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5 Written questions

5 Matching questions

  1. Compensatory Damages
  2. Objective Impossibility of Performance Doctrine
  3. Section 139 of Restatement (second) Contracts
  4. Anticipatory repudiation occures when
  5. Voluntary Consent
  1. a -based on detrimental reliance
    -oral promise can be enforceable if reliance was foreseeable to person making promise
    -if injustice can be avoided only by enforcing the promise
    -court may also enforce an oral contract if party against whom enforcement admits that a contract sale was made
  2. b a party to a contract is relieved of his duty to perform when performance becomes objectively impossible or totally impracticable (through no fault of either party)

    Qualifications for discharge of obligation:
    1) One of parties dies or becomes incapacitated prior to performance
    2) Specific subject matter of contract is destroyed
    3) Law change -> renders performance illegal
  3. c -covers direct losses and costs
    -nonbreaching party-> loss of bargain
    -compensate injured party for damages proved directly from loss of bargain caused by breach
    -replace what was lost
    -standard measure: difference between value of the breaching party's promised performance and value of actual performance
    -amount is reduced by any loss the injured party has avoided
  4. d knowledge of, and genuine assent to, the terms of a contract. If a contract is formed as a result of a mistake, misrepresentation, undue influence, or durress, voluntary consent is lacking and the contract will be voidable
  5. e a sharp fluctuation in market prices create a situation in which performance of contract would be unfavorable to parties

5 Multiple choice questions

  1. -forcing party to do something including entering a contract through fear or threats->threatened act must be ILLEGAL
    -consent is not voluntary when forced in agreement
    -defense to enforcement of contract
    -economic need is not durress!**
    -recission of contract
  2. US: remedy to rescind contract if it is impossible or impracticable to preform

    German: court may adjust the terms of (reform) a contract in light of economic developments
    ->if unforeseen events affects foundation of agreement court can alter contract terms in view of disruption in expectations --> makes the contract fair to the parties
  3. assertion he or she will not preform an obligation that the party is contractually obligated to perform at a future time
    -treated as material
    -nonbreaching party-> seek damages
  4. "guilty knowledge"
    -clearly exists if party knows that a fact is not stated or party makes a statement that he/she believes not to be true or makes statement recklessly without regard to whether it is true or false
    -knowledge on the part of the misrepresenting party that material facts have been falsely represented or omitted with an intent to decieve
  5. -recognize wrongdoing with no monetary loss
    -no actual damage/financial loss results from breach of contract only a technical injury is involved
    -may award to innocent party
    -awards are small
    -defendant acted wrongfully

5 True/False questions

  1. Compensatory Damages: Sale of goods-SP is granted to a buyer in a contract for sale of land
    -every parcel of land is unique ->monetary damages don't suffice!
    -only when SP is unavailable money will be awarded instead


  2. mutual rescissionprocess by which contract is canceled or terminated and parties return to prior positions


  3. Exceptions to rule that contract can prohibit any assignment of the contract:1) Contract can't prevent an assignment of right to receive money
    -> encourages the free flow of mney and credit in business

    2) Assignment of rights in real estate cant be prohibited -> b/c it is contrary to public policy
    -> restraints against alienation (voluntary transfer of land ownership)

    3) The assignment of negotiable instruments (checks/promissiory notes) cannot be prohibited

    four) In a contract for the sale of goods, right to receive damages for breach of contract or for payment of an account owed may be assigned even tho the sales contracts prohibits assignment


  4. Incidental Beneficiarya third party for whose benefit a contract is formed; can sue the promisor if contract is breached

    -to whom performance is directed to
    -right to control details of performance
    -designated beneficiary in contract

    -3rd party demonstrates express consent
    -3P materially alters position
    -Conditions are satisifed


  5. Delegationqualification, provision or clause in a contractual agreement
    -the occurance or nonoccurance of which creates, suspends or terminates obligations of contracting parties

    -if conditions are not satisifed that obligations of the parties are discharged-> cannot be enforced