Remedies

Question 1

A court order requiring a breaching party to perform under the contract or face contempt of court charges is also known as:

Answer 1

Specific Performance

Question 2

In the event of a breach by the buyer in a sale of goods contract, possible measures of damages that may be recovered by the seller include:

Answer 2

The difference between the contract price and the market price, the difference between the contract price and the resale price, and lost profits

Question 3

When, pursuant to a contract for a sale of goods, a buyer accepts nonconforming goods, he may not recover __________.

Answer 3

the difference between the contract price and the market price

Question 4

If a buyer accepts nonconforming goods, the buyer may recover

Answer 4

warranty damages for the breach of the seller’s warranties.

Question 5

Under Article 2, when a buyer refuses to accept goods or repudiates the contract, a seller

Answer 5

MAY resell the goods, but is not required to do so.

Question 6

Unless it will increase the damages, when an owner breaches,

Answer 6

a builder is under a duty to cease work on a project.

Question 7

The remedy of restitution is based on ______________ and is measured by ____________.

Answer 7

Preventing unjust enrichment; the value of the benefit conferred

Question 8

In a reformation action, the writing setting forth the agreement between the parties is

Answer 8

changed by the court so that it conforms to the original intent of the parties.

Question 9

Under Article 2, how does a buyer’s right to replevy differ from a buyer’s right to specific performance?

Answer 9

Replevin will lie only for identified goods, while specific performance may be decreed even though the goods have not previously been identified

Question 10

In a contract for the sale of goods, __________ may recover consequential damages.

Answer 10

Only the buyer

Question 11

Consequential damages consist of losses

Answer 11

resulting from the breach that any reasonable person would have foreseen would occur from a breach at the time of entry into the contract.

Question 12

A liquidated damage clause will be enforceable only if:

Answer 12

Damages were difficult to estimate at the time the contract was formed and the amount agreed upon was a reasonable forecast of compensatory damages in the case of breach

Question 13

In the case of a breach of an employment contract by the employee, the employer may recover:

Answer 13

The cost to replace the employee regardless of whether the breach was intentional or unintentional

Question 14

The value of the benefit conferred is the measure of recovery for ___________.

Answer 14

Restitution

Question 15

Reliance damages ______________.

Answer 15

Put the plaintiff in the position she would have been in had the contract never been formed

Question 16

In a construction contract, if the property owner breaches the contract __________.

Answer 16

before construction has started, the builder is entitled to the profits he would have derived from the contract

Question 17

What is the most accurate measure of damages for breach of a contract for the sale of goods?

Answer 17

The buyer’s damages are measured as of the time he learns of the breach, while the seller’s damages are measured as of the time for delivery.

Question 18

To recover full damages when an employer breaches an employment contract, the employee:

Answer 18

Must make a reasonable effort to find a new position of the same kind in the same locale

Question 19

Incidental damages ______________.

Answer 19

Include a buyer’s reasonable expenses in care of goods rightfully rejected and a seller’s expenses of reselling goods as a result of the buyer’s breach

Question 20

In a suit for restitution, the measure of recovery is __________.

Answer 20

the value of the benefit conferred.

Question 21

When a buyer, pursuant to a sale of goods contract, accepts nonconforming goods, the buyer’s measure of damages is:

Answer 21

The difference between the value of the goods as delivered and the value they would have had if they had been as according to contract, plus incidental and consequential damages

Question 22

Specific performance is not an available remedy for

Answer 22

a breach of a contract to provide services

Question 23

Even if a buyer has rightfully rejected a delivery of goods because it did not conform to the contract, this not does give rise to

Answer 23

a buyer’s right to replevy identified goods under Article 2.

Question 24

A remedy whereby a writing setting forth the agreement between the parties is changed by the court so that it conforms to the original intent of the parties is known as:

Answer 24

Reformation

Question 25

The defense of __________ applies when a party seeking specific performance is guilty of some wrongdoing in the transaction being sued upon.

Answer 25

Unclean Hands

Question 26

A court will grant an order of specific performance to enforce a contract not to compete if __________; and __________.

Answer 26

The services to be performed are unique; the covenant is reasonable

Question 27

When will a court order specific performance for breach of a service contract?

Answer 27

Never, as it would be tantamount to involuntary servitude.

Question 28

Expectation damages are also known as:

Answer 28

benefit of the bargain damages.

Question 29

Actual money or pecuniary damages are not required for an award of

Answer 29

liquidated damages.

Question 30

The equitable defense of __________ arises when a party delays in bringing an equitable action and the delay prejudices the defendant.

Answer 30

Laches

Question 31

Reliance damages are appropriately awarded when:

Answer 31

Expectation damages are too speculative to measure.

Question 32

In the case of a breach of an employment contract by the employer, the measure of the employee’s damages is:

Answer 32

the full contract price, regardless of when the breach occurred.

Question 33

Under U.C.C. Article 2, if a seller refuses to deliver goods under a contract, the buyer may replevy the goods if:

Answer 33

The goods have been identified to the contract and the buyer is unable to cover