Business Law Ch 10
Opportunity Market Company (OMC) and Pierce enter into a contract for Pierce to cut and trim the landscaping around OMC's building before a meeting of the company's sales staff. When Pierce's schedule conflicts, he asks Rachel to do the cutting and trimming. This transfer of duties is a delegation. an assignment. a third party beneficiary contract. prohibited.
a delegation
A contract between Laser Maintenance, Inc., and Medical Vision Operation Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits any assignment. no assignment. only an assignment of contract rights to personal services. only an assignment that would change the obligor's risk.
any assignment
Reformation is an equitable remedy that allows a court to rewrite a contract to suit itself. True False
false
Subjective impossibility of performance can discharge a contract. True False
false
A party seeking to recover in quasi contract must show that the other party has been unjustly enriched. True False
true
An intended beneficiary can sue directly to enforce a promisor's promise. True False
true
Consequential damages are awarded for damage caused by special circumstances beyond a contract itself. True False
true
The measure of compensatory damages often varies by type of contract. True False
true
Metro Facilities, Inc., contracts to sell a parking lot to Nouveau Property Company. The contract provides that if Metro does not close the deal by September 15, it must pay Nouveau one-half of the contract price. This provision is not enforceable because it is a liquidated damages clause. an exculpatory clause. a limitation-of-liability clause. a penalty clause.
a penalty clause
D'Alemberte contracts with Elias to render personal nursing services for the benefit of Federica. This is a delegation. an assignment. a third party beneficiary contract. an alienation.
a third party beneficiary contract.
Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is a delegation. an assignment. a third party incidental beneficiary contract. a third party intended beneficiary contract.
a third party intended beneficiary contract.
Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed. Dry Gulch hires Fernando to do the job for $2,000. Dry Gulch may recover from Elliot nothing. compensatory damages. consequential damages. nominal damages.
nominal damages.
A contract for a sale of land from Bayside Properties, Inc., to City Development Corporation contains an erroneous legal description. The most appropriate remedy for these parties is a quasi contract. reformation. rescission. specific performance.
reformation
Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek damages. restitution. rescission. specific performance.
specific performance
Ready Repair Service enters into a contract to fix washers and dryers in Scrub n' Dry Company's coin-operated laundries. If Ready Repair breaches the contract, Scrub n' Dry can do nothing but make a deal with a different service provider. do nothing but temporarily suspend operations and wait. file a criminal complaint against Ready Repair. sue Ready Repair for damages.
sue Ready Repair for damages
Ambrose enters into a contract to buy 350 acres from Belle Vista Farms to cultivate grapes and open a winery. Refer to Fact Pattern 10-1. If Belle Vista breaches the contract, Ambrose's remedy would most likely be the amount that Ambrose expected to invest in the project. a percentage of Belle Vista's unrealized profit. the difference between the land's contract and market prices. specific performance.
the difference between the land's contract and market prices.