Contract Breach and Remedies Flashcards
7 cards from real FYLSX practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contract Breach and Remedies flashcards as text
Which doctrine allows a court to award expectation damages even when they are difficult to calculate with certainty?
Answer: Courts use the best available evidence to estimate damages with reasonable certainty
Courts apply the reasonable certainty standard, permitting recovery based on the best available evidence even when the precise amount cannot be proven with mathematical exactitude.
Seller breaches a contract to deliver goods. Buyer covers by purchasing substitute goods at a higher price. What is Buyer's primary remedy under UCC Article 2?
Answer: The cover price minus the contract price, plus incidental and consequential damages
Under UCC §2-712, the buyer who covers may recover the difference between the cost of cover and the contract price, plus incidental and consequential damages.
A party commits an anticipatory repudiation. What options does the non-breaching party have?
Answer: Either treat the repudiation as a breach and sue immediately, or wait for the performance date
Upon anticipatory repudiation, the non-breaching party may elect to treat it as an immediate breach and sue at once, or wait until the time for performance and sue then.
Under the doctrine of substantial performance, which of the following is true?
Answer: The performing party may recover the contract price minus the cost to cure the defect
A party who substantially performs is entitled to the contract price reduced by the cost to cure the minor deficiency, preventing unjust forfeiture.
What is the purpose of liquidated damages clauses in contracts?
Answer: To pre-estimate damages when actual damages would be difficult to calculate and the amount is reasonable
Liquidated damages clauses are enforceable when they represent a reasonable pre-estimate of actual harm and actual damages would be difficult to ascertain.
Which of the following best describes 'mitigation of damages' in contract law?
Answer: The non-breaching party must take reasonable steps to reduce losses after breach
The non-breaching party has a duty to take reasonable steps to avoid or minimize losses flowing from the breach; failure to do so reduces the recovery.
When is specific performance available as a remedy for breach of contract?
Answer: When monetary damages are inadequate, typically because the subject matter is unique
Specific performance is an equitable remedy granted when money damages are inadequate, most commonly for unique goods, real property, or irreplaceable items.