Question 1

Ron breaches his lease with Sunny Properties and vacates the premises six months before the end of the term.In some states,the landlord would have to

Accepted Answer

In most states, the landlord has a duty to mitigate damages when a tenant breaches the lease early. This means that the landlord must make reasonable efforts to relet the premises and cannot simply rely on the original tenant to continue paying rent for the entire term. By reletting the premises, the landlord can minimize their losses and recover damages from the original tenant, such as unpaid rent or costs associated with finding a new tenant.

Question 2

Print Quik,Inc. ,seeks punitive damages in a suit against Reddy Supply Company.Generally,punitive damages may be recov?ered when a contract has been breached

Accepted Answer

Punitive damages may be awarded in a breach of contract case only if the breach is directly related to the commission of a tort. In this case, it is not clear if Quik, Inc. is alleging a tort in addition to the breach of contract, but the fact that they are seeking punitive damages suggests that they are.

Question 3

For Dona's breach of their contract,Esteban seeks restitution,which is

Accepted Answer

Restitution is a legal remedy that involves the return of something that was wrongfully taken or the compensation for an unjust enrichment. In this case, Esteban is seeking restitution for the benefit that Dona received through the breach of their contract, which would make D the best choice. Options A, B, and C are not applicable in this situation.

Question 4

Mona contracts to repair a computer for New Data,Inc.(NDI).Mona knows that without the computer,NDI will lose a sale.Mona does not perform as promised.NDI files a suit against Mona.As consequential damages,NDI can recover

Accepted Answer

Consequential damages refer to damages that are not directly caused by the breach of contract, but rather are a result of the breach. In this case, the loss of profit from the lost sale is a consequential damage that NDI can recover. The cost of a new computer or the difference between Mona's price and the actual cost of repair are not consequential damages in this situation. Mona's breach does have a direct impact on NDI's ability to make the sale and recover profits. Therefore, consequential damages in this case would include the loss of profit from the lost sale.

Question 5

National Expeditions needs a tent for a mountain-climbing trip and orders one for $500 from Outdoor Supplies.National does not tell Outdoor about the trip,or that it must receive the tent by July 1 or it will lose $10,000.Outdoor ships the tent July 15.National can recover

Accepted Answer

The answer of National Expeditions needs a tent for a...

Question 6

Recreational Pools,Inc. ,agrees to build a swimming pool for Sandy,but fails to build it according to the contract specifications.Sandy hires Total Fix-It Company to finish the project.Sandy may recover from Recreational Pools

Accepted Answer

Sandy may recover the costs needed to complete the construction because Recreational Pools breached the contract by failing to build the pool according to the specifications, and Sandy had to incur additional costs by hiring Total Fix-It Company to finish the project. Therefore, Sandy should be entitled to recover the costs needed to complete the construction.

Question 7

Jamie contracts to sell a residential duplex to Keril.The contract pro?vides that if Jamie does not close the deal by September 15,she must pay Keril one-half of the duplex's sale price.This provision is not enforceable because it is

Accepted Answer

The clause in the contract is a penalty clause. It imposes a disproportionate and unreasonable amount of damages on Jamie if she fails to close the deal by September 15. The purpose of the clause appears to be to force Jamie to comply with the contract, rather than to compensate Keril for any actual losses suffered. Penalty clauses are generally unenforceable because they are contrary to public policy.

Question 8

Fiesta Properties,Inc. ,negotiates with Gusto Maintenance Corporation to include a liquidated damages clause in their contract.To be enforceable,at the time of the contract,an estimate of the damages from a breach must be

Accepted Answer

For a liquidated damages clause to be enforceable, the damages from a breach must be difficult to estimate at the time of the contract. This justifies the need for a predetermined amount.

Question 9

Great Hardware Store agrees to hire Holly for one year at a salary of $500 per week.When Great cancels the contract,Holly spends $100 to obtain a similar job that pays $450 per week for a year.Holly is entitled to recover

Accepted Answer

Holly is entitled to recover the difference between the wages at the two jobs plus the $100 she spent to obtain the new job. This is because Great broke their contract with Holly, causing her to lose out on the promised salary. Holly then had to spend money and time finding a new job that may not have paid as well as the original job. Therefore, she is entitled to compensation for this loss.

Question 10

Business Office,Inc. ,hires Clint to repair a computer on site for $400,but Clint does not show up as agreed.Business Office hires Dennis to do the job for $350.Business Office may recover from Clint

Accepted Answer

The answer of Business Office,Inc. ,hires Clint to repair a...

Question 11

Development Associates (DA)agrees to buy five acres of land from Elegant Properties for $15,000.Elegant fails to go through with the deal on the agreed date,when the market price of the land is $17,000.DA files a suit against Elegant.DA may recover

Accepted Answer

DA can recover the difference between the market price and the contract price, which is $2,000, as damages for breach of contract.

Question 12

Lou and Mira want to rescind their contract under which Lou sold a laser printer to Mira for $200.To rescind the contract

Accepted Answer

Rescinding the contract means to undo the transaction and put both parties in the position they were in before the contract was made. In this case, Lou must return the $200 and Mira must return the printer. This restores both parties to their original position. Option A and D do not fully reverse the transaction, while option B only benefits Mira, not Lou.

Question 13

Vista Properties,Inc. ,leases an office building to World Corporation.At the time,the amount of damages on World's default is difficult to de?termine,so the parties reasonably estimate,and the lease provides,that if World defaults,Vista is entitled to $50,000 as "liquidated damages." This amount is

Accepted Answer

The lease provides for a reasonable estimate of damages in the form of liquidated damages, which is enforceable. It is not an unenforceable limitation of liability nor an unenforceable penalty. Punitive damages are not applicable in this scenario as they are awarded to punish the wrongdoing of a party, and not as compensation for damages.

Question 14

Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corpo?ration.Fresh Food does not pay for the storage.Earl sells the fruit to Green Grocery Stores,Inc.This sale represents

Accepted Answer

Earl is mitigating his damages by selling the fruit to Green Grocery Stores, Inc. because Fresh Food Corporation did not pay for the storage, which is a breach of contract. Mitigation of damages is the effort made by the non-breaching party to minimize the losses resulting from the breach of contract.

Question 15

For Pete to recover the benefit of his bargain from a breached real estate contract with Quest Properties,Inc. ,the most appropriate remedy is

Accepted Answer

Specific performance is the most appropriate remedy for a breached real estate contract as it entails the actual performance of the contract as outlined in the agreement, such as the transfer of property ownership. This is often preferred over monetary damages, which may not fully compensate the injured party for their losses. Reformation and rescission are not ideal in this scenario as they involve modifying or nullifying the original agreement, which may not be feasible or desirable.

Question 16

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

Specific performance is the most appropriate remedy in this situation because the collection is unique and cannot be easily replaced. As Ira had already paid a down payment, he can seek an order from the court to make Jane fulfill the contract and send him the collection. Damages, reformation, and rescission are not suitable in this case as Ira is not seeking monetary compensation but rather the fulfillment of the original agreement.

Question 17

Kris contracts to work exclusively for Local Company during May for $5,000.On April 30,Local cancels the contract.Kris finds another job dur?ing May but earns only $3,000.Kris files a suit against Local.As compen?sa?tory damages,Kris can recover

Accepted Answer

Kris can recover the difference between the amount he would have earned from Local ($5,000) and the amount he actually earned ($3,000), which is $2,000. Therefore, the correct answer is B.

Question 18

Bob contracts to work for Central Construction Corporation (CCC)during July for $4,500.On June 30,CCC cancels the contract.Bob declines a similar job with Design Builders,Inc. ,which would have paid $4,000.Bob files a suit against CCC.As compensatory damages,Bob can recover

Accepted Answer

The compensatory damages for breach of contract are designed to put the non-breaching party in the same economic position they would have been in if the contract had been performed. In this case, Bob can recover damages equal to the amount of money he lost as a result of CCC's breach, which is $500 ($4,000 that he would have earned at Design Builders minus the $4,500 he would have earned at CCC). He cannot recover the full $4,500 since he declined the other job opportunity, and thus did not mitigate his damages.

Question 19

Lily wrongfully terminates her employee Mai.Nate offers a similar job to Mai,who refuses to accept and files a suit against Lily.The damages that Mai receives will most likely be equal to

Accepted Answer

Mai has a duty to mitigate her damages by accepting a similar job offer. Therefore, the damages would be her salary minus what she could have earned from Nate's job offer.

Question 20

Loyal Engineers,Inc. ,needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company.Loyal tells Mining that it must receive the drill by Tuesday or it will lose $10,000.Mining ships the drill late.Loyal can recover

Accepted Answer

Loyal can recover the $10,000 it would have lost if it had not received the drill by Tuesday. They cannot recover the full cost of the drill as they did receive it, even if it was shipped late.

Quiz 12: Breach and Remedies