Midterm Practice Questions

strict performance

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

The location of the goods involved in the breach

What key factor determines what remedies are available for a seller in a sales contract when there is a breach by the buyer?

a third-party intended beneficiary of a contract who is not a creditor.

A donee beneficiary is:

the reasonable value of the agreement

A remedy for a quasi-contract is equivalent to:

There is a reasonably certain basis for the courts to determine a remedy in the case of a breach. The parties intended to make a contract.

A sales or lease contract will not fail for indefiniteness even if one or more terms are left open as long as both of the following are true:

Contracts for the sale of goods and services when it is predominately goods Contracts for the sale of goods

Article 2 of the UCC applies to what types of contracts?

painting the exterior of a house to another house painter, the mowing of grass in a residential neighborhood to another landscaper

Assuming there is no contract language prohibiting delegations, which of the following acts could likely be delegated?

identified and in existence

Before title to goods can pass under the UCC, the goods must be:

a contract for the sale of a picasso painting and a contract for the sale of land

For which of the following contracts would a court be likely to grant a remedy of specific performance?

reformation

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?

The predominant-factor test dictates the proper choice of law, Common law is appropriate for some mixed contracts.

How do parties determine which is the appropriate law for a mixed contract?

Under the UCC, the only required definite term is quantity of product being sold. Other terms such as price and delivery time can be left open. Under the UCC, merchants have more flexibility in having open terms. Under the UCC, any manner of showing agreement to contract is accepted, but under the common law acceptance must mirror the offer.

In what ways does Article 2 of the Uniform Commercial Code (UCC) differ from contract rules under the common law?

mutual mistake by the parties, clerical error in the contract, fraud by one of the parties

In which of the following scenarios is a court likely to order reformation of a contract?

the difference between the resale price and the contract price and incidental damages

If a buyer has rejected goods, a seller may resell the goods and recover from the buyer:

The seller, because the goods were nonconforming.

If a seller breaches a sales contract and the buyer rejects the nonconforming goods, who holds the risk of loss of the goods?

frustration of purpose

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?

the goods are delivered to the carrier.

In a shipment contract, risk of loss passes from seller to buyer when:

the seller is required to ship goods but is not required to deliver them to a particular destination before risk of loss transfers to the buyer.

In a shipment contract:

whether the party is directly named in any part of the contract, whether the party is able to control any details of the performance.

In determining whether a third-party is an intended or incidental beneficiary, a court may consider: (Select two)

The UCC applies to contracts that sell goods.

In what situations does the UCC overrule common law?

commercial impracticality

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?

No, because you cannot compel performance of personal services under 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, it can be enforced under the equitable remedy of specific performance.

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?

HighFlyer can complete manufacturing and sell the goods, and can sue for any difference between the contract price and the sales price, or HighFlyer can cease manufacturing any unfinished goods and sell the goods for salvage value.

Marathon Shoe Store Inc. gives notice to HighFlyer Shoe Co. that Marathon cannot pay for its current shoe order and would like to cancel. HighFlyer has not yet finished making the shoes. What options does HighFlyer have to address the breach of contract by Marathon?

a contract has been breached, when the parties never had a contract, a contract has been rescinded

Restitution is an appropriate remedy when:

real estate contracts

Specific performance is a remedy which is always available in:

Contracts for goods over $500

The Uniform Commercial Code applies to what types of contract?

the perfect tender rule

What is the term for the doctrine under which a seller must deliver goods that conform exactly to the terms of the contract?

the goods are physically delivered to the buyer.

The default provision of the Uniform Commercial Code (UCC) is that, unless otherwise specified, title to goods being sold passes when:

cure

What is the term for the right of a seller, under the Uniform Commercial Code (UCC), to correct a delivery of goods that do not conform to contractual terms within the period specified by the contract in order to avoid a breach of contract action?

whenever the contract designates it to pass.

Under the Uniform Commercial Code (UCC), risk of loss passes to the buyer:

quantity of goods being sold

Under the Uniform Commercial Code (UCC), what is the only required term for a valid sales contract?

the price per item or the total price the date of delivery the place of delivery or assumption of possession

Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is NOT essential?

when the bailee acknowledges the buyer's right to possess the goods when the buyer obtains a negotiable document of title

Under which of the following circumstances does risk of loss pass to a buyer when goods are held by a bailee?

there is no legal title.

Void title means:

The seller has the right to cure nonconforming goods within the contract time for performance, The contract is unenforceable if the goods which had been identified to the contract are destroyed, The seller may choose a different means of delivery if the agreed upon means becomes unavailable or impractical.

What actions are valid exceptions to the perfect tender rule?

on requires actions instead of damages and one is monetary

What are the differences between legal and equitable remedies?

It must be moveable. It must be tangible.

What characteristics must an item possess to be classified as a "good"?

Whether the seller delivered nonconforming goods and Whether the seller failed to deliver the goods

What factors are important for a buyer to determine when deciding which remedies apply when a seller breaches a sales contract?

which party has possession of the goods, whether the buyer has rejected or accepted the goods, whether or not the goods are in transit

What factors influence the remedies available to a seller when the buyer breaches a contract? Choose 3 answers.

It obligates the buyer to purchase all her needed goods from the seller.

What is a requirements contract?

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

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

by performance

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

unjust enrichment

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

satisfaction of a reasonable person and satisfaction of the receiving party

What is the standard to which most personal satisfaction contracts must adhere?

cover

What is the term for the action of a buyer who, upon learning that the seller will not perform the seller's duty under a contract, makes arrangements to purchase the same goods from a different source?

The assignee obtains only the rights that the assignor had under the contract, Contracts that are for a service that depends on a particular skill or talent may not be delegated, A contract cannot prevent an assignment of the right to receive funds.

What legal limitations are imposed on parties to assignments and delegations?

that the goods are unique and a substitute will not be equal

What must an aggrieved buyer prove to obtain the remedy of specific performance in the event of a breach by the seller?

crops harvested by the seller and oil and gas if the seller removes

What products are included in the UCC definition of goods?

The buyer may sue to obtain specific performance if the goods are unique or if damages are an inadequate remedy, The buyer may buy other goods and recover damages from the seller, the buyer may cancel the contract

What remedies are available to a buyer when a seller refuses to deliver the goods that are the subject of a contract?

The seller may resell the goods and sue to recover damages, the seller may cancel the contract, the seller may withhold delivery of the goods

What remedies are available to a seller when the buyer breaches a contract before the goods are delivered to the buyer?

a condition precedent

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

yes, the neighbor will have to pay you a reasonable price for the work

You own a lawn care service. A new customer calls and asks that you mow and weed eat her lawn. You tell her the price will be $150 and she agrees. You show up while she is at work and get the lawn mowed and the weed eating done by the time she gets home. Unfortunately, when she gets home, you discover that you have serviced the lawn of your customer's next-door neighbor instead of hers! Do you think you have any chance of getting any money from the neighbor for the services you have provided?

when the goods can be divided into commercial units.

partial acceptance of goods is permitted:

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

rescission of a contract will

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

what are the types of situations that may qualify as grounds for discharge due to impossibility?

good faith

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

anticipatory breach

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?

to reflect the parties' true intentions

Courts may reform a contract:

If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.

What rights does a third-party beneficiary to a contract hold in regard to that contract?

The right to reject the seller's goods if the goods are not exactly as described in the contract and The right to accept delivery of all of the goods

What rights does the perfect tender rule give buyers of goods?

Yes, and the delegatee is obligated to perform as the delegator would have.

When a contract duty is legally delegated, must the obligee accept performance from the delegatee?

none

When a contract has been assigned, what rights does the original contract holder (assignor) still have?

on tender of delivery.

When a non-merchant sells a good to a buyer at the seller's location, the risk of loss passes to the buyer:

never

When does title to stolen goods transfer?

No, an obligee can sue either the delegatee or the delegator for non-performance.

Will a valid delegation relieve the delegator from the contract?

Judicial Admissions Merchants Who Confirm Specially Made Goods

When are three exceptions to the UCC's Statute of Frauds?

When both parties are merchants.

When do additional terms become a part of a bargain for the sale of goods?

when the goods have been identified

When does a buyer obtain an insurable interest in goods?

when the buyer takes physical possession of the goods.

When goods are to be picked up by a non-merchant at the place of sale of a merchant, risk of loss passes:

payment of $500

Which of the following contract rights may be assigned?

The contracting parties were aware of the third-parties existence and position at the time of making the contract

Which of the following elements are required of ALL intended beneficiaries?

an order for specific performance

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

intended beneficiaries

Which of the following may sue on a contract, to which they are not a party?

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

what it the difference between a material breach and an immaterial breach?

a commercial freezer unit

Which of the following qualifies as a "good" under Article 2 of the Uniform Commercial Code?

Creditor beneficiary, Donee beneficiary

Which of the following third-party beneficiaries have the right to enforce a contract?

Article 2

Which section of the Uniform Commercial Code (UCC) applies to contracts for sales of goods?

Because it is tantamount to court ordered involuntary servitude.

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