BLAW 3301 Exam 2 Practice || All Correct.
Sierra offers to sell Alyssa a Scottish terrier puppy for $800. Alyssa and Sierra do not discuss the
dog's ancestry, but Alyssa believes that the dog came from champion lines and agrees to the
price. Alyssa later discovers that the puppy is worth only $200. Can Alyssa rescind the contract
based on her mistake? correct answers Probably not, because Alyssa made a mistake about the
dog's value, not a mistake about a material fact.
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: correct answers Fraudulent mispresentation
Laura, a widow, sold a piece of property and planned to live off the proceeds during her
retirement. Laura has one son, Chris, who helps take care of her home and plans to move in with
her and take care of her when she is too old to take care of herself. Chris asks her to invest her
money in his restaurant, which is faltering. He tells her that if she does not lend him the money
she will never see him again. She is afraid of being alone and agrees to his request, but soon
changes her mind and asks for her money back. Chris claims they have formed a binding
contract. In fact, the contract may be voidable, because it was formed as a result of: correct
answers Undue influence
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: correct answers Performance
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.
The types of cable are essentially the same. When Jim sued for breach of contract, the court
likely found that United's actions constituted: correct answers Substantial performance
Kyle has a credit card with a contract stipulating that he will make monthly minimum payments.
Over the course of a year, he incurs $1,200 in debt that he can't pay. Because of this and other
debts, Kyle files for bankruptcy. In the bankruptcy, Kyle's assets are distributed to his creditors
and the credit-card company gets $200. The bankruptcy process: correct answers discharges the
contract by law
Sayed and Ann form a contract under which Sayed agrees to sell Ann 500 copies of a book. The
contract price is $3.50 per book. Sayed breaches the contract by not delivering the books to Ann
by the deadline. At the time of the breach, the books are available from the publisher for $4.50
each. Ann's damages are: correct answers $500
Vicky contracts with Cyrus to have him remodel her kitchen. Vicky, however, changes her mind
and breaches the contract before Cyrus can begin work. As a remedy for the breach, Cyrus can
seek: correct answers expected profits from the contract
, Marie contracts to buy coffee beans for her store from Owen. The contract price is $5.00 per
pound. Owen breaches the contract and delivers no coffee. Marie's damages will be: correct
answers the difference between the market price of the coffee and the contract price
Print Quik, Inc., seeks punitive damages in a lawsuit against Reddy Supply Company. Generally,
punitive damages may be recovered: correct answers when the breaching party's actions cause
both a breach of contract and a tort
Valerie contracts with Esteban, who agrees to build a stone retaining wall and 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 Esteban breaches the contract, Valerie is under a legal
obligation to: correct answers mitigate her damages
Luis contracts with Greenfield to buy several of Greenfield's dairy cows. Greenfield delivers the
cows but Luis doesn't pay for them. Greenfield may be able to have his cows returned if he seeks
the remedy of: correct answers restitution
Rena contracts with Darryl 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: correct answers reformation
Karl buys a new Volkswagen and signs a contract with Volkswagen saying that he will never in
the future 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: correct answers an exculpatory clause
Carmen contracted with Miles, who agreed to replace the carpets in her house. A clause in the
contract provides that the only remedy for breach is replacement, repair, or refund of the
purchase price. This type of provision in a contract is known as: correct answers limitation-of-
liability clause
Matthew has a contract to sell a piece of real estate to Betty for $35,000. Betty breaches the
contract and Matthew immediately sells the land to someone else at the best price he can get:
$31,000. Matthew can recover: correct answers $4,000 as the different between the market price
and the contract price
Sadie contracted with Sean, who agreed to replace the carpets in her house. Sean damaged some
of the walls when he installed the carpets. Sadie did not pursue a claim against Sean for his
defective performance of the contract. Sadie's actions are known as: correct answers a waiver of
breach
Matthew has a contract to sell a piece of real estate to Betty for $35,000. Matthew breaches the
contract and decides to keep the property even though the market price is only $31,000. Betty
can recover: correct answers specific performance
