Exam 12: Breach and Remedies

Hybrid Corporation enters into a contract with Insure Service,Inc.(ISI),to obtain health insurance for Hybrid employees.If ISI breaches the contract and Hybrid is awarded compensatory damages,the purpose would be to

A contract can include a provision stating that no damages can be recovered for certain types of breaches.

Refined Commodities,Inc. ,agrees to deliver ten tons of sheet metal to Select Builders Corporation.The agreement states that delivery is to be within "3" days,although the parties intend "30" days.Refined cannot convince Select to amend the contract.Refined should seek

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

Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $1,000,but Regal fails to deliver.Pam buys the computer elsewhere for $1,500.Pam's measure of damages is

Specific performance is the remedy customarily used when one party has breached a contract for a sale of land.

On the breach of a contract involving the sale of land,money damages is always the most appropriate remedy.

Mikayla enters into a contract with Logan to provide surface material for Mikayla's tennis courts by April 1 for a tournament to begin May 1.The contract specifies an amount to be paid if the contract is breached.This is a liquidated damages clause if the amount is

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50.To rescind the contract

The measure of damages for breach of a construction contract depends on which party breaches and when.

Home Delivery Corporation and Interstate Transport,Inc. ,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

Outbound Travel Agency agrees to hire Petra for one year at a salary of $1,000 per week.When Outbound cancels the contract,Petra spends $2,000 to obtain a similar job that pays $750 per week for a year.Petra is entitled to recover

Drew contracts to sell a residential duplex to Evan.The contract provides that if Drew does not close the deal by September 15,he must pay Evan one-half of the contract price.This provision is not enforceable because it is

Office Accounting,Inc. ,hires Perry to repair a computer on site for $400,but Perry does not show up as agreed.Office Accounting hires Raul to do the job for $350.Office Accounting may recover from Perry

Dino hires Eve to perform at Dino's Club,but Eve later breaches the agreement to accept a higher-paying job at First Star Arena.Dino files a suit against Eve.The court will most likely

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,consequential,and punitive damages.Will National recover?

The injury suffered by a nonbreaching party due to the breach of a contract may be remedied by payment of compensatory damages.

Bret contracts to work for City Construction Corporation (CCC)during July for $4,500.On June 30,CCC cancels the contract.Bret declines a similar job with Downtown Builders,Inc. ,which would have paid $4,000.Bret files a suit against CCC.As compensatory damages,Bret can recover

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant.If Even-Flo breaches the contract,Fiesta can

To rescind a contract,each party essentially advances to the position he or she would have been in if the contract had been fully executed.