010 correct answerstrue 2 punitive damages are usually

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Unformatted text preview: ): True 2. Punitive damages are usually not awarded in breach of contract actions. A) True B) False Points Earned: 0.0/1.0 Correct Answer(s): True 3. Nominal damages do not establish that a defendant acted wrongfully. A) True B) False Feedback: An award of nominal damages, though usually small in amount, establishes that a breaching party acted wrongfully. Also, nominal damages may be awarded when no actual loss results from a breach of contract (but the breach must still be proved). Points Earned: 0.0/1.0 Correct Answer(s): False 4. Liquidated damages are uncertain in amount. A) True B) False Feedback: Liquidated damages are certain amounts of money estimated in advance of, and payable on, a breach of contract. Liquidated means determined, settled, or fixed. Points Earned: 1.0/1.0 Correct Answer(s): False 5. On rescission, the parties essentially return to the positions they were in before the contract. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 6. Rescission is not available in a case involving fraud. A) True B) False Feedback: Rescission is available in cases involving fraud, mistake, duress, or failure of consideration. Both parties must make restitution to each other by returning whatever benefit was conveyed in execution of their contract. If the actual item cannot be returned, an equivalent amount in money must be paid. Points Earned: 1.0/1.0 Correct Answer(s): False 7. On a breach of contract, a nonbreaching party has a duty to mitigate damages that he or she suffers. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 8. Quasi-contractual recovery is possible only when there is an enforceable contract. A) True B) False Feedback: There can be no enforceable contract if the doctrine of quasi contract is to be applied. Under this doctrine, to prevent unjust enrichment, the law implies a promise to pay the reasonable value for benefits received in the absence of an enforceable contract. This recovery is useful wh...
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This note was uploaded on 12/01/2010 for the course BUSINESS L 100 taught by Professor Random during the Fall '10 term at Oklahoma City Community College.

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