Law Quiz 3.3

In the case of finding a scrivener's error, the court will most often:

reform the contract.

A quantum meruit remedy is equivalent to:

the reasonable value of the agreement.

What is the principle that is applied to determine how much compensation a party receives in a quasi-contract settlement?

quantum meruit

If a contract contains language that the parties must bargain in good faith, it means:

they must make an honest effort to comply with the spirit of the contract.

For which of the following contracts would a court be likely to grant a remedy of specific performance? Select all that apply.

-A contract for the sale of a Picasso painting -A contract for the sale of land

Which of the following events would likely qualify as a force majeure? (Select three)

-A war breaking out between two countries in which a buyer and seller were located -A flood destroying a manufacturing facility -A worldwide pandemic

In which of the following scenarios is a court likely to order reformation of a contract? Select all that apply.

-Fraud by one of the parties -Mutual mistake by the parties -Clerical error in the contract

What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.

-He or she acted in good faith. -The breach was not intentional.

What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.

-Objective, reasonable person standard -Subjective personal taste

What are the differences between legal and equitable remedies? Choose 2 answer choices.

-One is monetary. -One requires actions instead of damages.

What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers.

-satisfaction of the receiving party (buyer) -satisfaction of a reasonable person

Which of the following are things a contracting party must consider when seeking to modify a contract? (Select two)

-whether the modification must be in writing -whether additional consideration will be needed

What is the difference between a material breach and an immaterial breach?

A material breach results in damages to the non-breaching party, while an immaterial breach is minor.

Arnold, a contractor, enters into an agreement with Oswald to build a house for Oswald. In the agreement, Arnold promises to build the house to Oswald's specifications. Oswald agrees to pay for the work on completion according to the terms set out in the agreement. Arnold states that he is licensed by the state contractors licensing board. Which of these statements are covenants?

Arnold promises to build the house to Oswald's specifications. Oswald agrees to pay for the work on completion according to the terms set out in the agreement.

Arvitz and Siri have been friends for thirty years. Arvitz agrees to sell Siri a fifty percent ownership in his bait and tackle shop for $50,000. Because they are such good friends, Arvitz thinks they do not need to contact a lawyer to draw up an agreement; after all, a partnership can be created without a formal written agreement. Siri thinks it would probably be a good idea to have a lawyer draft an agreement, so he contacts Attorney Frost about drawing up the contract. What is Attorney Frost's primary goal in drafting the contract?

Attorney Frost's primary goal in drafting this contract is to protect Siri from litigation, or, if litigation does occur, making sure the contract has been drafted in such a way that Siri wins.

Why is a court unlikely to grant a remedy for specific performance when a contract for personal services is breached?

Because it is tantamount to court ordered involuntary servitude.

Logan agrees to deliver fifty pounds of crab claws to Dominique by May 15. Dominique needs the crab claws for a wedding party that Dominique is catering on May 16, so time is of the essence of the contract. Logan contacts Dominique on May 15 and tells Dominique that the earliest Logan can deliver the crab claws is on May 17. Dominique cancels the order and quickly makes other arrangements for the wedding party she is catering. Logan then demands payment from Dominique for the full contract price, and Dominique refuses. If Logan sues Dominique for damages under the contract:

Dominique will not have to pay because Logan breached the contract.

Evan offers to sell his 2016 John Deere Tractor to Jorge for $30,000. Jorge accepts and promises to meet Evan on Saturday to make the exchange. On Thursday, a fire on Evan's farm totally destroys the tractor. Jorge is upset, because the price of the tractor was really good, and he knows he cannot get another one for that price. If Jorge sues Evan for breach of contract, the likely result will be that:

Evan's performance under the contract will be excused due to impossibility of performance.

Danny hires Evelyn to install a swimming pool at Danny's home for $40,000, to be completed by June 1. Evelyn completes the job on time. When Danny inspects the pool, he discovers that Evelyn used a vinyl lining, and the contract called for a fiberglass lining. Danny refuses to pay Evelyn, stating that Evelyn breached the contract because the contract was not completed according to the specifications stated in the contract. If Evelyn sues Danny for the contract price:

Evelyn will probably receive the contract price less the cost to replace the pool liner with a fiberglass liner.

Otto orally agrees to install three wells for Green Space Energy over the next eighteen months. When the three wells are completed, Green Space Energy will pay Otto $10,000. After the first well is completed, Green Space Energy tells Otto that it does not want any more wells. Green Space Energy refuses to pay Otto for the first well, claiming that the contract was not in writing and, therefore, not enforceable. If Otto sues Green Space Energy to enforce the contract:

Green Space Energy will have to pay Otto a reasonable price for the one well that was installed.

What is the difference between legal remedies and equitable remedies for breach of contract?

Legal remedies are monetary while equitable remedies are non-monetary.

Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused?

commercial impracticality

Jane decides to terminate her position with Roseworld Flowers after six years of employment. When Jane was hired, she signed Rosewood's standard employee agreement. In the agreement, Jane agreed not to work for a competitor in the same county for three years. Three months after Jane terminates her employment, she begins work for Tipton Florist, a florist in the same county as Roseworld. Roseworld sues Jane for violating the terms of her employee agreement because she went to work for a competitor less than three years after her termination with Roseworld. Jane defends by stating that the agreement prohibited her from working for a competitor in the same county for three years from the date of the agreement, which was six years ago. Will Roseworld be successful in its lawsuit against Jane?

No, Roseworld will not be successful in its lawsuit against Jane because the contract is ambiguous.

Must all contracts be in writing?

No, unless the Statute of Frauds requires it.

Korbyn enters into a contract with Peyton to sell Peyton a 1956 roadster. The contract has a condition precedent that the roadster will pass inspection by an independent appraiser, verifying that the roadster contains all original parts and is in good working order. This contract provision means that:

Peyton is not required to perform under the contract until the appraisal is complete.

Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective?

Reformation

How is substantial performance involved with the classification of material breaches versus immaterial breaches?

Substantial performance involves an immaterial breach.

Walter contracts with Ethan to purchase a building for Walter's new tanning salon. Walter and Ethan agree on a price of $200,000 for the building, payable $100,000 at the time of closing and then monthly payments of $5,000 each until the balance is paid. Ethan has his lawyer draw up the contract, and Ethan and Walter both sign it. The contract mistakenly calls for $5,000 payments for fifteen months instead of twenty, which would amount to total payments of only $175,000. When Walter stops making payments after fifteen months, Ethan sues for the balance. If the court requires Walter to pay the remaining five months of payments, what has the court done?

The court has reformed the contract.

What does the law require for a personal service contract?

The personal service requirement must be stated.

How may rules about parol evidence impact a contract modification?

They may require that a contract modification be in writing.

In what situation could a party enforce strict performance?

When the requirement is reasonable

Wilton World is a huge hotel chain. The Wilton World Hotel in San Francisco wants to hire a local artist to paint some landscapes of the Bay area to display in its hotel. Carl contacts the San Francisco Wilton World manager and shows them samples of his paintings. The manager is very pleased with Carl's work and offers Carl $5,000 to paint six landscape paintings. Carl eagerly accepts, so they begin to discuss who should draft the contract. The contract will probably be drafted by:

Wilton World's attorney.

Somerville Manufacturing Company contracts with Joplin Textiles to purchase 5,000 rolls of fabric in various colors for $400 each, for a total price of $2,000,000. Somerville needs the fabric to manufacture its spring line of dresses, so it is important that Joplin gets the fabric there on time; if not, Somerville will lose important revenue. Somerville includes in its contract with Joplin a liquidated damages clause that states that if Joplin does not deliver the fabric by November 1 Joplin will pay liquidated damages in the amount of $50,000. If Joplin does not deliver, will the court likely uphold this liquidated damages clause?

Yes, a court will likely enforce the liquidated damages clause because it is for a reasonable amount and the amount of actual damages would be difficult to estimate.

Manuel contracts to sell a painting that was painted by his deceased grandmother, then has a change of heart and decides to hang it in his own bedroom. He notifies Nadine, the person who had planned to buy it. Can Nadine have the contract enforced?

Yes, it can be enforced under the equitable remedy of specific performance.

LaVon contracts with Nathan for Nathan to sing at her comedy club every Friday night in July. The first Friday, the crowd loved Nathan. The second Friday, they booed him. The next week, Nathan got a better offer, so he hired his twin brother Ethan to fill in for him at LaVon's club. Can LaVon compel Nathan to perform?

Yes, she can compel him under the equitable remedy of specific performance.

What type of condition specifies an event that must happen before a person is obligated to perform the duties specified in the contract?

a condition precedent

A violation of the terms of a contract which defeats an essential purpose of the contract is:

a material breach.

A covenant in a contract is:

a promise.

A scrivener's error is also known as:

a typo.

Ambiguous contract terms will be interpreted:

against the drafter.

If a term is left unclear by accident, that term is:

ambiguous

Which of the following are interpreted against the best interests of the drafter of the contract?

ambiguous terms

Reformation of a contract is considered:

an equitable remedy.

Which of the following is an equitable remedy for breach of contract?

an order for specific performance

What is the term for the action of a party to a contract who notifies the other party that he or she will not perform his or her duty under a contract?

anticipatory repudiation

Lorenzo and Antonio agree that Antonio will buy Lorenzo's Go Cart Fun Park for $300,000. Lorenzo asks his lawyer to draft the contract. Lorenzo is surprised when the contract that the attorney drafts contains more than the description of the property, the price, and the payment terms. The contract also contains paragraphs that describe the choice of law and forum, how the contract can be modified, terms for assigning rights and delegating duties under the contract, and an arbitration clause. Lorenzo's lawyer explains to Lorenzo that these are boilerplate, and that they are important because:

boilerplate creates a private law that governs disputes between the parties.

What is the most common way that duties under a contract are discharged?

by performance

Mia contracted with Greencare Lawn Service for a pest treatment on Mia's lawn for $1,000. Pat lives next door to Mia. Greencare mistakenly treats Pat's lawn instead of Mia's. Pat watched them perform the treatment while looking through the window of his living room, but did not go outside and stop them. When Greencare seeks payment from Pat, Greencare can probably receive:

from Pat an amount less than the contract amount that will reimburse Greencare for expenses incurred, in order to avoid unjust enrichment.

In January, Victor contracted with Delrita to cater a Cinco de Mayo (May 5th raised to the th power) party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita?

frustration of purpose

What is the implied duty in every contract that each party will deal fairly with the other?

good faith

A party may avoid having a letter of intent enforced as a contract if they:

include language in the letter that it is not a contract and neither party is bound by it.

Specific performance is a remedy which is always available in:

real estate contracts.

Courts may reform a contract:

to reflect the parties' true intentions.

Shania offers to sell her lakefront property to Tonya for $150,000, and Tonya agrees to buy it. Tonya and Shania both sign the real estate contract, but, before they close the deal, Shania learns that a new resort is being opened on the lake. The opening of the resort will drive property prices up in the area, so Shania believes she can sell her property to someone else and get a better price on the deal. Shania tells Tonya that she has decided not to sell the property to Tonya. If Tonya sues to enforce the contract, a court will likely:

require Shania to go through with the sale.

Rescission of a contract will:

return the parties to the position they were in before the contract was formed.

Landscape Supply agrees to provide Delta Lawn Service eight pallets of sod for the price of $260 per pallet. The agreement contains the following provision: "This Agreement may not be amended or modified except by an instrument in writing signed by the party to be charged with such amendment or modification." Delta decides it now needs 160 pallets of sod, and Landscape is willing to reduce the price to $255 per pallet because of the increased amount. Delta and Landscape can accomplish this change to the contract by:

signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.

What is the term for when a party to a contract performs his duties exactly according to the terms of the contract?

strict performance

If the parties to a contract deliberately left a term of the agreement unclear as to its meaning, that term is considered:

vague.

What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers.

-The subject matter of the contract becomes illegal. -The specific subject matter of the contract is destroyed. -A party to a personal contract dies or becomes incapacitated.

Restitution is an appropriate remedy when: (Select three)

-a contract has been rescinded. -a contract has been breached. -when the parties never had a contract.

What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices.

-The level of the performance of the contractual obligations -Whether the court will discharge the contract