Exam 8: Contract Performance: Conditions, Breach, and Remedies

Which of the following is classified as an equitable remedy?

Beth has a contract with Annie in which Annie is to deliver 1,000 hand-decorated beverage holders in 60 days. When Beth calls the Psychic Hotline for her weekly reading, the psychic informs her that she has entered into a contract and the other party will not perform all the conditions and specifications in accordance with the agreement. Beth may sue for an anticipatory repudiation.

When an accord and satisfaction is agreed to, the original obligation subject to the accord is immediately discharged.

Generally, courts do enforce a strict compliance standard for contract conditions.

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

Which of the following is rarely awarded in contract cases?

You are taking a course with an adjunct professor who is teaching under a one-course contract. With six weeks to go in the course, she is offered a tenure track position at another school that requires her to start within a week. When she approaches the administration, what options are available, if any, regarding the adjunct contract and her desire to leave early?

Alan has accepted a new job. Which of the following is not a contract condition related to that job?

Which of the following will not allow for an anticipatory repudiation to occur?

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

The Sportsman's Club is planning its annual banquet and fund-raiser and has decided to feature a speaker who will attract a huge crowd. The club contracts with Hall of Fame football announcer John Madden to be the keynote speaker. A week before the event, John calls and says that he would like to give his brother Fred the opportunity to speak-John would sit in the audience rather than speak. What options does the Sportsman's Club have?

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.

When a party breaches a contract, the nonbreaching party always has the option of seeking legal or equitable remedies.

Which of the following is not classified as an equitable remedy?

Sally has just purchased a home and wants to have an in-ground pool installed. She calls Cool Pools, the company that put in her neighbors' pools. When the company rep comes to her property, he does some soil tests that are standard for the industry and gets the same results as he got when the other pools were put in, so the company gives her a price quote of $16,000. When Cool Pools begin excavating, it discovers solid rock 4 feet below ground level. The neighbors had no such rock. Cool Pools stops work and informs Sally that it will have to use explosives to remove the rock and the cost of the pool will now be $32,000.

Appointing another person to perform one's duties under a contract is called a _______.

When examining and enforcing conditions precedent and conditions subsequent, courts:

Max has contracted with Lew to have his house painted. The contract specifically stated that the job was to be completed by August 25. Lew completes the job on August 26. Max has suffered no loss due to the delay. The job was otherwise done exactly to all contract requirements and specifications. If Max sues Lew for breach of contract due to the missed completion date and if the courts were to award damages, what type of damages would most likely be awarded?

Anticipatory repudiation may be used when a party has knowledge that either a complete or a partial breach will occur by the other party.

Oscar is speeding and driving inattentively when he runs into Felix, who is driving very cautiously. As a result of the accident, Felix's car needs $2,500 worth of repairs and Felix loses a week's salary because he has to take off from work to recover from injuries sustained during the crash.