Question 11

When there is a breach of a contract and damages, the difference between the value of the contract as it had been promised and the value of the performance which was actually given is a measurement of:

Question 11 options:

	a) the direct damages.
	b) the consequential damages.
	c) the nominal damages.
	d) the liquidated damages.
	e) compensatory damages.

Question 12

The duty to mitigate damages requires that a party injured by a breach of contract must:

Question 12 options:

	a) take any and all steps possible to reduce the damages that will be sustained as a result of the breach.
	b) discharge the contract before filing suit for breach.
	c) take reasonable steps to reduce the damages that will be sustained as a result of the breach.
	d) take no action to reduce the damages that will be sustained as a result of the breach.

Question 13

If a plaintiff seeking damages from a breach-of-contract action were to receive $1 in damages, the damages would most likely be classified as:

Question 13 options:

	a) punitive damages.
	b) exemplary damages.
	c) nominal damages.
	d) compensatory damages.

Question 14

Chandler brought his car into Ben's Auto Garage for servicing. Their oral agreement was that Chandler's car would be given a tune-up, an oil change, tire rotation, and would have a tail-light replaced for a total of $500.00. When Chandler arrived to pick up his car, he noticed that all the work was done except the tail-light had not been replaced. Ben stated they didn't have the necessary part to do the repair. Chandler refused payment to the garage because the garage was in breach of contract and had failed to fulfill their promise. Ben's Auto Garage seeks to enforce the original contract for $500.00. You're the judge, what's your ruling?

Question 14 options:

	a) The garage cannot sue to enforce their agreement since their obligation under the contract hasn't been discharged.
	b) The garage cannot sue to enforce their agreement for $500.00 under the contract but they may sue for the reasonable value of the services they did provide.
	c) The garage has substantially performed their agreement and may collect the $500.00 owed to them under the agreement.
	d) The garage cannot enforce the agreement because of the statute of frauds.
	e) The garage may enforce the agreement because they've substantially performed but their award of $500.00 will be reduced by the reasonable value of replacing the taillight.

Question 15

Alex contracted with Safeco to install a sprinkler system in his warehouse for $2000. Unbeknowst to Alex, Safeco did a substandard job and installed a sprinkler system that was only 50% functional.

After the sprinkler system was installed, Alex's warehouse had an unexpected fire. In half of the warehouse, the sprinklers never came on and $5,000 worth of Alex's property was destroyed in the fire.

Alex's direct damages would be:

Question 15 options:

	a) the cost of the damaged property (i.e., $5,000).
	b) the difference between the value of the sprinkler system as promised ($2000) and the value as received ($1000).
	c) the value of a fully functional sprinkler system as promised and well as the losses suffered as a result of the breach (i.e., $6,000).
	d) the value of the contract and the costs of the losses (i.e., $7,000).