Chapter 13 quiz Flashcards
Amy and Bob enter into a contract for Bob to perform waste management services for Amy’s commercial properties. Later, Bob alters a material term—increases the price—without Amy’s knowledge or consent. Amy
a. can alter a material term, such as the payment date, without Bob’s consent.
b. must determine whether Bob’s alteration constitutes substantial performance.
c. can treat the contract as discharged.
d. must adapt his performance accordingly.
c
Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation
a. Discount must compensate Contractors for its lost profit.
b. the contract is discharged.
c. Contractors is in breach of contract.
d. the local zoning authority is in breach of contract.
b
Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to
a. undo Eve’s influence.
b. punish the defendant.
c. rescind the contract.
d. recover damages.
d
Ann offers to buy Beth’s land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth’s price. Ann and Beth’s obligations
a. are on “hold.”
b. must still be performed.
c. must now be renegotiated.
d. are discharged.
d
Global Enterprise enters into a contract with HealthCare Insurance to obtain insurance for Global employees. HealthCare breaches the contract and Global is awarded compensatory damages. The purpose is to
a. provide Global with funds for its loss of the bargain.
b. punish HealthCare and deter others from similar acts.
c. provide Global with funds for a foreseeable loss beyond the contract.
d. establish, as a matter of principle, that HealthCare acted wrongfully
a
Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover
a. nothing.
b. the loss of profit from the delayed opening.
c. the cost of new pools.
d. the difference between T&G’s price and the eventual cost of resurfacing.
b
A contract between Rides & Games, Inc., and State Fair Corporation includes a provision excluding liability as a result of fraud. This provision is
a. not enforceable.
b. enforceable because the parties are protected from liability.
c. enforceable if the parties have equal bargaining power.
d. enforceable because the parties consented to it.
a
Alan induces Beth to enter into a contract for the purchase of a Chef’s Burger House restaurant. Alan knowingly misrepresents a number of material features about the restaurant and the business. When Beth discovers the truth, she can rescind the contract on the basis of
a. mistake.
b. none of the choices.
c. undue influence.
d. fraud.
d
In selling 300 acres of rural land to Organic Farms, Peyton tells the buyer that the land “will be worth twice as much by next year.” This is
a. mistake.
b. adhesion.
c. fraud.
d. opinion.
d
Juan and Isidro enter into a contract to buy, restore and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is
a. novation.
b. mutual rescission.
c. accord and satisfaction.
d. specific performance.
b
