Exam 11: Contract Performance, Breach, and Remedies

Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1.One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation.Business Computer now refuses to hire Chandra.Business Computer's repudiation of its contract to employ Chandra is most likely

The standard measure of compensatory damages is the value of breaching party's promised performance.

Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Piper and sends $1,500 as a down payment.When Nonny sends Piper the rest of the price, she refuses to ship the collection.Nonny should seek

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded

An innocent party does not need to suffer an injury to collect damages as a result of a misrepresentation.

When the dominant party in a fiduciary relationship benefits from that relationship, a presumption of undue influence arises.

Any party who does not receive what he or she considers a fair bargain can argue mistake.

Water Rites, LLC, enters into a contract to site and dig a well for Rancho Verde.Water Rites completely performs.Rancho Verde is entitled to

Rescission is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates.CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo-ration.Before either party has performed, rescission of this con-tract requires

Nora enters into a contract with Oceanic Transport, Inc., to insure and ship a painting from France to the United States for a certain price.But Oceanic makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost.Most likely, a court would

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant.Garland knowingly misrepresents a number of material features about the restaurant and the business.When Jules discovers the truth, he can

Resourced Minerals 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.Resourced Minerals cannot convince Static Energy to amend the contract.Resourced Minerals should seek

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 is most likely

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded

A material fact is a fact that a reasonable person would consider important when determining his or her course of action.

Specific performance will not be granted unless the party's legal remedy is inadequate.

SFX Paintball Games, Inc., and Truck & Trailer Delivery Corporation sign an agree-ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti-mate but approximately $1,000." This is

A liquidated damages provision in a contract specifies a certain amount to be paid in the event of a default or breach of contract.