Exam 13: Breach and Remedies

A breach of contract entitles the nonbreaching party to sue for monetary damages.

Windstar Heli-Pads,Inc.,enters into a contract to employ Valerie as an on-site project manager for two years.Windstar breaches the contract.Valerie has a duty to

Clutch Auto Parts enters into a contract with Bio Health Club for discounted memberships for Clutch's employees.Bio breaches the contract and Clutch enters into a contract with Apex Fitness for the same service at a lower price.Clutch might be awarded nominal damages to

Quasi contract allows a court to act as if a contract exists when there is no contract.

Vinyl Lynings,Inc.contracts to resurface the insides of the pools at WaterWorld Park.Vinyl Lynings knows that without the resurfacing,WaterWorld will have to delay its season opening.Vinyl Lynings does not perform as promised.As consequential damages,WaterWorld can recover

A party seeking to recover compensatory damages cannot also recover in-cidental damages.

Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000.On April 30,Little cancels the contract.Kris finds another job dur-ing May but earns only $3,000.Kris files a suit against Little.As compen-satory damages,Kris can recover

The failure of one party to perform a contract entitles the other party to rescind it.

A party seeking to recover in quasi contract must show that he or she has been unjustly enriched.

Fashion Retail Center enters into a contract with Great Promotions,Inc.,to provide Fashion with a plan to retool its merchandising strategy.If Great Promotions breaches the contract,Fashion has a duty to

Refined Commodities,Inc.,agrees to deliver ten tons of sheet metal to Select Builders Corporation.The agreement states that delivery is to be within "3" days,although the parties intend "30" days.Refined cannot convince Select to amend the contract.Refined should seek

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.When Handy cancels the contract,Ilsa spends $100 to obtain a similar job that pays $450 per week for a year.Ilsa is entitled to recover

A liquidated damages provision is the same as a penalty provision.

Lava Excavators,Inc.,needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company.Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000.Mining ships the drill late.Lava can recover

National Drilling Company ships its only pump to American Hydraulics Corporation,the manufacturer,for repair.National hires Overland Transport,Inc.,to take the pump to American Hydraulics and to return it to National as soon as the repair is complete.National is forced to sus-pend operations without a pump,but Overland does not know this.National expects to be without the pump for five days and to lose profits of $5,000.When the pump is not returned by the end of the fifth day,National rents a pump at a cost of $100 per day.Overland delays five more days before returning the pump.National files a suit against Overland,asking for compensatory,consequential,and punitive damages.Will National recover?

A remedy is the relief provided to an innocent contracting party when the other party breaches the contract.

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50.To rescind the contract

Rural Utility,Inc.,enters into a contract with Shovel Excavation Service to dig up,replace,and rebury Rural's cables in a certain location.Rural advances Shovel 10 percent of its cost.If the parties rescind the contract,Shovel's refund of the payment would be

Office Accounting,Inc.,hires Perry to repair a computer on site for $400,but Perry does not show up as agreed.Office Accounting hires Raul to do the job for $350.Office Accounting may recover from Perry

Ralph contracts to sell his Double-R Ranch to Samantha on May 1.On April 20,Ralph tells Samantha that he will not go through with the deal.Samantha can recover