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Question 1
Howard hires College Painters to paint his house. The contract states that the company will paint the house white with blue trim and that they will paint the front door purple. In return, Howard will pay the company $10,000 for the job. The company paints the house white with blue trim but they paint the front door green. When Howard sees the green door, he refuses to pay the $10,000 contract price. If the Company sues Howard for breach of contract, they will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Correct Usually, substantial performance, as opposed to perfect performance, is enough to satisfy an implied condition of performance. In determining when imperfect performance is adequate to be considered substantial performance, the courts will look to see whether or not the performance that was given fulfills the essential purpose of the contract. The guidelines that the court uses in coming to its conclusion are: 1) how much of the contracted for benefits did the innocent party receive, 2) to what extent will awarding damages to the innocent party adequately make up for the imperfect performance and, 3) the extent to which the breach was either wrongful or in bad faith. Here, Howard received the vast majority of the contracted for benefits he was expecting and whatever damages he can recover from the company for their imperfect performance will probably make up for the imperfect performance. That being the case, the company will be able to recover from Howard and D is the correct answer.
Incorrect! Usually, substantial performance, as opposed to perfect performance, is enough to satisfy an implied condition of performance. In determining when imperfect performance is adequate to be considered substantial performance, the courts will look to see whether or not the performance that was given fulfills the essential purpose of the contract. The guidelines that the court uses in coming to its conclusion are: 1) how much of the contracted for benefits did the innocent party receive, 2) to what extent will awarding damages to the innocent party adequately make up for the imperfect performance and, 3) the extent to which the breach was either wrongful or in bad faith. Here, Howard received the vast majority of the contracted for benefits he was expecting and whatever damages he can recover from the company for their imperfect performance will probably make up for the imperfect performance. That being the case, the company will be able to recover from Howard and D is the correct answer.
Question 2
Howard hires College Painters to paint his house. The contract states that the company will paint the house white with blue trim and that they will paint the front door purple. In return, Howard will pay the Company $10,000 for the job. The company paints the house red with white trim and they paint the front door orange. When Howard sees the house, he refuses to pay the $10,000 contract price. If the Company sues Howard for breach of contract, they will probably:
Correct Usually, substantial performance, as opposed to perfect performance, is enough to satisfy an implied condition of performance. In determining when imperfect performance is adequate to be considered substantial performance, the courts will look to see whether or not the performance that was given fulfills the essential purpose of the contract. The guidelines that the court uses in coming to its conclusion are: 1) how much of the contracted for benefits did the innocent party receive, 2) to what extent will awarding damages to the innocent party adequately make up for the imperfect performance and, 3) the extent to which the breach was either wrongful or in bad faith. Here, Howard received none of the contracted for benefits he was expecting. In addition, the extent of the imperfect performance is such that the courts would probably consider the imperfect performance to have been wrongful. That being the case, the company will not be able to recover from Howard and A is the correct answer.
Incorrect! Usually, substantial performance, as opposed to perfect performance, is enough to satisfy an implied condition of performance. In determining when imperfect performance is adequate to be considered substantial performance, the courts will look to see whether or not the performance that was given fulfills the essential purpose of the contract. The guidelines that the court uses in coming to its conclusion are: 1) how much of the contracted for benefits did the innocent party receive, 2) to what extent will awarding damages to the innocent party adequately make up for the imperfect performance and, 3) the extent to which the breach was either wrongful or in bad faith. Here, Howard received none of the contracted for benefits he was expecting. In addition, the extent of the imperfect performance is such that the courts would probably consider the imperfect performance to have been wrongful. That being the case, the company will not be able to recover from Howard and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 3
Howard hires College Painters to paint his house. The contract states that the company will paint the house white with blue trim and that they will paint the front door purple. In return, Howard will pay the company $10,000 for the job. The contract also states that the company will be in breach of the contract if they deviate at all from the other terms laid out in the contract. The company paints the house white with blue trim but they paint the front door green. When Howard sees the green door, he refuses to pay the $10,000 contract price. If the company sues Howard for breach of contract, they will probably:
Correct
Incorrect!
Correct Usually, substantial performance, as opposed to perfect performance, is enough to satisfy an implied condition of performance. However, if perfect performance is an express condition to the contract, the doctrine of substantial performance will not apply. Here, since perfect performance was an express condition in the contract, the substantial performance doctrine will not apply. That being the case, the company will not be able to recover from Howard and B is the correct answer.
Incorrect! Usually, substantial performance, as opposed to perfect performance, is enough to satisfy an implied condition of performance. However, if perfect performance is an express condition to the contract, the doctrine of substantial performance will not apply. Here, since perfect performance was an express condition in the contract, the substantial performance doctrine will not apply. That being the case, the company will not be able to recover from Howard and B is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Question 4
Ben and Jerry enter into a contract with Moo Juice under which, Moo Juice will ship Ben and Jerry ten thousand gallons of 2% milk on May 1st, and Ben and Jerry will pay $1 per gallon for the milk. On May 1st, Moo Juice delivers ten thousand gallons of 1% milk to Ben and Jerry. Ben and Jerry refuse to accept and pay for the milk. If Moo Juice sues for breach of contract and argues that it substantially performed because there is only a slight difference between 2% milk and 1% milk, it will probably:
Correct
Incorrect!
Correct
Incorrect!
Correct The "perfect tender" rule, as established by the U.C.C., basically says that substantial performance is inadequate for contracts for the sale of goods. Under the perfect tender rule, the seller must supply the buyer with goods that conform perfectly to the buyer's demands in order to trigger the buyer's obligation to accept the goods and pay for them. Here, Moo Juice did not supply goods that perfectly conformed to Ben and Jerry's order. That being the case, Ben and Jerry were under no obligation to accept and pay for the milk that Moo Juice sent. Therefore, Moo Juice will not be able to recover from Ben and Jerry and C is the correct answer.
Incorrect! The "perfect tender" rule, as established by the U.C.C., basically says that substantial performance is inadequate for contracts for the sale of goods. Under the perfect tender rule, the seller must supply the buyer with goods that conform perfectly to the buyer's demands in order to trigger the buyer's obligation to accept the goods and pay for them. Here, Moo Juice did not supply goods that perfectly conformed to Ben and Jerry's order. That being the case, Ben and Jerry were under no obligation to accept and pay for the milk that Moo Juice sent. Therefore, Moo Juice will not be able to recover from Ben and Jerry and C is the correct answer.
Correct
Incorrect!
Question 5
Ben and Jerry enter into a contract with Moo Juice under which, Moo Juice will ship Ben and Jerry ten thousand gallons of 2% milk on May 1st, and Ben and Jerry will pay $1 per gallon for the milk. On April 15th, Moo Juice accidentally delivers ten thousand gallons of 1% milk to Ben and Jerry. Ben and Jerry refuse to accept and pay for the milk. Realizing its mistake, Moo Juice immediately contacts Ben and Jerry and tells them that it will send out the correct order by May 1st. On May 1st, Moo Juice delivers ten thousand gallons of 2% milk to Ben and Jerry but, again, Ben and Jerry refuse to accept and pay for the order. If Moo Juice sues for breach of contract, they will probably:
Correct Under the perfect tender rule, the seller must supply the buyer with goods that conform perfectly to the buyer's demands in order to trigger the buyer's obligation to accept the goods and pay for them. However, where the seller sends goods that do not conform perfectly to the contract but the time for performance has not yet expired, the seller has the right to inform the buyer that he will cure the imperfect tender and then make a delivery of conforming goods within the contract time. Here, Moo Juice informed Ben and Jerry as to their intention to cure their imperfect performance and then did cure it. Therefore, Ben and Jerry were obligated to accept Moo Juice's shipment of 2% milk on May 1st. That being the case, Moo Juice will be able to recover from Ben and Jerry and A is the correct answer.
Incorrect! Under the perfect tender rule, the seller must supply the buyer with goods that conform perfectly to the buyer's demands in order to trigger the buyer's obligation to accept the goods and pay for them. However, where the seller sends goods that do not conform perfectly to the contract but the time for performance has not yet expired, the seller has the right to inform the buyer that he will cure the imperfect tender and then make a delivery of conforming goods within the contract time. Here, Moo Juice informed Ben and Jerry as to their intention to cure their imperfect performance and then did cure it. Therefore, Ben and Jerry were obligated to accept Moo Juice's shipment of 2% milk on May 1st. That being the case, Moo Juice will be able to recover from Ben and Jerry and A is the correct answer.
Correct
Incorrect!
Correct
Incorrect!
Correct
Incorrect!
Question 6
Howard hires College Painters to paint his house. The contract states that the company will paint the house white with blue trim and that they will paint the front door purple. In return, Howard will pay the company $10,000 for the job. The company paints the house white with blue trim but they paint the front door green. Howard pays the company the $10,000 contract price and then pays another painter $1,000 to paint the door purple. He then sues the company for damages. If Howard wins, he will recover:
Correct
Incorrect!
Correct
Incorrect!
Correct As far as damages are concerned, while the party who gives substantial performance has a right to collect on the contract, the innocent party can sue for whatever damages they suffered because of the imperfect performance. Normally, what the innocent party will recover is the cost of completion. In other words, the court will award them the amount of money it would take to fix the inadequacy of the performance. Here, it cost Howard $1,000 to fix the inadequacy of performance. That being the case, Howard will recover $1,000 from the company and C is the correct answer.
Incorrect! As far as damages are concerned, while the party who gives substantial performance has a right to collect on the contract, the innocent party can sue for whatever damages they suffered because of the imperfect performance. Normally, what the innocent party will recover is the cost of completion. In other words, the court will award them the amount of money it would take to fix the inadequacy of the performance. Here, it cost Howard $1,000 to fix the inadequacy of performance. That being the case, Howard will recover $1,000 from the company and C is the correct answer.
Correct
Incorrect!
Question 7
Howard hires College Painters to paint his house. The contract states that the company will paint the house white with blue trim and that they will paint the front door purple. In return, Howard will pay the company $10,000 for the job. The company paints the house red with white trim and they paint the front door orange. The cost of stripping the house and repainting it will be $30,000. Further, an appraiser informs Howard that had he gotten the paint job he wanted, his house would be worth $250,000. As it is, the house is worth $200,000. If Howard sues the Company for breach of contract, he will recover:
Correct
Incorrect!
Correct If fixing the imperfect performance would cost too much money or create too much damage to the object of the contract, then the amount of damages to be awarded will be the difference in value of the product as it is and the value of the product as it would have been had perfect performance been given. Here, the cost of fixing the imperfect performance is lower than the difference in value between the house as it is and the house as it should have been. Also, stripping and repainting the house will not cause any damage to the house. That being the case, Howard will be able to recover $30,000 from the company and B is the correct answer.
Incorrect! If fixing the imperfect performance would cost too much money or create too much damage to the object of the contract, then the amount of damages to be awarded will be the difference in value of the product as it is and the value of the product as it would have been had perfect performance been given. Here, the cost of fixing the imperfect performance is lower than the difference in value between the house as it is and the house as it should have been. Also, stripping and repainting the house will not cause any damage to the house. That being the case, Howard will be able to recover $30,000 from the company and B is the correct answer.