Singapore American School

ECON 102

QUIZ 6

1)Which of the following statements is not true regarding breach of contract?

1. 1. A breach of warranty may allow the harmed party to terminate the contract
   2. Where there is a breach of a condition, if the harmed party does not terminate the contract immediately, the contract may not later be treated as discharged
   3. Where a contract has been completed and a benefit received without the injured party learning of a major breach that occurred, he or she may not treat the contract as discharged

1. 4. In determining whether a contract can be terminated and obligations brought to an end it is essential that the injured party insure that there was a breach of a condition or they could risk being liable themselves for breach of contract.

2. A contractor has informed a customer that they will not be able to paint their house in June in time for their daughter's wedding, as set out in the contract, due to a surprise trip his wife planned. Which of the following is true is the best answer?
   1. The contractor has declared an anticipatory breach and the homeowner can find another contractor and sue for damages
   2. The homeowner must wait until the date set for the contract to begin in June to determine if the contract is breached, and then sue for any damages
   3. A court action would likely end with an award for specific performance
   4. An injunction could be granted to force the contractor to not leave until all contractual obligations are met

3. When a contract has been breached a court may
   1.   Award damages to place the injured party in the position they were in prior to the contract being entered into
   2. Order liquidated damages based on the expected profit or monetary amounts the injured party would have received
   3. Use their discretion and award the equitable remedy of reliance damages
   4. Issue an interlocutory injunction to prevent further harm until the dispute can be resolved at a trial

4. Which of the following statements is correct with respect to breach of contract?
   1. When a condition is breached, the victim can treat the contract as ended.
   2. When a condition is breached, a person can only sue for damages but must perform his or her part of the contract.
   3. When a warranty is breached, the victim can treat the contract as ended
   4. When a contract is repudiated before performance is due, the victim must wait until the time for performance before taking any action.

5. Which of the following is true with regard to tender of performance/breach?
   1. If the seller attempts to deliver the contract goods at the time and place designated in the contract, but the buyer refuses delivery, the seller will have to