Exam 7: Contract Enforceability and Performance

Damages intended to punish a wrongdoer are called

Toy Tech (TT)has ordered 50,000 aluminum widgets from the Acme Widget Corporation (AWC)with delivery to be made on November 1.These widgets will be used in TT products to create toys for the holiday season.Under which circumstance may TT claim that AWC has made an anticipatory repudiation of the contract?

In a delegation situation,the non-delegating party is called the

Which of the following is not a discharge by mutual consent?

In DiFolco v.MSNBC,a TV commentator e-mailed her supervisors indicating that she wished to have a meeting to discuss her exit from the shows and to give MSNBC ample time to replace her.However,the commentator also wrote that she wanted to be part of the MSNBC team "for a long time to come." MSNBC claimed anticipatory repudiation.The court

Kent Corp.(KC),a general contractor building a new dorm at a university,contracted with Fine Rugs Inc.(FRI)to have a certain grade of industrial rugs installed in the dorm.The contract price was $180,000.After the rugs were installed,KC was dissatisfied with the rug quality.FRI insisted that the rugs installed were appropriate to the contract specifications and demanded full payment.KC sends FRI a check for $120,000,which KC believes is the proper value for the rugs installed,and marks the check "Paid in Full." FRI writes "Under Protest" on the check and deposits it.FRI may now,in most states,successfully sue KC for the balance of $60,000.

When an assignment is made,the assignee has the right to reform the contract and change the obligor's rights and duties as he or she sees fit.

Liquidated damages must be directly related to the breach of contract for which they are compensating the non-breaching party.

Restitution is classified as an equitable remedy.

Steve is an avid bicyclist and sends in a $150 fee to participate in an across-the-state ride in the Midwest.A week before the ride,he breaks his leg.Unless the contract specifically provides for no refunds under any conditions,he will be able to receive a refund based on impossibility.

Sam has contracted with Dave to purchase Dave's racing bike,with payment and delivery of the bicycle to be made 10 days after the contract was made.Three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price.If Sam really wants the bike,what should he do?

Language such as "provided that" or "unless" in a contract that triggers a performance obligation is called a _______.

An assignment may be of current and/or future rights.

In which of the following situations is a court most likely to find substantial performance?

When one party fails to perform his or her duties under a contract,that party is said to be in total _______.

In an assignment or delegation,third-party rights or duties occur after the contract is formed.

George has entered into a contract with Mark to supply raw materials to Mark's factory.The contract does not contain an anti-delegation clause.George then delegates his duty to supply the raw materials to Wayne,a competitor of Mark.This is an example of a valid delegation.

Harry sees an AK-47 automatic assault rifle in a gun shop window.He inquires about the price and is told that it is $2,500.Harry signs a contract promising to pay the $2,500 on Friday,at which time he will take possession of the rifle.On Thursday,a law is enacted making the ownership,sale,or possession of an automatic rifle illegal.This contract

If one party to a contract unilaterally alters the contract,the other party may be discharged from performance due to operation of law.

Pablo has entered into a contract to paint Linda's portrait.The next day,Pablo is called by the White House to paint the official portrait of the first family.Since it will be impossible for Pablo to do both simultaneously,Pablo calls Salvador and asks him to substitute for him and paint Linda's portrait.Because Salvador is a world-famous artist with paintings hanging in the New York Metropolitan Museum of Art and the Louvre in Paris,Salvador does not have to get Linda's permission for this novation as long as none of the contract terms and conditions are changed.