Exam 19: Breach of Contract and Remedies

Rashi contracts to work for Social Data Analysis Corporation dur?ing June for $4,500. On May 31, Social Data cancels the contract. Rashi declines a job of a different type and rank with Tech Collection, Inc., which would have paid $3500. Rashi files a suit against Social Data. As compensatory damages, Rashi can recover

A contract between Recreational Games & Rides, Inc., and Summer Fair Corporation includes a provision excluding liability as a result of fraud. This provision is

Meatpackers, Inc., enters into a contract with Nemiah's Ranch for the delivery of a certain number of beef cattle on a set schedule. Nemiah's delays the first delivery for five days, aware that Meatpackers loses a certain percentage of profit each day. An award to Meatpackers of consequential damages would

Nominal damages are designed to punish a wrongdoer and set an example to deter similar conduct in the future.

Bread & Bagels Bakery enters into a contract with Cineplex for discounted tickets for Bread & Bagels' employees. Cineplex breaches the contract and Bread & Bagels enters into a contract with DigiMovies for the same service at a lower price. Bread & Bagels might be awarded nominal damages to

Medical Eye Clinic Corporation enters into a contract with local musician Natalie, who agrees to perform for a meeting of Medical Eye's personnel to be held in its main office building. Before the date of the meeting, Natalie refuses to perform, citing a higher-paying gig. Meanwhile, Medical Eye contracts to sell the building to Optical Center, Inc., but before the transaction is complete, Perfect Vision Company offers to pay a higher price. Medical Eye re?fuses to transfer the building to Optical Center. In separate suits by Medical Eye against Natalie and by Optical Center against Medical Eye, each plaintiff seeks specific performance. How might the court rule in each case, and why?

Lunch Trucks, Inc., contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event, payable in ad?vance. Meals Catering pays the money, but Lunch Trucks fails to perform. Can Meals Catering rescind the contract? Can Meals Catering also ob?tain restitution? What does it mean to "rescind" a contract? How is a contract rescinded? What is restitution? How is restitution accom?plished? Explain.

Courts order reformation most often when fraud or mutual mistake is present.

In a contract for a sale of goods, the usual measure of compensatory dam?ages is the difference between the contract price and the market price.

A liquidated damages provision specifies that a certain amount is to be paid in the event of a future default or breach of contract.

When one party breaches a contract, the other party can only sue for damages.

An award of damages for a breach of contract can elevate the nonbreaching party to a better position than he or she would have been in if the contract had not been breached.

Damages that compensate the nonbreaching party for the loss of a bargain are known as consequential damages.

Consequential damages are foreseeable damages that arise from a party's breach of a contract.

Ordinarily, the remedy for a seller's breach of a contract for a sale of real estate is damages.

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 Belle Vista breaches the contract, Ambrose's remedy would most likely be

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corpo?ration. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents

Dawson owns Evergreen, a complex under construction that will include commercial and residential suites, as well as a parking garage. Dawson allows First Call Construction, Inc., the contractor, to complete a stage of construction late. This waives Dawson's right to sue for

In most situations, when a breach of contract occurs, the innocent injured party is held to a duty to mitigate the damages.

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.