Contracts Keyed to Calamariback
0 of 4 questions completed
You have already completed the quiz before. Hence you can not start it again.
Quiz is loading…
You must sign in or sign up to start the quiz.
You have to pass the previous Module’s quiz in order to start this quiz:
you have successfully completed the quiz.
Silver Lake Aquatic Merchandise (SLAM), a retailer of personal Waveski and speedboats, agreed to sell to Bilge a Waveski 2000 model personal Waveski for $10,000. The written contract specified delivery within 30 days and a down payment of $2,000, but did not contain a liquidated damages clause. Two weeks after making the down payment, Bilge told SLAM that he lost his job and could not afford to go through with the purchase, and asked for his down payment back.
SLAM, which could get as many of the Waveski models as it required from the manufacturer for a wholesale price of $7,000, put the Waveski that was going to be delivered to Bilge back in its inventory. SLAM then sold it to Thompson for $9,500.
Bilge sues SLAM to get back his deposit, and SLAM counterclaims for damages. How would you calculate the damages?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Like millions of other Americans, Earl was anxious to purchase one of the new Veringular two-way wrist videophones, the See and Speak. He went to the Electronics Boutique, a chain retailer of consumer electronic devices, to purchase one. The Electronics Boutique paid $1,500 to the factory for the See and Speak and charged its customers $2,500. Each See and Speak had to be ordered from the factory in Japan; orders were so plentiful that it was taking up to eight weeks to receive the devices after ordering. An Electronics Boutique salesperson filled out a preprinted form which had been drafted by the Electronics Boutique’s corporate legal department, in which Earl agreed to make a $300 down payment and to pay the remaining $2,200 upon delivery of the See and Speak to him. Earl signed the form without reading it.
When Earl’s See and Speak arrived from Japan six weeks later, Earl refused to accept it and demanded his $300 down payment back. The Electronics Boutique immediately sold that See and Speak for $2,500 to Eileen, who had also ordered one from the factory on the same terms as Earl. The Electronics Boutique then brought an action for breach of contract against Earl, who counterclaimed for return of his $300.
What will be the likely outcome of this action?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Vanda owned a large three-story office building in downtown Peking. She planned to renovate the building and requested several contractors to submit bids to perform the work.
One of the contractors, Ryan, in turn sought bids from several subcontractors to determine the over-all cost of the job. Jay, the electrician, submitted a bid to Ryan that he used in computing the bid he sent to Vanda. Ryan notified Jay to that effect.
On September 15, Ryan submitted his bid to Vanda in which he offered to perform the renovation work for $75,000. On September 18, Jay notified Ryan that he was unable to perform the electrical work on Vanda’s project. On September 19, Vanda sent Ryan a signed confirmation letter wherein she stated, “I hereby accept your offer to perform the renovation work for the quoted cost of $75,000.” Thereafter, Ryan hired another electrician to complete the electrical work at a cost of $5,000 above Jay’s bid. Ryan explained the situation to Vanda and informed her that the overall cost of the job would have to be increased to $80,000. Vanda responded that she would hold Ryan to his original bid of $75,000 and would not be responsible for any additional costs. Ryan then performed the renovation work, but Vanda has not yet paid him anything.
In an action by Ryan against Vanda for the services rendered, what will Ryan be able to recover, if anything?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.
Colin owned a vacant lot upon which he wished to operate a gas station. He entered into a written contract with Renaldo on January 15 in which Renaldo agreed to construct a gas station according to specifications incorporated into the writing, in exchange for $250,000. The agreement provided that a progress payment of $100,000 would be made when construction was half complete, and the remainder of the contract price would be paid upon completion. The terms of the writing also specified that work was to begin on March 15 and was to be completed no later than September 15 of the same year, “because Colin has irrevocably committed to begin purchase of petroleum products on October 1.”
On March 1, Renaldo telephoned Colin and stated that due to unanticipated delays in another project, he could not begin construction of the gas station until June 1, and could complete construction no earlier than December 1. When informed that the two-and-a-half month completion delay would result in unacceptable money losses to Colin, Renaldo said, “You’ve got to give me until December 1 or I can’t do the job.”
Without further communication with Renaldo, on March 10 Colin entered into a contract with Warren to construct a gas station on Colin’s land under the same terms as the Colin-Renaldo contract, except that work was to begin April 1, and the total contract price was $300,000. On March 20, Renaldo appeared at Colin’s lot and offered to begin construction of the gas station with completion to be by September 15, but Colin refused to allow him to proceed. On April 1, Warren commenced construction and subsequently completed the gas station on September 10.
What damages should Colin recover in a breach of contract action against Renaldo?Grading can be reviewed and adjusted.Grading can be reviewed and adjusted.