Business Law 1- Chapter 10 Contract Performance, Breach, and Remedies

True or False: A covenant not to compete imposed, as part of a sale of an ongoing business will be enforced even if the restrictions are unreasonable.

False

True or False: Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

False

True or false: A court will grant specific performance as a remedy only when the legal remedy is adequate.

False

True or false: If a contract performance is rendered directly to a third party, the third party is an incidental beneficiary.

False

True or false: The assignee receives greater rights than the original assigner had.

False

True or false: The function of a quasi-contract is to impose a legal obligation on a party who purposely failed to fulfill an express promise.

False

True or false: The transfer or one's contract rights is called a delegation.

False

True or False: Before either party to a contract has a duty to perform, one of the parties may refuse to perform that party's contractual obligations. This is referred to as an anticipatory repudiation.

True

True or False: Restitution may be available in situations when damages cannot be proved or are difficult to prove.

True

True or False: Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.

True

True or false: Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.

True

True or false: When the performance of a contract depends on the personal skill of the obligor, a delegation of the duty is prohibited.

True

Rita contracts to work for Social Media Corporation (SMC) during April for $4,500. On March 31, SMC cancels the contract. Rita declines a similar job with Tech Talk, Inc., which would have paid $3,500. Rita files a suit against SMC. As compensatory damages, Rita can recover...

$1,000

Metro Holdings, Inc., contracts to sell a commercial parking garage to New Property LLC. The contract provides that if Metro does not close the deal by a certain date, it must pay the buyer one-half of the value of the property. This provision is not enforceable if it is...

Designed to penalize metro

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation. Under this contract, the intended beneficiary is...

New Credit

Shuster's lease of retail premises from Thurgood requires Shuster to pay certain fees, subject to the landlord's proof of the correct amount. Thurgood overcharges Shuster for the fees, without explanation. Most likely, the tenant can rescind the lease...

With prompt notice

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now, instead of $5,000 later. This is...

an accord and satisfaction.

Apps LLC enters into a contract with Birk, the chief executive officer of Corporate Sales, Inc., to create an app for the firm. To fulfill the contract, Apps hires Dave as a student intern. With respect to the app contract, Dave is...

an incidental beneficiary.

Armand orally agrees to pay Borges to seed and harvest a quarter of Armand's farm acreage for four planting seasons. After Borges prepares the land and plants the first crop, Armand says that the deal is off. Borges can most likely recover on a theory of...

quasi contract.

An intended third-party beneficiary cannot enforce a contract against the original parties until the third party's rights have...

vested