SPM 4723 Exam 1 Study Guide – Florida State University – Revision Notes and
Practice Questions
Contract - ANS ✔✔a promise or set of promises for which the law...
- provides a remedy for the breach of those promises
- consider these promises a duty to perform
- through the exchange of promises, create private duties, and, essentially, private law
Elements of a Contract - ANS ✔✔- Offer
- Acceptance (must be in same format as offer)
- Consideration (both sides must promise to give something, i.e. money, services, both...)
- Legality
- Capacity (parties must be of legal age and mental state)
Defenses to Breach of Contract - ANS ✔✔- Attack the elements
- Argue there was no breach
- argue the agreed upon conditions were or were not met
- argue for the least amount of damages
5 Remedies for Breach of Contract - ANS ✔✔- Compensatory Damages
- Consequential Damages
- Liquidated Damages
- Punitive Damages
- Specific Performance
, Compensatory Damages - ANS ✔✔the money necessary to make up whatever monetary loss
the non-breaching party suffers as a direct result of the breach
ex: contract to buy tickets for $500, but seller breaches and the buyer instead has to pay $1,000
for similar replacements; therefore, the damages are $1,000
Consequential Damages - ANS ✔✔any indirect loss that is reasonably attributable to the breach
of conduct
ex: contract for sponsor to have a booth at an event; event manager breaches, but only after
the sponsor purchases a $200 tent, hired personnel for $300 and shipped their product for
$100; therefore, the damages are $600
Liquidated Damages - ANS ✔✔a specific amount of damages that the parties agreed to in the
text of the contract (aka contract buyout)
Punitive Damages - ANS ✔✔damages to punish a wrongdoing (very rare, only in extreme cases)
Specific Performance - ANS ✔✔- where the court forces the breaching party to fulfill their end
of the contract
- rare and extremely limited (never in employment contracts)
- only when an item is irreplaceable (Levert v. University of Illinois)
Duty to Mitigate - ANS ✔✔an injured party must make reasonable efforts to minimize any
damages incurred
ex: contractor hired by expansion city to build an NFL stadium, but then the NFL ends the
expansion team, thereby forcing the city to inform the contractor to stop building; any damages
they incur (used materials) after they're informed will not be recoverable as damages
Practice Questions
Contract - ANS ✔✔a promise or set of promises for which the law...
- provides a remedy for the breach of those promises
- consider these promises a duty to perform
- through the exchange of promises, create private duties, and, essentially, private law
Elements of a Contract - ANS ✔✔- Offer
- Acceptance (must be in same format as offer)
- Consideration (both sides must promise to give something, i.e. money, services, both...)
- Legality
- Capacity (parties must be of legal age and mental state)
Defenses to Breach of Contract - ANS ✔✔- Attack the elements
- Argue there was no breach
- argue the agreed upon conditions were or were not met
- argue for the least amount of damages
5 Remedies for Breach of Contract - ANS ✔✔- Compensatory Damages
- Consequential Damages
- Liquidated Damages
- Punitive Damages
- Specific Performance
, Compensatory Damages - ANS ✔✔the money necessary to make up whatever monetary loss
the non-breaching party suffers as a direct result of the breach
ex: contract to buy tickets for $500, but seller breaches and the buyer instead has to pay $1,000
for similar replacements; therefore, the damages are $1,000
Consequential Damages - ANS ✔✔any indirect loss that is reasonably attributable to the breach
of conduct
ex: contract for sponsor to have a booth at an event; event manager breaches, but only after
the sponsor purchases a $200 tent, hired personnel for $300 and shipped their product for
$100; therefore, the damages are $600
Liquidated Damages - ANS ✔✔a specific amount of damages that the parties agreed to in the
text of the contract (aka contract buyout)
Punitive Damages - ANS ✔✔damages to punish a wrongdoing (very rare, only in extreme cases)
Specific Performance - ANS ✔✔- where the court forces the breaching party to fulfill their end
of the contract
- rare and extremely limited (never in employment contracts)
- only when an item is irreplaceable (Levert v. University of Illinois)
Duty to Mitigate - ANS ✔✔an injured party must make reasonable efforts to minimize any
damages incurred
ex: contractor hired by expansion city to build an NFL stadium, but then the NFL ends the
expansion team, thereby forcing the city to inform the contractor to stop building; any damages
they incur (used materials) after they're informed will not be recoverable as damages
