Question 1

Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at Five Star Arena. Dino files a suit against Eve. The court will most likely

Accepted Answer

If Eve breached the agreement to perform at Dino's Club, Dino is entitled to damages for the loss he suffered as a result of Eve's breach. The court is likely to award damages to Dino for any losses he suffered. The court is not likely to order Eve to perform the contract, cancel the contract or reform the contract, as these remedies are not applicable in cases of breach of contract.

Question 2

Forest Lumber Company orally contracts with Gail for the purchase of five acres of Gail's timberland. Gail makes the transfer but Forest Lumber does not pay the price. Gail could most likely recover on a theory of

Accepted Answer

Quasi contract is an implied contract that arises from the conduct of the parties, rather than from an express agreement. In this case, Gail transferred the timberland to Forest Lumber, and Forest Lumber accepted the transfer. Forest Lumber's failure to pay the price constitutes a breach of the implied contract, and Gail is entitled to recover on a theory of quasi contract.

Question 3

Leif contracts to sell his Micro Brewery & Pub to Naomi on April 1. On March 15, Leif tells Naomi that he will not go through with the deal. Naomi can recover

Accepted Answer

Leif entered into a legally binding contract with Naomi to sell his Micro Brewery & Pub. He cannot unilaterally back out of the contract without breaching it. As a result, Naomi can recover the Micro Brewery & Pub, as specified in the terms of the contract.

Question 4

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

Accepted Answer

Specific performance is the best choice in this scenario as it would allow Isabel to obtain the unique collection of nineteenth-century cowboy memorabilia that she agreed to purchase. Damages and restitution would not provide Isabel with the specific performance she desires, and rescission would only allow her to cancel the contract and recover her down payment, which may not be the outcome she desires.

Question 5

Ricky agrees to sell his Sunrise Breakfast Café to Tia. As part of the deal, Ricky signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely

Accepted Answer

If the court determines that the covenant not to open a competing business within a hundred-mile radius for ten years is unreasonable, it may be reformed. Reformation would involve modifying the covenant to make it reasonable rather than invalidating it. This would be the appropriate remedy as it protects the interests of both parties involved in the sale of the business. Damages, rescission, and specific performance would not be appropriate remedies in this case as they do not address the specific issue of the covenant being unreasonable.

Question 6

Ruth owns Skyview, a complex under construction that will include commercial and residential suites, and a parking garage. She allows Town Contracting, the contractor, to complete a stage of the project late. This waives Ruth's right to sue for

Accepted Answer

Allowing the contractor to complete a stage of the project late waives Ruth's right to sue for this specific delay, but it does not affect her rights regarding any past or future breaches.

Question 7

Complete Boring Corporation ships its only pump to Drills & Bits, Inc., the manufacturer, for repair. Complete Boring hires Everywhere Shipping, Inc., to take the pump to Drills & Bits and to return it to Complete Boring as soon as the repair is complete. Complete Boring is forced to suspend operations without a pump, but Everywhere Shipping does not know this. Complete Boring expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day, Complete Boring rents a pump at a cost of $100 per day. Everywhere Shipping delays five more days before returning the pump. Complete Boring files a suit against Everywhere Shipping, asking for compensatory, consequential, and punitive damages. Will Complete Boring recover?

Accepted Answer

The answer of Complete Boring Corporation ships its only pump...

Question 8

Ida orally agrees to pay Jim to seed and harvest a quarter of Ida's farm acreage for four hay seasons. After Jim prepares the land and plants the first crop, Ida says that their deal is off. Jim can most likely recover on a theory of

Accepted Answer

Jim can recover under the theory of quasi contract, which allows for recovery when one party has conferred a benefit on another party in the absence of a formal contract, to prevent unjust enrichment.

Question 9

Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in advance. Meals Catering pays the money, but Lunch Trucks fails to perform. Can Meals Catering rescind the contract? Can Meals Catering also obtain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.

Accepted Answer

The answer of Lunch Trucks, Inc., contracts to deliver and...

Question 10

A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is

Accepted Answer

Reformation would allow the parties to correct the erroneous legal description in the contract. This is the appropriate remedy when there is a mistake in the contract that was made by one or both parties. A quasi contract, rescission, or specific performance would not address the issue of the erroneous legal description.

Question 11

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

Accepted Answer

This is a limitation-of-liability clause because it restricts the amount of damages a party can recover in the event of a breach, specifically excluding damages for non-fraudulent or unintentional breaches.

Question 12

Ridgeview Mining Inc. agrees to deliver a certain quantity of oil to Static Energy Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek

Accepted Answer

Ridgeview should seek reformation of the contract, which means asking the court to change the wording of the agreement to reflect the parties' true intention of 90 days instead of 9 days. This is a common remedy when there is a mutual mistake or misunderstanding in the contract terms.

Quiz 12: Breach of Contract and Remedies