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

Amos owns a piece of land along a country dirt road. Very few cars use the road, and the land is pretty secluded. One day Amos hears that the county is planning to build a major highway that will go right along the border of his property. He checks the newspaper and sees that, indeed, plans are being made to build the road and funds are being arranged. Amos then drains his modest bank account and borrows money from his family and friends to erect a diner on his property to attract the highway drivers. Just as he finishes construction of the diner, the county changes its plans and decides to build the highway along another route, miles from Amos's property. Amos now has a shiny new diner, miles from any traffic and essentially in the middle of nowhere. What legal options does Amos have, if any?

When you were a senior in high school, your college announced plans to build a new and modern athletic complex with pools, spas, weight rooms, and exercise rooms for general student use. You chose to enroll largely based on these plans as announced. You are now a senior and the building is just being started. What rights, if any, do you have because you never had the opportunity to use the facility?

How do compensatory damages and consequential damages differ?

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

Lon has just come home from serving in the Marines and contracts with a local car dealership to purchase a car. The car must be ordered, and payment is to be made when the car arrives. The next day, Lon receives orders to return to active duty. Realizing that he doesn't need the car, he brings Tony to the dealership and asks that Tony substitute for him. Tony will take delivery and ownership of the car, and Tony will pay the dealership upon delivery. The dealership agrees to have Tony substitute for Lon. What has occurred?

A party to a contract may be discharged from performance due to operation of law if the other party unilaterally alters the contract.

Nominal damages are rarely awarded in contract cases.

You have booked a hotel room for a conference at a rate of $100 per day for five days. When you arrive to check in, you are told that the hotel is full and that it overbooked and cannot supply you with a room. You are forced to go to the only hotel in town with available rooms and pay $150 per night. If you sue for damages:

Punishment damages are called:

Sam has contracted with Dave to purchase Dave's racing bike, with payment and delivery of the bicycle to be in 10 days. 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?

Mel is under contract with a textbook publisher to write an instructor's manual to accompany a new textbook. The contract states that the instructor's manual is to be completed by August 1. On July 1, the publisher calls Mel and asks for an update. Mel states that he's working hard and making progress. He then states that the August 1 deadline is "doable but it's going to be tough." Based on Mel's statement, the textbook publisher may claim an anticipatory repudiation and find another author to complete the project.

When the parties perform their obligations in good faith in order to complete the contract, this completion is called _______.

Restitution is classified as an equitable remedy.

Robert and Philip are the named beneficiaries under Alan's insurance policy. Robert and Philip would specifically be considered to be ________ beneficiaries.

When the original parties to a contract agree to allow one of them to substitute another party to perform the contract, this is called _______.

Impossibility of performance is subjective, meaning that one of the parties may unilaterally decide that performance is impossible, thus discharging the contract.

How does an assignment differ from a delegation? When are they permitted, and when are they not permitted?

Kathy and Tom have entered into a contract in which Mike has been named and included as an intended beneficiary by Kathy. Should Tom or Kathy breach the contract, Mike may sue both Tom and Kathy for breach of contract.

In what way do legal remedies and equitable remedies differ?

In a delegation situation, the nondelegating party is called the: