BLAW 243 Final Exam Questions With
Breach of Contract - ANSWER Failure to perform a contractually imposed legal
obligation
Remedy - ANSWER The relief a court provides an innocent party to enforce a
right or to compensate for the violation of a right
Types of Potential Remedies - ANSWER 1.) Remedies at Law
2.) Equitable Remedies
Remedies at Law - ANSWER Monetary Damages
Equitable Remedies - ANSWER awarded when remedies at law is deemed
inadequate
Types of Equitable Remedies - ANSWER 1.) Rescission
2.) Restitution
3.) Specific Performance
4.) Reformation
Types of Damages - ANSWER 1.) Compensatory
2.) Consequential
3.) Nominal
4.) Punitive Damages (rarely never awarded in contract law)
Standard Measure of Compensatory Damages - ANSWER (Direct Losses +
Incidental Damages) - Mitigated Damages
Direct Losses - ANSWER The difference between the value of the breaching
party's promised performance and the value of the breaching party's actual
performance
Incidental Damages - ANSWER Any expenses directly incurred due to the
breach
Mitigated Damages - ANSWER Any loss the injured party has avoided or
mitigated
, Types of Special Measures for Compensatory Damages - ANSWER 1.) Damages
for Breach of Contract for Sale of Goods
2.) Damages for Breach of Contract for Sale of Land
3.) Damages for Breach of Contract of a Construction Contract
Damages for Seller breaching and failing to produce the goods - ANSWER
(Difference between contract price and market price) + Incidentals
Damages for when the Buyer breaches contract but the producer hasn't
produced the goods - ANSWER Seller's lost profits on sale + incidentals
Damages for when the Buyer breaches and the Seller has produced the goods -
ANSWER Seller can demand for return of goods + (Difference between contract
and market price) + incidentals
Buyer keep goods and pay contract price + incidentals
Consequential Damages - ANSWER 'Special' or foreseeable damages that result
from a party's breach of contract but are caused by special circumstances
beyond the contract itself.
Nominal Damages - ANSWER Awarded when a breach has occurred, but the
non-breaching party has not suffered any actual damage or financial loss.
(useful for small amounts of money)
Mitigation of Damages - ANSWER Post breach, the injured party must exert
reasonable effort under the circumstances to reduce/lessen/mitigate the
damage they suffer
Liquidated Damages - ANSWER Fixed amount stipulated in the contract that a
party agrees to in event of a breach. Enforceable and reasonable estimate of the
damages incurred.
Penalties - ANSWER Fixed amount stipulated in the contact that a party agrees
to in the event of a breach. Unenforceable but designed to penalize the party
that breaches.
Rescission - ANSWER Cancellation or termination of a contract. available at
occurrence of breach but prompt notice must be given.
Restitution - ANSWER The restoration of a party to the position they were in pre-
contract due to the other party's recision.
Specific Performance - ANSWER Requires a party to fully perform its duties
under the contract. only available if Remedies at Law are deemed inadequate.
Breach of Contract - ANSWER Failure to perform a contractually imposed legal
obligation
Remedy - ANSWER The relief a court provides an innocent party to enforce a
right or to compensate for the violation of a right
Types of Potential Remedies - ANSWER 1.) Remedies at Law
2.) Equitable Remedies
Remedies at Law - ANSWER Monetary Damages
Equitable Remedies - ANSWER awarded when remedies at law is deemed
inadequate
Types of Equitable Remedies - ANSWER 1.) Rescission
2.) Restitution
3.) Specific Performance
4.) Reformation
Types of Damages - ANSWER 1.) Compensatory
2.) Consequential
3.) Nominal
4.) Punitive Damages (rarely never awarded in contract law)
Standard Measure of Compensatory Damages - ANSWER (Direct Losses +
Incidental Damages) - Mitigated Damages
Direct Losses - ANSWER The difference between the value of the breaching
party's promised performance and the value of the breaching party's actual
performance
Incidental Damages - ANSWER Any expenses directly incurred due to the
breach
Mitigated Damages - ANSWER Any loss the injured party has avoided or
mitigated
, Types of Special Measures for Compensatory Damages - ANSWER 1.) Damages
for Breach of Contract for Sale of Goods
2.) Damages for Breach of Contract for Sale of Land
3.) Damages for Breach of Contract of a Construction Contract
Damages for Seller breaching and failing to produce the goods - ANSWER
(Difference between contract price and market price) + Incidentals
Damages for when the Buyer breaches contract but the producer hasn't
produced the goods - ANSWER Seller's lost profits on sale + incidentals
Damages for when the Buyer breaches and the Seller has produced the goods -
ANSWER Seller can demand for return of goods + (Difference between contract
and market price) + incidentals
Buyer keep goods and pay contract price + incidentals
Consequential Damages - ANSWER 'Special' or foreseeable damages that result
from a party's breach of contract but are caused by special circumstances
beyond the contract itself.
Nominal Damages - ANSWER Awarded when a breach has occurred, but the
non-breaching party has not suffered any actual damage or financial loss.
(useful for small amounts of money)
Mitigation of Damages - ANSWER Post breach, the injured party must exert
reasonable effort under the circumstances to reduce/lessen/mitigate the
damage they suffer
Liquidated Damages - ANSWER Fixed amount stipulated in the contract that a
party agrees to in event of a breach. Enforceable and reasonable estimate of the
damages incurred.
Penalties - ANSWER Fixed amount stipulated in the contact that a party agrees
to in the event of a breach. Unenforceable but designed to penalize the party
that breaches.
Rescission - ANSWER Cancellation or termination of a contract. available at
occurrence of breach but prompt notice must be given.
Restitution - ANSWER The restoration of a party to the position they were in pre-
contract due to the other party's recision.
Specific Performance - ANSWER Requires a party to fully perform its duties
under the contract. only available if Remedies at Law are deemed inadequate.
