Exam 18: Breach of Contract and Remedies

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

Normally, when a nonbreaching party has been damaged by a breach of contract, he or she has a duty to mitigate those damages.

Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to

A orally agrees to pay B to plant and harvest a quarter of A's farm acreage for four corn-planting seasons. After B prepares the land and plants the first crop, A says that their deal is off. B can most likely recover

A enters into a contract with B to provide surface material for A'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

Outdoor Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers dam?ages. Pia can now obtain

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

Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that the clause excuses.

Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corpo?ration. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents

A party seeking to recover compensatory damages may also be entitled to recover in?cidental damages.

Punitive damages are never awarded in breach of contract actions.

A, Inc., enters into a contract with B Service to fix A's precisely engineered molding equipment. If B delays the repair for five days, knowing that A will lose a certain percentage of profit for the delay, A might be awarded consequential damages to

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 A breaches the contract, B's remedy would most likely be

Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside

Value Acquisitions, Inc., contracts to buy Wobbling Corporation's as?sets. Wobbling breaches the contract. Value files a suit against Wobbling, seeking various remedies. The doc?trine of election of remedies has been elimi?nated in contracts involving sales of

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. If Hollis breaches the contract, Grady's normal remedy would be

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

A party who knowingly accepts defective performance of a contract thereby acknowledges the breach and can take later action on it.

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

If a party breaches a contract, the other party can file a criminal complaint