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Termination of a contract and remedies for breach of contract. - SS2 Commerce Past Questions and Answers - page 1

1

What is one way a contract can be terminated?

 

A

Performance

B

Breach of contract

 

C

All of the above

 

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2

Which remedy for breach of contract involves the payment of a monetary amount to compensate the innocent party?

 

A

Specific performance

 

B

Damages

C

Restitution

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3

When can a contract be terminated by the operation of law?

 

A

When the subject matter of the contract is destroyed

 

B

When both parties mutually agree to terminate

 

C

When one party fails to fulfill their obligations

 

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4

What is the purpose of specific performance as a remedy for breach of contract?

 

A

To award monetary compensation

 

B

 To cancel the contract and return parties to their pre-contractual positions

 

C

To require the breaching party to fulfill their contractual obligations

 

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5

What does rescission involve?

 

A

Cancelling the contract and returning parties to their pre-contractual positions

 

B

Awarding monetary compensation to the innocent party

 

C

Restoring any benefits conferred by the innocent party

 

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6

Explain the concept of damages as a remedy for breach of contract.

 

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7

What is the purpose of restitution as a remedy for breach of contract?

 

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