Trivia Quiz: Test Your Knowledge About Contract Breach Damages And Remedies!

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Trivia Quiz: Test Your Knowledge About Contract Breach Damages And Remedies! - Quiz

Test Your Knowledge about Contract Breach Damages and Remedies using this Trivia Quiz. Most contracts have a clause about things that relevant parties should do and the repercussions of them not following the contract. How good are you when it comes to contracts? Take the quiz and get to refresh your understanding of the subject. All the best!


Questions and Answers
  • 1. 

    Contractual damages in Hadley v Baxendale are said to be awarded for

    • A.

      Losses which arise naturally from the breach of contract

    • B.

      Losses which are in both parties’ contemplation as a probable result of its breach

    • C.

      Losses which arise naturally from the breach of contract or which are in both parties’ contemplation as a probable result of its breach

    • D.

      Losses which are reasonably foreseen by both parties at the time the contract is made

    Correct Answer
    C. Losses which arise naturally from the breach of contract or which are in both parties’ contemplation as a probable result of its breach
    Explanation
    The correct answer is "Losses which arise naturally from the breach of contract or which are in both parties’ contemplation as a probable result of its breach." This is because in Hadley v Baxendale, the court established that contractual damages can be awarded for losses that are either a direct and natural consequence of the breach or those that were reasonably foreseeable by both parties at the time of making the contract. This principle helps to determine the extent of compensation that can be claimed for a breach of contract.

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  • 2. 

    Where damages are awarded for losses which must be expressly proved or ascertained, these are known as:

    • A.

      General damages

    • B.

      Nominal damages

    • C.

      Special damage

    • D.

      Exemplary damage

    Correct Answer
    C. Special damage
    Explanation
    Special damages are awarded for losses that can be specifically proven or quantified. Unlike general damages, which are awarded for non-monetary losses such as pain and suffering, special damages are awarded for actual financial losses incurred as a direct result of the defendant's actions. These damages are typically calculated based on specific evidence provided by the plaintiff, such as medical bills, lost wages, or property damage. Special damages aim to compensate the plaintiff for their actual out-of-pocket expenses and are different from nominal damages, which are symbolic in nature, and exemplary damages, which are awarded to punish the defendant for their wrongful conduct.

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  • 3. 

    Which of the following statements is correct?

    • A.

      A breach of a condition entitles an innocent party to repudiate a contract unless he has accepted the breach.

    • B.

      A breach of a condition entitles an innocent party to repudiate a contract whether or not the breach has been accepted.

    • C.

      A breach of a condition entitles an innocent party to recover damages only.

    • D.

      A breach of a condition or warranty entitles the innocent party to damages only

    Correct Answer
    A. A breach of a condition entitles an innocent party to repudiate a contract unless he has accepted the breach.
    Explanation
    A breach of a condition allows the innocent party to terminate the contract, unless they have accepted the breach. This means that if a condition of the contract is not met, the innocent party has the right to end the contract and be released from their obligations, unless they have already accepted the breach and continued with the contract. In such cases, the innocent party may not be able to repudiate the contract and may have to seek other remedies for the breach.

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  • 4. 

    One party has been induced to enter a contract by a negligent misrepresentation of the other party.    Which of the following is not correct?

    • A.

      If rescission is available, damages in lieu may be awarded at the court’s discretion under the Misrepresentation Act 1967.

    • B.

      Rescission cannot be awarded if it is impossible to return the parties to their pre-contract position.

    • C.

      Despite being the victim of a misrepresentation, the misrepresentee may affirm the contract.

    • D.

      For this type of misrepresentation, damages may be obtained under the tort of negligence but not under the Misrepresentation Act 1967

    Correct Answer
    D. For this type of misrepresentation, damages may be obtained under the tort of negligence but not under the Misrepresentation Act 1967
  • 5. 

    Which one of the following cases is associated with the establishing of damages being awarded for negligent misrepresentation?

    • A.

      Long v Lloyd

    • B.

      Leaf v International Galleries

    • C.

      Hedley Byrne v Heller and Partners

    • D.

      Armstrong v Jackson

    Correct Answer
    C. Hedley Byrne v Heller and Partners
    Explanation
    Hedley Byrne v Heller and Partners is the correct answer because this case established the principle that damages can be awarded for negligent misrepresentation. In this case, the House of Lords held that a special relationship between the parties can give rise to a duty of care in the context of negligent misrepresentation, even in the absence of a contractual relationship. This landmark case set the precedent for future cases involving negligent misrepresentation and expanded the scope of liability for such claims.

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  • 6. 

    In ordinary commercial contracts for the sale of goods, with respect to delivery which one of the following relating to time is correct? Time is -

    • A.

      Prima facie of the essence

    • B.

      Of the essence

    • C.

      Never of the essence

    • D.

      Can never be made of the essence

    Correct Answer
    A. Prima facie of the essence
    Explanation
    In ordinary commercial contracts for the sale of goods, the phrase "prima facie of the essence" means that time is initially considered to be of the essence, unless otherwise stated in the contract. This means that timely delivery is presumed to be important and failure to deliver within the specified time may be considered a breach of contract. However, this presumption can be rebutted if the contract explicitly states that time is not essential.

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  • 7. 

    A defendant may take one or, on occasions, more than one of the following steps on receipt of a claimant’s Particulars of Claim. Which of the following steps may a defendant not initially take?

    • A.

      File a Defence

    • B.

      File and Acknowledgement of Service

    • C.

      File and Admission

    • D.

      File a Request for Further Information to the Particulars of Claim

    Correct Answer
    D. File a Request for Further Information to the Particulars of Claim
    Explanation
    A defendant may take several steps upon receiving a claimant's Particulars of Claim, such as filing a Defence, filing an Acknowledgement of Service, or filing an Admission. However, the defendant cannot initially file a Request for Further Information to the Particulars of Claim. This step is typically taken after the defendant has filed a Defence and requires additional clarification or details from the claimant regarding their claim.

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  • 8. 

    A contract for a meal in a resturant is of which of the following types?

    • A.

      A contract for the sale of goods

    • B.

      A contract for the supply of services

    • C.

      A contract involving work and materials

    • D.

      A contract which can be divided into two component parts of sale of goods and supply and services

    Correct Answer
    A. A contract for the sale of goods
    Explanation
    A contract for the sale of goods refers to an agreement between parties where one party agrees to transfer ownership of goods to another party in exchange for payment. In the context of a restaurant, this type of contract would typically involve the sale of food and beverages to customers. It does not encompass contracts for services provided by the restaurant, such as table service or catering.

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  • 9. 

    Which of the following is not capable of amounting to a claim in the law of Restitution?

    • A.

      A claim for total failure of consideration

    • B.

      A claim for a quantum meruit

    • C.

      A claim for damages

    • D.

      A claim for a frustrated contract

    Correct Answer
    C. A claim for damages
    Explanation
    A claim for damages is not capable of amounting to a claim in the law of Restitution because damages are typically awarded in cases of breach of contract or tort, where the aim is to compensate the injured party for their loss. Restitution, on the other hand, focuses on restoring the unjust enrichment of one party at the expense of another. It aims to reverse the unjust gain rather than compensating for the loss suffered. Therefore, a claim for damages does not align with the principles and objectives of the law of Restitution.

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  • 10. 

    Which of the following is not a maxim of equity?

    • A.

      Delay defeats equities

    • B.

      Equity abhors a vacuum

    • C.

      Equity follows the law

    • D.

      Equity looks on as done that which ought to be done

    Correct Answer
    B. Equity abhors a vacuum
    Explanation
    Equity abhors a vacuum is not a maxim of equity. The other options are all recognized maxims of equity. "Delay defeats equities" means that if a party delays in seeking equitable relief, they may lose their right to such relief. "Equity follows the law" means that equitable principles should be applied in accordance with legal principles. "Equity looks on as done that which ought to be done" means that equity treats a situation as if the required action has already been taken. However, "Equity abhors a vacuum" is not a recognized maxim of equity.

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  • 11. 

    The type of damages in tort awarded for loss which the claimant must expressly prove he has suffered are called:

    • A.

      Special Damages

    • B.

      General Damages

    • C.

      Normal Damages

    • D.

      Nominal Damages

    Correct Answer
    A. Special Damages
    Explanation
    Special Damages are a type of damages in tort law that are awarded for specific and quantifiable losses that the claimant must prove they have suffered. Unlike general damages, which are awarded for non-quantifiable losses such as pain and suffering, special damages are awarded for actual financial losses such as medical expenses, loss of earnings, and property damage. These damages are specific to the individual case and require evidence to support the claimant's claim for compensation.

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  • 12. 

    The minimum period of time that an employee must have worked for an employer in order to bring an action for unfair dismissal is:

    • A.

      Two years

    • B.

      One year

    • C.

      Six Months

    • D.

      There is no period of time

    Correct Answer
    B. One year
    Explanation
    An employee must have worked for an employer for at least one year in order to bring an action for unfair dismissal. This means that if an employee is dismissed within the first year of their employment, they do not have grounds to file a claim for unfair dismissal. However, if they have worked for the employer for more than one year and believe that their dismissal was unfair, they can take legal action against the employer.

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  • 13. 

    Which section of the Sale of Goods Act 1979 implies a term into sales of goods contracts where the seller acts in the course of a business that the goods will be reasonably fit for purpose?

    • A.

      S.12

    • B.

      S.13

    • C.

      S.14(2)

    • D.

      S.14(3)

    Correct Answer
    D. S.14(3)
    Explanation
    Section 14(3) of the Sale of Goods Act 1979 implies a term into sales of goods contracts where the seller acts in the course of a business that the goods will be reasonably fit for purpose. This means that if a seller is selling goods as part of their business, they are required to ensure that the goods are suitable for the purpose for which they are being sold. If the goods are not reasonably fit for purpose, the buyer may have the right to reject them and seek a refund or compensation.

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  • 14. 

    Which of the following is not an example of an injunction?

    • A.

      Search Order

    • B.

      Freezing Order

    • C.

      Quia timet Injunction

    • D.

      Amamus Injunction

    Correct Answer
    D. Amamus Injunction
    Explanation
    An injunction is a court order that requires a person to do or refrain from doing a specific action. A search order, freezing order, and quia timet injunction are all examples of injunctions that can be issued by a court. However, an "Amamus Injunction" is not a recognized type of injunction. This suggests that it is not a valid example of an injunction.

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  • 15. 

    An order for specific performance will usually be granted if which one of the following types of contract is breached?

    • A.

      Contract of employment

    • B.

      Contract for the sale of shares in private company

    • C.

      Contract for the sale of shares in a public company

    • D.

      Contract for the sale of goods where the goods are in ready supply

    Correct Answer
    B. Contract for the sale of shares in private company
    Explanation
    An order for specific performance will usually be granted if a contract for the sale of shares in a private company is breached. Specific performance is a legal remedy where the court orders the breaching party to fulfill their contractual obligations. In the case of a breach of a contract for the sale of shares in a private company, the court may order the breaching party to transfer the shares as originally agreed upon. This is because shares in a private company are often unique and cannot easily be replaced or compensated for with monetary damages.

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  • 16. 

    A quashing order is a public law remedy. Which one of the following is incorrect in relation to its application?

    • A.

      It quashes a decision taken by a public authority

    • B.

      It can be used in conjunction with human rights claims for damages

    • C.

      It requires a public authority to act

    • D.

      It is a prerogative public law remedy

    Correct Answer
    C. It requires a public authority to act
    Explanation
    A quashing order does not require a public authority to act. Instead, it is a remedy that is used to invalidate or nullify a decision that has already been made by a public authority. It is typically sought when the decision is considered to be unlawful, irrational, or unreasonable. Therefore, the statement that "It requires a public authority to act" is incorrect.

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  • 17. 

    Which one of the following is incorrect?

    • A.

      Misrepresentation originates from the tort of deceit

    • B.

      The Misrepresentation Act 1967 established a third type of misrepresentation

    • C.

      The Misrepresentation Act 1967 retained the need for the claimant to prove negligent misrepresentation

    • D.

      No special relationship needs to be established in order to succeed with a negligence claim.

    Correct Answer
    B. The Misrepresentation Act 1967 established a third type of misrepresentation
    Explanation
    The Misrepresentation Act 1967 did not establish a third type of misrepresentation. The Act actually codified the existing common law principles regarding misrepresentation. It clarified and expanded the remedies available to parties who have been misled by a misrepresentation. The Act does not introduce a new type of misrepresentation but rather provides a statutory framework for dealing with misrepresentations in contractual relationships.

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  • 18. 

    Which one of the following cannot justify the dismissal of an employee?

    • A.

      The employee's incompetence

    • B.

      The employee's misconduct

    • C.

      The employee's inability to do the job without contravening a statute

    • D.

      That the employee proposes to join an independent trade union

    Correct Answer
    D. That the employee proposes to join an independent trade union
    Explanation
    The dismissal of an employee based on their proposal to join an independent trade union cannot be justified. It is illegal for employers to dismiss employees solely because they want to join a trade union. This is protected under labor laws to ensure employees have the right to join unions and engage in collective bargaining. Therefore, this reason cannot be used as a justification for dismissal.

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  • 19. 

    An Anton Pillar order is also described as which one of the following?

    • A.

      An interim injunction order

    • B.

      A prohibitory injunction order

    • C.

      A search order

    • D.

      A perpetual injunction order. The innocent party need perform no further contactual obligations

    Correct Answer
    C. A search order
    Explanation
    An Anton Pillar order is a type of court order that allows the plaintiff to search the defendant's premises and seize evidence without prior warning. It is commonly used in cases of intellectual property infringement or fraud. The other options listed - interim injunction order, prohibitory injunction order, and perpetual injunction order - do not accurately describe an Anton Pillar order.

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  • 20. 

    Which one of the following is not an equitable remedy?

    • A.

      Damages

    • B.

      Rescission

    • C.

      Rectification

    • D.

      Injunction

    Correct Answer
    A. Damages
    Explanation
    An equitable remedy is a type of remedy that is granted by a court in order to provide fairness and justice in a situation where legal remedies may not be sufficient. Damages, however, are not considered an equitable remedy. Damages refer to the monetary compensation that is awarded to a party who has suffered harm or loss as a result of another party's actions. While damages can be awarded in both legal and equitable cases, they are not classified as an equitable remedy because they focus on providing compensation rather than specific actions to restore fairness or prevent harm.

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  • Current Version
  • Mar 19, 2023
    Quiz Edited by
    ProProfs Editorial Team
  • Apr 30, 2012
    Quiz Created by
    Samxa4
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