Question 1

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch.If Hollis breaches the contract,Grady's normal remedy would be

Accepted Answer

Specific performance is the best choice as the subject matter of the contract is unique and cannot be easily replaced or substituted, making damages an inadequate remedy. Quasi contract and reformation are not appropriate remedies in a situation where a breach of contract has occurred.

Question 2

A contract between E-Debits,Inc.,and First Credit Corporation includes a provision excluding liability as a result of fraud.This provision is

Accepted Answer

The answer of A contract between E-Debits,Inc.,and First Credit Corporation...

Question 3

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

Accepted Answer

If Eve breached the agreement by accepting a higher-paying job, Dino could seek damages for the breach of contract. This would require Eve to pay the difference between the amount Dino agreed to pay her and the amount she received from the other job. The court is likely to award damages to Dino in this case.

Question 4

To avoid liability for intentional injuries,Vermont Power Corporation includes in its contracts an exculpatory clause.This is

Accepted Answer

Exculpatory clauses that attempt to release a party from liability for intentional injuries are generally not enforceable. This is because it goes against public policy and the law cannot allow one to limit the consequences of their intentional actions.

Question 5

National Drilling Company ships its only pump to American Hydraulics Corporation,the manufacturer,for repair.National hires Overland Transport,Inc.,to take the pump to American Hydraulics and to return it to National as soon as the repair is complete.National is forced to suspend operations without a pump,but Overland does not know this.National 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,National rents a pump at a cost of $100 per day.Overland delays five more days before returning the pump.National files a suit against Overland,asking for compensatory,consequential,and punitive damages.Will National recover

Accepted Answer

The answer of National Drilling Company ships its only pump...

Question 6

Refined Commodities,Inc.,agrees to deliver ten tons of sheet metal to Select Builders Corporation.The agreement states that delivery is to be within "3" days,although the parties intend "30" days.Refined cannot convince Select to amend the contract.Refined should seek

Accepted Answer

Reformation would allow Refined to seek to have the contract amended to reflect the parties' true intentions of a 30-day delivery timeline. This would likely be the best course of action as it would allow the parties to adhere to their original agreement without the burden of the incorrect delivery timeline. Damages, rescission, and specific performance may not be appropriate remedies in this situation.

Question 7

Rural Utility,Inc.,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.If the parties rescind the contract,Shovel's refund of the payment would be

Accepted Answer

The answer of Rural Utility,Inc.,enters into a contract with Shovel...

Question 8

Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons.After Jaime prepares the land and plants the first crop,Karson says that their deal is off.Jaime can most likely recover

Accepted Answer

Jaime can recover in quasi contract, as Karson promised to pay for his services but then reneged on the agreement. Quasi contract allows for recovery in situations where there was no previous contract but one party has received a benefit that would be unjust to keep without compensating the other party.

Question 9

Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment.When Ira sends her the rest of the price,Jane refuses to ship Ira the collection.Ira should seek

Accepted Answer

Since the collection of sports memorabilia is unique, Ira cannot obtain them from another seller. Therefore, the best option for Ira is to seek specific performance, which would require Jane to complete the sale and deliver the collection as per the earlier agreement.

Question 10

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50.To rescind the contract

Accepted Answer

Rescinding a contract means returning the parties to their original positions before the contract was made. Therefore, Lou must return the $50 to Mira and Mira must return the player to Lou for the rescission to be complete. This choice best reflects the principle of "restitutio in integrum," which means restoration to the original state.

Question 11

Creekside Property Corporation enters into a contract with Downstream Management Associates to manage and maintain Creekside's apartment complex.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

Accepted Answer

This clause is a limitation-of-liability clause, as it limits the liability of both parties in the event of a non-fraudulent or unintentional breach. It does not completely release either party from liability, which is what an exculpatory clause would do. Furthermore, there is nothing illegal about this type of clause. Finally, a quasi contract is an implied-in-law contract that is imposed by the court to prevent injustice, which is not relevant to this question.

Question 12

General Equity Corporation enters into a contract with Honi,who agrees to create artwork for General's main office building.Honi delays and eventually refuses to perform.Meanwhile,General contracts to sell the building to Ideal Investments,Inc.,but before the transaction is complete,Jewel Funds Company offers to pay a higher price.General refuses to transfer the building to Ideal.In separate suits by General against Honi and by Ideal against General,each plaintiff seeks specific performance.How might the court rule in each case,and why

Accepted Answer

The answer of General Equity Corporation enters into a contract...

Quiz 16: Breach and Remedies