BLAW SCENARIOS EXAM 2 #2

Brian wants to buy a mare that he can breed to help develop a horse operation. Larson offers to sell Brian a horse that Larson believes is healthy and should make a good broodmare when a little older. After two years, the horse still has not foaled. The veterinarian tells Brian that the horse is incapable of breeding. If Brian sues to rescind the contract with Larson, it is

a. unlikely that a court will allow rescission based on a mistake of fact.

b. likely that a court will allow the rescission based on a unilateral mistake.

c. unlikely that a court will allow rescission, because Brian made a mistake about market value.

d. likely that a court will allow the rescission based on a mistake of fact.

AJ agrees to buy Harry’s pickup truck so he can pull his trailer. Both AJ and Harry believe that the truck is big enough to do the job. After they complete the deal, AJ finds that the truck is not strong enough to handle the trailer. The contract between AJ and Harry can be rescinded because of

a. an allowable mistake. b. a mutual mistake. c. a beveled mistake. d. a unilateral mistake.

Sophie buys a tropical bird from Henry’s bird store. Henry says, “It is extremely rare.” Sophie asks if the bird is on the endangered species list. Henry knows it is on the list, but he tells her it is not. Government officials later tell Sophie that she purchased a bird that individuals may not own, the bird is confiscated, and she is fined for possessing it. To recover the price of the bird and the cost of fines, Sophie can sue Henry for

a. mistake, which allows the contract to be rescinded.

b. negligence.

c. undue influence.

d. fraudulent misrepresentation

Samantha, a famous artist, has a contract with Alec to paint his portrait for $6,000. Samantha is very busy and want to delegate her duty to do the painting to Patty, her top student and a very talented artist. If Alec objects, a court likely will

a. honor the delegation because, as a general rule, delegations are allowed. b. not honor the delegation because, as a general rule, delegations are not allowed. c. not honor the delegation because the contract is based on personal skill. d. honor the delegation only if the delegation was in writing.

Antonio owns property on which a gasoline station once stood. Josh agrees to buy the land so that he can build an office on it. They include language in the contract making the purchase contingent on a determination that there are no environmental problems with the property. The contingency represents

a. a concurrent condition.

b. an implied condition.

c. a condition precedent.

d. a condition subsequent.

Rick agrees to buy 20 acres of land from Tina. Three weeks before the deal is to close, Rick calls Tina and says, “The deal is off!” In this situation, Rick’s actions constitute

a. substantial performance of the contract.

b. a reformation of the contract.

c. a discharge of the contract by novation.

d. anticipatory repudiation of the contract.

Johanna agrees to purchase Jessie’s land so that she can build a golf course. They write a contract, and Johanna transfers the deed to Jessie. Jessie pays Johanna the entire purchase price. Johanna and Jessie have discharged their contract by

a. performance.

b. lapse of time.

c. concurrence.

d. breach.

Jim contracted with United Technologies to install 5,000 feet of Rocketfish Cat-5e network cable in his new office building. United installed 5,000 feet of Dynex Cat-5e network cable instead. When Jim sued for breach of contract, and a court found that United’s actions constituted

a. material breach.

b. substantial performance.

c. incomplete performance.

d. complete performance.

Nico and Oscar form a contract under which Oscar is to perform gardening services for Nico for one year. For six months, Oscar performs the services, and Nico pays him. Nico’s mother, Madison, becomes ill and is unable to care for her garden. The three agree that Oscar will no longer care for Nico’s garden but instead will care for Madison’s garden for the remainder of the year. The new contract

a. is a novation.

b. is a reformation.

c. is not valid.

d. has been substantially performed.

If a person who has signed a contract to provide a service dies before the service can be performed, the

a. buyer is out of luck, because the contract is discharged by objective impossibility.

b. buyer can sue the estate of the deceased to recover the cost of obtaining a replacement or for other particular costs incurred.

c. estate (or successor) of the service provider may sue for the profits that would have been earned had the contract been fulfilled.

d. estate (or successor) of the service provider must make a good faith effort to provide a timely replacement

David has a contact with Leland to build his house at a fixed price, but an unexpected hurricane causes a lumber shortage throughout the U.S. and Leland is unable to build the house. A court may excuse Leland from performing the contract based on the doctrine of

a. commercial impracticability.

b. the statute of limitations.

c. repudiation.

d. a novation.

Marc agrees to sell Diana 500 copies of a book for $3.50 per book. Marc breaches the contract by not delivering the books. At the time of the breach, the books are available from the publisher for $4.50 each. Diana’s damages are

a. $2,250

b. $0

c. $500

d. $1,750

Allison contracts with Jackson to have him remodel the kitchen in her home. Allison changes her mind and breaches the contract before Jackson can begin work. As a remedy for the breach, Jackson can seek

a. nothing, because she breached the contract before Jackson began work and he suffered no loss.

b. the contract price.

c. the contract price plus interest.

d. expected profits from the contract.

Lori contracts to buy coffee beans for her store from Mike. The contract price is $7.50 per pound of Costa Rican coffee. Mike breaches the contract and delivers no coffee. Lori’s damages will likely be

a. the amount Mike can afford to pay.

b. the amount of damages she seeks.

c. the difference between the contract price of coffee and what Lori will have to pay to secure alternative coffee.

d. the compensation paid by Mike to the coffee grower who was supposed to supply the beans to Mike

Velma contracts with Gordon, who agrees to build a stone retaining wall and French drain on her property. The wall and drain are necessary to prevent erosion of her land, which is falling into the creek on her property at a rapid rate. If Gordon breaches the contract by failing to get to work, Velma is under a legal obligation to

a. absorb all of the costs associated with the property erosion caused by Gordon’s breach.

b. wait until Gordon is prepared to build the wall and drain.

c. do nothing, because she is the innocent party and thus has no legal duties.

d. mitigate her damages.

Brandon contracts with Starcross to buy several of Starcross’s dairy cows. Starcross delivers the cows, but Brandon doesn’t pay for them. Starcross may be able to have his cows returned if he seeks the remedy of

a. reformation.

b. specific performance.

c. restitution.

d. novation.

Ronda contracts with Darren to buy two horses. They agree that she will pay $2,000 for each horse. When they draw up the contract, the sales price is inadvertently changed to read “$40,000” rather than “$4,000.” They can seek the remedy of

a. restitution.

b. recovery based on quasi-contract.

c. novation.

d. reformation

Kevin buys a new Volkswagen and signs a contract with Volkswagen saying that he will never sue the company for any personal injuries he may receive as a result of a faulty car. In exchange, Volkswagen reduces the price of the automobile by $6,500. This type of contract provision is

a. a valid liquidated damages clause.

b. an exculpatory clause.

c. a revisionary clause.

d. a dormant commerce clause