Law Chapter 18 SmartBook
_________ or ________ duties do not depend on the occurrence of any further event other than the passage of time. (Choose two correct answers)
Unconditional Absolute
Parties that are injured by breach of contract prefer __________ over restitution.
damages
In a case involving a(n) __________ breach, the nonbreaching party may sue for only: __________. (Choose TWO correct answers)
damages caused by the particular breach non-material
In a breach of contract case, the plaintiff can recover: ___________.
damages only for losses she can prove with reasonable certainty
A(n) __________ bears the burden of proving the occurrence of a condition subsequent.
defendant
The type of remedy that originated in courts of equity rather than in courts of law is the ____________.
equitable remedy
A 'loss in value' is another way of saying __________.
expectation interest
A promisee's __________ is the interest in obtaining the objective or opportunity for gain that is bargained for and anticipated.
expectation interest
When a duty is subject to an ________ condition, that condition __________ before there is legal duty to perform.
express must be strictly complied with
A(n) __________ is a condition that is specified in the language of the contract of the involved parties.
express condition
True or false: Parties that are injured by breach of contract prefer damages over restitution.
False
__________ performance does not apply when a contracting party has been deprived of a(n) _________ part of the consideration she bargained for.
Material Substantial
ONE example of incidental damages would be: _______________.
Paul recovered the expenses that he needed to buy a new mobile phone from his phone manufacturer due to faulty manufacturing.
_________ are typically awarded in addition to the compensatory remedy designed to punish a defendant for particularly reprehensible behavior.
Punitive damages
The UCC has extended the scope of the common law doctrine of impossibility to cases in which unforeseen developments make performance by a promisor _________.
highly impracticable
A(n) __________ is a broad and flexible duty that is imposed by law rather than by the agreement of the involved parties.
implied covenant of good faith and fair dealing
A(n) __________ is a condition that is not specifically stated by the involved parties but is indicated by the nature of the parties' promises.
implied-in-fact condition
Constructive conditions are conditions that are _____________.
imposed by law
A(n) ____________ condition is not specifically promised by the parties but is rather ____________.
imposed by law constructive
When performance of a contractual duty becomes impossible after the formation of a contract, the duty will be discharged on grounds of __________.
impossibility
ONE type of damages that compensate for reasonable costs that an injured party incurs after a breach in an effort to avoid further loss is ____________ damages.
incidental
When the subject matter of the contract is destroyed after the formation of the contract through no fault of the promisor, she ____________.
is excused from performing
In contracts that do not specifically state the time for performance, such a time: ___________.
is inferred from the surrounding circumstances
Suppose the WebbStore breaches a contract to install a new commercial washer in Pamela's Laundromat. Pamela may be able to recover for ________ but not for _________. (Choose TWO correct answers)
losses based on reliance on the Webbstore's promises any profits she would have expected
A(n) __________ occurs when a promisor's performance fails to reach the level of performance that a promisee is justified in expecting under the circumstances.
material breach
Anticipatory breach generally constitutes a(n) _________ of contract.
material breach
Plaintiffs injured by a breach of contract have the duty to: __________ damages.
minimize avoid mitigate
One ground for excusing a condition is that the occurrence of a condition has been __________.
prevented by a party who is benefited by the condition
One example of an express condition would be Paul who _____________.
promised to sell his car to his friend if he won the lottery.
A promisee's __________ is her interest in being compensated for losses suffered by changing position in dependence on an another party's promise.
reliance interest
One remedy that requires a defendant to pay the value of the benefits that a plaintiff has conferred on them is ___________.
restitution
A(n) ____________ is a party's interest in recovering the amount by which it has enriched or benefited the other.
restitution interest
A(n) ___________ is a standard of performance that requires virtually perfect compliance with the contract terms.
strict performance standard
The ________ is applied to contractual obligations that can be performed either exactly or to a high degree of perfection.
strict performance standard
A(n) ____________ is a lower standard of performance that is applied to duties that are difficult to perform without some deviation from perfection.
substantial performance standard
Lost profits flowing from a breach of contract can be recovered as consequential damages if __________.
they are foreseeable
When promisors perform one part of the contract but materially breach another part, __________.
they can recover at the contract price for the part that they did perform
Whether the results of Jones' second drug test made it impossible for the contact to be performed.
they can recover at the contract price for the part that they did perform
When a contract states "__________" each party's timely performance by a specific date is an ___________ condition of the other party's duty to perform.
time is of the essence
If a duty is _________ or __________, the duty to perform does not depend on the occurrence of any further event other than the passage of time.
unconditional absolute
In a breach of contract action, a plaintiff cannot recover for losses that she could have avoided without: ___________. (Choose ALL that apply)
undue risk humiliation burden
A discharge by ____________ occurs when a party to a contract voluntarily relinquishes any rights under a contract, including the right to receive return performance.
waiver
ONE example of an implied-in-fact condition would be that Gavin promised to: ____________.
wash his client's car at the car-wash once it arrived.
What RULE (law) did the court use in the Killian v Ricchetti case? (Choose TWO correct answers)
A condition precedent is a future, uncertain event that creates the duty to perform. If the condition does not occur, no performance is due. If a contract contains a condition precedent, the condition precedent must occur before a duty to perform under the contract arises.
___________ or __________ damages compensate for losses that occur as a consequence of a breach of contract. (Choose two correct answers)
Consequential Special
What was the main ISSUE (legal question) in the Killian v Ricchetti case? (Choose TWO correct answers)
Did the emails of February 19 and 20 constitute a binding enforceable contract? Was a condition precedent necessary to occur before either party performed?
What was the main ISSUE (legal question) in the Harrison v Family Home Builders case?
Did the trial court err in granting FHBs motion for summary judgment?
___________ occurs when a promisee who has an existing claim agrees with a promisor to accept some performance different from that which was originally agreed on.
Discharge by accord
____________ contracts, are contracts in which each party's performance can be divided into two or more parts, and each part is exchanged for some corresponding consideration from the other party.
Divisible
TWo of the following market conditions are sufficient to excuse nonperformance: __________ and __________. (Choose two correct answers)
Drastic price increases Severe shortage of goods
What was the court's CONCLUSION (holding, decision) in the George v AL Hoyt & Sons case?
For HBG. Remanded for determination whether the record supports an award of damages beyond the lost profits on lost home sales.
What was the court's CONCLUSION (decision, holding) in the Harrison v Family Home Builders case? (Choose TWO correct answers)
For Harrison. There was an issue of material fact as to whether FHB had a reasonable time to perform the work before terminating the contract For FHB. One instance is not sufficient to establish FHB failed to render substantial performance of the contract.
What was the court's CONCLUSION (decision, holding) in the Killian v Ricchetti case?
For Ricchetti. The motion for summary judgment as to Killian's breach of contract claim is granted.
What was the court's CONCLUSION (holding, decision) in the World of Boxing v King case?
For WOB. King's argument ignores what was in King's control: the decision not to bargain for more protective contract terms.
What RULE (law) did the court use in the Macomb Mechanical v LaSalle Group case? (Choose TWO correct answers)
Generally, pay-if-paid clauses are conditions precedent and are enforceable in Michigan if there is no ambiguity. Generally, pay-if-paid clauses are enforceable in Michigan unless the party requesting enforcement makes it impossible for payment.
What was the court's ANALYSIS (legal reasoning) in the George v AL Hoyt & Sons case? (Choose ALL correct answers)
HBG presented testimony that Hoyt knew from the start that HBG had those two lots under contract and that she "had to have the bridge in June." Hoyt should have realized that the failure to install the bridge in a timely manner could result in lost profits for HBG. HBG testified that, after Hoyt did not install the bridge, HBG lost sales and hence the profit from two houses on lots in Esther's Estates.
What RULE (law) did the court use in the Harrison v Family Home Builders case? (Choose TWO correct answers)
In order for Harrisons to prevail, they had to prove FHB had not rendered substantial performance on the contract. Substantial performance is the opposite of material breach. If a breach is material, it follows that substantial performance has not been rendered.
____________ is an equitable remedy that is employed in different contexts and is sometimes used as a remedy for breach of contract.
Injunction
Two true statements about good faith performance are that it: __________ and it: __________. (Choose two correct answers.)
It is imposed by law. It is designed to prevent abuses of power.
ONE example of liquidated damages would be: ____________.
James, who recovered a specific sum of money that was explicitly mentioned in the contract if it were breached.
What was the court's ANALYSIS (legal reasoning) in the World of Boxing v King case? (Choose TWO correct answers)
King's argument misconstrues the term "unanticipated event" in terms of probability: an event is "unanticipated," if it is unlikely to occur. To to avoid liability, King avers that he would have had to imprison Jones to prevent him from having any access to a banned substance
____________ damages occurs when the parties to a contract expressly provide in their contract that a specific sum shall be recoverable if the contract is breached.
Liquidated
What was the court's CONCLUSION (decision, holding) in the Macomb Mechanical v LaSalle Group case?
MIXED. AFFIRMED for LaSalle, Condition Precedent for contracted work. REVERSED for Macomb for additional extracontractual work.
____________ damage awards that are given when a technical breach of contract has occurred without causing any actual or provable economic loss.
Nominal
________________ is an equitable remedy whereby a court orders the breaching party to perform their contractual duties as promised.
Specific performance
_______________ do not excuse nonperformance?
Statutes that merely make performance more difficult
What was the court's ANALYSIS (legal reasoning) in the Killian v Ricchetti case? (Choose TWO correct answers)
The e-mails indicate a meeting of the minds and agreement there is a deal when Ricchetti receives clear title to Killian's Pine Street condo. The parties do not dispute Ricchetti never received clear title to Killian's Pine Street condo
What RULE (law) did the court use in the George v AL Hoyt & Sons case? (Choose TWO correct answers)
The law does not require damages to be calculated with mathematical certainty An award of damages for lost profits will be upheld if sufficient data existed indicating that profits were reasonably certain to result.
TWO true statements about the statute of limitations are: __________ and __________. (Choose two correct answers)
The statutory period ordinarily begins to run from the date of the breach. It is delayed if a party who has the right to sue is under some incapacity.
What was the main ISSUE (legal question) in the Macomb Mechanical v LaSalle Group case? (Choose two correct answers)
Whether the parties' contract "pay if paid" provison was a condition precedent that prevented LaSalle from paying Macomb for extracontractual work? Whether the parties' contract "pay if paid" provison was a condition precedent that prevented LaSalle paying Macomb for contract work?
What was the main ISSUE (legal question) in the World of Boxing v King case?
Whether the results of Jones' second drug test made it impossible for the contact to be performed.
The contractual obligations of a debtor are generally discharged by ____________.
a decree of bankruptcy
TWO true statements about the discharge of contractual duty on grounds of impossibility are: ___________ and __________. (Choose two correct answers.)
a person cannot be discharged merely because he has contracted to do something he is simply unable to do. impossibility provides an excuse for nonperformance when some unexpected event arises after the formation of a contract.
When a contract does not contain language indicating that time is of the essence, ________.
a promisee must accept late performance rendered within a reasonable time
ONE true statement about expectation interest is that it involves ____________.
a remedy that places a promisee in the position he or she would have been in if the contract had been performed.
a loss to a promisee that does constitute an unjust enrichment to a promisor.
a remedy that places a promisee in the position he or she would have been in if the contract had been performed.
A discharge by ____________ occurs when one of the parties in a contract intentionally makes a material adjustment in an instrument without the other's consent.
alteration
When the normal measurement of damages is not appropriate, courts can use a(n) _____________
alternative measure of damages
A(n) _____________ is a breach that occurs when a promisor indicates before the time of performance that he or she is unwilling or unable to carry out a contract.
anticipatory breach
In cases when a promisee is unable to prove her expectation interest with reasonable certainty, the promisee seeks a remedy to compensate for the loss suffered ____________.
as a result of relying on a promisor's promise
Identify two characteristics of punitive damages, they are ____________ and _____________. (Choose two correct answers)
awarded to deter a defendant and others from committing similar behavior in the future. recoverable in contracts cases if a defendant has committed fraud.
When a duty is unconditional, a promisor's failure to perform constitutes a(n) __________.
breach of contract
In a case involving a nonmaterial breach, the innocent party does not have the right to _______, but she may have the right to _______.
cancel the contract suspend her performance until the breach is remedied
The starting point in calculating _________ damages is to determine the loss in value of the performance that the plaintiff had the right to expect.
compensatory
When calculating the ____________ remedy, a court compensates an injured person for the provable losses she has suffered as well as for the provable gains that have not been realized because of the breach of the contract.
compensatory
A person who has been injured by a breach of contract is entitled to recover ________.
compensatory damages
In a(n) __________ condition, a contract requires that the parties perform at the same time.
concurrent
A(n) __________ occurs when each person's performance is conditioned on the performance or tender of performance by the other.
concurrent condition
A(n) _________ is an uncertain, future event that affects a party's duty to perform.
condition
A(n) _____________ is a future, uncertain event that creates the duty to perform.
condition precedent
A(n) ___________ is a future, uncertain event that discharges the duty to perform.
condition subsequent
When a promisor's duty is ____________, her duty to perform is affected by the occurrence of the condition.
conditional
The key question is determining whether a material breach has occurred is whether the breach: _____________.
deprives the injured party of the benefits she reasonably expected
When a promisor performs an accord, it is called a ____________.
discharge by satisfaction
Alteration to a written contract by a third party without the consent of the contracting parties _______________.
does not affect the parties' rights
One true statement about substantial performance standard is that it ____________.
does not apply when a contracting party has been deprived of a material part of the bargain.
A promisor's death or illness _________ the nonperformance of duties that can be delegated to another.
does not excuse
TWO true statements about the use of restitution in different circumstances would be that __________ and __________. (Check all that apply.)
each party who has been benefited by the other's performance must compensate for the value of the benefit conferred. restitution applies in cases in which a person rescinds a contract on the grounds of lack of capacity.
One true statement about a quasi-contract is that: ____________.
enables a party who has materially breached a contract to obtain compensation for the value of any performance given.
A breaching party is responsible for paying only those losses that were __________ to her at the time of contracting.
foreseeable
A loss is ___________ if it would ordinarily be expected to result from a breach or if the breaching party had reason to know of particular circumstances that would make the loss likely.
foreseeable
In determining materiality, courts take into account the extent to which the breaching party will suffer ____________ if the breach is held to be ____________.
forfeiture material
In the context of specific performance, ONE true statement about injured parties is that they: ____________.
get exactly what they bargained for.
Some states will permit the use of punitive damages in contracts involving breach of the implied covenant of _________.
good faith
The standard usually used to determine whether a condition has occurred is a __________.
good faith standard
A promisor excused from performing when a _______________. (Choose ONE correct answer)
governmental regulation makes performance of a party's duties illegal
Two true statements about the effect of material breach are that a party who ________ and a party who __________. (Check all that apply.)
is injured by a material breach is discharged from further obligations under the contract. is injured by a material breach has the right to withhold his performance.
TWO true statements about restitution would be that: __________ and __________. (Choose two correct answers)
it involves compensating one party for the value of benefits he or she has conferred on the other party. it is a remedy that can be obtained at law or in equity.
The sums awarded as __________ damages vary from 2 cents to a dollar
nominal
One true statement about a nonmaterial breach is that the: ___________.
non-breaching party has the right to suspend performance.
When a(n) __________ occurs, the ___________ party is justified in withholding his own performance and suing for damages right away - without waiting for the performance due time.
nonbreaching anticipatory repudiation
The destruction of _________ that the promisor intended to use in performing _________ if substitutes are available. (Choose TWO correct answers)
nonessential items does not excuse nonperformance
A(n) ________ occurs when the breach is not serious enough to be material and the non-breaching party sues for only those damages caused by a particular breach.
nonmaterial breach
TWO true statements about discharge by waiver are that a: __________ and a __________. (Choose two correct answers)
party tenders an incomplete or defective performance. party accepts an insufficient performance without objection.
Incapacitating illness or death of a promisor excuses nonperformance when a promisor has contracted to ____________.
perform personal services
Statues of limitation specifies the ____________.
period of time in which a person can bring a lawsuit
TWO characteristics of restitution interest are that it involves: __________ and __________. (Choose two correct answers)
promisees who have changed their position. a loss to a promisee that does constitute an unjust enrichment to a promisor.
In most situations involving conditional duties, a __________ does not have the duty to perform unless and until a(n) __________ occurs. (Choose two correct answers)
promisor . condition
A party who has materially breached a contract might recover the reasonable value of any benefits conferred on a promisee by bringing an action under a(n) ____________.
quasi-contract
In the case of anticipatory repudiation, the nonbreaching party may: _________ or she may ___________. (Choose TWO correct snwers)
sue for damages wait until performance is due
An agreement to discharge a contract must be ____________ to be enforceable.
supported by consideration
If a construction contract calls for an inspector's certificate before payment is made, the owner can withhold payment if ____________.
the inspector is not adequately satisfied
Specific performance is available in all of the following situations, EXCEPT _____________.
when an injured party acts in bad faith
A court can withhold specific performance in all of the following situations, EXCEPT __________.
when the injured party has acted in good faith
When no time for performance is stated or implied, performance must be completed: _________ the circumstances of each case.
within a reasonable time, depending on