LAB QUIZ

What is a breach of contract?

• A legal document

• A violation of an agreement

• A payment made to the other party

• A renegotiation of the contract

What are the types of breaches of contract?

• Material and formal

• Formal and intentional

• Material and substantial

• Substantial and intentional

What remedies are available to the non-breaching party?

• Rescission and damages 

• Renegotiation and interest

•  Renegotiation and penalties

• Rescission and penalties

What is the difference between compensatory and consequential damages?

• Compensatory damages are awarded for foreseeable losses, while consequential damages are awarded for losses that were not foreseeable.

• Compensatory damages are awarded for direct losses, while consequential damages are awarded for indirect losses.

• Compensatory damages are awarded for punitive purposes, while consequential damages are awarded for corrective purposes.

• Compensatory damages are awarded for non-monetary losses, while consequential damages are awarded for monetary losses.

What is the duty of mitigation?

•  The duty of the non-breaching party to minimize their own losses after a breach of contract.

• The duty of the breaching party to compensate the non-breaching party for all losses.

• The duty of the non-breaching party to maximize their own losses after a breach of contract.

• The duty of the breaching party to pay punitive damages to the non-breaching party

What is a specific performance remedy?

• The non-breaching party is awarded monetary damages.

• The non-breaching party is awarded a specific item or service.

• The contract is renegotiated.

• The contract is rescinded.

What is the difference between an anticipatory and actual breach?

•  An anticipatory breach occurs before the contract is formed, while an actual breach occurs after the contract is formed.

• An anticipatory breach occurs before the performance of the contract is due, while an actual breach occurs after the performance is due.

• An anticipatory breach is intentional, while an actual breach is unintentional.

• An anticipatory breach is unintentional, while an actual breach is intentional.

What is a liquidated damages clause?

• A clause that allows the non-breaching party to terminate the contract.

• A clause that allows the non-breaching party to renegotiate the contract.

• A clause that sets a predetermined amount of damages to be paid by the breaching party in the event of a breach.

• A clause that absolves the breaching party of all liability in the event of a breach.

In which of the following cases can be damages to be awarded for breach of contract?

• Where the loss is too remote

• Where the loss is a result of the breach

• Where the loss is caused by the claimant's own conduct

• None of the above

In which of the following cases did the court award damages for a breach of contract?

•  The defendant agreed to sell a car to the claimant, but the claimant changed their mind and did not want to go through with the purchase.

• The defendant agreed to paint the claimant's house, but the claimant later decided to hire someone else to do the job.

• The defendant agreed to deliver a product to the claimant by a certain date but failed to do so, causing the claimant to lose profits.

• The defendant agreed to meet the claimant for lunch, but did not show up.