Exam 12: Third Parties,discharge,and Remedies

Jo is duly notified that her mortgage with Fund All Savings has been transferred to Big Loan Co.and that she should,henceforth,pay Big Loan Co.Jo continues to pay Fund All Savings and Big Loan Co.sues Jo for nonpayment.Which of the following is most likely to be the court's judgment?

Tom and Nancy enter into a written contract for the sale of a dollhouse that Tom will custom-make for Nancy.In the contract,Nancy agrees to pay $350 if she breaks the contract.This sum of money is known as:

Tibbetts left a television with Quick Fix,Inc.for repair.Quick Fix made tests and diagnosed the problem,but never began the actual repairs.Nothing was done on the set for more than three months.After repeated telephone calls demanding that the work be done,Tibbetts asked for the return of the set.Quick Fix refused to give up the set unless Tibbetts paid for the time spent on making the tests.Discuss the case.

Time Zone sells Gary an iWatch for $4,000 by representing it has a real gold case and watch band.Later,Gary finds that the iWatch case and band are just polished with golden color,and the watch could be bought in the local store for $100.Gary can sue Time Zone for:

________ requires that both the parties return to the other any consideration already received or pay for any services or materials already rendered.

Which of the following is an equitable remedy under contract law?

If there is no supporting consideration in the assignment,the assignee may repudiate the assignment at any time before its execution.

In a majority of states,if an assignor makes a subsequent assignment to another assignee,the assignee with the superior rights usually prevails in court.

When no consideration is given for an assignment,creditors of the assignor may have the assignment rescinded on the grounds that it violates the equal dignities rule.

If Velcrom is a creditor beneficiary of Mabela's Sporting Goods,Inc. ,Velcrom has no direct right to sue Mabela's.

Roxta Biscuits and Seven Eleven Supermarkets enter a contract where the biscuit-making company will supply 1,000 biscuit packs a day at $50 each to the supermarket chain for the next six months.However,Roxta Biscuits stops their supplies to the supermarkets mid-way,claiming that the prices of each biscuit pack,due to severe inflation,are $80.If Roxta continued to deliver at $50,it would lose $20 per biscuit pack it delivered.Seven Eleven Supermarkets sues Roxta,saying that it has to oblige by the contract signed.Evaluate the case.

Satisfactory performance exists when the parties' personal tastes have determined that the contracting parties have performed their contractual duties according to the agreement.

Under modern law,court-issued injunctions are typically temporary,and can never be permanent.

Jennifer contracts to purchase Allison's house when Allison is transferred out of the state.The contract calls for monthly payments,but allows Jennifer to pay the remaining balance at any time.Jennifer,on June 1,sends Allison an offer to pay the balance.Allison receives the offer on June 2,but sets it aside until October 1.When Allison realizes that Jennifer has not made any payments for four months,she threatens to sue Jennifer for breach of contract.Discuss the legal rules governing this situation.

Aspen assigns his right to receive payment from Donna to Henry.Later,Aspen assigns this same right to Doris.Doris gives notice to Donna on May 1,and Henry gives notice to Donna on May 2.Which of the following is most likely to be the court's ruling?

Norbert receives an official-looking written notice which states that Mountain Mortgage Inc. ,from whom he had borrowed money to purchase his house,has assigned Walter all rights to receive payment and that Norbert should make all future mortgage payments to Walter.Discuss Norbert's rights and duties.

Which of the following beneficiaries has no enforceable legal rights?

Basic Carpet contracts to install stain-resistant carpet in Alice's house for $6,000.Basic Carpet then assigns the right to receive payment from Alice to Home Finance Company.When payment comes due,Alice refuses to pay more than $2,000,asserting that the installed carpet was not stain-resistant.Home Finance asserts that Alice must pay $6,000,since Home Finance was not responsible for installing the carpet.Alice decides to sue Basic Carpet.Discuss the case.

Lisa did not deliver goods in 1992 as her contract with Jozell required,but Jozell took no legal action for fifteen years and then sued Lisa for breach of contract.Discuss the suit.

A(n)________ is a new agreement resulting from a bona fide dispute between the parties as to the terms of their original agreement.