D216 Module 6 quiz

A bilateral mistake is a

"mutual misunderstanding concerning a basic assumption on which the contract was made."

$500.

Fiesta LLC contracts to buy 1,000 balloons from Gas Bags Inc. for $1 per item. When the market price decreases to 50 cents per balloon, Fiesta refuses to go through with the deal. Gas Bags can recover

withhold delivery.

Keisha contracts to buy appliances from Crazy Carlos Appliances. Keisha agrees to pay half within 5 days of the order and the remainder upon delivery. Keisha fails to pay the first 50%. Carlos can:

Unilateral Mistake of Fact

A mistake made by only one of the parties that does not generally give the mistaken party any right to relief from the contract.

recover consequential damages.

ABC Hardware orders a shipment of hammers and saws from Tools R Us for a special DIY event that they are planning. ABC agrees to pay for the tools on delivery. Tools R Us accepts the order but fails to deliver. ABC Hardware then purchases the hammers and saws from Enzo's Tools, but the tools do not arrive in time for the event. ABC can:

obtain specific performance.

Art and Antiquities, LLC orders 5 pieces of rare imperial jade from Art Brokers, Inc. In order to meet the terms of the sale, Art and Antiquities pays in full prior to shipment. When the shipment does not arrive in the expected time, Art and Antiquities contacts Art Brokers who responds that they have decided not to sell and offers to return the payment. Art and Antiquities can:

still liable on the bid.

At an auction, Ben bids on a 1957 Chevy coupe, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is, Ben is

$10,000 from Bee.

Bee is an employee of Credit Agency Inc. On the termination of Bee's position, Credit pays Bee $10,000 to agree not to disclose the employer's confidential information. Later, Bee sells the information to Debt Records LLC for $100,000. In a suit for breach, Credit is most likely to recover

can rescind the deal based on fraudulent misrepresentation.

Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl

the market price at the place at which Concrete delivered the goods plus incidental damages.

Builder Inc. and Concrete Supply Company enter into a contract for a sale of cement. Concrete delivers, but Builder does not pay. Concrete can recover as damages

compensatory damages.

Damages that compensate the nonbreaching party for the "loss of the bargain" are known as

specific performance.

Erma enters into a contract to buy a tract of riverfront property from Forest Acres to build and sell a residential development. Forest Acres fails to close the sale. Erma's remedy is most likely

consequential damages, or special damages.

Foreseeable damages that result from a party's breach of contract are called

$1,000.

Len contracts to work for Media Corporation during May for $4,500. On April 30, Media cancels the contract. Len then accepts a similar job with New Ads Inc., which pays $3,500. Len files a suit against Media. As compensatory damages, Len can recover

reject the shipment, cancel the contract or sue for damages.

Office Express orders 100 smartphones from Electronic Supply for $500 per phone. Electronic Supply sends 100 flip phones instead. Office Express has the right to:

not rescind the contract.

Open Range agrees to sell Pinewood Ranch a remote parcel of land for $15,000. Both parties believe the land to be worthless, but beneath it is shale rock containing oil. A court would

the contract price and the market price.

Real Stones Inc. and Sparkling Jewelry stores enter into a contract for a sale of gemstones. The seller fails to deliver. Sparkling can recover as damages the difference between

is bound to the deal at the offered price.

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In an e-mail, however, the firm's sales representative mistakenly offers to sell the beef to Steak House for $1,000. Steak's manager immediately accepts. The seller

resell the garages and recover any damages from Truck.

Steel Buildings Inc. agrees to sell four portable garages to Truck Service Center. Five days later, Truck refuses delivery and cancels the contract. Steel is entitled to

The equitable remedy of specific performance

calls for the performance of the act promised in the contract.

A buyer can obtain specific performance

if the goods are unique or monetary damages are not sufficient to cover the injury.