7-4 Breach, Remedy, Termination

What is a breach of contract?

• A minor deviation from a contract's terms

• A mutual agreement to end a contract

• A lawful excuse to not perform a contract

• A failure to perform any agreed-upon terms without a lawful excuse

Which of the following is an example of a minor breach?

• Failing to deliver any goods at all

• Selling goods to another company despite an existing contract

• Delivering goods a few days late without significant harm

• Delivering a different product than agreed upon

What is an anticipatory breach?

• A breach that occurs when both parties agree to terminate the contract

• A breach that occurs due to natural disasters

• A breach that occurs when a party indicates they cannot or will not meet obligations

• A breach that occurs after the contract is executed

What is the first step in resolving a breach of contract?

• Negotiation

• Litigation

• Mediation

• Arbitration

What is the role of an arbitrator?

• To terminate contracts

• To provide financial compensation

• To make a legally binding decision

• To facilitate communication between parties

What are compensatory damages?

• A mutual agreement to end a contract

• Punishment for harmful behavior

• A court order to prohibit specific actions

• Financial compensation for actual losses incurred

What is restitution?

• A monetary award to compensate for loss or injury

• A legally binding decision by an arbitrator

• A mutual agreement to terminate a contract

• A court order to perform specific actions

What does it mean when a contract is discharged?

• The parties have fulfilled their obligations or agreed to end it

• The contract is terminated due to duress

• The contract is voided due to a breach

• The contract is terminated due to bankruptcy

What is a rescinded contract?

• A contract that is terminated due to a breach

• A contract that is voided and treated as if it never existed

• A contract that is terminated due to natural disasters

• A contract that is fulfilled and discharged

Under what condition can a contract be terminated due to bankruptcy?

• When a party is under duress

• When both parties agree to terminate

• When the contract is fulfilled

• When the bankrupt party can no longer meet its obligations