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The court may award the plaintiff nominal damages in a case where no actual damages result from the breach of a contract.

A) True
B) False

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In the text case Thrifty Rent-A-Car System v.South Florida Transport,the plaintiffs sued the defendant,the operator of a Thrifty franchise,for amounts owed,but the defendant resisted payment on the basis that several hurricanes rendered the business operations commercially impractical.How did the court rule in the case?


A) The court ruled that the parties had to jointly bear the burden of bad weather and that 50% of what the defendant owed would be excused.
B) The court ruled that the plaintiffs were entitled to recover because the defendant failed to anticipatorily repudiate the contract.
C) The court ruled that the bad weather completely excused the defendant's performance.
D) The court ruled that the defendant was legally entitled to additional time in which to pay,but that the defendant would be required to pay all amounts owed.
E) The court ruled that the plaintiffs were entitled to recover for reasons including that the nonoccurrence of hurricanes was not a basic assumption of the agreement.

F) A) and D)
G) A) and E)

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College president Robert contracted with Denise to teach business law.Alice did a good job teaching,but became upset with Robert and refused to turn in her grades.What type of order should Robert seek to compel Denise to abide by her contract?


A) A consequential order
B) A demand order
C) An order of specific performance
D) A nominal order
E) A compensatory order

F) C) and D)
G) A) and B)

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Liquidated damages will be enforced based upon the free-will concept of contracts,even if the liquidated damages amount is unreasonable.

A) True
B) False

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A material breach does not discharge the non-breaching party from his obligations under the contract.

A) True
B) False

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Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and therefore rescind or cancel the contract?


A) Mutual rescission
B) Novation
C) Accord and satisfaction
D) Alteration
E) Substituted contract

F) A) and E)
G) B) and E)

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What is the key difference between an express and an implied condition?


A) Implied conditions are clearly stated while express conditions are inferred.
B) Only express conditions are enforceable.
C) Only implied conditions are enforceable.
D) There are no differences;express and implied conditions are the same.
E) Express conditions are clearly stated while implied conditions are inferred.

F) C) and E)
G) A) and E)

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Rewriting a contract to reflect what the parties had agreed on is referred to as rescission.

A) True
B) False

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The responsibility of Jacob to make arrangements to give the window installer access to the home is a[n] ________.


A) A condition precedent
B) An express condition
C) A condition subsequent
D) An acknowledged condition
E) An implied condition

F) B) and C)
G) A) and D)

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What will Hannah seek in order to force Kelsey to return Champ and Sage?


A) Punitive damages
B) Compensation
C) An injunction
D) Adequate performance
E) Nominal performance

F) A) and D)
G) A) and C)

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[Hawaiian Adventure] Hannah decides to go on a fun trip to Hawaii.While she is gone,she needs someone to take care of her two dogs,Champ and Sage.She hires Amir three months in advance,and they reach a contractual arrangement whereby he will be paid $200 for taking care of the dogs for two weeks.Amir comes over two months before Hannah is set to leave,takes one look at Champ and Sage,and declares that they are too difficult to handle so he will not care for them.Hannah then hires Alisha who agrees to care for Champ and Sage.Two weeks before Hannah is set to leave,however,Alisha calls and tells her that she just broke both her legs in an automobile accident and has been put on bed rest for two months.Finally,Hannah hires Kelsey to care for the dogs and heads off to Hawaii where she has a great time.Unfortunately,when Hannah returns home,she finds that Kelsey has disappeared with Champ and Sage.Later,they are found in good health at an exclusive resort visited by Kelsey.Kelsey refuses to return Champ and Sage to Hannah,claiming that they were all enjoying the resort and that she has become quite attached to them. -What was the effect of Amir's refusal to keep Champ and Sage?


A) He committed an anticipatory repudiation.
B) He is not guilty of any breach because the contract is not over $1,000 in amount.
C) He is not guilty of any breach because he gave Hannah sufficient warning that he was not willing to perform.
D) He is guilty of a nominal breach.
E) He is guilty of an immaterial breach because of the low value of the contract.

F) B) and C)
G) A) and B)

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What was the effect of Alisha's refusal to keep Champ and Sage?


A) She is discharged from performance because of impossibility of performance.
B) She is guilty of only a nominal breach because she had a good excuse for breaching.
C) She committed a material breach.
D) She failed to substantially perform but only committed an immaterial breach.
E) She is discharged from performance because of frustration of purpose.

F) D) and E)
G) C) and D)

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The court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring when one party thought there was an enforceable contract,but an enforceable contract does not actually exist.

A) True
B) False

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Conditions that are not explicitly stated,but are inferred from the nature and language of the contract are known as ________ conditions.


A) Concurrent
B) At large
C) Conditional
D) Implied
E) Express

F) A) and E)
G) A) and B)

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An order requiring that the breaching party fulfill the terms of the agreement is called specific performance.

A) True
B) False

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Why did equitable remedies come into being?


A) To fashion remedies when the existing laws did not provide any adequate ones.
B) To provide a way to award certain parties liquidated damages.
C) To provide a way to award nominal damages.
D) To supplement compensatory damages with punitive damages.
E) To provide a way to award consequential damages.

F) All of the above
G) A) and E)

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How do parties generally discharge their obligations in most situations where there is a contract?


A) Discharge by performance
B) Discharge by absolution
C) Discharge by finishing
D) Discharge by reason
E) Discharge by tender.

F) A) and C)
G) A) and D)

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A condition is a particular event that must occur in order for a party's duty to arise.


A) Subsequent
B) Certain
C) At large
D) Concurrent
E) Precedent

F) B) and E)
G) None of the above

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Which of the following occurs when a contracting party refuses to complete the contract before the actual time of performance?


A) Delineated breach
B) Material breach
C) Substantial breach
D) Crossed breach
E) Immaterial breach

F) B) and C)
G) D) and E)

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Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party?


A) Mutual rescission
B) Accord and satisfaction
C) Novation
D) Substituted contract
E) Alteration

F) A) and B)
G) A) and C)

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