Exam 3 (legl 3000) part 2 Flashcards
Imelda and Jeremy enter into a contract for the sale of Imelda’s condominium for which Jeremy agrees to pay $150,000. Jeremy wants to transfer the right to the ownership of the property to his daughter Karin. This transfer
must be in writing
Lin and Mercedes want Ngo to replace Mercedes as a party to their contract. They can best accomplish this by
a novation
Louie wants to transfer his right to the payment of his wages under an employment contract with Metalworx Company to National Savings Bank. In most states, this transfer
must be in writing
Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda’s Buns n’ Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is
an intended beneficiary
Raphael agrees to lease an apartment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract
is discharged
Fact Pattern 13-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 13-1. If a strike delays delivery of the produce beyond the time for performance, Flora’s contract with Harvesters is
suspended
Fact Pattern 13-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 13-1. If bad weather destroys Flora’s crops, the obligation to deliver produce to Harvesters is
discharged
Fact Pattern 13-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 13-1. If Flora dies before the deliveries begin, her contract with Harvesters is
not affected
Fact Pattern 13-1
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 13-1. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is
breached
Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers the right to payment under the contract to Creditline Company. Creditline is
an assignnee
Appliance Repair Service enters into a contract to repair washers and dryers in BeClean Company’s coin-operated laundries. If Appliance Repair breaches the contract, BeClean can
sue Appliance Repair for damages
Builders, Inc., agrees to construct an office building for Champion Hotels. The project proceeds according to plan, but before it is done, Champion tells Builders to quit. Builders may recover
profits plus the costs incurred up to the time of the breach.
Copper Conduit, Inc., and Dependable Electric Company 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 liquidated damaged clause
Cruz Motorcycles enters into a contract with Actuarial Insurance, Inc., to obtain workers’ compensation for Cruz’s employees. Actuarial breaches the contract. If Cruz is awarded compensatory damages, the purpose would be to
provide cruz with funds for its loss of the bargain
Equine World enters into a contract with FabuloStart to provide Equine World with a plan to repurpose its sales strategy. If FabuloStart breaches the contract, Equine World has a duty to
reduce the damaged the Equine world might otherwise suffer
Excavate n’ Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred’s land. Fred advances Excavate n’ Fill 10 percent of its cost. The parties rescind the contract. Excavate n’ Fill’s refund of the payment is
restitution
Fortuna enters into a contract to buy fifty acres from Garrison to expand Fortuna’s farm. Garrison breaches the contract. Fortuna’s normal remedy is
specific performance
Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract
Guido must return the $100 and Hal must return the bike.
Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek
specific performance
Mother & Daughter Jewelers breaches its lease with Longview Mall and vacates the premises six months before the end of the term. In some states, Longview would have to
use reasonable means to find a new tenant to mitigate damages.
Nature’s Reserve, Inc., agrees to buy fifty acres of forestland from Mikhail for $20,000. Mikhail fails to go through with the deal on the agreed date, when the market price of the land is $25,000. Nature’s Reserve may recover
$5,000
Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign. Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign. As compensatory damages, Nogales can recover
$15,000
Officeville Complex hires Natural Air Company to repair Officeville’s air conditioning and ventilation system on site for $500, but Natural Air does not show up as agreed. Officeville hires Makerite Repair, Inc., to do the job for $450. Officeville may recover from Natural Air
compensatory damages
Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance elsewhere for $3,500. Oxley’s measure of damages is
$1,000 plus incidental damages.
Quality Piping, Inc., enters into a contract with Petro Energy Corporation to construct a natural gas pipeline to withstand specific climate conditions. If Quality fails to meet this standard, which would be construed as a breach of contract and a breach of a duty of care, Petro might be awarded punitive damages that are intended to
punish Quality and deter others from similar acts.
Resourced Minerals Inc. agrees to deliver ten tons of coal to Static Energy Corporation. The agreement states that delivery is to be within “9” days, although the parties intend “90” days. Resourced Minerals cannot convince Static Energy to amend the contract. Resourced Minerals should seek
reformation
Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely
reformation
River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista’s commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is
a limitation-of-liability clause.
Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe’s timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of
quasi contract
Tile & Grout contracts to resurface the insides of the pools at WaterWorld Park. Tile & Grout knows that without the resurfacing, WaterWorld will have to delay its seasoning opening. Tile & Grout does not perform as promised. As consequential damages, WaterWorld can recover
the loss of profit from the delayed seasoning opening.
