Chapter #14

Question 1

What does a breach of warranty allow?

Answer 1

A breach of a warranty usually does not permit the injured party to treat the contract
as being at an end; it only entitles the injured party to sue for damages.

Question 2

What is restitutio in integrum

Answer 2

The term is usually used by
the courts to mean “to make the party whole,” or to compensate for the loss suffered

Question 3

Fuller offers to sell Brown 600 crates of apples at $50 a crate. On the date fixed
for delivery, Fuller delivers the apples to Brown, but Brown refuses to take delivery. Fuller later sells the apples to Caplan, but the price by then has fallen to $40 a crate. Fuller has suffered a loss of $10 a crate, or $6,000 in total, as a result of Brown’s breach of the contract. If Fuller sues Brown for breach of contract, do you think the court will award Fuller for the damages generated by Brown?

Answer 3

If Fuller should sue Brown for breach of contract,
the courts would probably award Fuller damages in the amount of $6,000 to place
Fuller in the same position that he would have been in had Brown carried out his
part of the agreement

Question 4

What is Remediation for general damages?

Answer 4

Represent compensation for losses that would naturally (generally) flow from the breach. intended to place the injured party in the position they would have been had the contract been performed in accordance with its terms, and represent compensation for losses that would naturally (generally) flow from the breach.

Question 5

What is remediation for special damages?

Answer 5

represent compensation for specific damages that do not
arise naturally or generally from the normal course of events following such a breach

Question 6

What are remediations for punitive damages?

Answer 6

These are not compensation of the plaintiff, but rather punishment of the defendant for a breach of contract which is deceitful, malicious, or offensive to ordinary standards of morality. Punitive damages are therefore rare, for cases when compensation is clearly not enough. Where a breach of contract also amounts to a criminal act, the criminal courts will be the forum where the Crown will exact its punishment, in addition to restitution to the plaintiff in civil courts.

Question 7

In the case of breach, the Duty to Mitigate Loss refers to the injured party is not entitled to remain inactive. true or false

Answer 7

TRUE. The prospective
plaintiff in an action for damages must take steps to mitigate the loss suffered. Otherwise
the courts may not compensate the injured party for the full loss. I

Question 8

What other type of remedy can be adopted when monetary damages would be inadequate compensation for breach of contract?

Answer 8

*Specific performance.
*Injuction
*

Question 9

what is the definition of Specific Performance (Remedy)?

Answer 9

The remedy requires the party subject to it to perform
the agreement as specified in the decree; a failure to comply with the decree would
constitute contempt of court. Unlike an ordinary monetary judgment, the decree of
specific performance carries with it the power of the courts to fine or imprison the
wrongdoer for failure to comply with the order.

Question 10

Definition of Injuction

Answer 10

The appropriate remedy is an injunction, a court order to the party to refrain from doing something that the party promised that he or she would not do. this is the reverse of a decree of specific performance which usually requires the party to do a positive act.

Question 11

quantum meruit is refered to “As much as he has earned.”
True or false

Answer 11

TRUE. A quantum meruit is a
quasi-contractual remedy that permits a person to recover a reasonable price
for services and/or materials requested, where no price is
established when the request is made.

Question 12

Can an agent
be a minor?

Answer 12

An agent may still be a minor and, despite this minority, negotiate a binding agreement on behalf of a principal who possesses full capacity to contract.
The agency agreement between the principal and
agent is subject, nevertheless, to the ordinary rules of contract. If one of the parties is a minor, it may be voidable at the option of the minor, even though the other party may be bound.

However, an agent must not, be subject to mental incapacity

Question 13

If Martin
asks Thomas to purchase an item for him from the local hardware store, an agency
relationship would be created whereby Thomas would be authorized to act as Martin’s
agent in the purchase from the shopkeeper?

Answer 13

Yes, a written agreement would not normally be
required for this simple agency task Not every agency agreement requires this formality, since a verbal agreement is perfectly adequate in many cases.

Question 14

when is an agency relationship created by conduct?

Answer 14

A person may, by actions, convey the impression to another that he or she has conferred authority on a particular person to act as an agent in specific matters. If a person permits this state of affairs to occur, and the agent enters into a contract with a third party on the person’s behalf, the person may not be permitted to later deny it. In this instance, the person may be said to have created an agency relationship by estoppel.

Question 15

Definition of agency by operation of law

Answer 15

agency that may arise in certain circumstances out of necessity where it is not possible to obtain the authority of the principal to act. However, the relationship is generally limited to those cases where a pre-existing legal relationship exists between the principal and the agent of necessity.

Question 16

Undisclosed Agency

Answer 16

If the agent enters into an agreement without disclosing the fact that he or she is an agent, the third party may assume that the agent is acting as a principal. If the agreement is reduced to writing, and if the agent in the negotiations holds himself or herself out as a principal, describing himself and signing as principal, then the agreement from the third party’s point of view will be one of direct contractual relations with a principal, rather than with an agent. The agent alone in this case would be liable.

Question 17

Fictitious Agency

Answer 17

**A different liability would fall upon the agent if the agent contracts on behalf of a fictitious or non-existent principal, and the third party discovers the non-existence of the principal. The third party may sue the agent for breach of warranty of authority. If the intention of the agent was to deceive the third party, the agent’s actions would amount to fraud. An action for deceit would be available to the third party as well.
**If the agent entered into the agreement on behalf of a principal for whom the agent did not have authority to act.

In each of these cases, the agent would not be liable on the contract, but would be liable to the third party for damages arising from the agent’s warranty that he or she had authority to act for the named principal.

Question 18

Undisclose principal

Answer 18

If the agent enters into a contract with a third party in which the agent expressly describes himself or herself as an agent, but without disclosing the identity of the principal, the agent will not be personally liable. The fact that the agent describes himself or herself as an agent protects the agent from personal liability.

** if the agent simply does not disclose that he or she is acting as an agent the third party may elect to hold either the principal (if the third party discovers the principal’s identity) or the agent liable.

Question 19

For many years Joliet, as Alford’s agent, purchased goods on Alford’s credit
from Clayton. Alford terminated the agency relationship, but did not notify Clayton. Joliet later purchased goods from Clayton on Alford’s credit and sold them. If Alford does not notify Clayton of the termination of the agency relationship with Joilet, will Alford be liable to Clayton for payment?

Answer 19

Yes,because Joliet had the apparent authority to purchase goods as Alford’s agent