Business Law: Breaking The Deal - Remedies

The video tutorial covers remedies for breach of contract, focusing on legal remedies such as monetary damages and specific performance. It explains compensatory and consequential damages, and when specific performance is applicable. The tutorial also discusses third-party rights in contracts, including assignment of contract rights and intended beneficiaries.

What is the primary purpose of a legal remedy in the context of a breached contract?

• To nullify the contract

• To compensate the harmed party

• To punish the breaching party

• To renegotiate the contract terms

Which type of damages compensates for direct losses due to a contract breach?

• Liquidated damages

• Punitive damages

• Compensatory damages

• Nominal damages

What additional compensation might you receive if a faulty product causes further damage?

• Punitive damages

• Nominal damages

• Liquidated damages

• Consequential damages

When is specific performance used as a remedy?

• When the contract is void

• When monetary compensation is sufficient

• When the contract involves a unique item

• When the breaching party agrees

What is privity of contract?

• A rule that allows any party to enforce a contract

• A principle that only parties in the contract have rights

• A method of transferring contract rights

• A type of contract breach

Which of the following is an example of an intended third-party beneficiary?

• A plumber hired to install a hot tub

• A grandmother benefiting from a hot tub installation

• A bank buying a loan

• A sewing club using the hot tub

What happens when contract rights are assigned?

• The contract terms are renegotiated

• The contract is terminated

• The rights are transferred to a new party

• The original contract is voided