BUS. LAW CH. 10 Quiz Answers
Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is
LIABLE TO JOY IF LEZA DOES NOT PERFORM
A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is
REFORMATION
Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance else-where for $3,500. Oxley's measure of damages is
$1000 PLUS INCIDENTAL DAMAGES
Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is
A DELEGATION
Metro Facilities, Inc., contracts to sell a parking lot to Nouveau Property Company. The contract provides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is
A PENALTY CLAUSE
Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is
A THIRD PARTY INTENDED BENEFICIARY CONTRACT
Ilene and Jerry enter into a contract under which Ilene agrees to provide grounds keeping services for Jerry's Family Fun Center. Under an anti-delegation clause, the contract can prohibit and prevent the transfer of
ALL DUTIES UNDER THE CONTRACT
Paolho and Roth agree that Paolho will fix Roth's boat dock in exchange for $5,000. Paolho spends half of the amount due under the contract to acquire the materials for the job from Sav-U Economy Lumber. Sav-U is
AN INCIDENTAL BENEFICIARY
A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits
ANY ASSIGNMENT
Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation
DIERDRE IS IN BREACH OF CONTRACT
Kali contracts to sell Levon her car for $3,000. This contract will be fully discharged when Kali and Levon
EXCHANGE THE CAR FOR THE $3000
Expenses that are caused directly by a breach of a contract are known as primary damages.
FALSE
Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. Refer to Fact Pattern 10-1. If Belle Vista breaches the contract, Ambrose's remedy would most likely be
SPECIFIC PERFORMANCE
Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches by only partially performing the contract, Scrub n' Dry can
SUE READY REPAIR FOR COMPENSATORY AND CONSEQUENTIAL DAMAGES
Tile & Grout (T&G) contracts to resurface the insides of the pools at Water World Park. T&G knows that without the resurfacing, Water World will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water World can recover
THE LOSS OF PROFIT FROM THE DELAYED OPENING
A liquidated damages provision specifies that a certain amount is to be paid by a breaching party when damages are difficult to determine.
TRUE
A party seeking to recover compensatory damages can also recover incidental damages.
TRUE
After a contract is made, a supervening event may make performance impossible and discharge the contract.
TRUE
Reformation is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.
TRUE
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
