Question

1. the most typical remedy available for a breach of contract is

a. specific performance

b. monetary damages

c. consequential damages

d. quantum meruit

2. service contracts generally require_____ performance in order for the parties to be discharged from the contract

a. substantial

b. complete

c. full

d. strict

3. ethics codes are generally viewed by corporations as:

a. a way of expressing the value of the corporations

b. a way of undermining moral autonomy

c. the cornerstone of a successful compliance program

d. as a way of gaining uncritical acceptance of authority

Answer 1

1) The most typical remedy available for a breach of contract is :- (b) monetary damages

A contract is an agreement between at least two parties (although there can be more than two parties involved in the agreement). It is an agreement enforceable by the court of law.

The term “Breach of contract” refers to a situation where one party breaks the promise they made in the contract. The type of remedy that a party may be entitled to is largely determined by the severity of the breach of the contract, as well as the damage done to the other party. If the damage done to the other party is minimal, remedies for breach of contract may be contract rescission or modification. However, if the damage done is extensive and severe, the breaching party may be ordered to pay money to help restore the injured party to where they were before the breach occurred. These monetary payments are often referred to in the legal terms as “damages.”
While “damages” generally refers to money awarded to a party who has suffered loss or injury, there are several different types of monetary remedies in the legal system. For example, Compensatory damages, Restitution, Punitive Damages, Quantum Meruit, Specific performance etc. Compensatory damages are the most common remedy in cases of breach of contract.

2) service contracts generally require_____ performance in order for the parties to be discharged from the contract :- (a) substantial performance

As per law, a person is liable to perform agreed-to contract duties until or unless he or she is discharged. If the person fails to perform without being discharged, liability for damages arises. A contract can be discharged by complete performance or material nonperformance of the contractual duty.
Full performance of the contractual obligation discharges the duty. For example, if the painter paints the house as per his contract with the owner, he gets discharged from his contract. However, if he doesnt do any work, the owner is not supposed to pay him.
In modern law, an alternative doctrine has developed called substantial performance, which says, if one side has substantially, but not completely, performed, so that the other side has received a benefit, the nonbreaching party owes something for the value received. If there has been substantial although not full performance, the building contractor has a claim for the unpaid balance and the owner has a claim only for damages. If there has not been substantial performance, the building contractor has no claim for the unpaid balance.

3) Ethics codes are generally viewed by corporations as :- c) the cornerstone of a successful compliance program

Business ethics are the principles of conduct governing an organization and the individuals within it. These principles are defined through the day-to-day behaviors of managers and employees, creating a culture in which everyone is able to observe management’s actions and reactions in response to events. Corpoprate code of ethics determine how individuals throughout the organization are expected to behave in various situations. A formal, written code of conduct is now a requirement of the U.S. Securities and Exchange Commission (SEC) and by the listing standards of major stock exchanges. Companies are required to disclose their code on their websites.

Corporate code of conduct are introduced for two reasons :-

• To establish the organization’s expectations regarding ethical behavior and regulatory compliance from all the employees as well as the management.
• To provide employees with core values and guidance in the events when they find themselves in conflicting situations and can not decide upon the right thing to do.