3. Contract Law

Breach And Remedies — Quiz

Test your understanding of breach and remedies with 5 practice questions.

Practice Questions

Question 1

A contractor agrees to build a house for a client, but due to unforeseen material shortages, the completion is delayed by two months. The contract specifies a completion date, but does not include a 'time is of the essence' clause. What type of breach has occurred?

Question 2

In a contract for the sale of a rare coin, the seller breaches by refusing to deliver the coin. The buyer can easily purchase an identical coin from another dealer at the same price. Which of the following remedies is the buyer \textit{least likely} to be granted?

Question 3

A software company enters into a contract to develop a custom application for a client. The contract includes a clause stating that if the software is not delivered by the agreed-upon date, the software company will pay the client \$1,000$ for each day of delay. This clause is enforceable if the \$1,000$ per day represents a reasonable pre-estimate of the client's actual losses due to delay. What is this type of clause known as?

Question 4

A landlord breaches a lease agreement by failing to make necessary repairs, rendering the property uninhabitable. The tenant is forced to move out and incur expenses for temporary housing and finding a new apartment. Which principle requires the tenant to seek alternative housing promptly to minimize their losses?

Question 5

A buyer contracts to purchase a unique piece of artwork. Before the closing date, the seller informs the buyer that they have decided to keep the artwork and will not complete the sale. What type of breach has occurred?