Exam 10: Performance and Breach of Contracts

Mary buys a new toaster for $500.The toaster's label bears a disclaimer stating that the manufacturer is not liable for consequential damages.One morning while Mary is using the toaster,it emits sparks and damages the electrical wiring in the kitchen.The electrician tells Mary that the toaster malfunctioned and that the cost of repairs in her kitchen would amount to $2,000.What amount of monetary damages can Mary likely recover from the manufacturer of the toaster?

James hires Franco for a painting job.Their contract explicitly states that Franco's employment can be terminated if he is employed by another party during the contract period.Two weeks into the job,James finds out that Franco is also working for a painting agency two blocks away and terminates his employment.This is an instance of a(n)________.

To be actionable as fraud,the misrepresentation must be the sole factor in inducing the innocent party to enter into the contract.

The parol evidence rule stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

What is intentional misrepresentation and what are the elements required to prove fraud?

Poole Contractors makes a contract with Delta Resources to pay $50,000 for the supply of 500 truckloads of sand within a week.Delta Resources delivers the sand in two days after the contract was made.Poole Contractors pays the $50,000 promised in the contract.This is an instance of ________.

Which of the following terms refers to an unconditional and absolute offer by a contracting party to perform his or her obligations under a contract?

Which of the following refers to an agreement that substitutes a new party for one of the original contracting parties and relieves the existing party of liability on the contract?

A(n)________ is a party who is unintentionally benefited by other people's contracts.

If the modification of a lease contract increases the lease payment to $1,000 or more,the modification has to be in writing to be enforceable.

Intentional misrepresentation is commonly referred to as ________.

________ of the Uniform Commercial Code (UCC)is the basic Statute of Frauds provision for sales contracts.

________ is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.

Explain the creation and working of guaranty contracts.

A party who owes a duty of performance under a contract is called the ________.

________ refers to the knowledge that a representation is false.

The one-year rule states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.

A(n)________ exists if both parties know the object of the contract but are mistaken as to its value.

Which of the following does Section 2A-201(1)of the Uniform Commercial Code state?

Substantial performance of a contract constitutes a material breach.