Understanding Breach of Contract: Terms, Definitions, and Remedies, Quizzes of Business and Labour Law

Download Understanding Breach of Contract: Terms, Definitions, and Remedies and more Quizzes Business and Labour Law in PDF only on Docsity! TERM 1 When a person's performance is due, any failure to perform that is not excused is a ____. DEFINITION 1 breach of contract TERM 2 At a __, a party's breach of contract gives the nonbreaching party the right to sue & recover for damages. DEFINITION 2 minimum TERM 3 A material breach occurs when: DEFINITION 3 the promisor's performance fails to reach the level of performance that the promisee is justified in expecting under the circumstances TERM 4 The party who is injured by a material breach has the right to ___ his own performance. DEFINITION 4 withhold TERM 5 Does the party injured by a material breach have the right to sue for damages for total breach of contract? DEFINITION 5 yes TERM 6 When a breach is nonmaterial, the nonbreaching party may sue to what extent? DEFINITION 6 can sue only for those damages caused by the particular breach. TERM 7 T/F: A nonmaterial breach gives the nonbreaching party the right to cancel the contract. DEFINITION 7 False, it does give him the right to suspend his performance until the breach is remedied though.For a material breach, the nonbreaching party can cancel it. TERM 8 The standard for determining materiality is a ___ one. DEFINITION 8 flexible TERM 9 key question to ask when determining materiality of the breach DEFINITION 9 Does the breach deprive the injured party of the benefits that he reasonably expected? TERM 10 4 Factors in determining materiality DEFINITION 10 magnitude of the breach, good faith by breaching party, timing, extent to which the injured party can be adequately compensated by the payment of damages TERM 21 If the specific time is stated or implied, but the time for performance is relatively unimportant, consequences are? DEFINITION 21 not a material breach unless performance is unreasonably late.Time for performance=the time stated in or implied by the contract TERM 22 2 types of excuses for non-performance DEFINITION 22 impossibility, impracticability TERM 23 Impossibility in the legal sense means what? DEFINITION 23 it means "it cannot be done by anyone" rather than "I cannot do it" TERM 24 3 most common cases of impossibility excuse DEFINITION 24 illness/death of promisor, supervening illegality, destruction of subject matter of the contract TERM 25 A statute or govt. regulation enacted after the creation of a contract making performance more difficult is excused. T/F DEFINITION 25 false, it's only excused if it makes the duties illegal. This concept is called supervening illegality. TERM 26 If substitutes are available, does destruction of items excuse nonperformance? DEFINITION 26 no, even though securing them makes performance more difficult/less profitable TERM 27 In order to be excused, the subject matter destroyed must be _____. DEFINITION 27 essential TERM 28 Does it matter if the promisor was at fault for destruction of subject matter? DEFINITION 28 Yes, if the promisor is at fault for the destruction, he is still required to perform the contract. TERM 29 If the promisor dies, does this excuse the nonperformance of duties that can be delgated to another? DEFINITION 29 No, these duties must still be completed on behalf of the deceased person's estate TERM 30 3 examples of duties that can be delegated DEFINITION 30 deliver goods, pay money, convey real estate TERM 31 Developments for commercial impracticability to work must be ___. DEFINITION 31 unforeseen TERM 32 Is impracticability an excuse for nonperformance for the common law or the UCC? DEFINITION 32 UCC TERM 33 How common is it for cases to be excused for impracticability? DEFINITION 33 relatively rare TERM 34 What 2 things must a promisor establish to show impracticability? DEFINITION 34 1) the event that makes performance impracticable occurred without his fault2) the contract was made with the basic assumption that this even wouldn't occur TERM 35 3 broad categories of remedies for breach of contract DEFINITION 35 legal remediesequitable remediesrestitution TERM 46 In calculating the compensatory remedy, a court will attempt to protect the expectation interest of the injured party by giving him the "____." DEFINITION 46 benefit of the bargain (placing him in the position he would have been in had the contract been performed as promised) TERM 47 For compensatory damages, the court must compensate the injured person for what 2 things? DEFINITION 47 1) the provable losses he has suffered2) the provable gains that he has been prevented from realizing by the breach of contract TERM 48 Normally, compensatory damages include one or more of 3 possible items, which are: DEFINITION 48 loss in value, any allowable consequential damages, any allowable incidental damages TERM 49 _____ is a way of measuring the expectation interest. DEFINITION 49 loss in value TERM 50 How would you calculate loss of value for a party that breaches by rendering defective performance? DEFINITION 50 measured by the difference b/w the value of the goods if they had been in the condition warranted by the seller and the value of the goods in their defective condition TERM 51 How do courts usually measure loss in value for contracts involving the nonperformance of the sale of real estate? DEFINITION 51 difference between the contract price & the market price of the property.ex: If Willis repudiates a contract with Renfrew whereby Renfrew was to purchase land worth $20K from Willis for $10K, Renfrew's loss in value is $10K TERM 52 How do you measure loss of value where the seller has failed to perform a contract for the sale of goods? DEFINITION 52 Measure loss in value by the difference b/w the contract price & the price that the buyer had to pay to procure substitute goods TERM 53 consequential damages DEFINITION 53 compensate for losses that occur as consequences of the breach of contract TERM 54 Consequential losses occur because of some ____ circumstances of the particular contractual relationship of the parties. DEFINITION 54 unique TERM 55 lost profits can be recovered as consequential damages if they are ___ & ____. DEFINITION 55 foreseeable; can be proven with reasonable certainty TERM 56 incidental damages DEFINITION 56 compensate for reasonable costs that the injured party incurs after the breach in an effort to avoid further loss TERM 57 nominal damages DEFINITION 57 very small damage awards given when a technical breach of contract has occurred w/o causing any actual or provable economic loss. vary from 2 cents to a dollar TERM 58 liquidated damages DEFINITION 58 the parties to a contract may expressly provide in their contract that a specific sum shall be recoverable if the contract is breachedalso called contractual damages TERM 59 2 types of equitable remedies DEFINITION 59 specific performance; injunction TERM 60 specific performance DEFINITION 60 the court orders the breaching party to perform his contractual duties as promised