Exam 18: Breach of Contract and Remedies

A breach of contract entitled the nonbreaching party to sue for monetary damages.

Vacation Vistas,Inc.,agrees to sell certain acreage to Umiko,who intends to develop a destination resort.Vacation Vistas repudiates the deal.Umiko sues Vacation Vistas and recovers dam?ages.She can now obtain

The four broad types of damages in contract law are conciliatory,consecutive,punctual,and nominative.

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 sus?pend 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?

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

A party seeking to recover in quasi contract must show that there was an actual contract or agreement between the parties.

Development Associates (DA)agrees to buy five acres of land from Eastside Properties for $15,000.Eastside fails to go through with the deal on the agreed date,when the market price of the land is $17,000.DA may recover

Consumer Credit Union pays Derby $10,000 to design an ad campaign.The next day,Derby tells the credit union that he has accepted a job in Boston and cannot design the campaign.As compensatory damages,the credit union can recover

Fashion Retail Center enters into a contract with Great Promotions,Inc.,to provide Fashion with a plan to retool its merchandising strategy.If Great Promotions breaches the contract,Fashion has a duty to

A penalty provision specifies a certain amount to be paid in the event of a default or breach of contract.

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair,Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages,Carousel can recover

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

Special damages are awarded for damage caused by special circumstances beyond a contract.

To avoid liability for intentional injuries,Northwest Power Corporation in?cludes in its contracts an exculpatory clause.This is

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

Owen buys a used Prius from Quality Motors,Inc.,paying $1,000 down and agreeing to pay off the balance in thirty-six monthly payments of $200 each.The terms of the agreement call for Owen to make a payment on or before the first of each month,beginning March 1.During the first six months,Quality receives a $200 payment before the first of each month.Starting in September,however,and continuing for the subsequent five months,Owen's payment is never made until the fifth of the month.Quality accepts and cashes the payment check each time.Before the next payment is due,Quality decides that it is no longer willing to accept late payments.Can Quality sue Owen immediately for breach? Can Owen continue to make late payments without liability? Explain.

A party who knowingly accepts defective performance of a contract waives the breach.

Clear Creek Corporation enters into a contract with Brightside Management Associates to manage and maintain Clear Creek's apartment complex.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

Rite Contractors,Inc.,agrees to build a motel for Sleep Inn Corporation.The project proceeds according to plan,but before it is done,Sleep tells Rite to quit.Rite may recover

Damages are designed to punish a breaching party and deter others from similar conduct.