- Legal Concepts45) ________ occurs when one contracting party informs the other that he or she will notperform his or her contractual duties when due.A) RestitutionB) RescissionC) Anticipatory repudiationD) Material breach
- Legal Concepts30) Specific performance of personal service contracts is not granted.
- Legal Concepts7Copyright © 2013 Pearson Education, Inc.39) Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply of500 truckloads of sand within next week. Delta Resources delivers the sand in two days after thecontract was made. Poole Contractors pays the $50,000 promised in the contract. This is aninstance of ________.A) substantial performanceB) material breachC) minor breachD) strict performance
- Legal Concepts48) Which of the following is true of monetary damages?A) Nominal damages are paid once the nonbreaching party has suffered a financial loss.B) Anticipatory breaches cannot be awarded monetary damages.C) Liquidated damages are set by the court towards the breaching party.D) Consequential damages are considered as monetary damages.
- Legal Concepts49) ________ place the nonbreaching party in the same position as if the contract had been fullyperformed.A) Tort damagesB) Compensatory damagesC) Nominal damagesD) Consequential damages
- Factual Application55) Which of the following terms refers to a nonbreaching party's legal duty to avoid or reducedamages caused by a breach of contract?A) tender of performanceB) mitigation of damagesC) liquidation of damagesD) disclaimer of consequential damages
- Legal Concepts32) To obtain an injunction, the requesting party must show that he or she will suffer irreparableinjury if the injunction is not issued.
- Legal Concepts6Copyright © 2013 Pearson Education, Inc.34) Intentional interference with contractual relations arises when a third party induces acontracting party to breach the contract with another party.
- Legal Concepts5Copyright © 2013 Pearson Education, Inc.27) Writ of garnishment is an order of the court that enables a government officer to seizeproperty of the breaching party and sell it at auction to satisfy a judgment.
- Legal Concepts28) Specific performance is awarded if the subject matter of the contract is unique.
- Legal Concepts31) An injunction is an equitable doctrine that permits the court to rewrite a contract to expressthe parties' true intentions.
- Legal Concepts37) ________ is a situation in which a party to a contract renders performance exactly asrequired by the contract.A) Substantial performanceB) Strict performanceC) Anticipatory repudiationD) Restitution
- Legal Concepts38) Which of the following terms refers to an unconditional and absolute offer by a contractingparty to perform his or her obligations under a contract?A) injunctionB) writ of garnishmentC) tender of performanceD) writ of attachment
- Legal Concepts36) Which of the following statements is a true of a breach of contract?A) Strict performance by a party discharges that party's duties under the contract.B) Inferior performance constitutes a minor breach of contract.C) Substantial performance constitutes a material breach.D) The most common remedy for a breach of contract is an award of equitable remedies.
- Factual Application40) Which of the following statements is true of discharge of contracts?A) Anticipatory breach discharges the breaching party's obligations to the contract.B) Substantial performance is sufficient to discharge a contract.C) Tender of performance discharges a party's contractual obligations.D) Tender is a conditional offer by contracting party to perform his or her obligations under thecontract.
- Legal Concepts9) In an anticipatory breach, the nonbreaching party does not have the right to sue the breachingparty until performance is due.
- Legal Concepts26) The return of goods or property received from the other party to rescind a contract is knownas restitution.
- Legal Concepts33) An unconditional and absolute offer by a contracting party to perform his or her obligationsunder the contract is known as an injunction.
- Legal Concepts23) Liquidated damages are awarded only if actual damages are precisely determined.
- Legal Concepts10) Monetary damages can be recovered only for material breach.