a company is strictly liable for its negligence.
    Yes, but only if the damages were foreseeable.


  19. Stan breaches his contract with Al. If Al sues under a contract theory only, will he get punitive damages?
  20. Your answer:
    Yes, if Stan maliciously broke the contract.
    No.
    Yes, if Stan willfully broke the contract.
    Yes, if Stan acted unreasonably


  21. Ann is wrongfully fired from a three-year employment contract. She does not find a new job during the three years, and brings a lawsuit. To reduce their damages, what must the defendants who fired her prove?
  22. Your answer:
    That similar jobs were available in Ann's area.
    That Ann did not look for another job.
    That Ann could have gotten a similar job
    That Ann could have gotten a similar job AND that similar jobs were available in Ann's area.


  23. Mel orders a lobster at a restaurant. The menu lists the price as $29.95. This is an example of a(n)
  24. Your answer:
    liquidated debt.
    unliquidated debt.
    Negotiable debt.
    None of the above.


  25. Al signs an apartment lease for one year with Landlord Lennie, starting in January. In July, Al tells Lennie he can go to hell, and that he is moving out immediately. Al can usually find replacement tenants in about two months, but he does not find one until Al's lease expires because he is angry. How many of the six months (August-December) will a court likely order Al to pay?
  26. Your answer:
    zero
    2
    6
    None of the above


  27. Mr. Tallyman orders 100 8-ft bunches of bananas from Chiquita for $2000. They are never delivered. The market price of the bananas falls in the meantime to $1800. What type of damages are available to Mr. Tallyman in a breach of contract action?
  28. Your answer:
    Both compensatory and nominal damages
    Compensatory damages
    Punitive damages
    Nominal damages


  29. Manny and Bert enter into a construction contract which is to be completed November 1. The contract states, "For every day after November 1 that the building remains uncompleted, Bert must pay Manny $1000." For this clause to be enforceable, it must be found that
  30. Your answer:
    it is a reasonable time
    actual damages were hard to estimate when the contract was signed
    Both of the above
    None of the above


  31. Which of the following statements about rescission is accurate?
  32. Your answer:
    A party may never rescind a contract on his own.
    A rescission can sometimes be done unilaterally.
    For rescission to occur, all parties must always agree to the rescission.
    A party may never rescind a contract on his own, and all parties must always agree to the rescission.


  33. Ben makes an agreement to sell a painting for $300. The buyer gives Ben a $100 deposit, but Ben never delivers the painting. If a court orders Ben to make restitution, what will he have to give the buyer?
  34. Your answer:
    Nothing
    $100
    $300
    The painting


  35. Ben makes an agreement to sell a painting for $300. The buyer gives Ben a $100 deposit, but Ben never delivers the painting. If a court issues Ben an order of specific performance, what will he have to give the buyer?
  36. Your answer:
    Nothing
    $100
    $300
    The painting


  37. Al and Greg have a contract for the sale of a car. Al, the seller, breaches the contract. A court will be most likely to order specific performance if there are___________ identical cars in running condition in the United States.
  38. Your answer:
    100
    100,000
    1,000
    10,000


  39. Al hires U2 to play at his Christmas party for $200,000. At the last minute, the Edge gets sick, and the show is cancelled, breaching the contract. Al is crushed, as in his mind (and everyone else's) there is no substitute for U2. What remedies is a court likely to consider assessing against the band?
  40. Your answer:
    Damages
    Specific performance
    Both damages and specific performance
    Neither damages nor specific performance, everyone gets sick


  41. Al orally agrees to buy a piece of land from Joel for $10,000. Joel turns over the land, but Al never pays him. What amount may Joel seek in court?
  42. Your answer:
    $10,000
    The reasonable value of the land
    Both of the above
    None of the above


  43. Amy contracts to buy a piece of land from Harold. Harold breaches the contract. What remedies may Amy actually seek in her lawsuit?
  44. Your answer:
    Specific performance only
    Damages only
    Both specific performance and damages in the same lawsuit.
    Either specific performance or damages, but not both.


  45. To which of the following contracts does the election of remedies doctrine apply?
  46. Your answer:
    Sale of a piece of land
    Sale of a computer
    Sale of a car
    All of the above


  47. Al is to deliver 100 computers to Ben on March 1. He breaches the contract by arriving late on March 10, and by delivering only 50 computers at that time. Ben, on March 10, signs a waiver. Which of the following is true?
  48. Your answer:
    Al may rescind the contract.
    Al may not rescind the contract.
    Al may not sue for damages
    Al may rescind the contract but may not sue for damages.


  49. Al and Ben have a contract which says, "Al will not sue Ben for any damages arising from any breach of this contract." In which of these situations has Ben really lost his rights to sue? Assume Al and Ben have equal bargaining positions.
  50. Your answer:
    Ben innocently breaches the contract.
    Ben negligently breaches the contract.
    Ben intentionally breaches the contract
    Either if Ben innocently OR negligently breaches the contract.


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