Exam 12: Performance of a Contract

A) serve as a penalty for breaching a contract.
B) award damages under the UCC when the sale of goods is the subject of the contract.
C) put the non-breaching party in the position it would have been in had the contract never been formed.
D) put the non-breaching party in the position it would have been in if the contract hadn't been breached.

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The principal contract interests a court may seek to protect are: a. Expectation interest. The intent is to put the injured party in the position he would have been in if both parties had fully performed their obligations. Expectation damages include direct, consequential, and incidental damages. b. Reliance interest. The intent is to put the plaintiff in the position he would have been in if the parties had never entered into a contract. c. Restitution interest. The objective is to return to the injured party a benefit that he has conferred on the other party which it would be unjust to leave with that person. d. Equitable interest. In some cases, money damages will not suffice to help the injured party. Something more is needed.

A) donee beneficiary who has rights to enforce the policy once Susan dies.
B) creditor beneficiary who has rights to enforce the policy once Susan dies.
C) incidental beneficiary because Jessica did not give any consideration for the policy and therefore cannot enforce the policy even when Susan dies.
D) promisor in the contract with no enforcement rights.

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A) enforceable, as Sara is also a CPA.
B) enforceable, as there was no expectation James would do the work.
C) not enforceable, as Robert hired James to perform personal services.
D) not enforceable, as this violates public policy.

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A) is not entitled to enforce a contract against either party.
B) usually does not give consideration in return for the gift.
C) will generally become a creditor beneficiary after his or her rights vest.
D) is an incidental beneficiary.

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B

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A) the type of contract.
B) whether the third party gave consideration.
C) the reasonable expectations of the third party.
D) the intent of the contracting parties.

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A) an agreement to perform an operation
B) a contract to paint a picture
C) an agreement by an attorney to draft a contract
D) an agreement to paint a house

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A) A beneficiary may enforce a contract if the parties intended to benefit him and if enforcing the promise will satisfy a duty of the promisee to the beneficiary.
B) If a promisee intended to make a gift to the beneficiary, the beneficiary may not enforce the contract.
C) An intended third party beneficiary has no enforceable rights in a contract.
D) Incidental beneficiaries have enforceable rights against both contracting parties.

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A) the costs of psychological counseling
B) the costs of mailing resumes to prospective employers
C) the costs of a new wardrobe for future interviews
D) the costs of cosmetic surgery

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A) is obligated to find another person who will agree to teach during the academic year.
B) is discharged from any further obligations under the contract.
C) will be discharged from any obligations under the contract only if it can be shown that her death was unexpected.
D) will not be discharged. If the University has to pay more in order to hire a comparable substitute professor at the last minute, then the estate will be responsible for the difference in pay.

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A) from the moment the assignment is made
B) from the moment the obligor signs the contract
C) from the moment the assignee gives consideration
D) from the moment the obligor is notified of the assignment

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D

A) win, as he is an intended beneficiary.
B) win, as he is a donor beneficiary.
C) lose, as he is a creditor beneficiary.
D) lose, as he is an incidental beneficiary.

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A) define how much money the injured party can sue for under a breach of contract claim.
B) define whether there has been substantial performance of a contract or a material breach.
C) limit the time in which an injured party may sue.
D) only apply to the sale of goods. There is no statute of limitations on a service contract.

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A) Cassandra will not be able to collect the money from Wally.
B) Cassandra will be able to collect the money from Wally.
C) Wally is liable for the three payments because Cassandra paid consideration for the assignment rights.
D) Wally cannot raise the defense of previous payment.

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Contracts can be enforced by third parti...

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