Exam 18: Breach of Contract and Remedies

Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek

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

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover

The duty owed under the mitigation of damages doctrine depends on the situation.

Expenses that are caused directly by a breach of contract-such as those in?curred to obtain performance from another source-are inci?dental dam?ages.

A breach of contract may entitle the innocent party to rescind the contract.

Damages compensate a party for harm suffered as a result of another's wrongful act.

Drew contracts to sell a residential duplex to Evan. The contract pro?vides 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 be?cause it is

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

Carol pays Dick $10,000 to design an ad campaign for Carol's Coffee Stand chain. The next day, Dick tells Carol that he has accepted a job in New York and cannot design her campaign. Carol files a suit against Dick. As compensatory damages, Carol can recover

Roy contracts to sell his Double-R Ranch to Sam on May 1. On April 20, Roy tells Sam that he will not go through with the deal. Sam files a suit against Roy. Sam can recover

Fact Pattern 18-B1 A enters into a contract to buy 132 acres from B to subdivide and sell in quarter-acre lots for C Acres, a residential development. -Refer to Fact Pattern 18-B1. If B breaches the contract, A's remedy would most likely be

A person's actions may cause a breach of contract or a tort, but not both.

A contract may include a clause stating that no damages can be recovered for a certain type of breach.

A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is

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

General Equity Corporation enters into a contract with Honi, who agrees to create artwork for General's main office building. Honi delays and eventually refuses to perform. Meanwhile, General contracts to sell the building to Ideal Investments, Inc., but before the transaction is complete, Jewel Funds Company offers to pay a higher price. General re?fuses to transfer the building to Ideal. In separate suits by General against Honi and by Ideal against General, each plaintiff seeks specific performance. How might the court rule in each case, and why?

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

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 party seeking to recover in quasi contract must show that he or she acted without reasonably expecting to be paid.