Exam 10: Contract Performance, Breach, and Remedies

A contract may include a clause stating that damages will be limited to a maximum amount.

Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is​

Any breach discharges the non breaching party from the contract.

Rights to receive funds can be assigned.

Mother & Daughter Jewelers breaches its lease with Longview Mall and vacates the premises six months before the end of the term. In some states, Longview would have to​

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Giving notice is legally necessary to establish the validity of an assignment.

Refer to Fact Pattern 10-31 If Ambrose breaches the contract, Belle Vista's remedy would most likely be​

Metro Facilities, Inc., contracts to sell a parking lot to Nouveau Property Company. The contract provides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is​

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is specific performance.

Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in advance. Meals Catering pays the money, but Lunch Trucks fails to perform. Can Meals Catering rescind the contract? Can Meals Catering also obtain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accomplished? Explain.

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

Rig Heli-Pads, Inc., enters into a contract to employ Sinead as an on-site project manager for two years. If Rig breaches the contract, Sinead has a duty to​

Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches by only partially performing the contract, Scrub n' Dry can

D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is​

Subjective impossibility of performance can discharge a contract.

A-One Landscapers, Inc., owes Friendly Finance Company $5,000. A-One enters into a contract with Suburban Office Park under which A-One promises to maintain the landscaping on Suburban's property. Under the contract, Suburban promises to pay Friendly Finance the amount that will be due A-One until A-One's debt to Friendly Finance is paid. A-One performs as promised, but Suburban does not pay Friendly Finance. Can Friendly Finance succeed in a suit against Suburban? Why or why not?​

Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.

A delegation relieves the party making it of the obligation to perform.