Exam 10: Contracts

In general, damages are to put the party who suffered from a breach of contract in the same economic position as if the contract had been performed.

You verbally agree to buy a house for $250,000. When the contract is prepared, the price is accidentally typed in as $25,000 rather than $250,000, but no one notices it until after you and the seller sign the document. At that point, you claim you only have to pay $25,000 and you claim that was the price you had agreed to originally. The court will say you are:

The freedom of contract is:

In Hinson v. N&W Construction, where Hinson submitted the low bid to N&W for plumbing work to be part of a larger construction project by N&W, but then refused to do the work when construction was started by N&W, the court held that:

16-year-old Green bought a car that he later wanted to return for a full refund. If the dealer refuses a court is likely to hold that:

When both parties agree that their contractual relationship should be terminated without performance and their obligations are discharged, this is:

In DeRosier v. Utility Systems, where DeRosier had more dirt dumped on his property than he wanted, the appeals court held that DeRosier could collect damages for the costs of removing the excess dirt dumped on his property.

A(n) ____ releases one party from the consequences brought about by wrongful acts or negligence.

If a minor contracts for student loans for college, the contract is not voidable.

Twenty years after you take this class you are successful and wealthy. Knowing that this class was the key to your success, you look up your old professor and send a letter saying, "Because you helped me so much, I am going to send you a check for $100,000." Later you come to your senses and do not send the check. Your old professor sues you for the money:

Fact Pattern 10-1 Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie. Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased. Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit. Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney. -Refer to Fact Pattern 10-1. Instead of meeting to discuss the deal, Lulene had sent Ellen a letter offering to sell her lemon pies for $5.00 per pie for as long as Ellen likes. Lulene says she must receive Ellen's answer by May 10. On May 8 Ellen signs a letter accepting the offer and mails it. On May 9 Lulene calls to withdraw her offer. Ellen says it's too late, she has accepted. Who wins?

Compensatory damages or actual damages were the costs incurred attempting to live up to a contract that another party breached.

A contract that violates state or federal statutory law is:

Specific damages to be paid in case of breach, that the parties agree to in the contract in advance of a breach are called ____ damages:

Consideration involves the right of individuals to be considered to be able to enter into contracts legally.

Liquidated damages are usually determined by the parties to a contract in the contract itself.

The party claiming incapacity, or the lack of legal ability to create a contract:

An offer is made to the offeree.

Contracts where one party, being in a position of strength, takes advantage of the other party, and which are held to be unenforceable, are called:

The general rule regarding acceptance is: