BUL 3320 FINAL EXAM QUESTIONS
AND ANSWERS
What would be a provision by which the parties agree in advance to the damages to
be paid in the event of a breach of the contract?
Punitive damage provision
Reliance damage provision
Consequential damage provision
liquidated damage provision - answer- Liquidated damage provision
When is an agent normally not liable for a contracting agent entering into when the
agent had and acted within their authority
undisclosed
disclosed
partially disclosed principal? - answer- Disclosed Principle
If a company only hires women as sales representatives because they believe that
customers relate better to women, would this be a violation of the
Federal age discrimination in employment act
Violation of the Equal Pay Act
Not violating any
Federal Age Discrimination in Employment Act
Title 7 of the 1964 Civil Rights Act - answer- Title 7 of the 1964 Civil Rights Act
What are the levels of performance of a contract?
complete performance
substantial performance
inferior performance of a contract.
All of the above - answer- all of the above
T/F: Does tender of performance discharge a party's contractual obligation? -
answer- True
T/F: Complete or strict performance by a party discharges that party's duties under
the contract. - answer- True
T/F: Fully performed contract is called an executed contract; Not fully performed is
executory contract. - answer- True
T/F: If you have a minor breach of the contract, there has been substantial
performance. - answer- True
,What rights do a non-breaching party have? - answer- Able to sue to recover
damages to recover the cost of repairing a defect. Could NOT sue for specific
performance.
When would inferior performance of a contract occur? - answer- When there's a
major breach of a contract.
If there is a breach in a contract, would the non-breaching party be discharged from
any further performance under the contract? Can they rescind the contract and seek
restitution of any compensation paid under the contract to the breaching party? -
answer- Yes, they are discharged; Second part is a benefit of an inferior breach of a
contract where they can rescind.
T/F: Anticipatory breach can be implied in the conduct of a party. When someone is
supposed to perform some duty and they don't show up, while stop answering your
phone calls. - answer- True
T/F: A non-breaching party has to wait until performance is due until they can sue. -
answer- False, if someone is supposed to perform in 30 days and they tell you that
they have no intention of performing you do not have to wait 30 days.
What is the non-breaching party's obligation in the event of anticipatory repudiation?
- answer- The non-breaching party can discharge at that point preventing any further
duties under contract.
What are your damages when there's a breach of a sales contract involving goods
normally governed by? - answer- Uniform Commercial Code, not common law.
A contractor can recover the profits they would have made on a contract if the owner
breaches the contract before construction begins. (Think anticipatory repudiation.) If
Sam is supposed to start building a house for Lisa in a week and Lisa isn't going to
be following the contract by not allowing them on the property, pay them money etc.
Can Sam sue? - answer- Sam can then sue at this point to recover damages of the
profits they would have made if the contract was fulfilled.
If an employer hires someone to work and their employee doesn't show up, what
damages can the employer recover for breaches of an employee contract? - answer-
Cost to hire a new employee and the increase in salary for the replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. - answer- False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in most
instances. - answer- True
T/F: Most courts do not favor nominal damages lawsuits such as $1. - answer- True
, T/F: If an employer breaches their contract, the employee still owes a duty to find
substitute comparable employment. The employee can't wait a year and then decide
to sue for the whole year of damages. - answer- True
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or impractical to
determine. Law
doesn't favorite liquidated damage provisions. - answer- True
T/F: If the court finds out that liquidated damage provision amounts to a penalty it is
not enforceable. - answer- True
Under what circumstances would remedy of precision be available?
Material breach of a contract
Fraud
Duress/undue influence
Mistake - answer- Mistake
T/F: Specific performance is a remedy available for the breach of any sale of
personal property or personal service contract. - answer- False, land contracts are
the only situation you can get specific performance of a contract.
Injunction - answer- requires a person not to do/ perform a certain act
T/F: If there is a clerical error in a contract, you can get reformation of the contract. -
answer- True
T/F: The Federal Arbitration Act is not limited to disputes involving only federal law. -
answer- True
Suppose a party can prove a contract related tort, the party could recover
compensation for personal injury, pain and suffering, emotional distress, but never
punitive damages. - answer- False, in some instances you can recover punitive
damages if you can prove there's a contract related tort.
What is the tort of intentional interference with contractual relations? - answer- Arises
when a third party induces a contracting party to breach the contract with another
party.
Ex. Alice (A) and Betty (B) have a contract. Charlie (C) tries to talk Alice (A) into not
performing their duties under the contract.
T/F: Most states permit a court to apply Covenant called the covenant of good faith
and fair dealing. - answer- False, a few states do while most states do NOT do that
T/F: Bankruptcy judges are appointed for life. - answer- False; appointed for 14
years
AND ANSWERS
What would be a provision by which the parties agree in advance to the damages to
be paid in the event of a breach of the contract?
Punitive damage provision
Reliance damage provision
Consequential damage provision
liquidated damage provision - answer- Liquidated damage provision
When is an agent normally not liable for a contracting agent entering into when the
agent had and acted within their authority
undisclosed
disclosed
partially disclosed principal? - answer- Disclosed Principle
If a company only hires women as sales representatives because they believe that
customers relate better to women, would this be a violation of the
Federal age discrimination in employment act
Violation of the Equal Pay Act
Not violating any
Federal Age Discrimination in Employment Act
Title 7 of the 1964 Civil Rights Act - answer- Title 7 of the 1964 Civil Rights Act
What are the levels of performance of a contract?
complete performance
substantial performance
inferior performance of a contract.
All of the above - answer- all of the above
T/F: Does tender of performance discharge a party's contractual obligation? -
answer- True
T/F: Complete or strict performance by a party discharges that party's duties under
the contract. - answer- True
T/F: Fully performed contract is called an executed contract; Not fully performed is
executory contract. - answer- True
T/F: If you have a minor breach of the contract, there has been substantial
performance. - answer- True
,What rights do a non-breaching party have? - answer- Able to sue to recover
damages to recover the cost of repairing a defect. Could NOT sue for specific
performance.
When would inferior performance of a contract occur? - answer- When there's a
major breach of a contract.
If there is a breach in a contract, would the non-breaching party be discharged from
any further performance under the contract? Can they rescind the contract and seek
restitution of any compensation paid under the contract to the breaching party? -
answer- Yes, they are discharged; Second part is a benefit of an inferior breach of a
contract where they can rescind.
T/F: Anticipatory breach can be implied in the conduct of a party. When someone is
supposed to perform some duty and they don't show up, while stop answering your
phone calls. - answer- True
T/F: A non-breaching party has to wait until performance is due until they can sue. -
answer- False, if someone is supposed to perform in 30 days and they tell you that
they have no intention of performing you do not have to wait 30 days.
What is the non-breaching party's obligation in the event of anticipatory repudiation?
- answer- The non-breaching party can discharge at that point preventing any further
duties under contract.
What are your damages when there's a breach of a sales contract involving goods
normally governed by? - answer- Uniform Commercial Code, not common law.
A contractor can recover the profits they would have made on a contract if the owner
breaches the contract before construction begins. (Think anticipatory repudiation.) If
Sam is supposed to start building a house for Lisa in a week and Lisa isn't going to
be following the contract by not allowing them on the property, pay them money etc.
Can Sam sue? - answer- Sam can then sue at this point to recover damages of the
profits they would have made if the contract was fulfilled.
If an employer hires someone to work and their employee doesn't show up, what
damages can the employer recover for breaches of an employee contract? - answer-
Cost to hire a new employee and the increase in salary for the replacement.
T/F: Financial loss must be a result from a breach of a contract before the non-
breaching party
can recover damages. - answer- False, don't have to have a financial loss.
T/F: If a contract has a disclaimer for consequential damages this is lawful in most
instances. - answer- True
T/F: Most courts do not favor nominal damages lawsuits such as $1. - answer- True
, T/F: If an employer breaches their contract, the employee still owes a duty to find
substitute comparable employment. The employee can't wait a year and then decide
to sue for the whole year of damages. - answer- True
T/F: To have liquidated damage provisions in a contract, the amounts must be
reasonable in the circumstances and the damages must be difficult or impractical to
determine. Law
doesn't favorite liquidated damage provisions. - answer- True
T/F: If the court finds out that liquidated damage provision amounts to a penalty it is
not enforceable. - answer- True
Under what circumstances would remedy of precision be available?
Material breach of a contract
Fraud
Duress/undue influence
Mistake - answer- Mistake
T/F: Specific performance is a remedy available for the breach of any sale of
personal property or personal service contract. - answer- False, land contracts are
the only situation you can get specific performance of a contract.
Injunction - answer- requires a person not to do/ perform a certain act
T/F: If there is a clerical error in a contract, you can get reformation of the contract. -
answer- True
T/F: The Federal Arbitration Act is not limited to disputes involving only federal law. -
answer- True
Suppose a party can prove a contract related tort, the party could recover
compensation for personal injury, pain and suffering, emotional distress, but never
punitive damages. - answer- False, in some instances you can recover punitive
damages if you can prove there's a contract related tort.
What is the tort of intentional interference with contractual relations? - answer- Arises
when a third party induces a contracting party to breach the contract with another
party.
Ex. Alice (A) and Betty (B) have a contract. Charlie (C) tries to talk Alice (A) into not
performing their duties under the contract.
T/F: Most states permit a court to apply Covenant called the covenant of good faith
and fair dealing. - answer- False, a few states do while most states do NOT do that
T/F: Bankruptcy judges are appointed for life. - answer- False; appointed for 14
years
