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Unformatted text preview: n of law. D) performance. Feedback: Points Earned: 1.0/1.0 Correct Answer(s): D 10. Carl contracts with Diane to build a store on her property. If, before construction begins, the county enacts a law that prohibits building a store on that property, then A) Carl is in breach of contract. B) Diane is in breach of contract. C) the contract is suspended until the parties choose a new location. D) the contract is discharged. Feedback: Points Earned: 1.0/1.0 Correct Answer(s): D chapter 13 1. Ann pays Bob $1,000 to design a computer network for her business. The next day, Bob tells Ann that he has accepted a job with CompuWeb and cannot design her network, but he does not return her payment. Ann can recover A) $1,000. Feedback: B) Bobs pay from CompuWeb. C) $1,000 plus Bobs pay from CompuWeb. D) nothing. Points Earned: 1.0/1.0 Correct Answer(s): A 2. Sue contracts to sell a quantity of CD players to Tom for $1,000, payable in advance. Tom pays the money, but Sue fails to perform. Tom can A) rescind the contract. B) obtain restitution of the $1,000 but not rescind the contract. C) rescind the contract and obtain restitution of the $1,000. Feedback: D) none of these. Points Earned: 1.0/1.0 Correct Answer(s): C 3. Eagle Corporation contracts to sell to Frosty Malts, Inc., six steel mixers for $5,000. When Eagle fails to deliver, Frosty buys mixers from Great Company, for $6,500. Frostys measure of damages is A) $6,500. B) $5,000. C) $1,500 plus incidental damages. Feedback: D) nothing. Points Earned: 1.0/1.0 Correct Answer(s): C 4. General Construction (GC) contracts to build a store for Home Stores, Inc. (HSI), for $1 million. In mid-project, HSI repudiates the contract, and GC stops working. GC incurred costs of $600,000 and would have made a profit of $100,000. GCs measure of damages is A) $1 million. B) $700,000. Feedback: C) $100,000. D) nothing. Points Earned: 1.0/1.0 Correct Answer(s): B 5. Owen contracts with Paul to buy a computer for $1,500. Owen tells Paul t...
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- Fall '10