Exam 11: Contract Performance, Breach, and Remedies

A contract may not be enforceable if one party is aware that the other party made a mistake of fact.

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract.They subsequently agree that High Riders Inc.should take Gliding Light's place and assume all of its rights and duties under the contract.This is

Byron agrees to sell to Charity, for $1,500, a remote parcel of land.They believe the land to be worthless, but beneath it is a gold mine.Byron can

Rural Power Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.The parties rescind the contract.Shovel's refund of the payment is

A party who in good faith performs substantially all of the terms of a con-tract can enforce the contract against the other party.

A party seeking to recover compensatory damages cannot also recover incidental damages.

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting.Forest Hills is entitled to

Damages that compensate the nonbreaching party for the loss of a bargain are known as consequential damages.

The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.

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

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in Overseas Bank through Newt's investment firm.Unknown to Mona, Newt realizes ongoing commissions from the investment.Most likely, Mona may

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed.Dry Gulch hires Fernando to do the job for $2,000.Dry Gulch may recover from Elliot

Most courts require a showing of injury when an action is to rescind a contract for fraud.

Words or terms in contracts that are subject to more than one reasonable interpretation can lead to bilateral mistakes.

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

Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery.If Ambrose breaches the contract, Belle Vista's remedy would most likely be

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.Even-Bilt completely performs.Discount E-Sales is entitled to

Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1.Herb's offer, on the same date, to pay Idris is is

Lucy contracts to buy six cases of vintage wine from Mountainside Vineyards for $1,200.The contract states that delivery is to be made at Lucy's residence "on or before June 1, to be used for niece's wedding reception on June 2." On June 1, Mountainside's delivery vehicle is involved in an accident, and no wine is delivered to Lucy.On the morning of June 2, Lucy buys the wine from Nature's Vintner.That afternoon, just before the reception, Mountainside tenders delivery of the wine at Lucy's residence.Lucy refuses tender.Mountainside sues Lucy for breach of contract.How is the court most likely to rule?

A contract may include a clause stating that damages will be limited to a maximum amount.