1. Which is correct?

a. Liquidated damages may not be claimed if no loss has been suffered

b. If a party can show that liquidated damages do not adequately reimburse the harmed party for the loss, they can claim the additional amount

c. Liquidated damages will be enforced where they are a genuine attempt to anticipate a loss, at the time the contract is entered into

d. Liquidated damages will not be enforced if the amount claimed bears no relation to the loss anticipated at the time the contract is entered into

2. A contractor has informed a customer that they will not be able to paint their house in June in time for their daughter's wedding, as set out in the contract, due to a surprise trip his wife planned. Which of the following is true is the best answer?

a. A court action would likely end with an award for specific performance

b. The homeowner must wait until the date set for the contract to begin in June to determine if the contract is breached, and then sue for any damages

c. The contractor has declared an anticipatory breach and the homeowner can find another contractor and sue for damages

d. An injunction could be granted to force the contractor to not leave until all contractual obligations are met

3. Which best describes a situation which invokes the doctrine of frustration?

a. While City Hall is on strike the contractor may have the plans approved by city management if an increased fee is paid

b. City Hall is on strike when the contract is entered into, so plans cannot be approved until the strike is over

c. On reviewing the plans, City Hall has determined that the land the project is to be built on is not suitable for building the intended project so will not approve the plans

d. A contractor cannot get plans to build a project approved on time to start building as he waited too long before submitting the plans