Contracts Keyed to Calamariback
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An orchard and grocer had a written contract providing that the orchard would supply the grocer with a specified amount of apples and apple cider during the fall season. During the summer, the orchard’s apple trees were damaged by apple blight that diminished the fall apple yield. Subsequently, the orchard assigned the contract to another orchard without notifying the grocer. The grocer discovered the substitution after he had received two deliveries of apples and cider, but said nothing. After the assignee orchard made a third delivery, it failed to make the last two deliveries called for in the contract between the grocer and the first orchard.
A store sold office equipment and supplies to various businesses in the area. The store entered into a written agreement with an electronics company to purchase all of its monthly requirements of printers for a period of five years at a specified unit price. The agreement contained a non-assignment clause. Shortly thereafter, the electronics company assigned the contract to a finance company as security for a loan. The store subsequently ordered the printers from the electronics company and paid the electronics company the agreed price for the printers for the first month of the agreement.
Which of the following accurately states the legal effect of the covenant not to assign the contract?CorrectIncorrect
An investor entered into a contract with a winery. The contract provided that the investor would invest $1 million in the winery and, in return, the winery would produce and market at least 500,000 bottles of wine each year for five years under a specified label. The contract included a provision that, if feasible, the wine would be distributed by the winery only through a certain wholesale distributor of fine wines. Neither the investor nor the winery had previously dealt with the distributor. The distributor learned of the contract two days later from reading a trade newspaper. In reliance thereon, he immediately hired an additional sales executive and contracted for enlargement of his wine storage and display facility.
If the winery refuses to distribute the wine through the distributor and the distributor then sues the winery for breach of contract, is it likely that the distributor will prevail?CorrectIncorrect
A homeowner and a carpenter formed a valid oral contract in which the carpenter agreed to construct an extension to the homeowner’s home, using materials supplied by the homeowner, in exchange for $2,000. After the work had been completed but before the homeowner had made any payment, the carpenter called the homeowner and instructed him to pay the $2,000 due on the extension work to a creditor of the carpenter.
If the creditor thereafter brings an action against the homeowner for $2,000, will the creditor prevail?CorrectIncorrect
A woman decided to have a painting done of herself. She contracted in writing with an artist, who agreed to paint the woman for $10,000. The fee was payable on completion of the painting, provided that the painting was to the woman’s “complete and utter satisfaction.” On the same afternoon that the artist entered into the contract with the woman, he assigned the contract to his cousin. The artist then painted the woman’s picture. After the job was done, the woman told him, “That’s a very good likeness of me, but it shows my defects, so I’m not satisfied.” She refused to accept the painting or to pay the artist or his cousin.
Can the cousin recover from the woman?CorrectIncorrect