PVL3702 LAW OF CONTRACT EXAM 2025
COMPLETE STUDY GUIDE ACTUAL EXAM
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
⩥ What are the three types of remedies for breach of contract? Answer:
1) Expectancy, 2) Reliance, 3) Restitution.
⩥ What does reliance damages cover? Answer: Out-of-pocket costs
incurred due to reliance on the contract.
⩥ What is the difference between expectancy damages and reliance
damages? Answer: Expectancy damages focus on the benefit of the
bargain, while reliance damages cover costs incurred due to reliance.
⩥ What is the significance of the case Hawkins v. McGee? Answer: It
illustrates the measure of damages as the difference between the value of
what was promised and what was received.
⩥ What is the role of promissory estoppel in contract law? Answer: It
can enforce a promise even without a formal contract if reliance on that
promise leads to injustice.
,⩥ What is the effect of a counteroffer? Answer: It proposes different
terms related to the same matter and effectively terminates the old offer.
⩥ What happens if an offer expires after a specified time? Answer: The
offer is no longer valid after the specified time unless accepted within
that period.
⩥ What is the impact of death or incapacity on an offer? Answer: It
terminates the offer automatically.
⩥ What is a firm offer under UCC? Answer: A written offer by a
merchant that assures it will be held open for a specified time, requiring
no consideration.
⩥ What is the Brooklyn Bridge hypothetical in contract law? Answer: It
illustrates issues of fairness in unilateral contracts regarding revocation
before completion of requested acts.
⩥ What is the traditional rule for restitution recovery? Answer: It
permits recovery in excess of the contract price unless the injured party
has fully performed.
⩥ What is the concept of 'value conferred' in restitution? Answer:
Restitution damages are based on the value of services provided, not the
contract price.
, ⩥ How are expectancy damages calculated in the example of Structo?
Answer: Structo spent $30K and expected a profit of $40K, totaling
$70K. After receiving $50K, damages are $20K.
⩥ What is the Lost Volume Seller rule? Answer: Sellers who can sell in
volume can recover lost profits even if they resell the item for the same
amount.
⩥ What does the American Standard rule state about damages for breach
of remedial work? Answer: Damages should be measured by the
reasonable cost of performance unless the cost is grossly
disproportionate to the economic benefit.
⩥ What are reliance damages? Answer: Damages that compensate for
out-of-pocket costs and place the non-breaching party in the position
they would have been in had the contract never been made.
⩥ What does R2K sec 348 govern? Answer: It governs damages in cases
of defective or unfinished construction.
⩥ What can a party recover if a breach delays the use of property?
Answer: They may recover damages based on rental value or interest on
the property's value.
COMPLETE STUDY GUIDE ACTUAL EXAM
PAPER 2026 COMPLETE QUESTIONS AND
ANSWERS GRADED A+
⩥ What are the three types of remedies for breach of contract? Answer:
1) Expectancy, 2) Reliance, 3) Restitution.
⩥ What does reliance damages cover? Answer: Out-of-pocket costs
incurred due to reliance on the contract.
⩥ What is the difference between expectancy damages and reliance
damages? Answer: Expectancy damages focus on the benefit of the
bargain, while reliance damages cover costs incurred due to reliance.
⩥ What is the significance of the case Hawkins v. McGee? Answer: It
illustrates the measure of damages as the difference between the value of
what was promised and what was received.
⩥ What is the role of promissory estoppel in contract law? Answer: It
can enforce a promise even without a formal contract if reliance on that
promise leads to injustice.
,⩥ What is the effect of a counteroffer? Answer: It proposes different
terms related to the same matter and effectively terminates the old offer.
⩥ What happens if an offer expires after a specified time? Answer: The
offer is no longer valid after the specified time unless accepted within
that period.
⩥ What is the impact of death or incapacity on an offer? Answer: It
terminates the offer automatically.
⩥ What is a firm offer under UCC? Answer: A written offer by a
merchant that assures it will be held open for a specified time, requiring
no consideration.
⩥ What is the Brooklyn Bridge hypothetical in contract law? Answer: It
illustrates issues of fairness in unilateral contracts regarding revocation
before completion of requested acts.
⩥ What is the traditional rule for restitution recovery? Answer: It
permits recovery in excess of the contract price unless the injured party
has fully performed.
⩥ What is the concept of 'value conferred' in restitution? Answer:
Restitution damages are based on the value of services provided, not the
contract price.
, ⩥ How are expectancy damages calculated in the example of Structo?
Answer: Structo spent $30K and expected a profit of $40K, totaling
$70K. After receiving $50K, damages are $20K.
⩥ What is the Lost Volume Seller rule? Answer: Sellers who can sell in
volume can recover lost profits even if they resell the item for the same
amount.
⩥ What does the American Standard rule state about damages for breach
of remedial work? Answer: Damages should be measured by the
reasonable cost of performance unless the cost is grossly
disproportionate to the economic benefit.
⩥ What are reliance damages? Answer: Damages that compensate for
out-of-pocket costs and place the non-breaching party in the position
they would have been in had the contract never been made.
⩥ What does R2K sec 348 govern? Answer: It governs damages in cases
of defective or unfinished construction.
⩥ What can a party recover if a breach delays the use of property?
Answer: They may recover damages based on rental value or interest on
the property's value.
