Savannah agreed to buy a car from Rhett for $10 000. Savannah paid the price, but Rhett refused to perform the contract after he discovered that the vehicle was really worth $17 000. At the time that the contract was created, neither he nor Savannah was aware of the vehicle's actual value. Which of the following statements is TRUE?
A) The court will likely award expectation damages based on the profit that Rhett expected to receive under the contract.
B) Savannah will be entitled to receive a total of $7000 in expectation damages because that is the profit that she should have received under the contract.
C) Even though he breached the contract, Rhett may not be liable for the full difference between the contract price and the market value if Savannah could have purchased a similar car from a third party for less than $17 000.
D) The court will likely award specific performance because of the significant difference between the contract price and the actual value of the car.
E) Savannah cannot get expectation damages for $17 000 because she did not expect to receive a car of that value when she entered into the contract.
Correct Answer:
Verified
Q28: Which of the following statements is TRUE?
A)
Q29: On March 1, Joe contractually agreed to
Q30: Sammy Productions Inc wanted to hold an
Q31: The concept of remoteness
A) is related to
Q32: Which of the following statements is TRUE?
A)
Q34: Iago contractually agreed to sell a particular
Q35: Munchable Catering Company contractually agreed to cater
Q36: Which of the following concepts limits the
Q37: On June 1, Lauto Inc contractually agreed
Q38: Katarzyna contractually agreed to sell a painting
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents