Question 1

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 2

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

The normal remedy for breach of a contract for the sale of land is specific performance, which means that the court orders the breaching party to fulfill the terms of the contract (in this case, to sell the 440 acres to Grady). Damages may also be available, but they are generally not as preferred as specific performance when it comes to real estate transactions. Quasi contract and reformation are not applicable in this scenario.

Question 3

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

A quasi contract is a legal theory used when there is no actual contract but one party has received a benefit from the other party, and it would be unjust for the benefiting party to retain that benefit without compensation. In this scenario, Jaime has already planted the first crop and expended resources preparing the land, so she has provided a benefit to Karson. Since there was no actual contract in place, Jaime could potentially sue Karson under a quasi-contract theory to recover her expenses and the value of her labor.

Question 4

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 is unique and cannot be easily replaced, Ira should seek specific performance, which would require Jane to fulfill their oral agreement and send him the collection.

Question 5

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

Accepted Answer

Exculpatory clauses that relieve a party from future liability for intentional conduct are generally not enforceable as they go against public policy and the fundamental principles of justice.

Question 6

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 because it limits the amount of damages that either party can recover to only those resulting from a fraudulent or intentional breach of the contract.

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...

Question 8

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

Eve breached the agreement with Dino by accepting a higher-paying job at another venue. As a result, Dino can file a suit against Eve and seek damages if he can prove that he suffered financial losses as a result of the breach. The court will most likely award damages to Dino.

Question 9

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...

Question 10

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...

Question 11

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 ask the court to rewrite the contract to reflect the parties' true intentions of a 30-day delivery period. This would be the best choice as it would leave the contract intact, while also ensuring that the parties' original agreement was upheld. Damages, rescission, and specific performance may not adequately address Refined's concerns or may result in the termination of the contract.

Question 12

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 that both parties return to the position they were in before the contract was made. Therefore, Lou must return the $50 and Mira must return the player. This restores both parties to their original positions before the contract was made.

Quiz 12: Breach and Remedies