Law 331 Chapter 19 Quiz

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Jan 9, 2024

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Law 331: Chapter 19 Quiz Chapter 19 Quiz Question 1 The rule of mitigation of damages requires that a party injured by a breach of contract must: a) hire someone else to perform the contract. b) take reasonable steps to reduce the damages that would otherwise be sustained because of the breach. c) discharge the contract before filing suit for breach. d) take any and all steps possible to reduce the damages that will be sustained because of the breach. Question 2 If a seller delivers defective goods, the buyer does not lose the right to object to the breach of contract if the buyer: a) accepts the goods with a reservation of right. b) accepts the performance without protest. c) accepts the goods. d) agrees to a modification of the contract. Question 3 Damages in excess of actual loss are called: a) nominal damages. b) compensatory damages. c) punitive damages. d) restitution. Question 4 When the contract requires that both parties submit disputes to arbitration, this is an example of a limitation-of-remedies clause. a) True b) False
Law 331: Chapter 19 Quiz Question 5 The party that breaks a contract may be required to pay damages to the other party to compensate for: a) a heart attack induced by the emotional disturbance caused by the breach of contract. b) damages resulting necessarily and directly from the breach of contract. c) losses that could have been avoided by hiring someone else to perform the contract. d) emotional disturbance caused by the breach of contract. Question 6 If there is a breach of contract, the law requires that the other party terminate the contract and bring a lawsuit. a) True b) False Question 7 Damages in excess of actual loss, imposed for the purpose of punishing or making an example of the defendant, are known as compensatory damages. a) False b) True Question 8 The “American rule” states that the losing party in a lawsuit is responsible for all attorney fees. a) True b) False Question 9 The failure to act or perform in the manner called for by a contract is a:
Law 331: Chapter 19 Quiz a) breach. b) forbearance. c) reservation of right. d) waiver. Question 10 An injured party who rescinds a contract after having performed services may recover the reasonable value of the performance rendered under restitutionary or quasi- contractual damages. a) False b) True Question 11 An antimodification clause specifies that a waiver to any breach automatically modifies the contract. a) False b) True Question 12 1.25 / 1.25 pts When a party expressly declares before the time for performance arrives that the contract will not be performed, such a declaration is called an anticipatory repudiation. a) True b) False Question 13 An innocent party to an anticipatory repudiation of a contract has the right to treat the repudiation as a present, material breach and may file suit. a) False b) True Question 14
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Law 331: Chapter 19 Quiz A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease: a) will collect the late fee at a later date. b) allows the tenant to repudiate the lease. c) waives the late fee. d) is ignorant of the late fee. Question 15 When a party waives compliance with one provision of a contract, the other party may thereafter ignore other provisions of that contract. a) False b) True Question 16 Which is NOT a correct statement concerning a liquidated damages clause? a) If the clause is enforced, the injured party can collect no more than the amount specified. b) If the clause is enforced, the injured party has a choice between compensatory damages or liquidated damages. c) The amount of liquidated damages are established by the parties to the contract. d) It must be possible to determine actual damages. Question 17 When one party commits a non-material breach of contract, the other party may rescind the contract. a) True b) False Question 18 Only direct losses from a breach of contract may be recovered by an injured party. a) False b) True Question 19
Law 331: Chapter 19 Quiz __________ occurs when a party expressly declares that performance will not be made when required. a) A waiver of breach b) Restitution c) An injunction d) Anticipatory repudiation Question 20 If one party to a contract breaks the contract, the other party generally is under a duty to stop any further performance to avoid sustaining greater damages. a) True b) False