Exam 13: Contracts in Writing and Third-Party Contracts

Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party?

Reference - Dream Home. Maurice finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home if he can get a loan. Maurice also includes a contractual clause into the contract with the seller that if the purchase goes through but he loses his job within one year, the seller will repurchase the house for the same price Maurice paid for it. After getting a loan and buying the home, Maurice decided that he wanted new windows put into the home. He entered into a contract with a window contractor. The window contractor visited the home, but Maurice was always gone. The contractor made several attempts to reach Maurice, but Maurice would not return phone calls and made no attempt to assist the contractor with installation. The provision that the seller will repurchase the home if Maurice loses his job within one year of the sale is referred to as which of the following?

Reference - Creaky and Toady. Beverly decides to go on a great trip to Hawaii. She needs someone, however, to take care of her two dogs, Creaky and Toady, while she is gone. Creaky has hives, and Toady passes gas frequently because of a digestive problem. Beverly hires Frank three months in advance and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks. Frank comes over two months before Beverly is set to leave, takes one look at Creaky and Toady, and declares that they are too creepy to be around. Beverly then hires Alice who agrees to care for Creaky and Toady. Two weeks before Beverly is set to leave, however, Alice calls and tells her that she just broke both her legs in an automobile accident, sustained other injuries, and has been put on bed rest for two months. Finally, Alice hires Betty to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Beverly returns home, she finds that Betty fell in love with Creaky and Toady and has absconded with them. It was a month before Beverly was able to get a court order requiring their return. Which of the following is true regarding Alice's refusal to keep Creaky and Toady?

Which of the following damages are designed to put the plaintiff in the position he would have been in had the contract been fully performed?

When an enforceable contract does not exist, the court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring.

Contractual conditions may be expressly inserted into the contract by the parties but may not be implied.

Which of the following are types of conditions?

When a party's obligations under a contract are terminated, the party is said to be ______________.

Residential property but not commercial property is considered unique.

A contractual condition of satisfaction is considered a[n] ______________ condition that must be met before the other party's obligation to pay for the performance arises.

By which of the following may a party's contractual obligations be terminated?

Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and, therefore, rescind or cancel the contract?

Set forth the elements for a finding of substantial performance and the effect of a finding of substantial performance on damages.

Reference - Earthquake. Stewart, the owner of ABC Construction, agreed with Joan, the owner of XYZ Hotel that he would complete renovations on her upper scale hotel on the beach in Florida by October 1. The amount due to Stewart under the contract was $250,000. The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project. Unfortunately, an unexpected strong earthquake shook the area; and while the earthquake did not damage the hotel itself, Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake. Because he believed that traveling, himself, to other states to obtain supplies would be prohibitively expensive, he delayed the project for two weeks while waiting for local stores to have sufficient supplies available. Stewart finished renovations six days late. Joan told Stewart that she owed him nothing but that he owed her $50,000. Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters. Assuming the earthquake does not affect Stewart's liability for damages, which of the following is true regarding the provision that he will pay $50,000 for each day he is late?

Which of the following describes conditions that are not explicitly stated but are inferred from the nature and language of the contract?

Which of the following is an order either forcing a person to do something or prohibiting a person from doing something?

Japanese law prohibits agreements relating to liquidated damages.

Which of the following are the two primary kinds of performance?

Contracts containing conditions affecting the performance obligations of the parties are called ______________ contracts.

Which of the following occurs when by agreement one of the parties substitutes a different performance for his original duty under the contract?