MSU LAW 231 Chapter 13

Jordynne was the manager of Pets-R-Us, a pet store in Southern Valley Mall. Pets-R-Us had a one-year lease, and rent payments were $2,000.00 per month. Five months into the lease, Jordynne found a better site for the pet store. She notified Southern's manager, vacated the mall, and moved her store to its new location. After two months, Southern was able to re-lease the premises to another retail store, but at a reduced rent of $1,800.00 per month. If Southern successfully sues Pets-R-Us, Southern will likely receive:

$5,000.00 in damages.

What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers.

- rescission - reformation

Which mistake is likely to be voidable?

Bilateral mistake

Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. If Laurelei sues, she will be entitled to:

Compensatory, consequential, and possibly punitive damages.

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.

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?

No, because you cannot compel performance of personal services under specific performance

What is the result of a contract in which both parties are wrong about a material fact of the contract?

The contract is voidable

What does the law require for a personal service contract?

The personal service requirement must be stated

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

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

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

an order for specific performance

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

by performance

Forcing a party to agree to the terms of a contract through the use of threats or blackmail is called:

duress

If the breach of one party is material, the other party _____ discharged from performing its duties under the contract. If the breach of one party is minor, the other party ______ discharged from performing its duties under the contract.

is, is not

If a party enters a contract, _______________ is the most common way for that party to discharge its duties under the contract. In this case, Federer ______ obligated to maintain and service the sign.

performing the contractual duty, was

Which of these contracts would be enforceable, despite the existence of a mistake? Choose 2 answer choices.

- Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use. - Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead of electricity, but she is incorrect.

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

- Subjective personal taste - Objective, reasonable person standard

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

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

What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices.

- The plaintiff was incapable of voluntarily agreeing to the contract - the defendant committed a wrongful or illegal act

In what situation could a party enforce strict performance?

- When the parties specifically agree to it in the contract - When the requirement is reasonable

When determining whether a remedy is a liquidated damage or a penalty, a court will review: (Choose 2 answers.)

- whether the amount set was a reasonable and not excessive amount - whether at the time of contracting damages where difficult to estimate

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

- whether the court will discharge the contract - the level of the performance of the contractual obligations

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

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

Legal remedies are monetary while equitable remedies are non-monetary

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.

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

Substantial performance involves an immaterial breach

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?

Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work

Federer's failure to clean the cobwebs and remove the tomato stain constituted a ______ breach of the contract. Federer's performance of duties under the contract was ________. When a breach of contract is minor and not material, the nonbreaching party _______ excused from the performance of contractual duties. Federer ______ likely recover the remainder of the lease payments from Bolat.

minor, substantial, is not, can

A breach of contract occurs when there is ________ of a contractual duty. If the performance is substantial, but not complete, there _____ a breach. Substantial performance results in a ______ breach. If the performance is less than substantial, there _____ a breach. It is a _____ breach.

nonperformance, is, minor, is, material

What if the sign's neon lettering did not work and Federer & Co. (Federer) refused to repair it? A breach of contract occurs when performance is not at least _________. Federer's failure to repair the broken neon sign would be __________. Failing to repair the broken neon sign constitutes a ________ breach of the contract. Bolat _______ be justified in refusing to make additional lease payments.

substantial, substantial, material, would

What are the possible remedies for a contract formed under duress? Choose 3 answer choices.

- allow duress as a defense for breach of contract - make the contract voidable - rescind the contract