Unformatted text preview: hat if the goods are not delivered on Monday, he will lose $2,000 in business. Paul ships the computer late. Owen can recover A) $3,500. B) $2,000. Feedback: C) $1,500. D) nothing. Points Earned: 1.0/1.0 Correct Answer(s): B 6. Jay agrees to sell an acre of land to Kim for $5,000. Jay fails to go through with the deal, when the market price of the land is $7,000. If Kim cannot obtain the land through specific performance, Kim may recover A) $7,000. B) $5,000. C) $2,000. Feedback: D) nothing. Points Earned: 1.0/1.0 Correct Answer(s): C 7. Ken orally agrees to build three barns for Lora. He builds the first barn, but she fails to pay him. As a remedy for the breach, Kens best option is A) quasi-contractual recovery. Feedback: B) reformation. C) rescission. D) specific performance. Points Earned: 1.0/1.0 Correct Answer(s): A 8. Jake agrees to sell a warehouse to Kelly. Their contract provides that if Jake fails to close the deal on a certain day, he will pay a fee equal to half of the price of the warehouse. This clause is A) a liquidated damages clause. B) a mitigation of damages clause. C) a nominal damages clause. D) a penalty clause. Feedback: Points Earned: 1.0/1.0 Correct Answer(s): D 9. Lee agrees to deliver two tons of copper to Metals, Inc. The contract states that delivery is to be within 15 days when the parties intend 50 days. If Metals will not amend the contract, Lee may obtain A) reformation. Feedback: B) rescission. C) specific performance. D) nothing. Points Earned: 1.0/1.0 Correct Answer(s): A 10. Beth agrees to sell an office building to Carl. When Beth refuses to complete the deal, Carl sues and recovers damages. Carl can also obtain A) quasi-contractual recovery. B) restitution. C) specific performance. D) none of these. Feedback: Points Earned: 1.0/1.0 Correct Answer(s): D 1. Damages are designed to compensate a nonbreaching party for the loss of a bargain. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s...
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This note was uploaded on 12/01/2010 for the course BUSINESS L 100 taught by Professor Random during the Fall '10 term at Oklahoma City Community College.
- Fall '10