True/False
Indicate whether the
statement is true or false.
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1.
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If a party breaches a contract, the other party can only refuse to
perform.
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2.
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Damages compensate a party for harm suffered as a result of another's
wrongful act.
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3.
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The measure of damages on a breach of contract is the amount that will impress
on the breaching party the harm that has been done.
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4.
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The injury suffered by a nonbreaching party due to the breach of a contract may
be remedied by payment of compensatory damages.
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5.
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Expenses that are caused directly by a breach of contract--such as those
incurred to obtain performance from another source--are incidental damages.
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6.
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In a contract for a sale of goods, the usual measure of compensatory damages is
the difference between the contract price and the market price.
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7.
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The measure of damages for the breach of a contract for a sale of land depends
on which party breaches and when.
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8.
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In a contract for a sale of land, the usual remedy is specific
performance.
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9.
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Consequential damages are foreseeable damages that arise from a party's
breach of a contract.
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10.
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Damages are awarded for whatever injury a nonbreaching party suffers, whether or
not the breaching party could have foreseen the injury.
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11.
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Punitive damages are almost never available in contract disputes.
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12.
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Nominal damages normally establish that the defendant acted wrongly.
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13.
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Normally, when a nonbreaching party has been damaged by a breach of contract, he
or she has a duty to mitigate those damages.
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14.
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Liquidated damage clauses typically require a party who breaches a contract to
pay a certain amount to the nonbreaching party.
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15.
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To rescind a contract, each party essentially advances to the position he or she
would have been in if the contract had been fully executed.
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16.
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Restitution involves one party's recapture of a benefit through which
another party has been unjustly enriched.
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17.
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Reformation allows a court to rewrite a contract to reflect the parties'
true intentions.
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18.
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A party seeking to recover in quasi contract must show that he or she has been
unjustly enriched.
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19.
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Whether a contract's limitation-of-liability clause will be enforced
depends on the type of breach that the clause excuses.
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20.
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A party who knowingly accepts defective performance of a contract thereby
acknowledges the breach and can take later action on it.
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