Exam 19: Breach of Contract and Remedies

If monetary damages would be an adequate remedy, then an action for specific performance is not appropriate.

A contractual provision which states that a waiver of rights will not constitute a modification to the contract is:

Which is not a correct statement concerning the remedy of specific performance?

When a party waives compliance with one provision of a contract, the other party may thereafter ignore other provisions of that contract.

Ordinarily, contracts for the performance of personal services are specifically ordered.

Beth Roberts purchased a "new" car from Honest John's Car Lot six months ago. The sales agreement expressly described the vehicle as a new car, and all usual factory papers accompanied the sale. However, Beth discovered that the car actually was acquired by Honest John's from another dealer who had used it as a demonstrator and loaned it to business friends on a regular basis. The car had more than 10,000 miles on it, a fact that had been concealed by turning back the odometer. Beth also discovered that Honest John's apparently had engaged in this practice before. Beth is suing for breach of contract. She is asking for compensatory damages equal to the difference between the new car price she paid and the average price the vehicle would have brought as a used car. In addition, she is asking for damages in the amount of $5,000. Honest John's attorney has told Beth that she will fight both claims and has advised Beth that the court will not award $5,000 as punitive damages for such a suit. What do you think?

Consequential damages may be recovered if:

In a breach of contract situation, the innocent party has all of the following are remedies available to her, except:

__________ occurs when a party expressly declares that performance will not be made when required.

Which is not a correct statement concerning rescission of a contract?

If there is a breach of contract, the law requires that the other party terminate the contract and bring a lawsuit.

If a plaintiff's loss involves damaged property, it is described as liquidated damages.

If one of the parties retains money or a legal benefit in a breach of contract, that person is obligated to make restitution to the person conferring the benefit.

An innocent party to an anticipatory repudiation of a contract has the right to treat the repudiation as a present, material breach and may file suit.

Between experienced businesspersons, exculpatory clauses are generally:

Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor's 1957 Ford Thunderbird. Each contract was definite and clear in all respects. As to the house painting, Cyril inquired with the painter as to when the work could begin. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted the house, but at a higher price. Cyril then sued the painter, claiming that there was an anticipatory repudiation of the contract by the painter.?With regard to the automobile purchase contract, after signing the contract, the neighbor decided that she did not wish to sell her car and refused to complete the transaction. Cyril attempted to purchase a similar car elsewhere, but the car was a vintage automobile which was not available on the open market. Cyril sued the neighbor for specific performance of the contract. Discuss the probable outcomes of the lawsuits.

If a seller delivers defective goods, the buyer does not lose the right to object to the breach of contract if the buyer:

A provision in a contract which states no damages can be recovered in the event of breach of contract is called:

An injured party who rescinds a contract after having performed services may recover the reasonable value of the performance rendered under restitutionary or quasi-contractual damages.

Which is NOT a correct statement concerning a liquidated damages clause?