Contract and Legal Concepts

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1) Tender of performance is another term for completion of performance.

Answer: FALSE
Diff: 1
Topic: Substantial Performance: Minor Breach

2) Substantial performance constitutes a minor breach of the contract.

Answer: TRUE
Diff: 2
Topic: Substantial Performance: Minor Breach

3) When there is substantial performance of a contract with a minor breach, the other nonbreaching party may sue to recover the cost to repair the defect.

Answer: TRUE
Diff: 1
Topic: Substantial Performance: Minor Breach

4) Specific performance is the most common remedy for a breach of contract.

Answer: FALSE
Diff: 1
Topic: Substantial Performance: Minor Breach

5) A material breach allows the other party to rescind a contract.

Answer: TRUE
Diff: 1
Topic: Inferior Performance: Material Breach

6) A breach of a contract cannot occur until the time for performance of the duty in question.

Answer: FALSE
Diff: 1
Topic: Inferior Performance: Material Breach

7) When one party materially breaches a contract, the other nonbreaching party is discharged from any further performance.

Answer: TRUE
Diff: 1
Topic: Inferior Performance: Material Breach

8) When performance is tendered, this will discharge a party's contractual obligations.

Answer: TRUE
Diff: 2
Topic: Inferior Performance: Material Breach

Answer: FALSE
Diff: 1
Topic: Inferior Performance: Material Breach

10) When there is an anticipatory breach, the nonbreaching party's obligations under the contract are discharged immediately.

Answer: TRUE
Diff: 1
Topic: Anticipatory Breach

11) The primary goal of compensatory damages is to compensate a nonbreaching party for the loss of the bargain.

Answer: TRUE
Diff: 1
Topic: Monetary Damages

12) The UCC governs damages for a breach of a sales contract involving goods.

Answer: TRUE
Diff: 2
Topic: Monetary Damages

13) A buyer can generally recover the additional cost of acquiring substitute goods if the seller breaches by not delivering the goods.

Answer: TRUE
Diff: 1
Topic: Monetary Damages

14) A contractor is generally entitled to recover any lost profits on a contract breached by the client.

Answer: TRUE
Diff: 1
Topic: Monetary Damages

15) If an employee breaches an employment contract, the employer can recover the costs incurred to replace the employee, plus any increase in salary paid to the new employee in excess of what would have been paid to the old employee.

Answer: TRUE
Diff: 2
Topic: Monetary Damages

16) Only those consequential damages that are unforeseeable can be collected.

Answer: FALSE
Diff: 1
Topic: Monetary Damages

17) Lost profits can be recovered as consequential damages only if they are related to an existing established business.

Answer: FALSE
Diff: 2
Topic: Monetary Damages

18) In the Super Valu Stores, Inc. v. Peterson case, the court refused to grant damages for lost profits, because the store involved had not been built.

Answer: FALSE
Diff: 1
Topic: Monetary Damages

19) Liquidated damages will be invalidated if they are unreasonably large or small.

Answer: FALSE
Diff: 2
Topic: Monetary Damages

20) A liquidated damages provision will be validated if it is considered to be a penalty.

Answer: FALSE
Diff: 1
Topic: Monetary Damages

21) Cases involving nominal damages are generally brought on "principle."

Answer: TRUE
Diff: 1
Topic: Monetary Damages

22) Mitigation of damages is no longer necessary in the area of employment law.

Answer: FALSE
Diff: 1
Topic: Monetary Damages

23) When an employer breaches an employment contract, if the employer offers substitute employment to the employee, the doctrine of mitigation places a duty on the employee to accept the work so long as the employee is capable of doing the work.

Answer: FALSE
Diff: 2
Topic: Monetary Damages

24) Rescission and restitution are designed to give the parties the...
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