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Question 1
Ben and Jerry enter into a contract with Moo Juice under which, Moo Juice will ship Ben and Jerry ten thousand gallons of whole milk on May 1st, and Ben and Jerry will pay $1 per gallon. Ben and Jerry inform Moo Juice that the milk must be at their plant on May 1st because they have a big ice cream order to fill on May 5th and they need all four days between the delivery date and the order date to turn the milk into ice cream. Moo Juice accidentally does not deliver the milk until May 2nd. If Ben and Jerry sue for breach of contract, the court will find that Moo Juice's breach was:
Correct Even where a breach might ordinarily be considered minor, if the particular breach had a bargained for importance, that ordinarily minor breach might be considered to be material. Here, the seemingly non-material had a bargained for importance. That being the case, Moo Juice's breach will be considered material and A is the correct answer.
Incorrect! Even where a breach might ordinarily be considered minor, if the particular breach had a bargained for importance, that ordinarily minor breach might be considered to be material. Here, the seemingly non-material had a bargained for importance. That being the case, Moo Juice's breach will be considered material and A is the correct answer.
Correct
Incorrect!
Question 2
Ben and Jerry enter into a contract with Moo Juice under which, Moo Juice will ship Ben and Jerry ten thousand gallons of whole milk on May 1st, and Ben and Jerry will pay $1 per gallon. Moo Juice accidentally does not deliver the milk until May 2nd. If Ben and Jerry sue for breach of contract, the court will find that Moo Juice's breach was:
Correct
Incorrect!
Correct Usually, whether a breach is material or minor is determined on a case by case basis, with the court using several different guidelines to make its determination. Here, Moo Juice has basically completed performance by delivering the milk, their breach was committed by accident, Ben and Jerry received the benefits that they bargained for, Ben and Jerry can easily be compensated for the one day delay and it probably represents a hardship to Moo Juice if the breach is considered material so that Ben and Jerry do not have to accept and pay for the milk. That being the case, Moo Juice's breach is not material, Ben and Jerry will have to accept and pay for the delivery and B is the correct answer.
Incorrect! Usually, whether a breach is material or minor is determined on a case by case basis, with the court using several different guidelines to make its determination. Here, Moo Juice has basically completed performance by delivering the milk, their breach was committed by accident, Ben and Jerry received the benefits that they bargained for, Ben and Jerry can easily be compensated for the one day delay and it probably represents a hardship to Moo Juice if the breach is considered material so that Ben and Jerry do not have to accept and pay for the milk. That being the case, Moo Juice's breach is not material, Ben and Jerry will have to accept and pay for the delivery and B is the correct answer.
Question 3
Ben and Jerry order ten thousand gallons of milk from Moo Juice, telling it that the milk must be delivered to them on May 1st because they have a large order to fill and they will need three full days to turn the milk into ice cream. Moo Juice delivers the milk on May 2nd. If Moo Juice's breach is material, Ben and Jerry:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Essentially, a material breach does two things. First, it gives rise to an immediate cause of action against the breaching party and, second, it excuses the innocent party from performing. That being the case, Ben and Jerry are allowed to reject the delivery from Moo Juice and, additionally, sue Moo Juice for breach of contract for not delivering the milk on time. Therefore, D is the correct answer.
Incorrect! Essentially, a material breach does two things. First, it gives rise to an immediate cause of action against the breaching party and, second, it excuses the innocent party from performing. That being the case, Ben and Jerry are allowed to reject the delivery from Moo Juice and, additionally, sue Moo Juice for breach of contract for not delivering the milk on time. Therefore, D is the correct answer.
Question 4
Ben and Jerry enter into a contract with Moo Juice under which, Moo Juice will deliver ten thousand gallons of milk to Ben and Jerry on May 1st and Ben and Jerry will pay $1 per gallon. Moo Juice delivers the milk on May 2nd. If Moo Juice's breach is not material, Ben and Jerry:
Correct A minor breach gives rise to an immediate cause of action. However, it does not excuse the innocent party's duty to perform. Therefore, the innocent party can sue for whatever damage it sustains from the minor breach but it must nevertheless live up to its side of the contract. That being the case, Ben and Jerry may sue Moo Juice for damages. However, they must nevertheless accept and pay for the milk as dictated by the contract. Therefore, A is the correct answer.
Incorrect! A minor breach gives rise to an immediate cause of action. However, it does not excuse the innocent party's duty to perform. Therefore, the innocent party can sue for whatever damage it sustains from the minor breach but it must nevertheless live up to its side of the contract. That being the case, Ben and Jerry may sue Moo Juice for damages. However, they must nevertheless accept and pay for the milk as dictated by the contract. Therefore, A is the correct answer.