Exam 3 Part-2

Question 1

Your duty to perform a contract can be conditioned in what three ways?

Answer 1

Precedent-Duty performed before conditions
Concurrent- Duty performed same time as conditions
Subsequent-Duty performed after conditions

Question 2

If contract is breached when can you file a lawsuit?

Answer 2

As soon as the breach takes place

Question 3

Define Material Breach:

Answer 3

A breach which frustrates the purpose of the contract (non breaching party usually exempt from contract)

Question 4

Does a non-material breach warrant an end in performance?

Answer 4

No, performance is still required, though you CAN sue for damages

Question 5

Define Novation and give and example.

Answer 5

You destroy the contract and remake the contract with another party. Example Lease for an apartment

Question 6

What happens if a law changes and makes a contract’s performance illegal?

Answer 6

The party is discharged from the duties of the contract

Question 7

Consequential Damages are _________ losses outside the contract.

Answer 7

Foreseeable (by the defendant) Example waiting on inventory and you lose a sale

Question 8

__________ __ ________: The obligation plaintiff to reduce the damages they would have suffered.

Answer 8

Mitigation of damages, Ex: Landlord needs to try to fill the apartment after a tenant skips out on their lease

Question 9

This is a contractual provision that sets a reasonable amount of damages for a breach

Answer 9

Liquidated Damages

Question 10

Penalties are:

Answer 10

A provision that sets an unreasonable amount of damages for a breach. (generally unenforceable)

Question 11

If the damages are roughly equivalent to the actual damages the provision is said to be ___________.

Answer 11

Reasonable

Question 12

_______ _______ when the plaintiff proves a breach but cannot prove damages. (Given a dollar)

Answer 12

Nominal Damages

Question 13

Define Punitive Damages:

Answer 13

Damages used to punish the tortfeasor to prevent similar acts. (must have a tort involved)

Question 14

T or F: Limiting remedies can excuse your intentional tort

Answer 14

False they cannot!

Question 15

Limiting Remedies do not work in what circumstances?

Answer 15

• Avoidance of almost all responsibility for negligence

- Responsibility for intentional torts

Question 16

Limiting Remedies will be enforceable for what kind of negligence?

Answer 16

Reasonable/Simple Negligence

Question 17

Define Restitution:

Answer 17

Return of a benefit conferred upon someone unjustly enriched