Remedies for Breach - Problem Set for Competitive Exams

Remedies for Breach - Problem Set

Q. If a party to a contract fails to perform their obligations, what is this called?

Solution

A failure to perform obligations under a contract is referred to as a breach.

Correct Answer: B — Breach

Q. What is the purpose of liquidated damages in a contract?

Solution

Liquidated damages are intended to estimate potential damages in advance, providing certainty in the event of a breach.

Correct Answer: B — To estimate potential damages in advance

Q. What type of damages are intended to cover the actual loss suffered by the non-breaching party?

Solution

Compensatory damages are intended to cover the actual loss suffered by the non-breaching party.

Correct Answer: C — Compensatory damages

Q. Which of the following is a requirement for a party to recover consequential damages?

Solution

To recover consequential damages, the damages must be foreseeable at the time the contract was made.

Correct Answer: A — The damages must be foreseeable

Q. Which of the following is NOT a type of remedy for breach of contract?

Solution

Punitive damages are generally not available for breach of contract, as they are intended to punish wrongful conduct rather than compensate for loss.

Correct Answer: B — Punitive damages

Q. Which remedy allows a party to recover the value of benefits conferred to the other party?

Solution

Restitution allows a party to recover the value of benefits conferred to the other party.

Correct Answer: B — Restitution

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