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In relation to the award of damages in contract law, which of the following describes damages paid to protect the claimant's reliance interest? 

A

 What is needed to put the claimant into the position they would have been in if the contract had been performed 

B

What is needed to put the claimant into the position they would have been in if they had not relied on the contract 

C

 What is needed to recover the price of goods or services provided under the contract 

 In relation to contract law, which of the following describes liquidated damages? 

A

 A genuine pre-estimate of losses payable in the event of breach of contract 

B

 A specific sum payable in the event of a breach of contract to punish a party for their breach 

C

 A sum equal to the amount of work done plus an element of profit that is payable in the event of a breach of contract 

In which of the following circumstances would an award of specific performance be made? 

A

 In breach of contract in an employment contract 

B

 In breach of contract in a contract for personal services 

C

 In breach of contract in a contract involving the sale of property 

Which of the following is an example of an equitable remedy for breach of contract? 

A

 Injunction 

B

 Action for the price 

C

 Quantum meruit 

Which of the following is true concerning the rights of an innocent party where repudiatory breach of contract has occurred?  

A

 If the innocent party chooses to terminate the contract they are not required to notify the other party

B

 The innocent party can claim damages for any losses but not treat the contract as discharged 

C

The innocent party cannot refuse to pay for partial or defective performance already received

D

 The innocent party may affirm the contract and continue with their obligations 

Which of the following is NOT a lawful excuse for failing to perform contractual obligations? 

A

 Performance is rejected by the other party 

B

 Performance is made impossible by the other party 

C

 Performance is rendered more expensive than agreed due to external circumstances 

D

 Non-performance was agreed between the parties 

 Which TWO of the following are tests that should be met when determining whether damages are too remote to be claimed?

(1) Losses must be connected in some way to the breach of contract  

(2) Losses must arise naturally from the breach of contract  

(3) Losses related to exceptional circumstances are too remote to be claimed

 (4) Losses arising outside the normal course of events will be compensated if the circumstances are within the defendant's knowledge when they formed to contract 

A

 1 and 4 

B

 1 and 3 

C

 2 and 3 

D

 2 and 4 

In relation to the law of contract, which of the following statements in relation to damages is correct? 

A

 Damages are not payable in relation to mental distress 

B

 Damages to rectify a defect are still payable even if they are wholly disproportionate to the size of the breach 

C

 An innocent party is required to take reasonable steps to mitigate their losses 

D

 Damages in the form of a penalty clause are valid and enforceable 

Which of the following statements in relation to damages for breach of contract is correct?

A

In order to claim damages an innocent party is required to take reasonable steps to mitigate their losses

B

Damages are not payable in relation to mental distress

C

Damages to rectify a defect are still payable even if they are wholly disproportionate to the size of the breach

D

Damages in the form of a penalty clause are valid and enforceable

 Which of the following statements is NOT a lawful excuse for failing to perform contractual obligations? 

A

Actual performance is impossible 

B

Both parties agreed to non-performance 

C

 Performing the contract will cause the party concerned financial hardship