10 Questions
What is rescission in the context of breach of contract?
It is termination of contract that returns parties to their original positions.
What are liquidated damages?
Amount of money agreed to in advance in the contract.
Which of the following is true about liquidated damages?
They limit the party's ability to sue for more than the agreed sum.
What do compensatory damages aim to do?
Compensate the non-breaching party for losses incurred.
In real estate transactions, what is often treated as liquidated damages for the seller?
Buyer’s good faith deposit
Can parties agree to rescission without court intervention?
Yes, parties can agree on rescission.
What is the most common remedy for breach of contract?
Compensatory damages
What is the legal status of a void contract?
It has no legal effect whatsoever.
In the context of contract assignment, when can a contract be assigned without permission?
When it is a personal service contract
What is required for novation to occur between parties?
Mutual agreement
Test your knowledge on California's statute of frauds which requires certain contracts to be in writing. Topics covered include contracts not performed within one year, sale or exchange of real estate, lease agreements, and authorizing agents in real estate transactions.
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