JD Contract Law 2

Question 1

What is the primary measure of damages for breach of contract?

Accepted Answer

Expectation damages

Answer

Expectation damages aim to put the non-breaching party in the position they would have been in had the contract been performed, covering lost profits and other foreseeable losses.

Question 2

A contract clause that pre-estimates damages in the event of breach is called a:

Accepted Answer

Liquidated damages clause

Answer

A liquidated damages clause is enforceable if the damages were difficult to estimate at contracting and the amount is a reasonable forecast of actual harm.

Question 3

Under the doctrine of 'anticipatory repudiation,' a non-breaching party may treat a contract as breached when the other party does what?

Accepted Answer

Unambiguously declares intent not to perform before the performance date

Answer

Anticipatory repudiation occurs when a party clearly and unequivocally states before the performance date that they will not perform, entitling the other party to sue immediately.

Question 4

What is 'specific performance' as a contract remedy?

Accepted Answer

Court order compelling a party to perform the contract

Answer

Specific performance is an equitable remedy that orders the breaching party to actually perform their contractual obligations, typically granted when monetary damages are inadequate.

Question 5

Which defense excuses contract performance when an unforeseen event makes performance impossible?

Accepted Answer

Impossibility (impracticability)

Answer

The doctrine of impossibility (or commercial impracticability under the UCC) excuses performance when an unforeseen supervening event makes performance objectively impossible or commercially unreasonable.

JD - Juris Doctor or a Doctor of Jurisprudence Practice Test

JD - Juris Doctor or a Doctor of Jurisprudence Practice Test

JD Contract Law 2