FYLSX Contract Breach and Remedies 2

Question 1

Which doctrine allows a court to award expectation damages even when they are difficult to calculate with certainty?

Accepted Answer

Courts use the best available evidence to estimate damages with reasonable certainty

Answer

The certainty doctrine requires dismissal of speculative claims

Answer

Courts may award nominal damages as a substitute

Answer

The jury must deny damages if the exact amount is unknown

Question 2

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?

Accepted Answer

The cover price minus the contract price, plus incidental and consequential damages

Answer

The difference between contract price and market price at time of breach

Answer

Only the incidental costs of finding substitute goods

Answer

The full cover price without any deduction for the contract price

Question 3

A party commits an anticipatory repudiation. What options does the non-breaching party have?

Accepted Answer

Either treat the repudiation as a breach and sue immediately, or wait for the performance date

Answer

Only wait until the performance date to sue

Answer

Only accept the repudiation and sue immediately

Answer

Only seek specific performance

Question 4

Under the doctrine of substantial performance, which of the following is true?

Accepted Answer

The performing party may recover the contract price minus the cost to cure the defect

Answer

The performing party is entitled to full contract price with no deduction

Answer

The performing party forfeits all compensation because performance was not perfect

Answer

Only material breaches trigger the substantial performance doctrine

Question 5

What is the purpose of liquidated damages clauses in contracts?

Accepted Answer

To pre-estimate damages when actual damages would be difficult to calculate and the amount is reasonable

Answer

To penalize the breaching party beyond actual harm suffered

Answer

To waive all damages upon breach

Answer

To allow the non-breaching party to demand specific performance

Question 6

Which of the following best describes 'mitigation of damages' in contract law?

Accepted Answer

The non-breaching party must take reasonable steps to reduce losses after breach

Answer

The breaching party must reduce the amount owed by performing in good faith after breach

Answer

Courts automatically reduce damage awards by 50% in all breach cases

Answer

Mitigation only applies in employment contract disputes

Question 7

When is specific performance available as a remedy for breach of contract?

Accepted Answer

When monetary damages are inadequate, typically because the subject matter is unique

Answer

Whenever the non-breaching party requests it

Answer

Only in real property contracts

Answer

Only when the contract expressly provides for it