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Breach of Contract

Page history last edited by abogado 7 years, 1 month ago

Quizzes-Fall2013

 

1. Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company’s plant. If Even-Flo breaches the contract, Fiesta can

a. do nothing but make a deal with .a different service provider.

b. do nothing but temporarily suspend operations and wait.

c. file a criminal complaint against Even-Flo.

d. sue Even-Flo for damages.


2. 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

a. $100,000.

b. $10,000.

c. $1,000.

d. $0.


3. 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

a. $17,000.

b. $15,000.

c. $2,000.

d. $0.


4. Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam’s measure of damages is

a. $1,500 only.

b. $1,500 plus incidental damages.

c. incidental damages only.

d. $0.


5. 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

a. the contract price less costs of materials and labor.

b. the contract price.

c. the costs needed to complete construction.

d. profits plus the costs incurred up to the time of the breach.


6. Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose

would be to

a. establish, as a matter of principle, that ISI acted wrongfully.

b. provide Hybrid with funds for a foreseeable loss beyond the

contract.

c. provide Hybrid with funds for its loss of the bargain.

d. punish ISI and set an example to deter others from similar acts.


7. Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit against Mona. As consequential

damages, NDI can recover

a. the cost of a new computer.

b. the difference between Mona’s price and the actual cost of repair.

c. the loss of profit from the lost sale.

d. nothing.


8. Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

a. establish, as a matter of principle, that QuikBilt acted wrongfully.

b. provide Pure with funds for a foreseeable loss beyond the contract.

c. provide Pure with funds for its loss of the bargain.

d. punish QuikBilt and deter others from similar acts.


9. 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. reduce the damages that Fashion might otherwise suffer.

b. reduce the loss that Great Promotions might otherwise suffer.

c. punish Great Promotions and deter others from similar acts.

d. take no action.


10. Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry

a. compensatory damages.

b. consequential damages.

c. nominal damages.

d. punitive damages.


11. Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

a. avoid reletting the premises to recover damages from Ray.

b. make reasonable efforts to relet the premises to mitigate damages.

c. relet the premises to recover damages from Ray.

d. sell the premises to recover damages from Ray.


12. Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the payment of “$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000.” This is

a. a liquidated damages clause.

b. a mitigation of damages clause.

c. a nominal damages clause.

d. a penalty clause.


13. Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural’s cables in a certain location. Rural advances Shovel 10 percent of its cost. If the parties rescind the contract, Shovel’s refund of the payment would be

a. a penalty.

b. liquidated damages.

c. restitution.

d. specific performance.


14. Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract

a. Lou must return the $50 and Mira must return the player.

b. Lou must return the $50 only.

c. Mira must return the player only.

d. the parties can keep the “benefits” of their bargain.


15. 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

a. damages.

b. reformation.

c. rescission.

d. specific performance.


16. 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

a. damages.

b. quasi contract.

c. reformation.

d. specific performance.


17. 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

a. damages.

b. reformation.

c. rescission.

d. specific performance.


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

a. an amount in a quasi-contractual recovery.

b. damages representing restitution.

c. specific performance of the deal.

d. nothing more.


19. Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside’s apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

a. a limitation-of-liability clause.

b. an exculpatory clause.

c. an illegal clause.

d. a quasi contract.


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

a. enforceable if the other parties are protected from liability.

b. enforceable if the other parties consent to it.

c. enforceable if the other parties have equal bargaining power.

d. not enforceable.

 

 

 

 

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