Question 1

The failure to act or perform in the manner called for by a contract is a:

Accepted Answer

A)  waiver.
B)  breach.
C)  forbearance.
D)  reservation of right.

Question 2

Whether there has been a waiver is a question of fact.

Accepted Answer

A) True 
 B)False

Question 3

A contract provision stating that one of the parties shall not be liable for damages in case of a breach is called a(n) __________ clause.

Accepted Answer

A)  liquidated damages
B)  exculpatory
C)  waiver.
D)  due process

Question 4

When one party commits a non-material breach of contract,the other party may rescind the contract.

Accepted Answer

A) True 
 B)False

Question 5

A party injured by the other party's anticipatory repudiation of a contract has the right to bring suit at the time of the repudiation without waiting to see if there will be proper performance when due .

Accepted Answer

A) True 
 B)False

Question 6

Consequential damages are those that necessarily flow from the breach.

Accepted Answer

A) True 
 B)False

Question 7

If there is a breach of contract,the law requires that the other party terminate the contract and bring a lawsuit.

Accepted Answer

A) True 
 B)False

Question 8

Which is NOT a correct statement concerning a liquidated damages clause?

Accepted Answer

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)  It must be possible to determine actual damages.
D)  The amount of liquidated damages are established by the parties to the contract.

Question 9

When one party has broken a contract,there are several remedies available to the non-breaching party,including:

Accepted Answer

A)  bringing an action for money damages.
B)  rescinding the contract.
C)  seeking specific performance.
D)  all of the above.

Question 10

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

Accepted Answer

A)  waives the late fee.
B)  will collect the late fee at a later date.
C)  is ignorant of the late fee.
D)  allows the tenant to repudiate the lease.

Question 11

A waiver of a breach may be either express or implied.

Accepted Answer

A) True 
 B)False

Question 12

Punitive damages are generally recoverable in contract actions.

Accepted Answer

A) True 
 B)False

Question 13

The "American rule" states that the losing party in a lawsuit is responsible for all attorney fees.

Accepted Answer

A) True 
 B)False

Question 14

When one party breaks the contract,the contract is said to be breached.

Accepted Answer

A) True 
 B)False

Question 15

A party must mitigate damages at all costs.

Accepted Answer

A) True 
 B)False

Question 16

Repeated breaches and waivers are generally interpreted to indicate:

Accepted Answer

A)  poor business practices.
B)  illegal behavior.
C)  ignorance of the law.
D)  modification of contract.

Question 17

Consequential damages may be recovered if:

Accepted Answer

A)  the damages were not a foreseeable consequence of the breach.
B)  the damages reasonably flow from the breach as a result of the injured party's particular circumstances.
C)  the breach did not cause the damages.
D)  the loss exceeds $500.

Question 18

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

Accepted Answer

A)  not enforceable as being in bad faith.
B)  not enforceable as a violation of law.
C)  enforceable by one party only.
D)  enforceable.

Exam 20: Breach of Contract and Remedies

If there is a breach of contract,the law requires that the other party terminate the contract and bring a lawsuit.

Correct Answer
verified

When one party has broken a contract,there are several remedies available to the non-breaching party,including:

Correct Answer
verified

Consequential damages are those that necessarily flow from the breach.

Correct Answer
verified

A party must mitigate damages at all costs.

Correct Answer
verified

Consequential damages may be recovered if:

Correct Answer
verified

Which is NOT a correct statement concerning a liquidated damages clause?

Correct Answer
verified

When one party commits a non-material breach of contract,the other party may rescind the contract.

Correct Answer
verified

A party injured by the other party's anticipatory repudiation of a contract has the right to bring suit at the time of the repudiation without waiting to see if there will be proper performance when due .

Correct Answer
verified

The "American rule" states that the losing party in a lawsuit is responsible for all attorney fees.

Correct Answer
verified

Whether there has been a waiver is a question of fact.

Correct Answer
verified

A waiver of a breach may be either express or implied.

Correct Answer
verified

Punitive damages are generally recoverable in contract actions.

Correct Answer
verified

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

Correct Answer
verified

The failure to act or perform in the manner called for by a contract is a:

Correct Answer
verified

Repeated breaches and waivers are generally interpreted to indicate:

Correct Answer
verified

When one party breaks the contract,the contract is said to be breached.

Correct Answer
verified

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

Correct Answer
verified

A contract provision stating that one of the parties shall not be liable for damages in case of a breach is called a(n) __________ clause.

Correct Answer
verified

Exam 20: Breach of Contract and Remedies

If there is a breach of contract,the law requires that the other party terminate the contract and bring a lawsuit.

Correct AnswerverifiedShow Answer

When one party has broken a contract,there are several remedies available to the non-breaching party,including:

Correct AnswerverifiedShow Answer

Consequential damages are those that necessarily flow from the breach.

Correct AnswerverifiedShow Answer

A party must mitigate damages at all costs.

Correct AnswerverifiedShow Answer

Consequential damages may be recovered if:

Correct AnswerverifiedShow Answer

Which is NOT a correct statement concerning a liquidated damages clause?

Correct AnswerverifiedShow Answer

When one party commits a non-material breach of contract,the other party may rescind the contract.

Correct AnswerverifiedShow Answer

A party injured by the other party's anticipatory repudiation of a contract has the right to bring suit at the time of the repudiation without waiting to see if there will be proper performance when due .

Correct AnswerverifiedShow Answer

The "American rule" states that the losing party in a lawsuit is responsible for all attorney fees.

Correct AnswerverifiedShow Answer

Whether there has been a waiver is a question of fact.

Correct AnswerverifiedShow Answer

A waiver of a breach may be either express or implied.

Correct AnswerverifiedShow Answer

Punitive damages are generally recoverable in contract actions.

Correct AnswerverifiedShow Answer

A landlord who continuously accepts late rental payments without collecting the late fee provided in the lease:

Correct AnswerverifiedShow Answer

The failure to act or perform in the manner called for by a contract is a:

Correct AnswerverifiedShow Answer

Repeated breaches and waivers are generally interpreted to indicate:

Correct AnswerverifiedShow Answer

When one party breaks the contract,the contract is said to be breached.

Correct AnswerverifiedShow Answer

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

Correct AnswerverifiedShow Answer

A contract provision stating that one of the parties shall not be liable for damages in case of a breach is called a(n) __________ clause.

Correct AnswerverifiedShow Answer

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