Breach of Contract: Master the Essentials for Contract Law

Question 1

A breach of contract occurs when:

Accepted Answer

Both of the above.

Answer

One party fails to fulfill their contractual obligations without lawful excuse.

Answer

One party repudiates the contract.

Answer

Neither of the above.

Question 2

Which of the following is NOT an effect of an anticipatory breach?

Accepted Answer

It prevents the non-breaching party from bringing an action for breach of contract.

Answer

It excuses the non-breaching party from further performance.

Answer

It gives rise to a right to damages for the non-breaching party.

Answer

It terminates the contract.

Question 3

Frustration of a contract may excuse a party from performance when:

Accepted Answer

An unforeseen event makes the performance impossible or radically different.

Answer

The parties have agreed to a specific way of performing the contract.

Answer

One party has caused the frustration of the contract.

Answer

The performance of the contract has become more expensive than expected.

Question 4

Which of the following factors is NOT relevant in determining whether a breach is material?

Accepted Answer

The cost of performance

Answer

The nature of the contract

Answer

The degree of non-performance

Answer

The intentions of the parties

Question 5

A party is in default under a contract when they:

Accepted Answer

Fail to perform their obligations by the due date

Answer

Admit that they will not be able to perform their obligations

Answer

Become insolvent

Answer

Are ordered by a court to perform their obligations

Question 6

In which situation is a party not required to mitigate their losses after a breach of contract?

Accepted Answer

When the party in breach has agreed to pay the full cost of mitigation

Answer

When the cost of mitigation is too high

Answer

When the measures for mitigation are too difficult to implement

Answer

There is no obligation to mitigate losses in any situation.

Question 7

In the event of a breach of contract, the primary remedy available to the non-breaching party in English Law is:

Accepted Answer

Damages

Answer

Specific performance

Answer

Injunction

Answer

Rescission

Question 8

In an anticipatory breach of contract, the breaching party:

Accepted Answer

Renounces or repudiates their contractual obligations before the time of performance

Answer

Partially fails to fulfill their contractual obligations without repudiating the contract

Answer

Fails to fulfill their contractual obligations after the time of performance

Answer

Breaches a fundamental term of the contract

Question 9

Which of the following is NOT a factor considered by the courts in determining whether a breach of contract is fundamental in English Law?

Accepted Answer

The financial means of the breaching party

Answer

The nature of the contract

Answer

The extent of the breach

Answer

The intentions of the parties

Question 10

Specific performance is a remedy in English Law that:

Accepted Answer

Orders the breaching party to fulfill their contractual obligations

Answer

Awards the non-breaching party damages for their loss

Answer

Rescinds the contract and restores the parties to their pre-contractual positions

Answer

Involves the courts taking over the performance of the contract

Question 11

In English Law, a key consideration in determining whether a breach of contract is material is:

Accepted Answer

The extent to which the breach deprives the non-breaching party of the substantial benefit of the contract

Answer

The intentions of the parties at the time of entering into the contract

Answer

The relative bargaining power of the parties

Answer

Whether the breach is willful or negligent

Question 12

In the case of a material breach, which of the following is the primary legal remedy available to the non-breaching party?

Accepted Answer

Damages

Answer

Injunction

Answer

Specific performance

Answer

Rescission

Question 13

When does anticipatory breach occur within the context of contract law?

Accepted Answer

When one party unequivocally communicates their intention not to perform their contractual obligations before the time set for performance.

Answer

When one party breaches a material term of the contract.

Answer

When one party fails to perform their obligations under the contract without prior notice.

Question 14

What is the legal consequence of a fundamental breach of contract?

Accepted Answer

It gives the non-breaching party the legal right to terminate the contract and seek legal remedies, such as damages.

Answer

It has no impact on the validity or enforceability of the contract.

Answer

It gives the non-breaching party the automatic right to specific performance of the contract.

Question 15

Which of the following is NOT considered a valid defense against an allegation of breach of contract?

Accepted Answer

Inevitability

Answer

Frustration

Answer

Illegality

Question 16

What is the primary objective of mitigation in the context of breach of contract?

Accepted Answer

To minimize or reduce the financial losses suffered by the non-breaching party as a result of the breach.

Answer

To force the breaching party to fulfill their contractual obligations.

Answer

To punish the breaching party for their actions.

Question 17

What is the legal principle of contributory negligence in the context of breach of contract?

Accepted Answer

It is a defense that can be raised by the defendant if the plaintiff's own negligent actions contributed to or caused the breach of contract.

Answer

It is an absolute defense to a breach of contract claim.

Question 18

What is the primary remedy available to the non-breaching party in the event of a material breach?

Accepted Answer

Damages

Answer

Injunction

Answer

Rescission

Answer

Specific performance

Question 19

What is the purpose of the doctrine of frustration?

Accepted Answer

To discharge a contract when an unforeseen event makes performance impossible or radically different from what was originally intended.

Answer

To punish the party who breaches the contract.

Question 20

What is the measure of damages for breach of contract?

Accepted Answer

The amount of loss or harm suffered by the non-breaching party as a direct result of the breach.

Answer

The amount of money that the breaching party saved by not performing the contract.

Answer

The amount of profit that the non-breaching party would have made if the contract had been performed.

Question 21

What is the purpose of an acceleration clause in a contract?

Accepted Answer

To allow the non-breaching party to accelerate the due date for performance in the event of a breach.

Answer

To terminate the contract in the event of a breach.

Question 22

What is the essential difference between a condition and a warranty in a contract?

Accepted Answer

A condition is a term that goes to the root of the contract, while a warranty is a less important term.

Answer

A condition is a term that is implied into the contract by law, while a warranty is a term that is expressly agreed upon by the parties.