Contracts

Question 1

under the parol evidence rule is course of performance evidence admissible?

Answer 1

Yes, as to supplement/ explain a written agreement as long as it does not contradict express terms

Question 2

Under the UCC when either party repudiates, the non-repudiating party may….

Answer 2

wait a commercially reasonable time to allow the repudiating party to perform; or immediately sue; the non-repudiating party may not recover for damages it could have reasonably mitigated

Question 3

What is the general standard to measure warranty breach damages under the UCC?

Answer 3

• value of the warranted price - value as delivered
• if repair fails to restore item back to K price then damages are measured by repair costs + (Warranted value-value after restoration)

Question 4

What are the owner’s damages when a building K is not properly performed?

Answer 4

The owner is entitled to the cost of fixing the defect

Question 5

What are owner’s damages when builder breaches after performance has begun?

Answer 5

cost of completion + reasonable compensation for delay

Question 6

When can consequential damages be recovered?

Answer 6

if the damages were natural and probable consequences of the breach and the type of damages had to be a kwon risk to the parties at the time of contract formation

Question 7

When isn’t unjust enrichment recoverable?

Answer 7

if all the work giving rise to the claim is complete and the only remaining obligation is payment of the contract price

Question 8

Mutual mistake is not available as a defense where:

Answer 8

the party asserting the mistake assumed the risk of the mistake (i.e. one party is in a better position to know the risks than the other party, or party was aware that there assumption was doubtful)

Question 9

What are three elements to assert mutual mistake:

Answer 9

(1) mistake concerns basic assumption on which K was made; (2) mistake has a material effect on the agreed exchange; and (3) party seeking avoidance didn’t assume the risk of the mistake

Question 10

A misrepresentation of fact that induces assent…

Answer 10

is grounds for avoidance of a contract

Question 11

What is included in every contract for work or services?

Answer 11

implied duty to perform in good faith or in a workman like manner

Question 12

When F.O.B. is followed by seller’s place of business

Answer 12

• seller has a duty to put the goods in the hands of the shipper;
• risk of loss shifts to buyer when seller places goods with the shipper

Question 13

A promise to settle a claim may be consideration to support a return promise:

Answer 13

if there is a good faith dispute over the validity of the claim