Exam 4: Enforcing Contractual Obligations

A salesman innocently misrepresented a fact about a new printer to a customer.He honestly believed that his statement was true and was not careless.Although this fact was not about a term of the contract,it did induce the customer to buy that printer.The next day,the customer learned the true facts and wanted to return the printer.If the store refused to take it back and the customer sued,which of the following would be the most likely result?

Smedlap,a trucker,and Dewdney,a farmer,entered into a contract under which Smedlap agreed to haul all of Dewdney's 2012 pumpkin crop to market in time for Halloween sales.However,the day before Smedlap was to pick up the pumpkins,he called Dewdney and told him that,since he had received such a good offer to buy his truck,he had sold it and therefore was not able to haul Dewdney's pumpkins.There was not enough time for Smedlap to buy another truck,but he was sure that Dewdney could make other arrangements and he hoped that he hadn't unduly inconvenienced him.Unfortunately,Dewdney was not able to make arrangements in time for the Halloween market,and instead he had to sell his crop to a pie-filling canner for much less than he could reasonably have expected at the market.Furthermore,the market owners were so disappointed by Dewdney's failure to deliver that they refused to give him their usual order for Christmas turkeys,in contrast to previous years,when this had generated his major income for the year.He was forced to find another outlet for his turkeys,and again he ended up selling to commercial processors for a substantially lower price.As a result of these two events,Dewdney was unable to keep up with his mortgage payments on the farm and eventually he lost it to the bank in a foreclosure action.Dewdney is now suing Smedlap to recover these losses.Identify the correct statement with respect to the question of whether Smedlap's conduct was a breach of contract.

Joe paid Sam a debt owed of $50 000 by giving him 10 000 $5 bills.Sam refused to accept the payment.Explain this legal position.

It should make it easier to obtain an injunction if the terms of the contract set out an injunction as an appropriate remedy in the case of breach.

Which of the following statements is true with respect to the law of damages?

The office manager of a real estate agency was at an office supply store to replace a filing cabinet when he saw a demonstration of a new Xerox copier.Undoubtedly,the agency would benefit from the copier,especially since it had the capability of enlarging the original-a good feature when dealing with the small print of contracts.The next day,he called the manager of the store to discuss the machine further.The seller said that it was "10 years ahead of the competition," that it "was rated as maintenance-free by an independent consumer research group," and that he had "sold five to other real estate agencies in this area" and "had only one left." The agency,relying on these statements,asked to have it delivered.When it arrived,the office manager had learned that every statement made by the seller had been false; furthermore,the seller did not send out the machine discussed,but the older model.Which of the following is true?

Often,costs can be considerably reduced by including provisions in a contract for all disputes to be handled through mediation and arbitration.

Damages are an example of an equitable remedy.

Indicate any limitations on the availability of specific performance and injunctions.

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Which of the following constitutes a misrepresentation that would not allow the courts to award the equitable remedy of rescission?

Define the term quantum meruit.

When the holder of a negotiable instrument signs his name in the form of an endorsement before passing it on to a subsequent holder,what risk does he take?

With regard to damages,which of the following is false?

Which one of the following mistakes voids a contract?

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Where one person transfers his or her rights to benefits under a contractual relationship to a third party,this is an example of ________.