Exam 9: Contractual Performance and Breach

Liquidated damages constitute a penalty for breach of contract.

______ are court-awarded damages to put a plaintiff in the same position as if a contract had been performed.

Distinguish between conditions precedent and conditions subsequent.

A massive crop infestation caused Northfront Corn Corp.to default on their corn delivery contract to Right Foods Corp.,a manufacturer of packaged chips.As the infestation spread across the country,Northfront was not able to source from other corn producers.In this case,Northfront is most likely to be excused from performance because of ______.

A contracting party has no duty to perform prior to a condition precedent being satisfied.

On April 1,Brian passes a gun store and sees an automatic rifle in the window on sale.Thinking that it would be perfect for hunting squirrels,he asks about the gun and the store owner says that he has a crate of them.Brian gives the owner an advance of $100 to hold one for him 'til payday.On April 4,the state legislature passes a statute banning private ownership of automatic weapons.When Brian goes into the store on April 5,is he entitled to purchase the weapon? Briefly state the reason for the answer.

The Uniform Commercial Code states that if the goods are damaged in transit,the liability rests on the seller,not the buyer.

Meiko ordered a ferret from an online pet store,Pet101.Before Pet101 can deliver the ferret,the government bans the ownership of ferrets as pets.Now,Pet101's contractual obligation is excused due to impossibility of performance.

Which of the following is the key difference between conditions subsequent and conditions precedent?

A(n)______ is a court order for a party to refrain from doing something.

Rosa signs a health club membership contract based on a salesperson's statements that the contract can be cancelled at any time.Later,when Rosa applies for a cancellation of the membership,she is informed that the contract cannot be cancelled.Briefly discuss whether Rosa can give oral evidence in the court for a written contract in this case.

What are consequential damages? When are they awarded by courts to nonbreaching parties?

If printed form contracts have additional typed terms that contradict the printed terms,courts interpret printed terms to control typed terms.

An offer to perform an activity under a contract is called a ______.

Paying for the items purchased at a store and the store delivering the purchased items simultaneously is an example of implied concurrent conditions of performance.

A party to a contract is discharged when that party is relieved from all further responsibility of performance.

Which of the following statements is true of liquidated damages?

When does a party breach a contract?

Which of the following statements is true of mitigation?

Most of our everyday purchases involve ______ of performance.