Exam 17: Breach and Remedies

Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal,Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable,the appropriate remedy

Expenses that are caused directly by a breach of a contract are known as primary damages.

Handcrafts & Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When Handcrafts & Hobbies cancels the contract,Iliana spends $150 to obtain a similar job that pays $450 per week for a year. Iliana is entitled to recover

Renew Turf,Inc.,enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

Consequential damages are awarded for damage caused by special circumstances beyond a contract itself.

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

Restitution is limited to rescission cases.

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

A party seeking to recover compensatory damages can also recover incidental damages.

RidgeviewMining Inc. agrees to deliver ten tons of coal to Static Energy Corporation. The agreement states that delivery is to be within "9" days,although the parties intend "90" days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek

In most situations,when a breach of contract occurs,the innocent injured party is held to a duty to mitigate the damages.

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

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

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

Global Enterprise Corporation enters into a contract with HealthCare Insurance Company to obtain insurance for Global employees. If HealthCare breaches the contract and Global is awarded compensatory damages,the purpose would be to

The injury suffered by a nonbreaching party due to the breach of a con-tract may be remedied by payment of coincidental damages.

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corpo-ration. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents

Consequential damages are foreseeable damages that arise from a party's breach of a contract.

National Drilling Company ships its only pump to American Hydraulics Corporation,the manufacturer,for repair. National hires Overland Transport,Inc.,to take the pump to American Hydraulics and to return it to National as soon as the repair is complete. National is forced to sus-pend operations without a pump,but Overland does not know this. National expects to be without the pump for five days and to lose profits of $5,000. When the pump is not returned by the end of the fifth day,National rents a pump at a cost of $100 per day. Overland delays five more days before returning the pump. National files a suit against Overland,asking for compensatory,consequential,and punitive damages. Will National recover?

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