Exam 18: Contract Remedies

Harry said to Marge, "I have a ring once owned by Marilyn Monroe.Would you like to buy it for $500?" Marge pays for the ring, but the next day a friend tells her that Harry had recently purchased the ring at a local store.Marge enjoys wearing the ring and wears it constantly for twelve months.Finally, she goes to Harry and says, "Here is the ring you lied about.Give me my $500." Most likely Marge will:

Barbara, an antique dealer, intentionally represents the value of an antique chest of drawers, as $6,000 when she has reason to know the value is considerably less.Margaret agrees to buy it for $5,500.It is worth $2,500.In a state that uses the "out-of-pocket" rule, Margaret's damage award would be:

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -executory contract

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -undue influence

Explain three limitations on monetary damages.

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true intentions of the parties is:

Miller made a contract to sell his condominium to Jefferson for $80,000.Two days later Miller changes his mind after discovering that he could have sold the property to another buyer for an additional $20,000.Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000.Jefferson is seeking:

Howard needs a truck to pull a 2,000-pound trailer.Gordon tells Howard, "My truck will pull a 2,000-pound trailer with ease." Relying on Gordon's statement, Howard buys the truck, but it will not pull a 2,000-pound trailer.If Gordon did not intend to deceive and Howard sues for nonfraudulent misrepresentation, he can ask for:

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -requirements contract

Contract remedies are available to protect which of the following interests of the injured parties?

If West and Burton designated in their contract an amount to be paid in the event of a breach and the amount is found to be so high it is considered a penalty, the injured party will be left without a remedy.

A small damage amount fixed without regard to the amount of loss is known as:

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -novation

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -condition precedent

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -contract

MATCHING Part III Matching Match each statement with the correct term below.a.A contract that binds an offeror to keep an offer open for a specified period of time.b.Improper physical or mental coercion exercised upon a person so that he is forced to do an act against his free will.c.Taking unfair advantage of a person by reason of a dominant position based on a relationship of trust and confidence.d.A contract in which only one party makes a promise.e.A wrongful failure to properly perform contractual promises.f.A contract that has not been fully performed.g.A binding agreement that the courts will enforce.h.A contract that has been fully performed by all of the parties.i.A contract in which both parties exchange promises.j.An event that must or must not occur before performance is due under a contract.k.Transfer of a contractual obligation to a third party.l.A merchant's irrevocable offer to sell or buy goods in a signed writing that gives assurance that it will not be revoked for the time stated, up to three months.m.A statement in the form of a promise that imposes no obligation on the maker of the statement.n.A defective contract not wholly lacking in legal effect but that is capable of being avoided.o.The inducement given to enter into a contract; whatever is given in exchange for something else.p.A substituted contract involving a new third-party promisor or promisee.q.An equitable remedy that compels the actual performance by the defaulting party of his contractual obligations.r.Voluntary transfer of contractual rights to a third party.s.An obligation not based upon contract that is imposed by law to avoid injustice.t.An understanding or belief that is not in accord with existing fact.u.Restoration of an injured party to the position she was in before the contract was made.v.A formal court order prohibiting a party from doing a specific act.w.An event that terminates a duty of performance.x.An agreement to purchase all the materials of a particular kind that the purchaser needs from one seller.y.An agreement to sell the entire production of a particular seller to one buyer. -bilateral contract

The costs or losses an injured party avoids by not having to perform are not figured in the computation of damages.

In which of the following situations will a court grant specific performance?

Bartow signed a contract to coach baseball for Washington High for a period of three years.After two years he is offered and accepts an assistant coaching position at State University.Contract law will not allow Washington High to ask for:

Which of the following is correct with respect to election of remedies?