Breach of Contract: A Comprehensive Guide for Law Students

Question 1

In a breach of contract case, which party bears the burden of proving the breach?

Accepted Answer

The plaintiff must prove the defendant breached the contract

Answer

The defendant must prove they did not breach the contract

Answer

The burden of proof shifts depending on the circumstances

Answer

There is no burden of proof in breach of contract cases

Question 2

Which of the following is NOT a recognized form of anticipatory breach of contract?

Accepted Answer

Rescission

Answer

Repudiation

Answer

Prevention

Answer

Impossibility

Question 3

What is the key distinction between a material and non-material breach of contract?

Accepted Answer

A material breach gives the non-breaching party the right to terminate the contract, while a non-material breach does not

Answer

A non-material breach gives the non-breaching party the right to terminate the contract, while a material breach does not

Answer

There is no distinction between a material and non-material breach of contract

Answer

A material breach is a breach of a major term of the contract, while a non-material breach is a breach of a minor term

Question 4

What is the primary remedy for breach of contract?

Accepted Answer

Damages

Answer

Specific performance

Answer

Rescission

Answer

Injunction

Question 5

When is a party to a contract entitled to terminate the contract for anticipatory breach?

Accepted Answer

When the other party makes an unequivocal statement that they will not perform the contract

Answer

When the other party becomes insolvent

Answer

When the other party commits a material breach of contract

Answer

Never

Question 6

What is the principle of remoteness of damage?

Accepted Answer

The defendant is only liable for losses that were reasonably foreseeable at the time the contract was entered into

Answer

The defendant is liable for all losses that the plaintiff suffers as a result of the breach of contract

Answer

The defendant is only liable for losses that the plaintiff could have avoided

Answer

The principle of remoteness of damage does not apply to breach of contract

Question 7

What is the purpose of an exclusion clause?

Accepted Answer

To exclude or limit the liability of one party to the contract

Answer

To define the scope of the contract

Answer

To provide a way for the parties to resolve disputes

Answer

To ensure that the contract is legally binding

Question 8

Which of the following is not a type of breach of contract?

Accepted Answer

Rescission

Answer

Material breach

Answer

Minor breach

Answer

Anticipatory breach

Question 9

Which of the following is NOT a valid defense against a claim for breach of contract?

Accepted Answer

Statute of Limitations

Answer

Frustration

Answer

Illegality

Answer

Impossibility

Question 10

Clearly define anticipatory breach of contract.

Accepted Answer

A refusal to fulfill contractual obligations prior to the due date.

Answer

A failure to fulfill contractual obligations subsequent to the due date.

Answer

A breach of a condition within the contract.

Answer

A breach of a warranty within the contract.

Question 11

State the primary purpose of the doctrine of frustration of contract.

Accepted Answer

To relieve parties from contractual obligations when unforeseen events make performance impractical or impossible.

Answer

To penalize parties for failing to predict and account for all potential contingencies.

Answer

To promote stability and predictability in commercial transactions.

Answer

To encourage parties to negotiate more explicitly and with greater care.

Question 12

Under what condition might a court grant specific performance as a remedy for breach of contract?

Accepted Answer

When monetary damages would not adequately compensate the harmed party

Answer

When the breach is considered insignificant

Answer

In every breach of contract case

Question 13

When can a party claim anticipatory breach of contract?

Accepted Answer

When the other party indicates that they will not perform or are unable to perform their obligations under the contract

Answer

When the performance is delayed

Answer

When the performance is defective

Question 14

What is the purpose of the doctrine of mitigation of damages?

Accepted Answer

To reduce the amount of damages that the non-breaching party can recover.

Answer

To encourage the parties to resolve their dispute without litigation.

Answer

To punish the breaching party for their conduct.

Question 15

When is a party excused from performing their contractual obligations due to frustration?

Accepted Answer

When an unforeseen event occurs that makes performance impossible or radically different from what was originally contemplated.

Answer

When the party becomes bankrupt.

Question 16

What is the primary difference between an express and an implied term of a contract?

Accepted Answer

An express term is stated in the written contract, while an implied term is not.

Answer

An express term is more important than an implied term.

Answer

An implied term can only be added to the contract if the parties agree to it.

Question 17

What is the effect of a variation to a contract?

Accepted Answer

It modifies the terms of the original contract.

Answer

It terminates the original contract.

Answer

It creates a new contract.

Answer

It has no effect on the original contract.

Question 18

What is the purpose of the Statute of Frauds?

Accepted Answer

To prevent fraud by requiring certain types of contracts to be in writing.

Answer

To provide a uniform set of rules for contract formation.

Answer

To protect consumers from unfair terms and conditions.

Question 19

What is the primary legal remedy for breach of contract?

Accepted Answer

Damages

Answer

Rescission

Answer

Specific performance

Answer

Injunction

Question 20

What is the distinction between a fundamental breach and a material breach of contract?

Accepted Answer

A fundamental breach goes to the heart of the contract, rendering it impossible to perform, while a material breach does not.

Answer

There is no legal distinction between a fundamental and a material breach.

Answer

A material breach is more serious than a fundamental breach.

Question 21

What are the consequences of an anticipatory breach of contract?

Accepted Answer

It gives the innocent party the immediate right to terminate the contract and claim damages.

Answer

It only entitles the innocent party to claim damages.

Answer

It has no legal consequences.

Question 22

In which scenario is a court most likely to grant specific performance as a remedy for breach of contract?

Accepted Answer

When the subject matter of the contract is unique and cannot be easily replaced.

Answer

When the innocent party has suffered significant financial loss.

Answer

When the breach was intentional.

Question 23

What is the purpose of the legal principle of mitigation of damages?

Accepted Answer

To reduce the amount of damages that the innocent party can recover by taking reasonable steps to minimize their loss.

Answer

To punish the breaching party.

Answer

To prevent the innocent party from suffering any loss.

Question 24

What is the key difference between rescission and termination of a contract?

Accepted Answer

Rescission aims to restore the parties to their pre-contract positions, while termination ends the contract going forward.

Answer

Rescission is only available for fundamental breaches, while termination is available for any breach.

Question 25

What is the primary purpose of an injunction in the context of breach of contract?

Accepted Answer

To prevent a threatened or ongoing breach of contract.

Answer

To compel a party to perform their contractual obligations.

Answer

To rescind a contract.

Answer

To award damages for breach of contract.