Chapter 11 Multiple Choice Questions

Damage

Quiz Content

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. Contractual damages aim to put the claimant in the position he would have been had the contract been ……….

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. George pays £10,000 for a car that would have been worth £12,000 on the open market if it had been in accordance with the contractual specification. He finds, however, that the electric windows and other bonus extras he had bargained for fail to work and that the car is only worth £9,000. Which of the following are true? Please select all that apply.

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. Match the scenario to the measure of damages claimed.

David, an MP, claims the profits Frank has made by selling David's memoirs in breach of a confidentiality agreement.

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Mega Bank plc claims the profit it would have made on a swap contract if Mini Bank Ltd had not withdrawn the funds it had promised to deposit with Mega Bank plc.

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Carlo claims the wasted cost of his pre-flight airport hotel room from EZfly after it cancels, at the last minute, Carlo's early-morning flight, in breach of contract.

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Mark claims the cost of knocking down and rebuilding a garden wall that was built 10cm out of line.

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. Thomas contracts for a bicycle measuring exactly 33 inches from the top of the saddle to the pedal; this is Thomas' inside leg measurement and he is keen to have a bicycle that 'fits like a glove' (as he endlessly tells his friends). Dave builds a superb cycle that is actually worth £1,500 on the open market, but Thomas sues for damages because it is half an inch short and does not feel as good as Thomas expected. The contract price was £1,500 and it would cost £2,000 to have the bicycle enlarged.

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. The remoteness rule stipulates that a claimant claiming damages for breach of contract can recover:

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. The rule that the claimant must take reasonable steps to put himself in as good a position as though the contract had been performed is known as the duty to ……….

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. A term of a contract that provides for a liquidated sum to be paid upon breach of contract, which is not a reasonable estimate of the innocent party's loss, is likely to be found to be a……….. clause.

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. In Alder v Moore (1961), the court interpreted the professional footballer's declaration that he would not play professional football again and promise that he would repay the £500 insurance money if he did as a conditional promise, rather than as a penalty clause.

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. Damages are only available for non-pecuniary losses when the sole purpose of the contract is enjoyment.

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. A clause which specifies for delay a rate of damages much lower than the losses likely to be caused by the delay is neither a penalty nor a liquidated damages clause but is in reality a limitation clause.

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. A forfeiture clause:

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. Which of the following limit the amount of damages available to a claimant? Please select all that apply.

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. Dodgy Builders plc installed defective wiring in Bob's factory, in breach of its contract with Bob. The losses to Bob were £50,000 but he has since saved £10,000 in cheaper electricity bills by installing more efficient wiring than that specified in the contract with Dodgy Builders. The £10,000 saved is deductible from the damages payable by Dodgy Builders.

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. The ……… Act 1945 has the effect that contractual damages may be reduced for contributory negligence when there has been a beach of an obligation to take reasonable care and there would be independent liability in tort.

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. Damages may be reduced or eliminated by reason of the claimant's negligence in which of the following situations? Please select all that apply.

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