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CHAPTER 6
True/False
Indicate whether the statement is true or false.
An answer must be all True to be True.
1. T F A remedy for breach of contract may involve the nonbreaching party’s
expectation, reliance, or restitution interest.
2. T F A remedy for a restitution cause of action may involve the nonbreaching party’s
expectation, reliance, or restitution interest.
3. T F A remedy for a reliance cause of action may involve the nonbreaching party’s
expectation, reliance, or restitution interest.
4. T F What the nonbreaching party expected to receive and expected to give must be
considered when calculating damages based on an expectation interest.
5. T F What the breaching party expected to receive and did receive must be
considered when calculating damages based on a restitution interest.
6. T F The reliance interest is concerned with the benefit that the nonbreaching party
conferred on the breaching party and what the nonbreaching party received for
conferring that benefit.
7. T F Damages for breach of contract must be foreseeable.
8. T F Special damages are never foreseeable.
9. T F Damages for breach of contract include incidental damages.
10. T F Damages for breach of contract include punitive damages.
110
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11. T F The breaching party’s intentions are relevant when calculating damages for
breach of contract.
12. T F Intentional and unintentional breaches will result in the same measure of
expectation damages for breach of contract.
13. T F When the nonbreaching party’s expectation interest is protect, the nonbreaching
party will be moved to the position that he or she would have been in had the
contract been fully performed.
14. T F Both the computation of reliance and restitution damages move the
nonbreaching party back in time before the nonbreaching party’s reliance on the
breaching party’s promise.
15. T F A contracting party will never find that breaching a contract will be in his or her
best economic interest.
16. T F Damages for breach of contract must be calculated with mathematical certainty.
17. T F General damages arise naturally from the breach while special damages do not.
18. T F Damages for pain and suffering or for emotional distress are never available in a
breach of contract action.
19. T F Expectation damages for breach of contract can be portrayed as four quadrants
with what the nonbreaching party expected to receive in the upper left quadrant.
20. T F What the nonbreaching party expected to give in the upper right quadrant.
21. T F Neither restitution nor reliance damages for breach of contract have an upper left
or upper right quadrant.
22. T F Damages that are speculative or incapable of being ascertained with reasonable
certainty are not recoverable in a breach of contract cause of action without a
liquidated damage provision in the contract.
23. T F Although the mitigation doctrine requires the nonbreaching party to prevent
increasing damages, the doctrine does not require the nonbreaching party to
decrease the damages the breaching party must pay.
24. T F A nonbreaching party who establishes a breach of contract but is unable to prove
damages is not entitled to a judgment.
25. T F The remedy for breach of contract is generally substitutional.
26. T F The remedy for breach of contract is based on the defendant’s gain and not the
plaintiff’s loss.
27. T F The plaintiff in a breach of contract cause of action may choose between
damages and specific performance or injunction.
28. T F Specific performance is available when the breaching party fails to pay.
29. T F Specific performance is available in personal service contracts if the service is unique.
30. T F The nonbreaching employer in an employment contract may still be entitled to
damages even though the nonbreaching employer has found a substitute employee.
31. T F The nonbreaching employee in an employment contract may still be entitled to
damages even though the nonbreaching employee has found a substitute employment.
32. T F At the time of contracting, the contracting parties should consider whether a
liquidated damage provision would be appropriate for their contract.
33. T F Not all liquidated damage provisions will be enforced by the courts.
34. T F The contracting parties may include in their contract a provision regarding the
allocation of costs in the event of litigation.
35. T F As a general rule, in a breach of contract action, attorney’s fees are not
considered costs.
36. T F The contracting parties may include in their contract a provision regarding the
allocation of attorney’s fees in the event of litigation.
111
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37. T F A nonbreaching party may plead breach of contract and restitution in the
alternative although if a breach of contract is established, the restitution cause of
action falls by the wayside.
38. T F Restitution may be available as a remedy for a breach of contract but
expectation is not available as a remedy in a restitution cause of action.
39. T F An employee who has been wrongfully terminated has “saved time” due to the
termination must use this “saved time” when appropriate to mitigate the
breaching party’s damages.
40. T F Generally, unless provided for by contract or statute, a nonbreaching party may
not recover attorney’s fees that arise in a breach of contract litigation.
Multiple-Choice
Identify the best correct answer.
1. Cornelia contracted to refinish an antique dining room table for Diane for $950. After Diane made a
$200 down payment, Cornelia refused to work on the table. Diane then contracted with another
furniture restorer to refinish the table but for $1,500. The restoration increased the value of the table by
$2,000. It will cost Diane $1,000 in attorney’s fees to successfully sue Cornelia for breach of contract.
If Diane does sue Cornelia for breach of contract, her net recovery would be:
(a) –$1,750
(b) –$250
(c) $ 950
(d) $3,750
2. The Maxwell Book Company, the owner of the copyright for a book on “best seller” list, contracted to
sell the publishing rights to the paperback version of the book to the Jones Publishing House. The
contract stipulated that the paperback would not be available to the general public until spring. Jones
jumped the gun and marketed the paperback for Christmas, thus reducing Maxwell’s profits from an
estimated $500,000 to an actual $75,000. By publishing early, Jones made $1,000,000 in profits.
If Maxwell sued Jones for breach of contract, Maxwell could recover:
(a) $1,000,000
(b) $925,000
(c) $500,000
(d) $425,000
3. Joanna Edwards contracted with the Quintessential Beauty Company, the manufacturer of a wrinkle
removal cream, to be the company’s spokesperson for three years at $500,000 a year. After the first
year, Quintessential wrongfully terminated the contract.
After taking a six-month vacation, Ms. Edwards found employment as the representative for
another beauty product. This contract was for three years and paid her $300,000 a year.
Ms. Edwards sued Quintessential for breach of contract. Calculate her damages.
(a) $1,000,000
(b) $750,000
(c) $550,000
(d) $300,000
4. Star Paving Company contracted to resurface the Central High School parking lot for $600,000. Star
completed one-third of the work and was wrongfully terminated. As of the time of the termination, Star
had spent $350,000. [Star had made an unprofitable contract due to substantial increases in the prices
for labor and materials.] It would have cost Star another $700,000 to complete the work. The
reasonable value of Star’s work to Central High was $300,000.
If Star sued Central High for breach of contract, the maximum Star could recover under
expectation would be:
(a) $0
(b) $300,000
(c) $350,000
112
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(d) $600,000
5. Same as Question 4 except if Star sued Central High for breach of contract, the maximum Star could
recover under reliance would be:
(a) $0
(b) $300,000
(c) $350,000
(d) $600,000
6. Same as Question 4 except if Star sued Central High for breach of contract, the maximum Star could
recover under restitution would be:
(a) $0
(b) $300,000
(c) $350,000
(d) $600,000
8. An employee promised to work for four weeks for the employer’s promise to pay $1,000 a week. The
employee worked for two weeks before the employer breached by paying for only one week. The
employee was unable to find comparable work with her saved time.
The employee sued the employer for breach of contract seeking expectation damages. How much
could the employee recover?
(a) $0
(b) $1,000
(c) $2,000
(d) $3,000
9. Annabelle hired Edward to paint the exterior of her home. Annabelle promised to pay Edward $4,000.
The arrangement was that Edward was to be paid one-fourth of the contract price as he finished
painting each side of the house. Edward painted two sides of the house but Annabelle breached by
paying him for only one side. Edward was unable to find comparable work with the time he saved by
not painting the remaining two sides of the house.
Edward sued Annabelle for breach of contract seeking expectation damages. How much could
Edward recover?
(a) $0
(b) $1,000
(c) $2,000
(d) $3,000
10. Luciano hired Quality Builders to build him a home. The contract price was $1,500,000. After Quality
had completed two-thirds of the home, Quality breached the contract by leaving the job site.
Luciano has paid Quality $1,000,000. The market value of the home in its current state of
completion is $800,000. The cost to complete the home is $700,000. Unknown to Quality, had the
113
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home been completed according to specifications, Luciano had a buyer who would have paid
$1,800,000.
What are Luciano’s general damages?
(a) $200,000
(b) $500,000
(c) $700,000
(d) $1,200,000
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" Bare-necked, ii., 182
" True, ii., 183
" Three-wattled, ii., 183
Bent-beaks, iii., 7
Bentevi, ii., 159
Berigora, i., 307
Bettet, i., 68
Benteot, i., 281
Bittern, iv., 83
" Common, iv., 85
" Little, iv., 83
" Sun, iv., 86
Blackbird, Savanna, iii., 119
Black-cap, ii., 243
Blackcock, iii., 185
Black-head, Sardinian Fire-eyed, ii., 249
Black Pheasant, iii., 238
Blossom Rifler, Australian, iii., 7
Blue Birds, iii., 2
Blue Cæreba, iii., 3
Blue-throat, White-starred, ii., 189
" Swedish, ii., 189
Boat-bills, iv., 59, 62
Boat-tails, i., 222
" Great, i., 222
Boblink, i., 212
Bower Bird, Satin, i, 239
Broad-throat, iii., 84
" Java, iii., 85
" True, iii., 85
Bronze-wing, Partridge, iii., 166
" Common, iii., 164
" Crested, iii., 163
" True, iii., 164
Brush Wattle Bird, iii., 11
" True, iii., 11
Buccos, iii., 96
Bullfinch, i., 92, 102
" Carmine, i., 95
" Parrot, i., 92
" Rose, i., 95
" Siberian, i., 97
Bundle-nest, iii., 16
" Red-fronted, iii., 17
Bunting, i., 185
" Black-headed, i., 190
" Crested, i., 185
" Garden, i., 188
" Golden, i., 187
" Grey, i., 186
" Lark, i., 191
" Meadow, i., 190
" Red, i., 190
" Reed, i., 191
" Snow, i., 194
" Spur, i., 191
Bustard, iv., 2
" African Ruffled, iv., 8
" Great, iv., 2
" Little, iv., 5
Butcher-bird, Sentinel, ii., 142
" Proper, ii., 146
" True, ii., 146
Buzzard, ii., 47
" Common, ii., 52
" Crested, ii., 50
" Crested Honey, ii., 52
" Grasshopper, ii., 54
" Honey, ii., 50
" Mouse, ii., 52
" Red-winged, ii., 54
" Rough-legged, ii., 52
" Snake, ii., 47, 48
C.
Cadet, iii., 6
Calliope of Kamschatka, ii., 190
Calliste, i., 153
" Red-necked, i., 153
Canary, i., 107
Capercali, iii., 181
Capi, i., 148
Capirote, ii., 243
Capuchin Bird, ii., 100
Caracolero, ii., 55
Carancho, ii., 58
Cariama, Brazilian, iv., 91
Casmalos, i., 52
Cassican, i., 218
" Tufted, i., 219
Cassowary, iii., 302
" Australian, iii., 307
" Helmeted, iii., 302
Cat-bird, ii., 216
Catchers, i., 291
Caterpillar-eaters, ii., 164
Chaffinch, i., 115
Channel-bill, iii., 113
Chat, ii., 198
Chat, Black-throated Stone, ii., 198
" Eared Stone, ii., 198
" Fallow, ii., 198
Chatterer, Bohemian, ii., 172
" Umbrella, ii., 181
Chauna, iv., 97
Cherry-bird, i., 242
Chickadee, ii., 318
Chiff-chaff, ii., 255
Chimango, ii., 57
Chinquis, iii., 251
Chopper, Woodpecker Tree, iii., 26
Choroy, i., 66
" Alpine, i., 255
Choughs, i., 254
Chuckore, iii., 207
Clapper-bill, African, iv., 75
Climber, iii., 1
" Tree, iii., 24
Clipper, ii., 197
" Common Tree, iii., 25
" Wagtail, ii., 197
Cockatoo, i., 45
" Banks' Raven, i., 54
" Eagle, i., 51
" Helmet, i., 47
" Leadbeater's, i., 47
" Lemon-crested, i., 47
" Nestor, i., 50
" Nose, i., 48
Cock of the Rock, ii., 174
Collar-bird, i., 240
" Spotted, i., 240
Comet, iii., 71
" Sappho, iii., 71
Condor, ii., 70
" Californian, ii., 71
Coot, iv., 110
" Common, iv., 111
Coquette, iii., 66
" Splendid, iii., 66
Corella, i., 77
Cormorant, iv., 227
" Proper, iv., 230
" Common, iv., 234
Coroya, iii., 119
Coucal, iii., 122
" Egyptian, iii., 122
" Pheasant, iii., 123
Courser, iv., 9
" Cream-coloured, iv., 10
Coulterneb, iv., 262
Cow Bird, i., 215
Cracker, i., 23
Crake, Corn, iv., 101
Crane, iv., 87
" African Crowned, iv., 90
" Common, iv., 89
" Demoiselle, iv., 90
" Numidian, iv., 90
" Peacock, iv., 90
" Snake, iv., 91
Creeper, iii, 22
" Alpine Wall, iii., 23
" Black and Yellow, iii, 4
" Bonneted, iii., 22
" Red-winged Wall, iii., 23
" Tree, iii., 23
" True Tree, iii., 23
" Wall, iii., 23
Crocodile-watcher, iv., 11
Cross-bill, i., 85
" Banded, i., 86
" Large-beaked, i., 86
" Pine-tree, i., 86
Crow, Bald-headed, i., 271; ii., 179
" Carrion, i., 262
" Glossy, i., 267
" Hooded, i., 263
" Long-tailed, i., 280
" Mountain, i., 254
" Pheasants, iii., 122
" Piping, i., 270
Cuckoo, iii., 105
" Bush, iii., 114
" Common, iii., 106
" Giant, iii., 113
" Golden, iii., 111, 112
" Jay, iii., 110
" Long-tailed, iii., 118
" Proper, iii., 106
" Rain, iii., 115
" Spurred, iii., 122
Curassow, iii., 275
" Common, iii., 276
" Crested, iii., 276
" Galeated, iii., 278
" Mountain, iii., 278
" Red, iii., 278
" True, iii., 276
" Wattled, iii., 278
Curlew, iv., 51
" Great, iv., 51
Cushat, iii., 143
D.
E.
Eagle, ii., 8
" African Screaming Sea, ii., 27
" Bold Wedge-tailed, ii., 17
" Booted, ii., 14
" Brazilian, ii., 21
" Crested Brazilian, ii., 21
" Destroying, ii., 19
" Dwarf, ii., 14, 15
" Golden, ii., 10
" Harpy, ii., 22
" Hawk, ii., 17
" Hooded, ii., 18
" Imperial, ii., 10
" Martial Hooded, ii., 18
" Sea, ii., 23
" Spotted, ii., 13
" Tawny, ii., 10
" True, ii., 10
" Tufted, ii., 19
" Wedge-tailed, ii., 15
" White-headed Sea, ii., 23
Earth-eater, ii., 134
Egret, Lesser, iv., 82
Elves, iii., 66
Emu, iii., 300, 301
" Spotted, iii., 301
Epimachi, i, 251
Epimachus, Collared, i., 252
" Resplendent, i., 251
F.
Fairy, iii., 60
" Brazilian, iii., 60
Falcinels, iv., 55
Falcon, i., 294
" Dwarf, i., 312
" Evening, i., 310
" Hunting, i., 299
" Night, ii., 126
" Noble, i., 294
" Peregrine, i., 301
" Red-footed, i., 310
" Red-necked, i., 303
" Sparrow, i., 311
" Tree, i., 306
" Wandering, i., 300
Fantail, ii., 166
" Wagtail, ii., 167
Feather-beaks, i., 283
Fieldfare, ii., 207
Finch, i., 114
" Admirable Chaff, i., 159
" American, i., 181
" Blood, i., 162
" Bright-coated, i., 155
" Butterfly, i., 163
" Chaff, i., 159
" Chestnut Reed, i, 158
" Collared, i., 156
" Dominican, i., 146
" Fire, i., 174
" Flame-coloured Fire, i., 175
" Hooded, i., 157
" Magpie, i., 158
" Morning, i., 181, 182
" Mountain, i., 118
" Prairie Bunting, i., 184
" Reed, i., 158
" Shore, i., 184
" Sea Bunting, i., 184
" Snow, i., 119
" Steel, i., 163
" Tiny, i., 146
" Tree Bunting, i., 183
" Variegated, i., 162
" Winter, i., 119
Finfoot, iv., 112
" Surinam, iv., 112
Finga, ii., 154
Fireback, Siamese, iii., 238
Fire-eye, ii., 230
Fire Tangara, i., 151, 152
Flamingo, iv., 115
Flat-bill, Green, iii., 86
Flax Bird, i., 151
Florikin, iv., 8
Flower Bird iii., 2
" Nymph, iii., 59
" Sucker, iii., 60
Flute Bird, i., 270
" Player, ii., 273
Fly-catcher, ii., 158
" Black-capped, ii., 170
" Cock-tailed, ii., 163
" Collared, ii., 170
" Dwarf, ii., 171
" Grey, ii., 168
" Mourning, ii., 169
" Pied, ii., 170
" Spotted, ii., 168
" Stilted, ii., 162
" True, ii., 167
" White-necked, ii., 170
Fly-snapper, ii., 164
" Paradise, ii., 166
" Royal, ii., 166
Four-wings, ii., 131
Francolin, iii., 212
Friar Bird, iii., 12
Frigate Bird, iv., 224
Frog-mouth, ii., 140
" Plumed, ii., 140
G.
H.
I.
J.
Jabiru, iv., 71
" Senegal, iv., 71
Jacamar, iii., 96
" Green, iii., 96
" True, iii., 96
Jacana, iv., 102
" Chilian, iv., 102
" Chinese, iv., 103
Jackdaw, i., 266
" Green, i., 283
Jacobin, Pied, iii., 60
Jako, i., 35
Japu, i., 219
Jay, i., 272
" Common, i., 278
" Unlucky, i., 279
Jewar, iii., 233
Jungle-fowl, iii., 235
" Australian, iii., 265
" Javanese, iii., 236
" of Ceylon, iii., 236
" Red, iii., 235
" Sonnerat, iii., 237
K.
Kakapo, i., 55
Karna, iii., 100
Kasintu, iii., 235
Katakoli, iii., 237
Kellitsch, iii., 239
Kestrel, i., 307, 308
" Lark, i., 308
Khata, iii., 175
King Crow, ii., 154
Kingfisher, iii., 86
" European, iii., 88
" Grey, iii., 90
" Purple, iii., 89, 90
Kinglet, ii., 297
Kirima, iii., 131
Kirrik, iii., 238
Kite, ii., 31
" Black, ii., 37
" Blue, ii., 43
" Buzzard, ii., 36
" Crooked-billed, ii., 36
" Dwarf Swallow-tailed, ii., 43
" Field, ii., 43
" Gliding, ii., 34
" Hovering, ii., 35
" Jardine's Spotted, ii., 46
" Meadow, ii., 43, 44
" Mississippi, ii., 35
" of the Steppes, ii., 43
" Parasite, ii., 39
" Red, ii., 40
" Reed, ii., 45
" Royal, ii., 40
" Short-tailed, ii., 32
" Spotted, ii., 46
" Swallow-tailed, ii., 41
" True, ii., 37
" True Gliding, ii., 34
Kitta, i., 282
" Long-tailed, i., 282
Kittiwake, iv., 194
Kivis, iii., 309
Kivi-Kivi, iii., 309
Klecho, ii., 118
Koel, iii., 111
Koels, iii., 110
Kuil, iii., 111
Kokil, iii., 114
Kuau, iii., 250
Kukuli, iii., 158
Kusappi, ii., 119
L.
M.
N.
O.
P.
Q.
R.
Rail, iv., 98
" Golden, iv., 99
" Land, iv., 101
" Snipe, iv., 98
" Water, iv., 99
Rain Bird, iii., 117
Rara, i., 150
Rarita, i., 150
Raven, i., 210, 257
" Blue, i., 275
" Crested Blue, i., 275
" Proper, i., 254
" Scapulated, i., 260
" Thick-billed Vulture, i., 259
" Vulture, i., 257
" White-necked Vulture, i., 259
Raya, iii., 86
Razor Bill, iv., 236
Red Bird, ii., 164
Redstart, ii., 194
" Black-capped, ii., 194
" Garden, ii., 195
Rice-bird, i., 160
" (Bobolink), i., 212
Ring-dove, iii., 143
" Indian, iii., 155
Robin Redbreast, ii., 191
Rock Bird, ii., 174
Roller, iii., 79
" Blue, iii., 80
" Saw-bill, iii., 83
Rook, i., 264
Ruff, iv., 39
S.
Sabre-bill, iii., 26
Sabre-wing, iii., 54
" De Lattrei's, iii., 54
" Fawn-coloured, iii., 55
" True, iii., 55
Sai, iii., 2
Salangane, ii., 118
" Proper, ii., 113
Sanderling, iv., 36
Sandpiper, iv., 35
" Common, iv., 45
" Curlew, iv., 36
" Dwarf, iv., 38
" Mud, iv., 38
" Pigmy Curlew, iv., 36
" True, iv., 45
Sangrok, iii., 79
Savaku, iv., 62
Saw-tail, i., 282
Scissor-bill, iv., 185
" Indian, iv., 185
Scissor-bird, ii., 161
Scoter, iv., 166
" Velvet, iv., 166
Screamer, iv., 95
" Crested, iv., 91
" Horned, iv., 96
Sea-fliers, iv., 175
" Oar-footed, iv., 219
Searchers, iii., 1
Secretary, ii., 62
Serrakura, iv., 101
Settler's Clock, iii., 94
Shadow Bird, iv., 62
Shearwater, iv., 218
Sheldrake, iv., 146
" Common, iv., 146
" Ruddy, iv., 145
Shell-eater, iv., 75
Short-winged Cursorial Birds, iii., 287
Shrike, ii., 141
" Black-browed, ii., 143
" Bush, ii., 148
" Crow, ii., 151
" Drongo, ii., 154, 155
" Falcon, ii., 147
" Flute, ii., 150
" Flute-voiced, ii., 149
" Grey, ii., 143
" Helmet, ii., 151
" Hooded, ii., 150
" King, ii., 158
" Magpie, ii., 151
" Masked, ii., 147
" Raven, ii., 151, 152
" Red-backed, ii., 146
" Red-headed, ii., 146
" Scarlet, ii., 149
" Southern, ii., 143
" Swallow, ii., 156
" Tyrant, ii., 158
" Thick-headed, ii., 147
" Vigors' Raven, ii., 153
" Wood Swallow, ii., 150
Sieve-beak, iv., 114
Sikkim Kaleege, iii., 238
Silk-tail, ii., 171
" European, ii., 172
Simbil, iv., 70
Singing Birds, ii., 141
" Tooth-beaked, ii., 141
Sirgang, i., 283
Siskin, Common, i., 127
" Birch tree, i., 124
" True, i., 127
Skua, Common, iv., 199
" Buffon's, iv., 202
" Parasite, iv., 202
Sleeper, iii., 97
Sluggard, iii., 96
Snake-bird, Le Vaillant's, iv., 230
Snake-neck, iv., 228
Snipe, iv., 29
" Common, iv., 34
" Jack, iv., 35
" Marsh, iv., 33
" Moor, iv., 35
" Painted Cape, iv., 99
" True, iv., 29
Sparrow, Common, i., 131
" Field, i., 136
" Golden, i., 137
" Hedge, ii., 294
" Marsh, i., 135
" Plain, i., 137
" Proper, i., 131
" Rock, i., 138
" Song, i., 182
" Spanish, i., 135
" Tree, i., 136
" White-throated, i., 181, 182
Spider-eater, iii., 7
Split-beak, i., 287
Spoonbill, iv., 58
" Common, iv., 58
Spur-fowl, iii., 266
" Painted, iii., 286
Stair-beak, iii., 19
" Hairy-cheeked, iii., 20
Starika, iv., 255
Starling, i., 211
" Baltimore Golden, i., 218
" Bronze-coloured Glossy, i., 234
" Common, i., 223
" Cow, i., 215
" Glossy, i., 232
" Golden, i., 215
" Golden-breasted Glossy, i., 234
" Mountain Glossy, i., 238
" Proper, i., 223
" Rock Glossy, i., 237
" Rose, i., 227
" Sardinian, i., 227
" Scaly Glossy, i., 235
" Superb Glossy, i., 234
" True Glossy, i., 234
" White-headed Glossy, i., 237
" Yellow, i., 211, 215
Stilt, Black-winged, iv., 49
Stilt-walkers, iv., 1
Stink Bird, iii., 281
Stock-dove, iii., 146
Stone Curlew, iv., 14
Stork, iv., 63
" Clapper-billed, iv., 75
" Field, iv., 91
" Giant, iv., 71
" House, iv., 69
" Shoe-beak, iv., 59
" True, iv., 67
" White, iv., 69
" White headed, iv., 59
Storm Bird, iv., 203
Sun Bird, iii., 51
Sun-Gem, iii., 68
" Horned, iii., 68
Surukua, iii., 101
Swallow, ii., 104
" American Sailor, ii., 114
" Ariel, ii., 113
" Chimney, ii., 106