Exam 11: Contract Performance, Breach, and Remedies

Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over.When the results do not match this promise, Drake learns that Eve does not have access to any unique software and files a suit against her, alleging fraud.Proof of an injury is required to

In most contracts, promises of performance are not expressly conditioned.

Ordinarily, a waiver by a contracting party will not operate to waive subsequent, additional, or future breaches of contract.

Emil enters into a contract to buy Foley's cultivated bottomland and hill and bench acreage if County AgriCredit will lend Emil the funds to pay for the land.Emil's duty to perform is

Any breach entitles the nonbreaching party to sue for damages.

Illya owes Jenny $1,000.In a separate deal, Kasey owes Illya $1,000.Illya unconditionally assigns his rights in the deal with Kasey to Jenny.Illya's right to the $1,000 is then

Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself.

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair, Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages, Carousel can recover

A contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when they made the contract.

Rashi contracts to work for Social Data Analysis Corporation during June for $4,500.On May 31, Social Data cancels the contract.Rashi declines a job of a different type and rank with Tech Collection, Inc., which would have paid $3500.Rashi files a suit against Social Data.As compensatory damages, Rashi can recover

App Developers, Inc.(ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm.To fulfill the contract, ADI hires Max and ten other student interns.With respect to the contract between ADI and Carmen, Max is

A condition is a qualification in a contract based on a future event that is certain to occur.

Duress is a defense to the enforcement of a contract, but not a ground for rescission of a contract.

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

As a general rule, contract duties can be delegated.

Kari, a real estate agent, assures Linc that a certain parcel of commercial property fronts on the most highly trafficked street in Metro City.Linc buys the property and then discovers that the street has no more traffic than any other in its vicinity.Linc is most likely a victim of

Gretchen buys a tractor from Haulers Equipment Company, paying $1,000 down and agreeing to pay off the balance in thirty-six monthly payments of $200 each.The terms of the agreement call for Gretchen to make a payment on or before the first of each month, beginning March 1.During the first six months, Haulers receives a $200 payment before the first of each month.Starting in September, however, and continuing for the subsequent five months, Gretchen's payment is never made until the fifth of the month.Haulers accepts and cashes the payment check each time.Before the next payment is due, Haulers decides that it is no longer willing to accept late payments.Can Haulers sue Gretchen immediately for breach? Can Gretchen continue to make late payments without liability? Explain.

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

When a party's performance is perfect, it is said to be complete.

Voluntary consent may be lacking because of misrepresentation but not because of a mistake.