BUS.LAW 2301 CH.10

Sayed and Ann form a contract under which Sayed agrees to sell Ann 500 copies of a book. The contract price is $3.50 per book. Sayed breaches the contract by not delivering the books to Ann by the deadline. At the time of the breach, the books are available from the publisher for $4.50 each. Ann's damages are:

$500

Ferris owns an apartment in an apartment complex. The apartment-complex rules require the owner of each apartment to maintain it in reasonable condition. Failure to do so is grounds for action against the owner by the apartment complex or a tenant. Erica rents Ferris's apartment. During her first year of renting, many appliances in the apartment break, and there are repeated incidents of leaking through the roof. Ferris does nothing to fix the apartment. Erica sues Ferris, who claims he has no contractual duty to Erica. A court will likely find that:

Erica is a creditor beneficiary, so Ferris does have a contractual obligation to her.

Antonio owns property on which a gasoline station once stood. Josh agrees to buy the land so that he can build an office on it. They include language in the contract making the purchase contingent on a determination that there are no environmental problems with the property. The contingency represents:

a condition precedent

Jim contracted with United Technologies to install 5,000 feet of Rocketfish Cat-5e network cable in his new office building. United installed 5,000 feet of Dynex Cat-5e network cable instead. The types of cable are essentially the same. When Jim sued for breach of contract, the court likely found that United's actions constituted:

substantial performance.

Frank owes Anderson $500. Frank is the obligor. Anderson, as the obligee, assigns the right to receive the $500 to his daughter, Jemma. Jemma is now:

the assignor and cannot enforce the contract against Frank.

Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per pound. Owen breaches the contract and delivers no coffee. Marie's damages will be:

the difference between the market price of the coffee and the contract price.

Asa has a contract with Phil to personally provide fortune-telling services at Phil's daughter's birthday party. Phil's daughter decides she does not want to have a fortune teller at her birthday party, so Phil tries to assign the right to Asa's services to his neighbor, Steve. Steve:

cannot enforce the contract with Asa, because rights to receive personal services cannot be assigned.

Vicky contracts with Cyrus to have renovate her kitchen. Vicky, however, changes her mind and breaches the contract before Cyrus can begin work. As a remedy for the breach, Cyrus can seek:

expected profits from the contract

Marta owes Carly $5,000 under a contract for maid services that Carly performed. Carly owes her landlord, Alec, $6,000 in rent. Carly wants to assign to Alec the right to receive the $5,000 from Marta, but the contract between Marta and Carly contains a clause prohibiting its assignment. If Carly assigns the rights anyway, a court will most likely:

not honor the clause prohibiting assignment.

Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and wants to delegate her duty to do the painting to Patty, her top student and a very talented artist. If Alec objects, a court likely will:

not honor the delegation because the contract is based on personal skill.

Johanna agrees to purchase Jessie's land so that she can build a golf course. They write a contract, and Johanna transfers the deed to Jessie. Jessie pays Johanna the entire purchase price. Johanna and Jessie have discharged their contract by:

performance.

Mason and Chenoa orally agree to a contract in which Mason will replace the fixtures in Chenoa's bathroom. In exchange, Chenoa agrees to cut Mason's hair every six weeks for the next two years. Mason performs his side of the bargain, and Chenoa cuts his hair on schedule for six months. Then she sells her house and moves 2,000 miles away. Mason can seek recovery based on:

quasi contract

Rena contracts with Darryl to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read $40,000 rather than $4,000. They can seek the remedy of:

reformation

Luis contracts with Greenfield to buy several of Greenfield's dairy cows. Greenfield delivers the cows, but Luis doesn't pay for them. Greenfield may be able to have his cows returned if he seeks the remedy of:

restitution

Karl buys a new Volkswagen and signs a contract with Volkswagen saying that he will never in the future sue the company for any personal injuries he may receive as a result of a faulty car. In exchange, Volkswagen reduces the price of the automobile by $6,500. This type of contract provision is:

an exculpatory clause

Rebecca owns a vacant lot. For years, it has produced nothing but weeds, which she has struggled to keep mowed. She has considered selling it, but it has decreased in value over the years, and she does not want to sell it at a loss. Lou owns the adjoining parcel of land and is planning to build a shopping center on the land. This would cause Rebecca's land to triple in value. Lou now says that he may not build the shopping center, and Rebecca threatens to sue if he does not go ahead with his original plans. In this situation, Rebecca is:

an incidental beneficiary.

Rick agrees to buy 20 acres of land from Tina. Three weeks before the deal is to close, Rick calls Tina and says, "The deal is off!" In this situation, Rick's actions constitute:

anticipatory repudiation of the contract.