#1
Which of the following is not a type of damages in contract law?
Punitive damages
ExplanationPunitive damages are not awarded in contract law; they aim to punish for malicious or outrageous conduct.
#2
When are nominal damages typically awarded in contract law?
When the defendant breached the contract but the plaintiff suffered no actual loss
ExplanationNominal damages are awarded when there is a breach, but no actual loss has been suffered.
#3
What are the two main categories of damages in contract law?
Compensatory and consequential damages
ExplanationThe two main categories of damages are compensatory and consequential damages.
#4
Which type of damages in contract law are designed to compensate for losses that naturally flow from the breach?
Compensatory damages
ExplanationCompensatory damages aim to compensate for losses naturally flowing from the breach.
#5
What is the purpose of awarding punitive damages in contract law?
To punish the defendant for malicious or outrageous conduct
ExplanationPunitive damages are awarded to punish defendants for egregious conduct.
#6
What distinguishes nominal damages from other types of damages in contract law?
Nominal damages are awarded when the plaintiff suffered no actual loss
ExplanationNominal damages are awarded when no actual loss has been suffered.
#7
In contract law, what are 'consequential damages' also known as?
Special damages
ExplanationConsequential damages are also referred to as special damages.
#8
What is the primary aim of compensatory damages in contract law?
To cover any loss suffered by the non-breaching party
ExplanationCompensatory damages aim to cover losses suffered by the non-breaching party.
#9
What are liquidated damages in contract law?
Damages agreed upon in advance by the parties in the contract
ExplanationLiquidated damages are damages agreed upon in advance by the parties.
#10
Under what circumstances might a court award liquidated damages in a contract dispute?
When the actual damages are difficult to ascertain and the parties agreed on a specific amount in advance
ExplanationLiquidated damages are awarded when actual damages are hard to determine, and parties agreed on a specific amount.
#11
Which doctrine in contract law limits the recovery of damages to those that were reasonably foreseeable at the time of contracting?
Doctrine of foreseeability
ExplanationThe doctrine of foreseeability limits recovery to damages reasonably foreseeable at contract formation.
#12
When might a court grant restitutionary damages in a contract dispute?
When the non-breaching party seeks to recover the value of benefits conferred on the breaching party
ExplanationRestitutionary damages are granted when the non-breaching party seeks to recover benefits conferred on the breaching party.
#13
Under which principle are punitive damages rarely awarded in contract law?
The principle of foreseeability
ExplanationPunitive damages are rarely awarded due to the principle of foreseeability.
#14
In contract law, what does the 'doctrine of foreseeability' primarily concern?
The foreseeability of damages at the time of contract formation
ExplanationThe doctrine of foreseeability concerns the foreseeability of damages at contract formation.
#15
Under what circumstances might a court award specific performance as a remedy instead of damages?
When monetary damages would be inadequate to compensate the non-breaching party
ExplanationSpecific performance is awarded when monetary damages are inadequate.