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57 Cards in this Set

  • Front
  • Back

Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if

Daisy foreseeably and justifiably relied on Elton's promise to her detriment.

Dumont threatens physical harm to force Eddie to sell his business, Citywide Vending, Inc., to Dumont for a below-market price. This is

Duress

Dwight believes that a new phone to be sold by Ear Candy Corporation will become the most widely bought and used phone in the global market. Dwight enters into a contract to buy 500 shares of Ear Candy stock, anticipating an increase in its value. If the price of the stock does not rise, Dwight can recover

nothing

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant. Garland knowingly misrepresents a number of material features about the restaurant and the business. When Jules discovers the truth, he can

rescind the contract on the basis of fraud.

Gene, an accountant, convinces his client Lucille to sign a contract to invest her savings in 2Gether, a nonexistent social-networking Web site. There is clear and convincing evidence that Lucille did not act out of her free will. This is

Undue influence

Grant and Hester enter into a contract for a sale of Hester's Pastoral Valley Orchard. This contract

Must be in writing to be enforcable

Hanson and Taylor sign a written contract for the transfer of Hanson's Foot & Ankle Clinic to Taylor. Hanson claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under

the statue of frauds

In La Junta, Carlos and Alvaro contract for the sale of five hundred head of Carlos's cattle for $95 per head. Unknown to either party, an unforeseen storm has struck the herd and many of the cattle have died. Alvaro is

not required to pay due to the bi-lateral (mutual) mistake.

In selling a 300-acre farm to Rural Land Investments, Inc., Simone tells Rurals that the land "will be worth twice as much by next year." This is

opinion

On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable, the contract must be in writing for the purchase of

the tablet only

Phoebe enters into a contract with Everest for a guided tour of Whitewater Canyon. Everest acts as though he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Phoebe is most likely a victim of

fraud

Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low.Refer to Fact Pattern 12-1. Any contract with AgriCo-op that includes the mistake may be rescinded

if the error was made inadvertently and without gross negligence.

Lewis, an employee of Silos, Inc., makes a substantial mathematical error in totaling the estimated costs for a project for which AgriCo-op is seeking bids. Consequently, Silos's bid is significantly low.Refer to Fact Pattern 12-1. Any contract with AgriCo-op that includes the mistake may be rescinded

if AgriCo-op knew or should have known of the mistake.

Fact Pattern 12-2 Charlie and Dill sign a written contract for the sale of Dill's Honky-Tonk Country Dance Hall to Charlie. The parties intend their written contract to be a final statement of the terms of their agreement.Refer to Fact Pattern 12-2. Later Dill disputes some of the provisions in the deal with Charlie. If the dispute results in litigation, a court will most likely exclude evidence that

contradicts the written terms.`

Fact Pattern 12-2 Charlie and Dill sign a written contract for the sale of Dill's Honky-Tonk Country Dance Hall to Charlie. The parties intend their written contract to be a final statement of the terms of their agreement.Refer to Fact Pattern 12-2. The writing that Charlie and Dill signed is

a completely integrated contract.

Sharon agrees to assume a debt owed by Tom's Guitars Inc. to United Funds Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of

sharon

Ulrich files a suit against Vern to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

an orally agreed-on condition precedent.

Bea takes out a life insurance policy with Vida Insurance Corporation that names her spouse Wendell as the beneficiary. This is

a third party intended beneficiary contract.

Carpets n' Rugs, Inc., agrees to carpet Downtown Realty's offices, using a particular brand of durable carpet. Carpets n' Rugs completes the job but uses a different brand of wear- and weather-resistant carpeting. This is most likely

substantial performance.

D'Alemberte contracts with Ella to render pesonal nursing services for the benefit of Federica. This is

a third party beneficiary contract.

Emma, a professional photographer, and Ferris enter into a contract under which Emma agrees to photograph and video Ferris's family reunion in exchange for $750. The contract can expressly prohibit and prevent the transfer of

Ferris's right to receive PERSONAL SERVICES

Forrest makes and sells furniture. Forrest and Glenda enter into a contract for the delivery of Forrest's products to Glenda's Gear retail locations for which she agrees to pay the invoiced price. Forrest transfers the right to payment under the contract to Haulers Trucks & Trailers. This transfer is

an assignment.

Gilly agrees to buy Howard's Bakery on the express condition that the bakery's suppliers extend the same credit terms to Gilly that the suppliers currently extend to Howard. This approval is

a condition precedent.

Hilda signs a contract with Indemnity Insurance Company that intentionally confers a benefit on Hilda's daughter Jackie as the designated beneficiary. Jackie's rights under the contract will vest

if she demonstrates her consent to the promise at Hilda's request.

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

complete.

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

concurrent conditions.

Ilene and Jerry enter into a contract under which Ilene agrees to provide groundskeeping services for Jerry's Family Fun Center. Under an antidelegation clause, the contract can prohibit and prevent the transfer of

all duties under the contract.

Imelda and Jeremy enter into a contract for the sale of Imelda's condominium for which Jeremy agrees to pay $150,000. Jeremy wants to transfer the right to the ownership of the property to his daughter Karin. This transfer

must be in writing.

Lin and Mercedes want Ngo to replace Mercedes as a party to their contract. They can best accomplish this by

a novation.

Louie wants to transfer his right to the payment of his wages under an employment contract with Metalworx Company to National Savings Bank. In most states, this transfer

must be in writing.

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Buns n' Burgers in exchange for her payment of a debt that Lyle owes to New Credit Corporation. New Credit is

an intended beneficiary.

Raphael agrees to lease an apartment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract

is discharged.

Fact Pattern 13-1Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.Refer to Fact Pattern 13-1. If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is

suspended.

Fact Pattern 13-1Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.Refer to Fact Pattern 13-1. If bad weather destroys Flora's crops, the obligation to deliver produce to Harvesters is

discharged

Fact Pattern 13-1Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.Refer to Fact Pattern 13-1. If Flora dies before the deliveries begin, her contract with Harvesters is

not affected.

Fact Pattern 13-1Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.Refer to Fact Pattern 13-1. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is

breached.

Revenue & Sales Corporation and Software Solutions, Inc., enter into a contract for the design of custom software for which Revenue & Sales agrees to pay $4,500. Software Solutions transfers the right to payment under the contract to Creditline Company. Creditline is

an assignee.

Appliance Repair Service enters into a contract to repair washers and dryers in BeClean Company's coin-operated laundries. If Appliance Repair breaches the contract, BeClean can

sue Appliance Repair for damages.

Builders, Inc., agrees to construct an office building for Champion Hotels. The project proceeds according to plan, but before it is done, Champion tells Builders to quit. Builders may recover

profits plus the costs incurred up to the time of the breach.

Copper Conduit, Inc., and Dependable Electric Company sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is

a liquidated damages clause.

Cruz Motorcycles enters into a contract with Actuarial Insurance, Inc., to obtain workers' compensation for Cruz's employees. Actuarial breaches the contract. If Cruz is awarded compensatory damages, the purpose would be to

provide Cruz with funds for its loss of the bargain.

Equine World enters into a contract with FabuloStart to provide Equine World with a plan to repurpose its sales strategy. If FabuloStart breaches the contract, Equine World has a duty to

reduce the damages that Equine World might otherwise suffer.

Excavate n' Fill, Inc., enters into a contract with Fred to fill and landscape an abandoned quarry on Fred's land. Fred advances Excavate n' Fill 10 percent of its cost. The parties rescind the contract. Excavate n' Fill's refund of the payment is

restititution

Fortuna enters into a contract to buy fifty acres from Garrison to expand Fortuna's farm. Garrison breaches the contract. Fortuna's normal remedy is

specific performance.

Guido and Hal want to rescind their contract under which Guido sold Hal a mountain bike for $100. To rescind the contract

Guido must return the $100 and Hal must return the bike.

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

specific performance.

Mother & Daughter Jewelers breaches its lease with Longview Mall and vacates the premises six months before the end of the term. In some states, Longview would have to

use reasonable means to find a new tenant to mitigate damages.

Nature's Reserve, Inc., agrees to buy fifty acres of forestland from Mikhail for $20,000. Mikhail fails to go through with the deal on the agreed date, when the market price of the land is $25,000. Nature's Reserve may recover

$5,000

Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign. Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign. As compensatory damages, Nogales can recover

$15,000

Officeville Complex hires Natural Air Company to repair Officeville's air conditioning and ventilation system on site for $500, but Natural Air does not show up as agreed. Officeville hires Makerite Repair, Inc., to do the job for $450. Officeville may recover from Natural Air

compensatory damages.

Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance elsewhere for $3,500. Oxley's measure of damages is

$1,000 plus incidental damages.

Quality Piping, Inc., enters into a contract with Petro Energy Corporation to construct a natural gas pipeline to withstand specific climate conditions. If Quality fails to meet this standard, which would be construed as a breach of contract and a breach of a duty of care, Petro might be awarded punitive damages that are intended to

punish Quality and deter others from similar acts.

Resourced Minerals Inc. agrees to deliver ten tons of coal to Static Energy Corporation. The agreement states that delivery is to be within "9" days, although the parties intend "90" days. Resourced Minerals cannot convince Static Energy to amend the contract. Resourced Minerals should seek

reformation.

Rikki agrees to sell her Sunrise Breakfast Café to Tia. As part of the deal, Rikki signs a covenant not to open a competing business within a hundred-mile radius for ten years. If this covenant is later determined to be unreasonable, the appropriate remedy is most likely

reformation.

River Vista Inc. enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

a limitation-of-liability clause.

Rough Hewn Lumber Company orally contracts with Joe for the purchase of five acres of Joe's timberland. Joe makes the transfer but Rough Hewn does not pay the price. The lack of a written contract could bar enforcement of this deal. If so, Joe could most likely recover on a theory of

quasi contract.

Tile & Grout contracts to resurface the insides of the pools at WaterWorld Park. Tile & Grout knows that without the resurfacing, WaterWorld will have to delay its seasoning opening. Tile & Grout does not perform as promised. As consequential damages, WaterWorld can recover

the loss of profit from the delayed seasoning opening.