CONTRACTS_MCQS_71-80 - GOULDS MCQs in the MORNING Multiple Choice Program CONTRACT LAW QUESTIONS 71-80 2012 GOULDS ALL RIGHTS RESERVED 71 Artist

CONTRACTS_MCQS_71-80 - GOULDS MCQs in the MORNING Multiple...

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GOULD’S “MCQ’s in the MORNING”Multiple Choice Program:CONTRACT LAW QUESTIONS, 71-80© 2012 GOULD’S, ALL RIGHTS RESERVED.
© 2012 GOULD’S, ALL RIGHTS RESERVED.71. Artist contracted with Amy. The contract stated Artist would paint Amy’s portrait, for the return promise that Amy would pay Artist one thousand dollars for painting the portrait. It was determined that it would take Artist twenty hours to paint the portrait, to be finished within one week. After a couple of hours of painting the portrait, Artist received a call from an out-of-state relative, informing Artist that he was needed in an emergency situation. Artist immediately relayed this information to Amy, and told Amy that he would like to finish her portrait, but that he would be out of town for more than a week taking care of the emergency situation.If Amy sues Artist for breach of contract, what is the likely result?A. Amy loses, because she did not seek adequate assurances of performance in writing.B. Amy wins, because Artist anticipatorily repudiated.C. Amy loses, because Artist’s duty to perform was discharged under impossibility.D. Amy wins, because Artist assumed the risk of contract changes when he entered into the contract.
© 2012 GOULD’S, ALL RIGHTS RESERVED.71. CORRECT ANSWER: B.Anticipatory repudiation occurs where a party indicates thatthey are unable or unwilling to perform. When this occurs, theother party has a right to suspend their performance and suefor breach of contract.Prospective inability to perform /voluntarydisablement,isalesserformofanticipatoryrepudiation, where a party indicates in some fashion that theywouldliketoperform,butarehavingtroubleactuallyperforming.In this situation, Artist clearly communicated toAmythatArtistwouldnotcompletetheirperformance,therefore Amy has a right to immediately cancel the contractand sue for breach of contract.
© 2012 GOULD’S, ALL RIGHTS RESERVED.72. Shipper received an order for a prompt delivery to Buyer of twenty red balloons. Shipper sent twenty purple balloons, of the same size and shape as requested by Buyer. Shipper also sent a note, stating that the balloons were sent to help Buyer out. Buyer was upset when they did not receive the red balloons, but Buyer decided to keep the balloons. Later, Buyer decided to bring a breach of contract claim against Shipper.What is the likely outcome of Buyer’s action?
© 2012 GOULD’S, ALL RIGHTS RESERVED.

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