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Chapter18 Breach of Contract

Chapter18 Breach of Contract - M ULTIPLE CHOICE QUESTIONS 1...

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MULTIPLE CHOICE QUESTIONS 1. Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company’s plant. If Even-Flo breaches the contract, Fiesta can a. do nothing but make a deal with .a different service provider. b. do nothing but temporarily suspend operations and wait. c. file a criminal complaint against Even-Flo. d. sue Even-Flo for damages. 2. Carol pays Dick $10,000 to design an ad campaign for Carol’s Coffee Stand chain. The next day, Dick tells Carol that he has accepted a job in New York and cannot design her campaign. Carol files a suit against Dick. As compensatory damages, Carol can recover a. $100,000. b. $10,000. c. $1,000. d. $0. 3. Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA may recover 4. Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam’s measure of damages is
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5. Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover
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