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Exam 20: Discharge and Remedies

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Question 41

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[Hawaiian Adventure] Hannah decides to go on a fun trip to Hawaii. While she is gone, she needs someone to take care of her two dogs, Champ and Sage. She hires Amir three months in advance, and they reach a contractual arrangement whereby he will be paid $200 for taking care of the dogs for two weeks. Amir comes over two months before Hannah is set to leave, takes one look at Champ and Sage, and declares that they are too difficult to handle so he will not care for them. Hannah then hires Alisha who agrees to care for Champ and Sage. Two weeks before Hannah is set to leave, however, Alisha calls and tells her that she just broke both her legs in an automobile accident and has been put on bed rest for two months. Finally, Hannah hires Kelsey to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Hannah returns home, she finds that Kelsey has disappeared with Champ and Sage. Later, they are found in good health at an exclusive resort visited by Kelsey. Kelsey refuses to return Champ and Sage to Hannah, claiming that they were all enjoying the resort and that she has become quite attached to them. -What was the effect of Alisha's refusal to keep Champ and Sage?

A) She is discharged from performance because of frustration of purpose.
B) She is discharged from performance because of impossibility of performance.
C) She committed a material breach.
D) She failed to substantially perform but only committed an immaterial breach.
E) She is guilty of only a nominal breach because she had a good excuse for breaching.

F) None of the above
G) A) and B)

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Question 42

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Alexandra and Tomas enter into a contract in which Tomas agrees to install a new door for Alexandra and to install a new silver doorknob. Tomas installs the door, but silver doorknobs are out of stock so he finds a chrome knob that he believes looks silver and he installs it. Which of the following describes Tomas' performance of his duties?

A) Complete performance
B) Substantial performance
C) Significant performance
D) Absolute performance
E) Approved performance

F) None of the above
G) D) and E)

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Question 43

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Liquidated damages will be enforced based upon the free-will concept of contracts, even if the liquidated damages amount is unreasonable.

An order requiring that the breaching party fulfill the terms of the agreement is called specific performance.

Darwin was to deliver a 1965 Camaro to Ashland that she had paid Darwin to restore for her. Once he finished the Camaro's restoration, Darwin decided to keep the car. The court would order Darwin to turn over the car to Ashland under ________.

________ damages are awarded by a court when no actual damages resulted from the breach of a contract.

Gordan contracts with Liddia to build his house with solar power shingles. However, Liddia finds that the solar power shingles will not be available in time for Gordan's house. Liddia and Gordan agree to use asphalt shingles instead. This is known as a[n] ________.

Bobby and Fredrick specify in their contract that for every day Bobby's construction company does not complete Fredrick's new house, Bobby will deduct $1000. This is known as a ________ damages clause.

The court may award the plaintiff nominal damages in a case where no actual damages result from the breach of a contract.

Which term describes when a party unjustifiably fails to substantially perform his or her obligations under the contract?

Vivian and Anna have contracted for Anna to sew Vivian a new quilt. Anna, however, decides that the pattern that Vivian would want sewn in the quilt would be better sewn by Patty. Vivian agrees to have Patty sew the quilt. This is known as a(n) ________.

A contractual condition of satisfaction is considered a[n] ________ condition that must be met before the other party's obligation to pay for the performance arises.

Which of the following is not true of a party seeking equitable relief?

A material breach does not discharge the nonbreaching party from his obligations under the contract.

Describe the actions that bring about an anticipatory repudiation of a contract, and the rights of a nonbreaching party when faced with anticipatory repudiation.

[Dream Home] Jacob finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home provided that he can obtain a loan. Jacob also includes a clause in the contract with the seller stating that if he loses his job before the date the purchase contract is signed, the seller will release him from any obligation. After obtaining a loan and buying the home, Jacob decides he wants to have new windows installed. He enters into a contract with a window contractor. The window contractor visits the home, but never finds Jacob there. The contractor makes several attempts to reach Jacob, but Jacob does not return phone calls and makes no attempt to assist the contractor in arranging the window installation. -The provision that the seller will release Jacob from any obligation if he loses his job is a(n) ________.

Which of the following is NOT a way in which a contract may be discharged by operation of law?

Hector's house was damaged by fire. He obtained three independent appraisals to repair the damage and submitted the appraisals to his insurer, informing the insurer that he was willing to accept use of the lowest appraisal as a basis for his insurance reimbursement. The adjuster for the insurance company asked Hector to submit to an oral examination under oath concerning the fire, but Hector refused. The insurance company denied reimbursement based on Hector's refusal to provide the examination under oath. If the court follows the case in the text Hamilton v. State Farm Fire & Casualty Insurance Company, will Hector recover under the policy?

Under the UCC, how are compensatory damages calculated when a seller breaches a contract for the sale of goods?

[Bathroom Mess] For $300,000, Michael agreed to build a new home for Ashton, who is very picky. Michael built the home to Ashton's specifications with one exception: the faucets and flooring in the upstairs bathroom were not exactly what Ashton specified. That was a mistake on Michael's part, but he did not intentionally fail to follow the specifications. When Ashton saw the bathroom, she went ballistic and told Michael that she would not pay Michael anything for the house. It will take $300 to put in the correct faucets and flooring. Michael responded that he is willing to pay $300 to put Ashton in the position she would have been in had the correct faucets and flooring been used, but that is all he is willing to pay. -Regarding the appropriate amount of damages, if any, which of the following statements is true regarding the effect of Michael's failure to meet his obligations under the building contract?