Exam 9: The End of the Contractual Relationship

Joe agreed to buy a car from Sam at Sam's Used Car Lot for $10,000 with a $100 deposit. The next day, before he took delivery, he changed his mind and refused to go through with the deal. Sam kept the deposit and sued Joe for breach of contract. Indicate what kind of remedy he would be entitled to.

In awarding damages for breach of contract

Which of the following is false with regard to remedies for breach of contract?

If a contract states that the contract is "subject to the purchaser obtaining financing for $10,000 at 8% by 5:00 p.m. Friday, March 11," it means that

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Courts enforce exemption clauses because it is assumed that they reflect the will of the parties to the contract.

An agreement by both sides to terminate the contract or to disregard a term of the contract is known as ________.

Alan entered into a written contract for the purchase of a house owned by Joe. As the time to move approached, Alan discovered that Joe was refusing to move out and refusing to transfer the property. Apparently a dissatisfied customer had driven through the showroom window of Joe's new car dealership, causing him considerable expense. Joe could no longer afford to purchase the new luxury home into which he had intended to move. Which of the following is the appropriate remedy in these circumstances for Alan, who really wants the house?

What is the result of a repudiation?

Joe owed Harry $500, but Harry was confused when Joe came to pay it back and Harry refused to take the money for the payment. Explain Joe's legal position.

A breaching party is responsible for all lost profits flowing from a breach of contract.

Indicate three different types of equitable remedies and distinguish among them.

Connie enters into an agreement with Razmin, a local artist, to showcase a particular one of her sculptures at a prestigious art show. The day before the show, the gallery where the sculpture was being stored burns to the ground. Which of the following represents the most likely outcome?

A breach of warranty allows a victim to sue for damages, but they must go through with their obligations under the contract.

Which one of the following statements accurately describes the effect of a liquidated damages clause on a plaintiff's claim in a breach of contract action?

Frustration arising when one of the parties to a contract causes or fails to prevent a frustrating event is referred to as ________.

Explain under what circumstances a creditor would be entitled to refuse to accept payment proffered to him on or before the payment due date.

Joe paid Sam a debt owed of $50,000 by giving him 10,000 $5 bills. Sam refused to accept the payment. Explain this legal position.

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Which one of the following is false with regard to exemption (exclusion) clauses?