exam 5
Under a construction contract that requires a builder to meet certain specifications , complete performance is required to avoid material breach
True
Fara hires Gil , a real estate broker , to act as her agent to sell her land for $ 150,000 . Before the land is sold at the stated price , oil is discovered beneath it , causing its market value to increase considerably . The agreement between Fara and Gil is likely
terminated by operation of law .
If a condition to a lease for university housing that the tenant must be a student is not satisfied , then the landlord's obligations under the lease are discharged .
True
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
If it were not possible to assign contract rights , many businesses could not continue to operate .
True
In quasi - contract , the party who is seeking recovery must show that the other party who received a benefit , would be unjustly enriched if they were allowed to retain the benefit without paying for it .
True
For a nonbreaching party to recover consequential damages , the breaching party must know ( or have reason to know ) that special circumstances will cause the nonbreaching party to suffer an additional loss .
True
The greater the employer's control over the work , the more likely it is that the worker is an employee .
True
Clark hires Dell , a real estate broker , to sell his beach house . The house is destroyed in a storm before it can be sold . Dell is Clark's agent
no more ..
Ingmar asks Jess to contract with Kay's Lawn Service to maintain Ingmar's lawn . Jess orally agrees to do so . This is an agency by
agreement .
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 .
Curly Fries Inc. grants its agent Dian an exclusive territory in which to sell its products . The company cannot compete with Dian in that territory under the duty of
cooperation
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 .
An undisclosed principal is one whose identity is totally unknown by an agent and a third party at the time a contract is made .
True
Apparent authorityin an agency relationship arises when the principal causes the agent to reasonably believe that he or she has the authority to act
True
Erin indicates that she is acting as an agent on behalf of an unidentified client - Flight Services Inc. - when she enters into a contract with Go Airlines . Liability to Go for nonperformance of the contract may be imposed on
Erin and Flight Services .
* Consequential damages are designed to punish the wrongdoer and set an example to deter similar conduct in the future .
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
An independent contractor is , by definition , an employee
True
Luis hires Mieko to act as his agent to buy Ngoc's Southeast Asian Café , Luis tells Mieko to reveal only that she is buying the restaurant on behalf of a third party , without telling Ngoc's seller who that third party is . Luis is
a partially disclosed principal .
Bey indicates that he is acting as an agent on behalf of an unidentified client - Cuisine LLC - when he enters into a contract with Diners Bistro . Cuisine is
a partially disclosed principal .
Diamonds & Gold LLC hires Elle to buy gems and precious metals from various sources on its behalf . In this relationship , Diamonds is
a principal
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
a reasonable estimate of the loss on the breach .
Rosa introduces Sal to her friend Trey as " my associate . " Sal purports to act as Rosa's agent in a business transaction with Trey . If Rosa is liable for Sal's actions , it will be because their relationship is
an agency by estoppel .
Nora works at Oil & Gas Inc. She is a sales representative who works with Oil & Gas customers . The company closely supervises its sales reps and dictates their schedules . With respect to third parties , Nora is
an employee and agent .
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
anticipatory repudiation .
Based on Nan's conduct , Odel reasonably believes that Poppy has the authority to act on Nan's behalf even though Poppy does not have the actual authority to do so . In this circumstance , Poppy has
apparent authority
Daisy enters into a contract with Evan for the construction of a Fast - Food Café , according to a certain schedule . The parties perform some preparatory steps , but Evan materially and willfully fails to begin work on the specified date . To rescind the contract , Daisy must show that the parties can
be restored to the status quo .
East Bay Café orders seafood from Fresh Catch Company . Fresh places the goods at East's disposal . Fresh's performance under the contract is
complete .
Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition . If the appraiser deems the condition to be substandard , the parties ' obligations will be
discharged
Debt Collection Service enters into a contract to employ Emma as a billing manager for two years . During the first year , Emma is often absent without explanation , and when present fails to adequately do her job . This
discharges the employer from the contract .
Ochre holds one ton of perishable fruit in storage for Produce Corporation . If Produce does not pay for the storage , under the doctrine of mitigation of damages , Ochre is held to a duty to
do whatever is reasonable to minimize the damages .
Bill and Charlene enter into a contract for the clearing , plowing , and preparing of Charlene's 100 - acre tract for which she agrees to pay $ 1,000 . Bill transfers his duty under this contract to Dewey . With respect to the duties under the original contract , this transfer
does not relieve Bill of the potential obligation to perform .
Ben manages a warehouse and its inventory for Coffee Roaster Inc. To operate this part of the business , Ben's authority can be inferred
from the position Ben occupies .
Bob contracts with Jane to buy her car for $ 2500 . Jane's neighborhood has a massive fire , and her car has extensive smoke damage . The contract with Bob will be dismissed because of
impossibility
Ira serves in a representative capacity for Jett . Key is injured through Ira's negligence . Jett may be liable to Key if Ira's conduct occurred
in the course and scope of Ira's employment .
Jon contracts with Kino to buy a certain number of sheep for Kino's Animal Farm . Jon makes a deal with Lila for the sheep , but neither Jon nor Kino pays the price . Lila sues jon for breach . Jon's right to hold Kino liable for any damages is the right to
indemnification
Emmett , an agent for Fridley , signs an agreement with Glover on Fridley's behalf but neglects to tell him that the agreement requires the payment of a certain tax . The government prosecutes Fridley for failing to pay the tax . He is
liable , because notice to Emmett is notice to Fridley .
Lucy is married to Marco , Lucy buys food for their children's lunches and charges the cost to Marco's account . This is an agency by
operation of law .
Repair Service enters into a contract to fix washing machines in Soapy Suds Company's coin - operated laundries . Repair breaches the contract . Soapy is awarded compensatory damages . The purpose is to
provide Soapy with funds for its loss of the bargain .
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 .
Bread Company hires Craig to sell the company's products in a certain area . Bread agrees to pay Craig a salary , plus commission , for a trial period . They also agree that he can sell using any methods and during any hours that seem appropriate . The key factor in whether Craig is Bread's employee is
the degree of the employe's control over the details of the work .
Energy Company employs Fred to negotiate the purchase of mineral rights for future mining projects . Fred secretly buys some of the property and sells it to Energy at a profit . Fred has breached
the duty of loyalty .
of the sales area . Bern , a salesperson at a Carpet & Tile store , tells Dan , a customer , " Buy your flooring here , and I'll install it for less than the store would charge . " Dan buys carpeting , which Bern installs for half the store's price . Bern keeps the money . With respect to the store , Bern has breached
the duty of loyalty .
Restore , Inc. , contracts to resurface the pools at Swim Park by June 1. Restore knows that if performance is not timely , Swim Park will have to delay its seasonal opening . Restore finishes the job June 15. In a suit for breach , Swim Park can recover
the loss of profit from the delayed opening .
The basic requirements for performance to qualify as substantial performance are ( choose all applicable answers )
the party must have performed in good faith .
Lev , an agent for Mill Grains LLC , executes an unauthorized contract with National Grocers Inc. The deal is highly advantageous to Mill Grains , and the company ratifies the contract . The contract is
valid .
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 .
For quasi - contract to apply , the following must apply ( choose all applicable answers )
✔the party receiving the benefit would be unjustly enriched if allowed to retain the benefit without paying . ✔the parties are not happy with the outcome of the agreement .
These basic types of situations may qualify as grounds for the discharge of contractual obligations based on impossibility of performance ( choose all applicable answers )
✔when the specific subject matter is destroyed . ✔when an essential party to the completion of the contract dies . ✔when a change in the law renders performance illegal .