366. When the party who breaches a contract has behaved maliciously and committed a tort, the court may want to
discourage such behavior in the future by imposing what damages besides regular damages?
a. compensatory
b. expectancy
c. liquidated
d. nominal
e. punitive
367. When the party who breaches a contract has behaved maliciously and committed a tort, the court may want to
discourage such behavior in the future by imposing what damages besides regular damages?
a. compensatory
b. expectancy
c. liquidated
d. nominal
e. none of the other choices
368. When a breach of contract occurs, the non-breaching party is required to:
a. notify the breaching party
b. increase her losses
c. mitigate her losses
d. have her losses verified by a notary
e. do none of these
369. An example of an equitable remedy is:
a. compensatory damages
b. specific performance
c. nominal damages
d. special damages
e. none of the other choices
370. An example of an equitable remedy is:
a. compensatory damages
b. punitive damages
c. nominal damages
d. special damages
e. none of the other choices
371. When the payment of money damages is inadequate for a breach of contract a court may order the remedy of:
a. specific performance
b. extra performance
c. nominal performance
d. compensatory performance
e. special performance
372. When the payment of money damages is inadequate for a breach of contract a court may order the remedy of:
a. special performance
b. extra performance
c. nominal performance
d. compensatory performance
e. none of the other choices are correct
373. Len agrees to sell Doug some choice ocean-front property. If Len later refuses to convey the land, Doug may sue
for:
a. liquidated damages
b. specific performance
c. ratification damages
d. punitive damages
e. none of the other choices since contract law does not apply to real property agreements
374. Allie makes a contract to buy a piece of land in six months on which a house will be built. Allie hires an architect to
design a house that will look just right on that piece of land. When it is time to pay for the land, the seller refuses to
sell. Because Allie wants that piece of land to use for a house that has been designed for, Allie should ask for:
a. nominal damages
b. rescission
c. specific performance
d. compensatory damages
e. a and c
375. A(n) is an order by the court that requires a party to perform or to refrain from performing certain acts.
a. injunction
b. restitution
c. quasi contract
d. remedy
e. specific performance
376. A is an order by the court that requires a party to perform or to refrain from performing certain acts.
a. specific performance
b. restitution
c. quasi contract
d. remedy
e. none of the other choices are correct
377. In violation of their contract, a partner quits a partnership and goes into competition with her old partner. The old
partner may ask the court for:
a. compensatory damages requiring her to return to work with her old partner
b. an injunction to prevent her from working in competition with the old partner
c. special damages under the rule of Hadley v. Baxendale
d. liquidated damages in compensation for the breach
e. none of the other choices are appropriate
378. In violation of their contract, a partner quits a partnership and goes into competition with her old partner. The old
partner may ask the court for:
a. compensatory damages requiring her to return to work with her old partner
b. special nominal damages
c. special damages under the rule of Hadley v. Baxendale
d. liquidated damages in compensation for the breach
e. none of the other choices are appropriate
379. The remedy of may be used to prevent unjust enrichment.
a. restitution
b. specific performance
c. real performance
d. fair compensation
e. equal parts
380. The remedy of may be used to prevent unjust enrichment.
a. equal parts
b. mitigation
c. real performance
d. fair compensation
e. none of the other choices are correct
381. The courts may impose obligations on one party to a dispute to avoid unjust enrichment to the other party. This is
called:
a. unenforceable contract
b. voidable contract
c. implied contract
d. void contract
e. quasi-contract
382. The courts may impose obligations on one party to a dispute to avoid unjust enrichment to the other party. This is
called:
a. unenforceable contract
b. voidable contract
c. implied contract
d. void contract
e. none of the other choices
383. Quasi-contract is closely related to the concept of:
a. restitution
b. voidable contract
c. mitigation
d. quantum meruit
e. none of the other choices
384. To allow recovery and avoid injustice when a contract does not exist the courts may allow:
a. restitution
b. voidable contract
c. mitigation
d. quantum meruit
e. none of the other choices
385. In Scheerer v. Fisher where Scheerer, a real estate agent, sued Fisher for failing to pay Scheerer for his services
in locating property for Fisher, the appeals court held that:
a. there was no contract or basis for payment to Scheerer
b. there was an implied contract and so Scheerer must be paid
c. there was implied contract, but there was no need to pay Scheerer since the original deal fell through
d. there was no contract, but Scheerer should be paid anyway, out of good will
e. none of the other choices are correct
386. In Scheerer v. Fisher where Scheerer, a real estate agent, sued Fisher for failing to pay Scheerer for his services
in locating property for Fisher, the appeals court held that:
a. Scheerer had a case for quantum meruit recovery
b. Scheerer did not have a case for quantum meruit recovery
c. Scheerer had a case for special performance
d. Scheerer did not have a case for just compensation
e. none of the other choices are correct
387. A doctor driving on a highway stops at a car accident to give medical aid that takes an hour of time. The accident
victim is unconscious when the doctor arrives, so he does not give his consent to the aid. The doctor bills the victim
for an hour of medical services:
a. an express contract existed; the victim pays
b. an executed contract existed; the victim pays
c. a quasi-contract existed, otherwise the victim would be unjustly enriched
d. a valid contract, enforceable by law, was not created; no payment
e. this was an adhesion contract; no payment
388. A doctor driving on a highway stops at a car accident to give medical aid that takes an hour of time. The accident
victim is unconscious when the doctor arrives, so he does not give his consent to the aid. The doctor bills the victim
for an hour of medical services:
a. an express contract existed; the victim pays
b. an executed contract existed; the victim pays
c. a valid contract, enforceable by law, was not created; no payment would be due
d. this was an adhesion contract; no payment
e. none of the other choices
Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen’s Old Fashion Cafe, contracts
with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and
Ellen agreed during a chat. Lulene said: “I will supply you with lemon meringue pies for however long you want
them at $5.00 per pie.“ Ellen said: “That’s great, I’ll take them.” Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons
increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge
$7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that’s too bad, but the deal is off. Lulene
says, “That‘s what you think!” and goes to see Amanda, her attorney.
389. Refer to Fact Pattern 10-1. Lulene and Ellen’s contract may best be described as:
a. a unilateral contract
b. a bilateral contract
c. an executory contract
d. a voidable contract
e. a misrepresented contract
390. Refer to Fact Pattern 10-1. Suppose the Mississippi legislature passes a law, one day after Lulene and Ellen make
their contract, that the sale of lemon pies is prohibited in the state because lemons have been found to cause
cancer. This statute makes the contract:
a. valid
b. unenforceable
c. voidable
d. unilateral
e. legal
391. Refer to Fact Pattern 10-1. Under the common law, Lulene’s offer:
a. is valid based on clarity
b. is valid based on communication
c. is valid based on intent
d. is invalid based on indefiniteness
e. is invalid based on illegality
392. Refer to Fact Pattern 10-1. If Lulene sues to enforce her contract with Ellen, a court is most likely to:
a. agree with Lulene and enforce the contract
b. agree with Lulene based on definiteness
c. rule in favor of Ellen because Lulene never made a valid, definite offer
d. rule in favor of Ellen based on Lulene’s failure to engage in preliminary negotiations
e. rule in Ellen‘s favor based on Lulene‘s capacity
393. Refer to Fact Pattern 10-1. Suppose that when discussing the deal, Lulene said to Ellen, “you know, I can only hold
this offer open to you until Wednesday.” On Thursday, Ellen calls Lulene and tells her she would like the pies. In
this case the offer was terminated:
a. by illegality
b. by lapse of time
c. by conditionality
d. by revocation
e. by counteroffer
394. Refer to Fact Pattern 10-1. After Lulene offers to supply Ellen with pies for as long as she wants them, Ellen then
says “I don’t really like lemon meringue, how about blueberry?” The offer was terminated:
a. by illegality
b. by lapse of time
c. by conditionality
d. by revocation
e. by counteroffer
395. Refer to Fact Pattern 10-1. After Lulene offers to supply Ellen with pies, Ellen says, “That’s great, but I would like
to have some coconut lemon bars as well.” In this case, Ellen’s acceptance:
a. is valid under the common law only
b. is valid based on equivocality
c. is invalid because it is unequivocal
d. is invalid because it is not a clear acceptance of the offer
e. is invalid because it was made too late
396. Refer to Fact Pattern 10-1. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her
lemon pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen‘s answer by May 10. On
May 8 Ellen signs a letter accepting the offer and mails it. On May 9 Lulene calls to withdraw her offer. Ellen says
it’s too late, she has accepted. Who wins?
a. Ellen wins, because it was effective when sent
b. Ellen wins, based on the faulty communication rule
c. Lulene wins, because she revoked before receipt
d. Lulene wins, based on the precedent set in the Hixson case
e. Lulene wins based on the UCC
397. Refer to Fact Pattern 10-1. Assume that when Lulene and Ellen entered into the agreement Ellen was an
enterprising 16-year-old. In this case:
a. Ellen may not void the contract with Lulene because it was a necessity
b. Ellen may not void the contract, but Lulene may based on minority
c. Ellen may void the contract based on minority
d. Lulene may void the contract based on objective insanity
e. Lulene may void the contract based on impracticality
398. Refer to Fact Pattern 10-1. Assume that Ellen says to Lulene that she would like blueberry pies rather than lemon
pies. Assume that Lulene agrees to this and states that she will supply Ellen with all the blueberry pies she needs.
This is known as:
a. a rescission
b. a restitution
c. a material breach
d. substantial performance
e. accord and satisfaction
399. Refer to Fact Pattern 10-1. Assume that Ellen doesn’t call the deal off when she is told the price is now $7.00, but
wants to hold Lulene to the deal to supply pies at $5.00. If Lulene fails to supply the pies, and if Ellen then sues her
for a breach of contract, what is Lulene most likely to argue to avoid liability?
a. sufficiency of writing
b. substantial performance
c. failure of a condition subsequent
d. impossibility
e. failure of a condition concurrent