Exam 19: Breach of Contract and Remedies

Liquidated damages provisions usually are enforceable.

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

Porches & Verandas, Inc., agrees to build a screen porch for Quinn, but fails to complete the job. Quinn hires Ramadas, Inc., to finish the project. Quinn may recover from Porches & Verandas

Sati contracts to work exclusively for Thermal Imaging Company during July for $5,000. On June 30, Thermal Imaging cancels the contract. Sati finds a similar job for the month of July but earns only $3,000. Sati files a suit against Thermal Imaging. As compen?satory damages, Sati can recover

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

Rebecca hires Samson to perform at Becca's Bistro, but he breaches the agreement to accept a higher-paying job at Three Courses Dinner Theater. Rebecca files a suit against him. The court will most likely

Leif contracts to sell his Micro Brewery & Pub to Naomi on April 1. On March 15, Leif tells Naomi that he will not go through with the deal. Naomi can recover

A party seeking to recover in quasi contract must show that he or she acted as a volunteer in conferring a benefit on another party.

Punitive damages generally are awarded in lawsuits for breach of contract.

A party seeking to recover compensatory damages cannot also recover in?cidental damages.

Nonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Piper and sends $1,500 as a down payment. When Nonny sends Piper the rest of the price, she refuses to ship the collection. Nonny should seek

Fact Pattern 19-B1 (Questions B3-B4 apply) Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. -Refer to Fact Pattern 19-B1. If Ambrose breaches the contract, Belle Vista's remedy would most likely be

Renew Turf, Inc., enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

Cowtown Creamery, Inc., needs a certain part for its pasteurizing equipment to continue its operations and orders one for $3,000 from Dairy Supplies Company. Cowtown tells Dairy Supplies that it must receive the part by Tuesday or it will lose $10,000. Dairy Supplies ships the part late. Cowtown can recover

Restitution involves one party's recapture of a benefit conferred on the other party that has unjustly enriched him or her.

Metro Facilities, Inc., contracts to sell a parking garage to Nouveau Property Company. The contract pro?vides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is

Handcrafts & Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When Handcrafts & Hobbies cancels the contract, Iliana spends $150 to obtain a similar job that pays $450 per week for a year. Iliana is entitled to recover

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot

Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that is excused by the provision.

Ileana orally agrees to pay Jaime to plant and harvest a quarter of Ileana's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Ileana says that their deal is off. Jaime can most likely recover