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BLW 201 10TH ED CHAPTER 18 T/F SELF QUIZ



True/False
Indicate whether the sentence or statement is true or false.
 

 1. 

Remedies that an innocent party can seek on the breach of a contract include rescission.
 

 2. 

Damages are designed to compensate a nonbreaching party for the loss of the bargain.
 

 3. 

A remedy is the means employed to enforce a right or to redress an injury.
 

 4. 

The four broad types of damages in contract law are compensatory, consequential, punitive, and actual damages.
 

 5. 

Compensatory damages are foreseeable damages that arise from a party's breach of a contract.
 

 6. 

Compensatory damages compensate the nonbreaching party for injuries or damages sustained by that party.
 

 7. 

A party seeking to recover compensatory damages may also be entitled to recover incidental damages.
 

 8. 

The measure of damages for breach of a construction contract depends on which party breaches and when.
 

 9. 

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.
 

 10. 

Consequential damages are awarded to cover all of the remote consequences of whatever injury a nonbreaching party suffers.
 

 11. 

A person's actions may cause a breach of contract or a tort, but not both.
 

 12. 

Punitive damages are never awarded in breach of contract actions.
 

 13. 

On an employer's breach of an employment contract, the measure of the employee's damages is his or her salary with no adjustments.
 

 14. 

The duty owed under the mitigation of damages doctrine depends on the situation.
 

 15. 

Liquidated damages are damages that are certain in amount.
 

 16. 

A breach of contract may entitle the innocent party to rescind the contract.
 

 17. 

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.
 

 18. 

Specific performance is the remedy customarily used when one party has breached a contract for the sale of goods.
 

 19. 

Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable.
 

 20. 

Under the UCC, in a contract for a sale of goods, remedies cannot be limited.
 



 
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