Exam 19: Breach of Contract and Remedies

Ordinarily,the remedy for a seller's breach of a contract for a sale of real estate is damages.

Restitution involves one party's recapture of a benefit conferred on the other party that has unjustly enriched him or her.

Consequential damages are foreseeable damages that arise from a party's breach of a contract.

Metro Facilities,Inc.,contracts to sell a parking garage 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

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

Lunch Trucks,Inc.,contracts to deliver and serve Meals Catering Service's products to its clients for $5,000 per event,payable in advance.Meals Catering pays the money,but Lunch Trucks fails to perform.Can Meals Catering rescind the contract Can Meals Catering also obtain restitution What does it mean to "rescind" a contract How is a contract rescinded What is restitution How is restitution accomplished Explain.

Bread & Bagels Bakery enters into a contract with Cineplex for discounted tickets for Bread & Bagels' employees.Cineplex breaches the contract and Bread & Bagels enters into a contract with DigiMovies for the same service at a lower price.Bread & Bagels might be awarded nominal damages to

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation.Juice Smoothies does not pay for the storage.Isaac sells the fruit to Kayo Beverage Company.This sale represents

Renew Turf,Inc.,enters into a contract with Sports Park to provide surface material for Sports Park's baseball fields by October 1 for a series to begin October 5.The contract specifies an amount to be paid if the contract is breached.This is a liquidated damages clause if the amount is

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

Rashi contracts to work for Social Data Analysis Corporation during June for $4,500.On May 31,Social Data cancels the contract.Rashi declines a job of a different type and rank with Tech Collection,Inc.,which would have paid $3500.Rashi files a suit against Social Data.As compensatory damages,Rashi can recover

When one party breaches a contract,the other party can only sue for damages.

Sati contracts to work exclusively for Thermal Imaging Company during July for $5,000.On June 30,Thermal Imaging cancels the contract.Sati finds a similar job for the month of July but earns only $3,000.Sati files a suit against Thermal Imaging.As compensatory damages,Sati can recover

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

A contract between Recreational Games & Rides,Inc.,and Summer Fair Corporation includes a provision excluding liability as a result of fraud.This provision is

Rebecca hires Samson to perform music at Becca's Bistro,but he breaches the agreement to accept a higher-paying job at Three Courses Dinner Theater.Rebecca files a suit against him.The court will most likely

Porches & Verandas,Inc.,agrees to build a screen porch for Quinn,but fails to complete the job.Quinn hires Ramadas,Inc.,to finish the project.Quinn may recover from Porches & Verandas

Dawson owns Evergreen,a complex under construction that will include commercial and residential suites,as well as a parking garage.Dawson allows First Call Construction,Inc.,the contractor,to complete a stage of construction late.This waives Dawson's right to sue for

Whether a contract's limitation-of-liability clause will be enforced depends on the type of breach that is excused by the provision.

Medical Eye Clinic Corporation enters into a contract with local musician Natalie,who agrees to perform for a meeting of Medical Eye's personnel to be held in its main office building.Before the date of the meeting,Natalie refuses to perform,citing a higher-paying gig.Meanwhile,Medical Eye contracts to sell the building to Optical Center,Inc.,but before the transaction is complete,Perfect Vision Company offers to pay a higher price.Medical Eye refuses to transfer the building to Optical Center.In separate suits by Medical Eye against Natalie and by Optical Center against Medical Eye,each plaintiff seeks specific performance.How might the court rule in each case,and why