Exam 9: The End of the Contractual Relationship

Perfect Programs Ltd. hired Gill, who had training not only in programming but also in pharmacy management, to create a computer program for use in a pharmacy to take care of all its needs with regard to inventory, billings, prescriptions, etc. The employment contract provided for a three-year term with no provision for early termination and the following covenant: "The employee, upon his leaving the employ of the employer, shall not compete, directly or indirectly, in any capacity whatsoever, within five miles of this place of employment." After Gill had been there for two years and the project was only months away from completion, he was approached by a representative of Big Big Co. (with offices in the same building), who offered Gill a job with, among other things, a higher salary and more staff to help him complete a program for use by drugstores. Gill accepted. To replace Gill, Perfect Programs Ltd. hired a man from New York with the same training as Gill and sued Gill for breach of contract. Which of the following is true?

Which of the following would most likely result in the court's finding that the contract had been discharged by frustration?

Which one of the following statements accurately describes the operation of a condition subsequent?

If a victim of an anticipatory breach continues to insist on performance, what danger does he face?

Which one of the following is true with regard to the ending of a contract by performance?

Which of the following is False with regard to ending a contract by agreement?

The purpose of damages in contract law is to put the victim in the position he would have been in had the contract been properly performed.

Harry agreed to make a new violin for Ted at a particularly attractive price. Before he finished crafting it, however, an opportunity arose to work as a salesman for Joe's Fine Cars. Since it was clear that he could never make a living as a violin maker, he took the job and refused to finish the violin for Ted. Which of the following is the appropriate remedy in these circumstances?

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Repudiation occurs when one party indicates that they do not intend to follow through with their end of the deal.

What does it mean when a party has "tendered performance"?

Explain what is meant by an anticipatory breach.

For a contract to be frustrated, performance must be impossible.

An agreement by both sides to terminate the contract or to disregard a term of the contract is known as ________.

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Cleo entered into a contract with Harvey in June to redecorate his apartment before Christmas. However, in the middle of October, she informed him that she would not be able to do his job because she had been offered a big contract in Japan that would take her away until spring. Which of the following is true with respect to this situation?

The courts are extremely reluctant to grant any compensation for the breaching party's partial performance of the agreement, unless the contractual obligations have been substantially performed.

Explain what is meant by specific performance in contract law.

Indicate any limitations on the availability of specific performance and injunctions.