BUS311_chapter_06

B will acme be liable to pay for the loss why or why

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Unformatted text preview: ge occurring, and that Acme must be given a reasonable chance to inspect the damage. Deon backs into a lamp post one night, damaging the car. He reports the incident to Acme, but then sells the car three days later. A. What is the name for this type of clause? B. Will Acme be liable to pay for the loss? Why or why not? rog80328_06_c06_111-133.indd 131 10/26/12 5:37 PM Section 6.4 Chapter Summary CHAPTER 6 Case 5. Bart’s Building Company contracts to build an office building for Acme Insurance. The contract states that the main reception room should be painted cream. Bart accidentally paints it white. A. If Acme refuses to make the final $25,000 payment for the building project, claiming that Bart breached, what should Bart argue? B. If you were the judge, how would you dispose of the case? Case 6. Which of the following would be discharged due to impossibility? A. Lena contracts to sing in Cesar’s nightclub. Lena dies. B. Joshua contracts to sell his car to Amy. Amy dies. C. Jerrilyn contracts to sell her house to Ben. Jerrilyn’s house burns down. D. Anna contracts to sell “100 bushels of brussels sprouts grown in my market garden” to Uptown Grocery. Anna’s market garden is wiped out in a hailstorm. Case 7. Alisha contracts to sell her very rare 1920 Bugatti convertible automobile, her house, and 1,000 bales of hay to Rashid. She then breaches on all counts. What remedies are available to Rashid? Key Terms accord and satisfaction An agreement to substitute consideration on a contract, followed by an exchange of the new consideration. compensatory damages An award of money designed to compensate the wronged party for the economic loss suffered. anticipatory breach/repudiation When a party to a contract informs the other in advance that he does not intend to perform. concurrent conditions Mutually dependent performance on a contract. assignee The person who acquires rights on a contract he or she was not a party to. condition of satisfaction An agreement that one party wi...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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