Exam 10: Contract Performance,breach,and Remedies

Refer to Fact Pattern 10-1.With respect to Mutual's duties,Neil's performance most likely

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

Liquidated damages provisions are usually not enforceable.

Rescission advances the contracting parties to the position they would have been in if the contract had been fully performed.

A duty to perform under a contract may be absolute.

Dondi contracts to buy a custom espresso maker from Caffee Specialties,Inc.,for $4,500,but Caffee fails to deliver.Dondi buys the appliance elsewhere for $5,500.Dondi's measure of damages is

Genie.com initiates an online dating service.To attract subscribers and encourage participation,Genie.com creates and posts profiles of fictitious persons and exaggerated profiles of actual users.Fooled by the false profiles,Ham buys a subscription.He is most likely a victim of

Conditions expressly stated in a contract must be fully satisfied for complete performance to take place.

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts.Lyra tells Moe that her commission is 6 percent,but their signed,written contract states "12 percent." The Statute of Frauds governs

Anticipatory repudiation is treated as a material breach of a contract.

Urban City and Thru-way Construction Company enter into a contract that includes calculations.Urban,whose engineer,Sergei,compiled the figures,discovers later that some numbers were added incorrectly,but Thru-way refuses to make changes.Urban can

Under the Statute of Frauds,all contracts must be in writing to be enforceable.

National Drilling Company ships its only pump to American Hydraulics Corporation,the manufacturer,for repair.National hires Overland Transport,Inc.,to take the pump to American Hydraulics and to return it to National as soon as the repair is complete.National is forced to suspend operations without a pump,but Overland does not know this.National expects to be without the pump for five days and to lose profits of $5,000.When the pump is not returned by the end of the fifth day,National rents a pump at a cost of $100 per day.Overland delays five more days before returning the pump.National files a suit against Overland,asking for compensatory and consequential damages.Will National recover

Anything less than complete performance is a material breach of contract.

Ralph contracts to sell his Double-R Ranch to Samantha on May 1.On April 20,Ralph tells Samantha that he will not go through with the deal.Samantha can recover

Reformation enables a court to rewrite a contract to reflect the parties' true intentions.

Lava Excavators,Inc.,needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company.Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000.Mining ships the drill late.Lava can recover

Real Cheap Painters,Inc.,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a different brand of discounted paint.This is most likely

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.When Handy cancels the contract,Ilsa spends $100 to obtain a similar job that pays $450 per week for a year.Ilsa is entitled to recover

Straitedge Toolmakers,Inc.,contracts to sell its assets to Tru-Level Hardware Corporation.Before either party has performed,rescission of this contract requires