Chapter five True or False

Once a contract has been created it may not be modified.

Chapter five True or False

Under classical contract law, a modification is a contract and must follow the same rules of contract formation required for the original contract.

TRUE

Chapter five True or False

Under Article 2 of the UCC, an agreement modifying a contract for the sale of good needs no consideration.

TRUE

Chapter five True or False

Parties may agree to end their contractual duties when the contract has not been fully performed by either party.

TRUE

Chapter five True or False

If parties want to rescind a contract that has not been fully prerformed by either party , they must follow the same rules of contract law used to form the original contract.

TRUE

Chapter five True or False

The rescission of a contract has an offer and an acceptance.

TRUE

Chapter five True or False

When one party has fully performed but the other party has only partially performed, the party who has fully performed cannot unilaterally release the other party from its contractual duties.

FALSE

Chapter five True or False

The release parties use for terminating a noncontractual duty need not meet the requirements of contract law.

FALSE

Chapter five True or False

An "accord and satisfaction" generally involves a check, written by one party to the other, stating, "This check is taken in full payment of the obligation."

TRUE

Chapter five True or False

An "accord and satisfaction" can be used to discharge an obligation regardless of whether the existence of the  obligation or the amount of the obligation is in dispute.

FALSE

Chapter five True or False

Constance Brown contracted to pay $800 to Harvey Elliott for Harvey's promise to paint her house. After Harvey completed painting, Constance had second thoughts about the price and sent him a check for $500 with the notation  "Acceptance of this check constitutes payment in full." By accepting the check, Harvey has no recourse against Constance for the remaining $300.

FALSE

Chapter five True or False

An "accord and satisfaction" is a contract to pay a stated amount to discharge a prior obligation that is in dispute.

TRUE

Chapter five True or False

The traditional rules of offer and acceptance do not apply to the accord.

FALSE

Chapter five True or False

The "satisfaction" is the performance of the accord contract and discharges the original contractual duties.

TRUE

Chapter Five Fill in the Blank

The process whereby the terms of a contract are changed to meet the changing needs of the parties.

MULTIPLICATION

Chapter Five Fill in the Blank

The relinquishment of a right.

RELEASE

Chapter Five Fill in the Blank

A contract to pay a stated amount to discharge a prior obligation that is in dispute and the performance of that contract.

ACCORD AND SATISFACTION

Chapter Five Fill in the Blank

A notation used on a check in an accord and satisfaction.

do not have this answer?

contact me if you have it.

Chapter Six True or False

Preparing an outline before drafting a contract is a waste of time.

FALSE

Chapter Six True or False

Begin the outlining process by defining the purpose of the contract.

TRUE

Chapter Six True or False

Good writing stresses conciseness.

TRUE

Chapter Six True or False

Never use a single word when an important-sounding phrase has the same meaning.

Chapter Six True or False

The longer the contract, the better the contract.

Chapter Six True or False

The use of "legalese" makes a contract look professional.

Chapter Six True or False

Avoid the use of synonyms in drafting a contract.

Chapter Six True or False

Indefinite pronouns make writing less confusing.

Chapter Six True or False

Always use the base verb rather than its derivative noun.

Chapter Six True or False

Do not worry about sexist language. Everyone knows that male-oriented expressions include both men and women.

Chapter Six True or False

Paralegals are responsible for correct spelling, punctuation, and grammer.

Chapter Six True or False

The use of "etc." gives the reader no new information.

Chapter Six True or False

Synonyms add interest to an otherwise dull contract.

Chapter Six True or False

The use of ambigous terms will add clarity and precision to a contract.

Chapter Six True or False

Always use "party of the first part" and "party of the second part" to distinguish between the parties.

Chapter Six True or False

Using different words to refer to the same object or idea will confuse the reader.

Chapter Seven True or False

Certain classes of people are protected by law in their contract transactions.

Chapter Seven True or False

The members of a protected class are given the power to unilaterally rescind their contracts.

Chapter Seven True or False

Modern contract law prevents minors from entering into contracts and thus their "contracts" are void.

Chapter Seven True or False

Minors may disaffirm contracts made during minority if they disaffirm while still in minority or within a reasonable time after reaching majority.

Chapter Seven True or False

Both parties involved in a contract in which one is a minor have the power to disaffirm.

Chapter Seven True or False

A minor has the power to decide not to disaffirm a contract and may continue to perform and demand performance under the contract.

Chapter Seven True or False

The minor who willfully misrepresents his or her age at the time of contract formation may not disaffirm.

Chapter Seven True or False

Once a minor disaffirms a contract, the minor no longer has outstanding duties to perform and the other party may not enforce the contract against him or her.

Chapter Seven True or False

The minor who willfully misrepresents his or her age at the time of contract formation may be liable in a tort action for misrepresentation.

Chapter Seven True or False

A minor who disaffirms a contract will be restored to the position he or she was in before contracting.

Chapter Seven True or False

A minor who disaffirms a contract may reclaim personal property but not real property from a subsequent bona fide purchaser for value.

Chapter Seven True or False

The minor must restore to the other party what the minor received under the contract.  If the minor no longer has what was given, then he or she cannot disaffirm the contract.

Chapter Seven True or False

If the minor disaffirms the contract, discontinues performing, and files a restitution action to recover the benefit conferred on the other contracting party, some courts will charge the minor for the use and depreciation of what he or she received.

Chapter Seven True or False

A minor who disaffirms a contract for necessaries may still be liable for the reasonable value of the necessaries.

Chapter Seven True or False

A minor who disaffirms a contract for necessaries will be liable in a breach of contract cause of action.

Chapter Seven True or False

Under a restitution action a minor is only liable for the reasonable value of the necessaries to him or her rather than the contract price.

Chapter Seven True or False

A minor's liability for necessaries is based on a restitution cause of action rather than breach of contract.

Chapter Seven True or False

Early contract law, based on the meeting of the minds theory, denied the mentally incapacitated the power to contract.

Chapter Seven True or False

Modern contract law allows both the mentally incapacitated party and the other party to disaffirm.

Chapter Seven True or False

A person who is totally incapacitated due to alcohol or other drugs may not have the capacity to assent that is necessary to contract formation.

Chapter Seven True or False

A person who suffers from mental illness due to compulsive alcoholism or drug addiction has an unlimited power to disaffirm a contract.

Chapter Seven True or False

If voluntary intoxication does not constitute mental illness, the intoxicated person has no power to disaffirm a contract.

Chapter Seven Fill in the Blank

A class of people protected by law in their contract transactions because of their age.

Chapter Seven Fill in the Blank

The action that may be brought in some courts to allow the other contracting party to collect from a minor for necessaries.

Chapter Seven Fill in the Blank

The inability to understand or the inability to act in a reasonable manner due to mental illness or defect.

Chapter Seven Fill in the Blank

A measure of contractual mental capacity to determine if a person is unable to understand the nature of the transaction.

Chapter Seven Fill in the Blank

A measure of contractual mental capacity to determine if a person is unable to act in a reasonable manner.

VIOLITIONAL TEST

(this might be wrong)?

Chapter Seven multiple choice

A minor who enter into a contract has the power:

-to disaffirm the contract during minority

-to disaffirm the contract within a reasonable time after reaching majority

-to ratify the contract after reaching majority

Chapter Seven muliple choice

A minor who has exercised his or her right to disaffirm the contract, cannot successfully maintain a restitution action to be restored to the position he or she was in before contracting if:

-the minor has ratified the contract.

-the minor conferred no benefit on the other party.

Chapter Eight True and False

When a court or legislature protects a class, this protection extends to all members of that class in every contractual transaction.

Chapter Eight True and False

A contracting party who is not in a protected class may still be protected from the overreaching of another party.

Chapter Eight True and False

The terms of a "contract of adhesion" will be enforced because there was a manifestation of assent.

Chapter Eight True and False

All contracts of adhesion are unenforceable.

Chapter Eight True and False

The terms of an "adhesion contract" will not be enforced because of the "imposition of will" by one party upon another party during contract formation.

Chapter Eight True and False

An adhesion contract may be a nonstandardized contract or a standardized contract.

Chapter Eight True and False

All adhesion contracts are unconscionable.

Chapter Eight True and False

To determine whether a contract or a contract term is unconscionable, evaluate it as of the time of the allegation of unconscionability.

Chapter Eight True and False

Unconscionability has been defined by the UCC as an absence of meaningful choice on the part of one of the parties together with contract terms that are unreasonably favorable to the other party.

Chapter Eight True and False

Absence of meaningful choice has two components:

(1) The imbalance in bargaining power

(2) Lack of knowledge of the terms

Chapter Eight True and False

A gross inequality of bargaining power will not lead to the conclusion of absence of meaningful choice if the other party had knowledge of the terms.

Chapter Eight True and False

A party could lack knowledge of the terms of a contract if the  contract is written in English and the buyer can read only Spanish.

Chapter Eight True and False

A contract is unconscionable if one party lacked meaningful choice and the other party had no knowledge of that fact.

Chapter Eight True and False

Determining whether a contract term is reasonable or fair will be done without considering the circumstances at the time the contract was made.

Chapter Eight True and False

If a case does not involve a sale of goods, the court must consider whether or not UCC §2-302 applies when the issue of unconscionability arises.

Chapter Eight True and False

If a case does not involve a sale of goods, the court may not consider whether the contract or a term in the contract was unconscionable at the time of contract formation.

Chapter Eight True and False

Unconscionablity is a question for the jury.

Chapter Eight True and False

Under section 2-302(2) of the UCC, the courtt may, of its own accord, raise the issue of unconscionability.

Chapter Eight True and False

Unconscionability may be used both as a defense to a breach of contract action and as an action for breach of contract.

Chapter Eight True and False

Fraud and misrepresentation are interchangeable terms.

Chapter Eight True and False

An assertion must be fraudulent to be a misrepresentation.

Chapter Eight True and False

A misrepresentation is "an assertion that is not in accord with the facts."

Chapter Eight True and False

A statement a speaker intends as truthful may be a misrepresentation due to ignorance or carelessness.

Chapter Eight True and False

A statement a speaker intends as truthful but which is a misrepresentation due to ignorance or carelessness is still fraud.

Chapter Eight True and False

A fraudulent misrepresentation may be either fraud in the "factum" or fraud in the "essence."

Chapter Eight True and False

Fraud in the "factum" occurs when one party tricks the other into signing a promissory note that the other believes is merely a receipt.

Chapter Eight True and False

A typical case of fraud in the "inducement" involves a seller's misrepresentation of the quality of the goods.

Chapter Eight True and False

A party who has relied on a misrepresentation made because of ignorance or carelessness may not disaffirm the contract.

Chapter Eight True and False

The power to disaffirm a contract protects innocent parties from misrepresentation that are either careless or fraudulent.

Chapter Eight True and False

Duress encompasses more than physical force.

Chapter Eight True and False

Duress by threat has two elements:

(1) There must be a threat.

(2) The threat must be sufficiently grave to induce the victim to assent.

Chapter Eight True and False

Duress by threat includes "economic duress."

Chapter Eight True and False

Duress does not take away a contracting party's "free will."

Chapter Eight True and False

 Undue influence is the same thing as duress.

Chapter Eight True and False

 Undue influence requires a special relationship between the parties.

Chapter Eight True and False

Undue influence requires threats and deception. 

Chapter Eight True and False

Undue influence involves unfair persuasion by a party who is in either a position of dominance or a position of trust and confidence.

Chapter Eight True and False

A contracting party who has been adversely affected by a mistake in a basic assumption of fact may disaffirm the contract.

Chapter Eight True and False

A contracting party who may disaffirm a contract in which the mistake in a basic assumption of fact involves "quality" or "value".

Chapter Eight True and False

A contracting party may not disaffirm a contract in which the mistake in a basic assumption of fact involves the "identity" of "existence" of the subject matter.

Chapter Eight Fill in the Blank

A contract formed by one party imposing his or her will upon an unwilling, or even unwitting, party.

Chapter Eight Fill in the Blank

Occurs when contract negotiations are not between equals, when there is no opportunity to bargain over the terms, or when one party is unfamiliar with the terms.

Chapter Eight Fill in the Blank

The imposition by one party of an unreasonably favorable contract or term on the other party who lacked a meaningful choice.

Chapter Eight Fill in the Blank

The determiner of unconscionability.

Chapter Eight Fill in the Blank

The UCC section that pertains to unconscionability.

Chapter Eight Fill in the Blank

An assertion that is not in accord with the facts.

Chapter Eight Fill in the Blank

A misrepresentation that is a statement of fact known or believed to be false by the party making the statement with the intent of influencing the other party, who believes and relies on the statement, to act or refrain from acting, and the statement is sufficiently material to induce the relying party to accept the offer.

Chapter Eight Fill in the Blank

A fraudulent misrepresentation that involves the very character of the proposed contract.

Chapter Eight Fill in the Blank

A fraudulent misrepresentation that typically involves the quality of the goods.

Chapter Eight Fill in the Blank

Protects contracting parties from deliberately dishonest statements.

Chapter Eight Fill in the Blank

The use of any wrongful act or threat as a means of influencing a party to contract.

Chapter Eight Fill in the Blank

Wrongfully threatening a party with severe economic loss if the threatened party does not enter the proposed contract.

Chapter Eight Fill in the Blank

Unfair persuasion by a party who is in either a position of dominance or a position of trust and confidence.

Chapter Eight Fill in the Blank

A mistake that involves a situation where both parties beleived they were bargaining for something different from the thing for which they actually contracted.

Chapter Eight MULTIPLE CHOICE

The definition of unconscionable is found in which of the following?

-Article 1 of the UCC

-Article 2 of the UCC

-Case Law

-Both article 2 of the UCC and case law

-Article 2A of the UCC

Chapter Eight MULTIPLE CHOICE

Unconscionablity is defined as which of the following?

-Absence of meaningful choice on the part of one of the parties

-Gross inequality of bargaining power

-Unreasonably favorable terms

-Deceptive sales practices

-Absence of meaningful choice on the part of one of the parties coupled with unreasonably favorable terms on the part of the other

-Absence of meaningful choice on the part of one of the parties coupled with unreasonably favorable terms on the part of the other

Chapter Eight MULTIPLE CHOICE

Under UCC 2-302, the court may:

-refuse to enforce the contract.

-delete the unconscionable term and enforce the remaining terms of the contract.

-reform the unconscionable term so it no longer produces an unconscionable result

-ask the jury to decide whether the contract was unconscionable.

-award damages.

-refuse to enforce the contract.

-delete the unconscionable term and enforce the remaining terms of the contract.

-reform the unconscionable term so it no longer produces an unconscionable result

Chapter Eight MULTIPLE CHOICE

Which of the following are the elements of fraud that must be established for a court to find a contract unenforceable?

-The misrepresentation must be a statement of fact.

-The statement must be false.

-The party making the statement must know or beleive the statement to be false and, by making the statement, must intend to influence the other party to act or refrain from acting.

-the person to whom the statement is made must believe and rely on the statement.

-the statement must be suficiengly material to induce -the party relying on the statement to accept the offer

-The misrepresentation must be a statement of fact.

-The statement must be false.

-The party making the statement must know or beleive the statement to be false and, by making the statement, must intend to influence the other party to act or refrain from acting.

-the person to whom the statement is made must believe and rely on the statement.

-the statement must be suficiengly material to induce -the party relying on the statement to accept the offer

Chapter Eight MULTIPLE CHOICE

Undue influence differs from duress in that:

-undue influence requires neither threats nor deception.

-undue influence requires deception but not threats.

-undue influence requires threats and deception.

-undue influence requires a special relationship between the parties.

-undue influence requires the party influenced to be susceptible

-undue influence requires neither threats nor deception.

-undue influence requires a special relationship between the parties.

Chapter Eight MULTIPLE CHOICE

Travers contracted to sell "Come from Behind" a racehorse, to Bishop. At the time of contracting, both parties believed the horse to be alive and well. Unkown tot he parties, the horse had recently been severely injured by a careless groom. Bishop could disaffirm the contract under the following theory:

-Unconscionability

-Fraud in the factum

-fraud in the inducement

-Undue influence

-Mistake in a basic assumption of fact

-Mistake in a basic assumption of fact

Chapter Eight MULTIPLE CHOICE

At birth, Simon suffered a brain injury which resulted in an IQ of 79. He lived with his brother on the family farm that had been left to Simon by his parents. Larry told Simon that he would have to move to a group home if he did not sell the farm to larry. Simon signed the documents conveying the farm to Larry. Simon could disaffirm the contract under the following theory:

-Unconscionablity

-Fraud in the factum

-fraud in the inducement

-undue influence

-mistake in a basic assumption of fact

-undue influence

Chapter Nine True and False

The Statute of Frauds is a judicial doctrine.

Chapter Nine True and False

Statutes of Frauds require certain types of contracts to be evidenced by a writing to be enforceable.

Chapter Nine True and False

Only three major types of contracts must be evidenced by a writing to be enforceable.

Chapter Nine True and False

All contracts must be evidence by a writing to be enforceable.

Chapter Nine True and False

A contract that could be fully performed in less than a year from the time of contract formation does not have to be evidenced by a writing to be enforceable unless it involves a sale of goods.

Chapter Nine True and False

The determiniation of whether a contract could not be fully performed  within one year is made after the parties have performed

Chapter Nine True and False

The Statute of Frauds covers a contract for the sale of land but does not apply to the transfer of a lesser interest in land such as a lease, easement, or mortgage.

Chapter Nine True and False

Some states recognize a "part performance" exception to the transfer of an interest in the real property category of the Statute of Frauds.

Chapter Nine True and False

A "part performance" exception covers unwritten contracts in which the buyer pays the seller and takes possession of the realty or makes a valuable improvement to the realty with the consent of the seller.

Chapter Nine True and False

UCC 2-201(1) provides that a contract for the sale of goods for a price over $500 must be evidenced by a writing to be enforceable.

Chapter Nine True and False

Section 2-201(1) of the UCC states that a contract for the sale of goods for the price of $250 or more must be evidenced by a writing to be enforceable.

Chapter Nine True and False

Section 2-201(1) of the UCC requires that any transaction for the lease of goods or for the sale of services must be evidenced by a writing to be enforceable.

Chapter Nine True and False

Some courts use reliance to circumvent the Statute of Frauds.

Chapter Nine True and False

A restitution action may be available to prevent unjust enrichment if an oral contract is unenforceable because of the Statute of Frauds.

Chapter Nine True and False

Illegality may be a defense to a breach of contract action.

Chapter Nine True and False

Illegality may be a defense to a breach of contract action must involve the subject matter of the contract.

Chapter Nine True and False

Illegality used as a defense to a breach of contract action may involve the subject matter of the contract, the procurement of a legal contract, or the performance of a legal contract.

Chapter Nine True and False

When the subject matter about which the parties have  contracted is illegal, the court will leave the parties where it finds them.

Chapter Nine True and False

The issue of the illegality of a contract is usually determined in accordance with the law of the place where the contract was formed.

Chapter Nine True and False

A covenant not to compete may be illegal as an impermissible restraint on trade when it sweeps too broadly.

Chapter Nine True and False

Whether a covenant not to compete is unreasonably broad can only be determined in light of the legitimate interest that the party is seeking to protect with the convenant.

Chapter Nine True and False

A covenant not to compete used by an employer hiring an employee must be reasonable in terms of scope, geography, and duration.

Chapter Nine True and False

If an employee does not deal with the employer's trade secrets or confidential lists or if the emplyee's services are not special, unique, or extraordinary, the employee cannot be the subject of an enforceable covenant not to compete.

Chapter Nine True and False

Even if the subject of the contract does not involve illegal conduct illegal conduct may be present in the procurement of the contract.

Chapter Nine True and False

Illegal conduct in the procurement of a contract often involves bribery. 

Chapter Nine True and False

Any illegal activity in the performance of a legal contract will preclude enforcement of the contract.

Chapter Nine True and False

Illegal activity in the performance of a legal contract must be significant and must directly relate to the performance of the contract in order to preclude enforcement.

Chapter Nine True and False

The rule that a party who enters into an illegal contract can neither enforce the bargain nor obtain restitution for any benefit conferred has no exceptions.

Chapter Nine True and False

As a general rule, a party who enters into an illegal contract is not only unable to enforce the bargain , he or she is also unable to obtain restititution  for any benefits conferred under the contract.

Chapter Nine True and False

When parties are in pari delicto in an illegal contract, the court will not shift the loss from one party to the other.

Chapter Nine True and False

When parties are not in pari delicto in an illegal contract, the court may allow restititution to the party with less fault.

Chapter Nine True and False

As a general rule, collateral illegality (illegality not closely related to the plaintiff's claim) will preclude a restitution claim.

Chapter Nine True and False

Collateral illegality is an obstacle to a breach of contract claim.

Chapter Nine True and False

Restitution may be available to the plaintiff who has "repented" and wants to back away from performance of an illegal transaction.

Chapter Nine True and False

A "forum selection clause" in a contract is a statement naming the courts in which any dispute arising during the performance of the contract will be heard.

Chapter Nine True and False

The fact that a contract has a forum selection clause guarantees that all future disputes will be heard only by the named courts.

Chapter Nine True and False

A court must enforce a forum selection provision even if it violates the public policy of the named forum.

Chapter Nine True and False

A court will refuse to enforce an unreasonable forum selection clause.

Chapter Nine True and False

A court may refuse to enforce a forum selection provision on the grounds of fairness if one party held such a powerful bargaining position that the other was unable to resist inclusion of the provision.

Chapter Nine True and False

Forum selection clauses do not apply to international contract disputes.

Chapter Nine True and False

Contracting parties from different nations may designate the courts of either of their nations or of a third nation to hear their disputes.

Chapter Nine Fill-in-the-Blanks

Subject matter about which the parties have contracted that makes the contract unenforceable.

Chapter Nine Fill-in-the-Blanks

A type of covenant that may be illegal as an impermissible restraint on trade when it sweeps too broadly.

Chapter Nine Fill-in-the-Blanks

The assest of a business that a new buyer of the business may seek to protect with a convenant not to compete.

Chapter Nine Fill-in-the-Blanks

The interests that an employer may seek to protect with a convenant not to compete.

Chapter Nine Fill-in-the-Blanks

Three exceptions to the general rule that a party who enters into an illegal contract is not only unable to enforce the bargain, but is also unable to obtain restititution for any benefits conferred under the contract.

Chapter Nine Fill-in-the-Blanks

A latin expression meaning in equal fault.

Chapter Nine Fill-in-the-Blanks

Illegality not closely related to the plaintiff's claim

Chapter Nine Fill-in-the-Blanks

Action by the claimant before accomplishing the illegal objective that may permit a court to give the claimant a remedy.

Chapter Nine Fill-in-the-Blanks

A statute forbidding enforcement of certain types of contracts unless they are evidenced by a writing.

Chapter Nine Fill-in-the-Blanks

A cause of action that may be available to prevent unjust enrichment if an oral contract is unenforceable by reason of the Statute of Frauds.

Chapter Nine Fill-in-the-Blanks

A provision in a contract providing for the forum in which any dispute arising as the contract is being performed will be heard.

Chapter Nine Multiple Choice

Christy Carson, when hired by Gotham Advertising Agency as an account magager, signed a covenant not to compete. The covenant stated that Christy could not work for any advertising agency in the US for 10 years from the date of her termination of employment with Gotham.

This covenant not to compete, as applied to Christy Carson, is unenforceable because

-Gotham has no legitimate interest to protect

-the covenant is unreasonable as to subject matter since there may be positions in an advertising agency that are not related to the legitimate interest that Gotham needs to protect.

-the convenant is unreasonable as to duration because Gotham may not need a 10 year prohibition to protect its letgitimate interest.

-the covenant is unreasonable to as to geographic inclusion because Gotham my not be doing business in the entire US but only in a limited regional area.

-the covenant is unreasonable as to the duration and geographic inclusion but not as to subject matter

-the covenant is unreasonable as to subject matter since there may be positions in an advertising agency that are not related to the legitimate interest that Gotham needs to protect.

-the covenant is unreasonable to as to geographic inclusion because Gotham my not be doing business in the entire US but only in a limited regional area.

Chapter Nine Multiple Choice

    Wilson bribed Amy, a buyer for the Kelleyville Super Store, to have the Store purchase merchandise from him. The Store contracted with Wilson and he shipped the merchandise. The Store accepted the shipment but refused to pay.

-the illegality occurred in the Wilson/Amy contract and not in the Wilson/Store contract and therefore the Wilson/Store contract was enforceable.

-even though the illegality occurred in the Wilson/Amy contract and not in the Wilson/Store contract, the Wilson/Store contract was unenforceable because it was procured through an illegal act.

-even if the Wilson/Store contract was unenforceable under the general rule, Wilson could maintain a cause of action for breach of contract because the parties werre not in pari delicto

-even if Wilson/Store contract was unenforceable under the general rule, Wilson could maintaing a cause of action for breach of contract because of the doctrine of collateral illegality

-even if the Wilson/Store contract was unenforceable under the general rule, Wilson could maintain a cause of action for breach of contract because of the rrepentance doctrine

-even though the illegality occurred in the Wilson/Amy contract and not in the Wilson/Store contract, the Wilson/Store contract was unenforceable because it was procured through an illegal act.

Chapter 15 True and False

The nonbreaching party is entitled to a remedy for the breach of an enforceable contract.

Chapter 15 True and False

The nonbreaching party is entitled to a remedy for the breach of an enforceable contract.

Chapter 15 True and False

A remedy for breach of contract  may involve expectation, reliance, or restitution interests.

Chapter 15 True and False

Courts give the breaching part what he or she expected to receive when an expectation interest is being protected.

Chapter 15 True and False

 Courts require the nonbreaching party to give what he or she expected to give when an expectation interest is being protected.

Chapter 15 True and False

The reliance interest concerns the nonbreaching party's expectations.

Chapter 15 True and False

What the nonbreaching party expected to receive and expected to give must be considered when computing damages based on the reliance interest.

Chapter 15 True and False

The restitution interest is concerned with what the nonbreaching party gave or received in reliance on the breaching party's promise.

Chapter 15 True and False

The restitution remedy measures damages by considering the reasonable value of the benefit conferred to the breaching party.

Chapter 15 True and False

When the expectation interest is protected, the nonbreaching party will be placed in the position he or she would have been in had the contract been fully performed according to its terms.

Chapter 15 True and False

Damages for breach of contract include incidental damages.

Chapter 15 True and False

Damages for breach of contract include punitive damages.

Chapter 15 True and False

The intentions of the breaching party are relevant when computing damages for breach of contract.

Chapter 15 True and False

Intentional and unintentional breaches yield the same measure of expectation damages.

Chapter 15 True and False

A contracting party will never find that breaching a contract will be in his or her best economic interest.

Chapter 15 True and False

The breaching party is held up to the public as an example of what might happen to a party who breaches.

Chapter 15 True and False

Determining what will place the injured party in the postion he or she would have been in had the contract been fully performed often is not achievable with mathematical precision.

Chapter 15 True and False

Damages for breach of contract are limited to those that the breaching party could reasonably foresee, when the contract was made, as a probable result of breach.

Chapter 15 True and False

Only general damages are foreseeable.

Chapter 15 True and False

General damages arise naturally while special damages do not.

Chapter 15 True and False

Damages for pain and suffering or for emotional distress are never available in a breach of contract action.

Chapter 15 True and False

Damages that are speculative and incapable of being ascertained with reasonable certainty are not  recoverable for breach of contract.

Chapter 15 True and False

the nonbreaching party has a duty to mitigate the damages in the event of a breach.

Chapter 15 True and False

Although the nonbreaching party is required by the doctrine of mitigation to prevent increasing damages, he or she is not required to decrease the damages the breaching party must pay.

Chapter 15 True and False

A nonbreaching party who establishes a breach of contract but is unable to prove damages is entitile to nominal damages.

Chapter 15 True and False

A judgment for nominal damages compensates the nonbreaching party in dollars.

Chapter 15 True and False

A judgment for nominal damages clarifies the rights and duties of the parties and may include an award of court costs.

Chapter 15 True and False

An injunction is a court order directing the breaching party to refrain from a specified act and is designed to prevent future injuries to the nonbreaching party.

Chapter 15 True and False

Specific performance is available to a nonbreaching party who prefers it as compensation for his or her injury rather than accepting damages.

Chapter 15 True and False

Specific performance may be available in a contract for the sale of real peroperty if the property is unique.

Chapter 15 True and False

Specific performance is not available when the breach is a failure to pay money.

Chapter 15 True and False

Specific performance is available in personal service contracts if the service is unique.

Chapter 15 True and False

The nonbreaching employer in an employment contract may not be entitiled to damages even though he or she has found a substitute employee.

Chapter 15 True and False

Liquidated damages are those imposed on the parties by the court.

Chapter 15 True and False

Parties to a contract may agree upon what damaages will be in the event of a breach and incorporate this agreement in a provision known as a liquidated damage clause.

Chapter 15 True and False

All contract provisions that purport to be liquidated damage clauses are enforceable.

Chapter 15 True and False

Liquidated damage clauses that are classified by the court as penalties are unenforcable.

Chapter 15 True and False

Parties to a contract may not include a provision regarding who will pay costs if litigation ensues.

Chapter 15 True and False

Most courts will allocate costs to the losing party in a contractual dispute in which the contract does not include a provision for costs.

Chapter 15 True and False

Costs in a breach of contract case usually include attorney fees.

Chapter 15 True and False

Attorney fees may not be allocated by contract.

Chapter 15 True and False

A nonbreaching party may choose between a breach of contract action and a restitution action.

Chapter 15 True and False

A restitiution action is the same thing as a restitution remedy for a breach of contract action.

Chapter 15 Fill-in-the-Blanks

Damages that place the nonbreaching party in a position he or she would have been in had both parties fully performed according to the terms of the contract.

Chapter 15 Fill-in-the-Blanks

Damages based on what the nonbreaching party did give and did receive in reliance on the breaching party's promise,

Chapter 15 Fill-in-the-Blanks

Damages based on the benefit that the nonbreaching party conferred on the breaching party and what the nonbreaching party received for conferring that benefit.

Chapter 15 Fill-in-the-Blanks

 Damages intended to compensate the nonbreaching party for not, receiving his or her expectation under the contract.

Chapter 15 Fill-in-the-Blanks

Damages that the breaching party could reasonably foresee, at the time of the making of the contract, as a probable result of the breach.

Chapter 15 Fill-in-the-Blank

Damages that "arise naturally, i.e., according to the usual course of things, from such breach of contract itself."

Chapter 15 Fill-in-the-Blanks

Damages that "may reasonably be supposed to have been in the contemplation of both parties, at the time they made the contract,as the probable result of the breach of it"

Chapter 15 Fill-in-the-Blanks

Action that the agrieved party must take after a breach of contract to limit the damages that will arise due to the breach.

Chapter 15 Fill-in-the-Blanks

Damages that clarify the rights and duties  of the parties but do not compensate the nonbreaching party in dollars.

Chapter 15 Fill-in-the-Blanks

A court directing the breaching party to refrain from a specified act.

Chapter 15 Fill-in-the-Blanks

A remedy whereby a court directs a party to do a specified act.

Chapter 15 Fill-in-the-Blanks

Damages agreed to by the parties, at the time of contract formation, that will apply to the transaction if a breach occurs.

Chapter 15 Fill-in-the-Blanks

Expenses incurred in litigation that generally include filing fees, service of process, jury fees and court officer charges, but not attorney fees.

Chapter 16 True and False

Section 1-106(1) authorizes expectation, reliance, and restitution damages under the Code.

Chapter 16 True and False

The remedies for breach of a contract for the sale of goods must be analyzed under Articles 1 and 2 of the UCC and not with common law principles.

Chapter 16 True and False

The seller's remedies for the breaching buyer are indexed in 2-703.

Chapter 16 True and False

All of the buyer's remedies for the seller's breach are indexed in 2-711.

Chapter 16 True and False

The remedy computations in Article 2 of the UCC produce statutory liquidated damage rather than actual damages.

Chapter 16 True and False

Both the aggrieved buyer and the aggrieved seller may recover incidental damages under Article 2.

Chapter 16 True and False

If the buyer breaches before accepting the goods and the seller still has the goods in its possession, the seller must resell and recover damages (contract price less resale price.)

Chapter 16 True and False

If the buyer breaches before accepting the goods and the seller resells the goods, the buyer must calculate its damages based on the contract price less the resale price plus incidental damages.

Chapter 16 True and False

If the buyer breaches before accepting the goods, the seller may recover either the difference between the contract price and the market price or the difference between the contract price and the costs of the either manufacturing or purchasing the goods.

Chapter 16 True and False

If the buyer breaches after accepting the goods, the seller may recover the upaid contract price.

Chapter 16 True and False

The seller may recover consequential damage in the event the buyer breaches.

Chapter 16 True and False

If the seller breaches, all the buyer's remedies in the general are indexed in 2-711.

Chapter 16 True and False

If the seller breaches after the buyer accepts the goods, the buyer's remedies are limited to those associated with breach of warranty.

Chapter 16 True and False

If the seller breaches before the buyer accepts the goods, the buyer may cover.

Chapter 16 True and False

If the buyer covers , the buyer is not entitiled to damages based on cover price less contract price.

Chapter 16 True and False

If the buyer covers, the buyer must calculate its damages using 2-712 and may not use 2-713.

Chapter 16 True and False

The aggrieved buyer always has the option of pursuing specific perfomance.

Chapter 16 True and False

Specific performance is a form of self-help and requires no court intervention.

Chapter 16 True and False

The aggrieved buyer will find its remedies indexed in 2-703.

Chapter 16 True and False

The nonbreaching party may use either the general expectation formula referenced in 1-106(1) or one of the explicit remedy formulas found in Article 2 of the UCC.

Chapter 16 True and False

The aggrieved buyer may recover punitifve damages for an intentional breach by the seller.

Chapter 16 True and False

The remedy sections in Article 2 are statutory liquidated damages rather than actual damages.

Chapter 16 Fill-in-the-Blanks

The interst the Code protects; expectation, reliance, or restitution.

Chapter 16 Fill-in-the-Blanks

The Article 1 section that states the overarcching theory of code remedies

Chapter 16 Fill-in-the-Blanks

The Article 2 section that indexes the seller's remedies for the buyer's breach.

Chapter 16 Fill-in-the-Blanks 4

The Article 2 section that indexes the buyer''s remedies when the seller breaches before the buyer accepts the goods.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that seller's remedy of resale.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that seller's remedy for the buyer's nonacceptance of the goods.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that seller's action for the unpaid price.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that buyer's remedy for accepted goods that do not comport with warrranty.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that buyer's right to cover.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that buyer's right to incidental damages.

Chapter 16 Fill-in-the-Blanks

The Article 2 section that seller's righ to incidental damages.

Chapter 16 Fill-in-the-Blanks 12

The technical name for substitute goods.