Contracts Keyed to Kuneyback
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On March 1, a widget manufacturer and a retailer entered into a written contract whereby the manufacturer agreed to sell and the retailer agreed to buy 10,000 widgets at a price of $10,000. Due to slow sales, the manufacturer was operating its factory at only 50% capacity and had ample inventory on hand. Delivery and payment was set for May 1. On April 1, the retailer told the manufacturer that he had no need for the widgets after all and would not accept delivery of them on May 1. After notice to the retailer, the manufacturer sold the widgets to another buyer a week later for $11,000, the market price at the time. On May 1, the market price of the widgets dropped to $8,000. The manufacturer’s cost to produce and deliver the widgets was $7,000.
The manufacturer sued for breach of contract. At the time of the trial, the market price of widgets was $9,000. The court ruled in the manufacturer’s favor, and found that its sale of the widgets to the subsequent buyer was done in good faith and in a commercially reason able manner, and that there were no incidental damages or expenses saved as a result of the breach.
What amount of damages should the court award to the manufacturer?CorrectIncorrect
A contractor gave the low bid for some electrical repairs to a homeowner’s house. Based on this bid, the contractor and the homeowner entered into a contract stating that the contractor would perform the electrical repairs for $6,000. Before beginning work on the project, the contractor notified the homeowner that he would lose money on the job at that price, and would not proceed with the work unless the homeowner would agree to increase the price to $9,000.
The homeowner thereupon, without notifying the contractor, entered into a contract with an electrician to make the repairs for $7,500, which was the fair market cost of the work to be done. The electrician finished the house on schedule and then showed the homeowner that he (the electrician) had spent $8,500 on the job. The homeowner thereupon paid the electrician the full balance of their contract price plus an additional $1,000, so that the electrician would not lose money on the job.
In a contract action by the homeowner against the contractor, the homeowner will recover:CorrectIncorrect
A recent college graduate landed her dream job teaching kindergarten at the same elementary school she had attended as a child. The woman’s contract provided that she would be paid $40,000 for the school year, and that she could only be fired for just cause. Days before the woman was to begin teaching, the school’s principal fired the woman, without cause, so that she could hire her cousin for the job instead. The woman submitted her resume to an employment agency, but was so depressed over the loss of her dream job that she turned down a nearby school’s offer for a similar job paying a $30,000 salary, and instead spent the rest of the school year miserably unemployed.
If the woman successfully sues the school for breach of contract, how much can she recover?CorrectIncorrect
A woman entered into a written contract with her local wigmaker to pay $2,000 for a long silver wig, which was in fashion at the time. The wigmaker completed the wig by the date he had promised, but by that time silver wigs were out of style, and the woman refused to accept the wig or pay for it. The wigmaker spent $200 in making the wig, but because the wig was so out of fashion, the best he could do in good faith was to sell the wig to a Halloween store for $20.
If the wigmaker sues the woman, what is the most he can recover?CorrectIncorrect
An East Coast seller of knockoff French handbags and a discount department store chain buyer in the Midwest entered into a contract whereby the seller would sell to the department store 1,000 of a specific brand of its handbags for a price of $20 apiece, with the seller delivering the handbags “F.O.B. Chicago CSX Terminal.” The handbags were sent by rail to Chicago; midway through the trip, the freight car that was carrying the handbags was struck by lightning and caught fire, destroying the handbags.
If the seller brings suit against the buyer, which has refused to pay the contract price for the handbags, the seller will:CorrectIncorrect
In February, a counselor contracted with a cooking camp for kids to serve as its head counselor at a salary of $10,000 for 10 weeks of service from the first of June to the middle of August. In March, the camp notified the counselor that it had hired another counselor instead, and that his services would no longer be needed. In April, the first counselor spent $200 traveling to interview at various other cooking camps with equal pay and prestige, but was not offered any positions. Finally, the first counselor took a job teaching at a local craft camp for only $6,000 for the same period.
In a breach of contract action against the camp, what can the first counselor recover?CorrectIncorrect
A buyer entered into a written agreement with a seller to purchase 1,000 sets of specially manufactured hand buzzers of a nonstandard dimension for a price of $10 per set. The seller calculated that it would cost $8 to make each set, and delivery was scheduled for 60 days later. Fifty-five days later, after the seller had completed production, the buyer repudiated the contract with the seller because he decided to quit childish pranks. After he notified the buyer of his intention to sell, the seller resold the hand buzzers to a salvage company for $2 per set. The seller then sued the buyer for damages.
What damages should be awarded to the seller?CorrectIncorrect
A contractor, was hired by a homeowner to remodel the homeowner’s home for $10,000 to be paid on the completion of the work. On May 29th, relying on the fact that he planned to finish the work by June 1, and thus have the homeowner’s payment in hand, the contractor agreed to buy a car. The agreement stated that the contractor would buy the car “For $10,000 in case, if payment is made on June 1, and if payment is made after, the price will be $12,000.” The contractor completed the work, adhering to all specifications on June 1 and demanded payment from the homeowner. The homeowner refused to pay, and this caused the contractor to be very excited, suffering a minor heart attack, and as a result, incurred medical expenses of $1,000. The reasonable value of the contractor’s services in remodeling the homeowner’s home was $13,000.
In an action by the contractor against the homeowner, which of the following should be the contractor’s recovery?CorrectIncorrect
A student graduates the top of their class from law school, and is immediately offered a job with a prestigious law firm making $100,000 a year,. The student studies hard for the bar exam and passes. A week before she is to begin at the law firm, which would have been September 1, she receives notice that, due to budget cuts, they will no longer be needing her. The student looks for work, but by this point, most attorney positions are filled. All she can find is work as a paralegal for $50,000 a year, and she chooses to turn that down. The student finally finds work 6 months later, making $90,000 a year The student sues the original law firm for breach of contract
assuming that there is an enforceable contract, what are students damages?CorrectIncorrect
A buyer agrees to buy from a seller a brand new cell phone, for $400. The phone is due to come out next week, so the contract calls for buyer to make a deposit of $50, and pick up the phone in one week. The phone costs seller $300, and seller routinely sells these types of phones. Buyer breaches the contract by refusing to pick up the phone and pay the remaining balance. Seller resells the phone at $400 If seller sues for breach of contract, what will his damages be?CorrectIncorrect