Civil Law Questions
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Legal Concepts17) To be liable for consequential damages, the breaching party need not know nor have reasonto know that the breach will cause special damages to the other party.
Legal Concepts12) A contractor cannot recover the profits he or she would have made on the contract if theowner breaches the construction contract before construction begins.
Legal Concepts18) Disclaimer of consequential damages is unlawful in the United States.
Legal Concepts3Copyright © 2013 Pearson Education, Inc.13) If the builder breaches a construction contract either before or during construction, the ownercan recover the increased cost above the contract price that he or she has to pay to have the workcompleted by another contractor.
Legal Concepts16) Consequential damages arise from circumstances outside a contract.
Legal Concepts29) Specific performance is not awarded in contracts for the sale of land.
Legal Concepts4) When there is substantial performance of a contract, the nonbreaching party may sue torecover the cost to repair the defect.
Legal Concepts25) To rescind a contract, the parties must make restitution of the consideration they receivedunder the contract.
Legal Concepts21) If an employer breaches an employment contract, the employee owes a duty to mitigatedamages by trying to find substitute employment.
Legal Concepts4Copyright © 2013 Pearson Education, Inc.20) Mitigation of damages is a nonbreaching party's legal duty toward avoiding or reducingdamages caused by a breach of contract.
Legal Concepts19) Nominal damages are awarded when no financial loss resulted from the breach.
Legal Concepts22) Parties to a contract agree upon liquidated damages after the contract has been breached.
Legal Concepts14) If the employee breaches the contract, the employer can recover the costs to hire a newemployee.
Legal Concepts2Copyright © 2013 Pearson Education, Inc.7) In the event of material breach, the nonbreaching party is discharged from furtherperformance under the contract.
Legal Concepts3) Minor breach occurs when a party renders substantial performance of his or her contractualduties.
Legal Concepts8) Anticipatory repudiation occurs when one contracting party informs the other that he or shewill not perform his or her contractual duties when due.
Legal Concepts11) The amount of compensatory damages that will be awarded for breach of contract dependson which party breached the contract.
Legal Concepts5) Material breach of a contract occurs when a party renders considerable performance of his orher contractual obligations.
Legal Concepts2) Tender of performance discharges a party's contractual obligations.
Legal Concepts6) A nonbreaching party cannot rescind the contract in the event of a material breach.