Business Law- Contracts

Which of the following penalties is usually imposed against an accountant who, in the course of performing professional services, breaches contract duties owed to a client?

Davis, an inventor, developed a new product, but lacked money to get the product to the marketplace. Before creating a corporation to raise capital, Davis leased office space and equipment, entered into con¬tracts with third parties, and identified investors. Who has liability for preincorporation debts?

To cancel a contract and to restore the parties to their original positions before the contract, the parties should execute a:
A. novation.

On May 25, Year 1, Smith contracted with Jackson to repair Smith’s cabin cruiser. The work was to begin on May 31, Year 1. On May 26, Year 1, the boat, while docked at Smith’s pier, was destroyed by arson. Which of the following statements is t with regard to the contract?

To prevail in common-law action for fraud in the inducement, a plaintiff must prove that the:

Which of the following concepts affects the amount of monetary damages recoverable by the nonbreaching party when a contract is breached?

In general, a clause in a real estate contract entitling the seller to retain the purchaser’s down payment as liquidated damages if the purchaser fails to close the transaction is enforceable:

Parc hired Glaze to remodel and furnish an office suite. Glaze submitted plans that Parc approved. After completing all the necessary construction and painting. Glaze purchased minor accessories that Parc rejected because they did not conform to the plans. Parc refused to allow Glaze to complete the project and refused to pay Glaze any part of the contract price. Glaze sued for the value of the work performed. Which of the following statements is t?

In June, Mullin, a general contractor, contracted with a town to renovate the town square. The town council wanted the project done quickly and the parties placed a clause in the contract that for each day the project extended beyond 90 working days, Mullin would forfeit $100 of the contract price. In August, Mullin took a three-week vacation. The project was completed in October, 120 working days after it was begun. What type of damages may the town recover from Mullin?

Which of the following actions will result in the discharge of a party to a contract?

In Year 2, Dart bought an office building from Graco under a written contract signed only by Dart. In Year 15, Dart discovered that Grace made certain false representations during their negotiations concerning the building’s foundation. Dart could have reasonably discovered the foundation problems by Year 8. Dart sued Graco claiming fraud in the formation of the contract. Which of the following statements is t?

Green was adjudicated incompetent by a court having proper jurisdiction. Which of the following is t regarding contracts subsequently entered into by Green?

Which of the following statements is t regarding the effect of the expiration of the period of the statute of limitations on a contract?

Under a personal services contract, which of the following circumstances will cause the discharge of a party's duties?

Nagel and Fields entered into a contract in which Nagel was obligated to deliver certain goods to Fields by September 10. On September 3, Nagel told Fields that Nagel had no intention of delivering the goods required by the contract. Prior to September 10, Fields may successfully sue Nagel under the doctrine of:

For which of the following contracts will a court generally grant the remedy of specific performance?

Which of the following actions (if taken by one party to a contract) generally will discharge the performance required of the other party to the contract?

Which of the following circumstances best describes a landlord's constructive eviction of a tenant who has a written lease for the property?

Omega Corp. owned a factory that was encumbered by a mortgage securing Omega’s note to Eagle Bank. Omega sold the factory to Spear, Inc., which assumed the mortgage note. Later, Spear defaulted on the note, which had an outstanding balance of $15, 000. To recover the outstanding balance, Eagle:

Grill deals in the repair and sale of new and used clocks. West brought a clock to Grill to be repaired. One of Grill's clerks mistakenly sold West's clock to Hone, another customer. Under the Sales Article of the U.C.C., will West win a suit against Hone for the return of the clock?

Kaye contracted to sell Hodges a building for $310,000. The contract required Hodges to pay the entire amount at closing. Kaye refused to close the sale of the building. Hodges sued Kaye. To what relief is Hodges entitled?

Bronson is a residential tenant with a 10-year written lease. In the absence of specific provisions in the lease to the contrary, which of the following statements is correct?

Which of the following types of mistake will generally make a contract unenforceable and allow it to be rescinded?

On June 15, 20X1, Alpha, Inc., contracted with Delta Manufacturing, Inc., to buy a vacant parcel of land Delta owned. Alpha intended to build a distribution warehouse on the land because of its location near a major highway. The contract stated that “Alpha's obligations hereunder are subject to the vacant parcel being rezoned to a commercial zoning classification by July 31, 20X2.” Which of the following statements is correct?

Master Mfg., Inc., contracted with Accur Computer Repair Corp. to maintain Master's computer system. Master's manufacturing process depends on its computer system operating properly at all times. A liquidated damages clause in the contract provided that Accur pay $1,000 to Master for each day that Accur was late responding to a service request. On January 12, Accur was notified that Master's computer system failed. Accur did not respond to Master's service request until January 15. If Master sues Accur under the liquidated damage provision of the contract, Master will:

A tenant renting an apartment under a 3-year written lease that does not contain any specific restrictions may be evicted for:

A tenant renting an apartment under a 3-year written lease that does not contain any specific restrictions may be evicted for:

Wren purchased a factory from First Federal Realty. Wren paid 20% at the closing and gave a note for the balance secured by a 20-year mortgage. Five years later, Wren found it increasingly difficult to make payments on the note and defaulted. First Federal threatened to accelerate the loan and foreclose if Wren continued in default. First Federal told Wren to make payment or obtain an acceptable third party to assume the obligation. Wren offered the land to Moss, Inc., for $10,000 less than the equity Wren had in the property. This was acceptable to First Federal and at the closing Moss paid the arrearage, assumed the mortgage and note, and had title transferred to its name. First Federal released Wren. The transaction in question is:

Ordinarily, in an action for breach of a construction contract, the statute of limitations time period would be computed from the date the: