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| 1 | |
Tana agreed to repair the foundation of Marcus' house for $5,000 but failed to do the job and Marcus found someone else who charged $7,000 to do the work. If Marcus sues Tana a court will likely award him _____ |
| | A) | actual damages in the amount of $7,000. |
| | B) | compensatory damages in the amount of $2,000. |
| | C) | punitive damages in the amount of $12,000 |
| | D) | consequential damages in the amount of $5,000 |
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| 2 | |
What occurs in a termination by a waiver? |
| | A) | Both parties give up contractual rights. |
| | B) | Bother parties agree to replace an existing contract with a new contract. |
| | C) | One party gives up a contractual right. |
| | D) | One party terminates his or her contractual obligations. |
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| 3 | |
Poqisa contracts to sell her antique sports car to Iris for $50,000 but later decides that she wants to keep the car. Iris wants the car. What legal remedy is available to her? |
| | A) | specific performance |
| | B) | compensatory damages |
| | C) | punitive damages |
| | D) | liquidated damages |
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| 4 | |
After his grandson Bob borrows $10,000 from Marcus, Marcus wants to completely release Bob from any liability or the debt. Marcus should give Bob a _____ |
| | A) | general release. |
| | B) | novation. |
| | C) | termination by terms of the contract. |
| | D) | tender of obligation. |
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| 5 | |
Bailey's Construction Co., contracted to build a $12 million building for Friendly Finance Co., but failed to install $3,000 of wooden cabinets called for by the contract. What legal rights does Friendly have? |
| | A) | None, as the missing cabinets are a minor detail. |
| | B) | Friendly may sue for specific performance. |
| | C) | Friendly may cancel the entire contract. |
| | D) | Friendly may demand reimbursement to install the cabinets. |
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| 6 | |
Dorinda accepted a position at an accounting firm with the understanding that she will pass all sections of the CPA exam or the employment offer is withdrawn. What is the legal status of the CPA exam passage requirement? |
| | A) | condition subsequent |
| | B) | condition concurrent |
| | C) | condition precedent |
| | D) | performance barrier |
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| 7 | |
An opera singer agrees to be a guest performer with a local group provided that her voice is sound. When she gets the flu she cancels her performance. How have her contractual obligations been discharged? |
| | A) | by mutual recession |
| | B) | by terms of the contract |
| | C) | by operation law |
| | D) | by general release |
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| 8 | |
Alfred contracts with Foliage Tours Inc., to take a bus tour of the northeast to see the fall leaves in full color. Due to an early start of the winter and violent storms there are no fall leaves to see. What legal doctrine releases Alfred from his contract? |
| | A) | commercial impractability |
| | B) | abandonment |
| | C) | substantial performance |
| | D) | frustration-of-purpose |
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| 9 | |
Zoltan is contractually obligated to deliver merchandise by December 1 for Big Stores Christmas sale but on October 1 Zoltan informs Big Stores that he will not meet that delivery deadline since he can get a better price for the merchandise from another customer. What legal rights does Big Stores have on October 1? |
| | A) | None, since December 1 is when delivery is to occur. |
| | B) | Big Stores may sue immediately for breach of contract. |
| | C) | Big Stores must wait a commercially reasonable time before taking any action. |
| | D) | Big Stores may seek alternative suppliers but must allow Zoltan to match their terms. |
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| 10 | |
Outdoor Adventures contracts to buy ten tents from Tent Manufacturing with a May 1 delivery date. Tent Manufacturing knows that Outdoor Adventures anticipates using the tents on May 15 to take clients mountain climbing but delays delivery until June 1. The contract does not state that "time is of the essence." What legal remedies are available to Outdoor Adventures if they have to cancel their May 15 client contracts? |
| | A) | compensatory damages only |
| | B) | compensatory and incidental damages only |
| | C) | compensatory, incidental, and consequential damages only |
| | D) | compensatory, incidental, consequential, and punitive damages |
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