True/False
Indicate whether the sentence or statement is true
or false.
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1.
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Remedies that an innocent party can seek on the breach of a contract include
rescission.
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2.
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Damages are designed to compensate a nonbreaching party for the loss of the
bargain.
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3.
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A
remedy is the means employed to enforce a right or to redress an injury.
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4.
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The
four broad types of damages in contract law are compensatory, consequential, punitive, and actual
damages.
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5.
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Compensatory damages are foreseeable damages that arise from a party's breach of a
contract.
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6.
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Compensatory damages compensate the nonbreaching party for injuries or damages
sustained by that party.
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7.
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A
party seeking to recover compensatory damages may also be entitled to recover incidental
damages.
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8.
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The
measure of damages for breach of a construction contract depends on which party breaches and
when.
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9.
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In a
contract involving the sale of land, money damages is always the most appropriate remedy to seek when
the seller has breached the agreement.
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10.
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Consequential damages are awarded to cover all of the remote consequences of whatever
injury a nonbreaching party suffers.
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11.
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A
person's actions may cause a breach of contract or a tort, but not both.
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12.
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Punitive damages are never awarded in breach of contract actions.
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13.
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On an
employer's breach of an employment contract, the measure of the employee's damages is his or her
salary with no adjustments.
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14.
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The
duty owed under the mitigation of damages doctrine depends on the situation.
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15.
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Liquidated damages are damages that are certain in amount.
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16.
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A
breach of contract may entitle the innocent party to rescind the contract.
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17.
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To
rescind a contract, the party that received a benefit in exchange for his or her promise to perform
is required to return the benefit.
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18.
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Specific performance is the remedy customarily used when one party has breached a
contract for the sale of goods.
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19.
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Recovery under quasi contract may be used when one party partially performs under a
contract that is unenforceable.
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20.
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Under
the UCC, in a contract for a sale of goods, remedies cannot be limited.
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