Exam 13: Contracts in Writing and Third-Party Contracts

Set forth the circumstances resulting in a finding of anticipatory repudiation as well as the rights of a nonbreaching party when faced with anticipatory repudiation.

A condition ______________ is a future event that terminates the obligations of the parties when it occurs.

Which of the following occurs when a contracting party refuses to complete the contract before the actual time of performance?

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. Which of the following is Stewart's best defense?

Which of the following was the result on appeal in the Case Opener, the case in which Sara Creek Property Company argued that an award of damages, rather than an injunction, was the appropriate remedy in response to its alleged breach of contract by allowing a new pharmacy to move into a shopping mall in competition with Walgreen's?

The discharge by parties of their obligations by doing what they respectively agreed to do under the terms of the contract is called ______________.

Reference - Powder Room Mess. For $300,000, Willis agrees to build a new home for Robert, who is very picky. Willis builds the home to Robert's specifications with one exception. The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified. That was a mistake on Willis' part, but he had not intentionally failed to follow specifications. When Robert sees the powder room, he goes ballistic and tells Willis that he will not pay Willis anything for the house. It will take $300 to put in correct faucets and linoleum. Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used, but that is all he is willing to pay. Which of the following is most likely true regarding Robert's entitlement to damages from Willis?

Which of the following describes conditions explicitly stated in the contract?

Specific performance is an order requiring that the breaching party fulfill the terms of the agreement.

Rescission is the return of any property given up under the contract.

Which of the following is used as a basis for discharge by operation of law when performance is still objectively possible but would be extraordinarily injurious or expensive to one party?

Which of the following was the result in Thrifty Rent-A-Car System v. South Florida Transport, the case in the text in which in response to a claim for amounts due on a franchise agreement involving the rental of vehicles, the defendant claimed that hurricanes had rendered its rental car business commercially impracticable?

Monetary damages are also referred to as ______________ damages.

A[n] _____________ discharges the nonbreaching party from his obligations under the contract.

Which of the following occurs when all aspects of the parties' duties under the contract are carried out perfectly?

Which of the following is a type of damages that the parties specify in advance?

Under the UCC, when may orders for specific performance of a contract for the sale of goods be awarded?

Yolanda and Rodney agreed that Rodney would paint Yolanda's home for $800 with Yolanda supplying the paint. Rodney went to Yolanda's home on several occasions to do the job, but she never had the paint ready. Finally, he moves on to other jobs. Six months later Yolanda sues Rodney for not painting the home. Who is likely to win and why? Set forth the legal term for Rodney's offer of performance.

Which of the following types of damages are designed to punish the defendant and deter him and others from engaging in similar behavior in the future?

Which of the following is a way in which a contract may be discharged by operation of law?