Answer Choice 1	Answer Choice 2	Answer Choice 3	Answer Choice 4	Selected Answer
Question 1:  Which of the following type of damages is most liklely to be awarded in a contract case where the theory upon which the recovery is based is one of promissory estoppel?
expectation	specific performance	reliance	restitution
Question 2:  Howard hires Potsi to sing at his 25th anniversary party on April 1 in exchange for $500. On March 1, Potsi calls Howard and tells Howard that he cannot sing for Howard on April 1, as he is going on a trip to Hollywood on that day. Howard then calls Ralph on March 2 and asks Ralph to sing instead of Potsi. Ralph agrees and Howard and Ralph agree to a contract under which Ralph will sing at the party, also for $500. On March 4, Potsi calls Howard and states that he can come to the party after all. Howard tells Potsi that he hired Ralph instead. Howard refuses to pay Potsi and Potsi sues Howard for the $500. Will he be succssful?
No, because Ralph reasonably relied on Potsi's repudiation in hiring Ralph	Yes, because Potsi cancelled his repudiation before the performance under the contract was due	Yes, because Potsi's repudiation was not in writing	No, because a repudiation can never be taken back
Question 3:  Batman hires Alfred to pain the Batmobile. The contract states that Alfred only gets paid when and if Batman approves of the paint job. Alfred does a good job in painting the Batmoblie, and a reasonable person would agree that Alfred did a good job. However, Batman honestly believes that Alfred should have done a better job and so he refuses to pay Alfred for the job until he redoes it. Alfred sues for his payment. Who will win?
Batman, because there was no consideration for the contract	Alfred, because a reasonable person would have accepted Alfred's performance	Batman, because the contract contained a condition precedent, which was not met.	Alfred, because the condition is not valid and he did render performance
Question 4:  In which of the following cases can part performance definitely NOT satisfy the Statute of Frauds?
Kid Rock agrees to buy a house from Mick	Kid Rock agrees to buy $1,000 worth of widgets from Widgets r us	Part performance can never satisfy the SOF	Kid Rock and MTV agree that Kid will sing at the annual MTV awards show
Question 5:  Which of the following contracts would be unenforceable based on a defense of incapcity?
none of these contracts would be enforceable	John, who is a 14 year old boy living in Chicago, contracts to purchase his only winter coat in December	Lisa, after having 3 or 4 drinks, but while remaining reasonably sober, contracts to purchase a car that she probably would not have wanted without being slightly inebriated	Jane, a mature 17 year old, contracts to buy a travel package to Europe and Asia because she wants to travel the world after her high school graduation
Question 6:  Steve makes reservations to stay at the Marriot Marquis hotel in New York over the night of October 1 because Steve has a big business meeting on the morning of October 2. On September 30, however, the hotel burns down through an accidental electrical fire. Therefore, Steve has no place to stay over the night of October 1. Because of that, Steve comes to the business meeting in an extremely tired state and loses a big business deal because of that. Steve sues Marriot and asks for compensation for the loss of the business deal. Can he recover?
No, because Marriot has a defense of impossibility	Yes, because the lost profits can be awarded as a form of punitive damages	Yes, because they are consequential damages	No, because, although Steve can win on the breach of contract claim, the profits from the business deal are not certain enough to be proven
Question 7:  Which of the following is an example of a contract with a condition subsequent?
John promises Jane, 'I will give you $5,000 for your car, but only if my mechanic checks over the car and tells me that it's in good shape'	Fred promises Wilma, 'If you will promise to marry me, I will promise to stop attending meetings of the Royal Order of the Water Buffaloes.'	Peggy promises Sue, 'I will take your car to get it washed if it rains tomorrow.'	Bart promises Maggie, 'For $5,000, I will give you one driving lesson per week until you pass the road test and become a licensed driver.'
Question 8:  George is an elderly man who has accumulated a large estate. Martha and George are good friends and George very much enjoys Martha's company. Therefore, George would like Martha to be with him as much as possible. Which of the following agreements between George an Martha are covered by the Statute of Frauds?
George promises to give Martha $1,000,000 if she will read him a bedtime story tonight	George promises to give Martha $1,000,000 if she will promise to care for him for the rest of his life	All of these are covered by the Statute of Frauds	George promises to give Martha $1,000,000 if she will promise to marry him.
Question 9:  The Yankees hire Alex Rodriguex to play third base for them for the next 5 years in exchange for $100 million. Must this contract be in writing to be enforceable?
Yes; because the contract is incapable of being performed within one year of the contract formation	Yes; all contracts must be in writing to be enforced	No; oral contracts are binding	Yes; because the contract calls for a payment of more than $500.
Question 10:  Rocky hires Natasha to build him a house in the country for $300,000. Natasha starts bulding the house and spends $100,000 in labor and materials. Rocky then informs Natasha that he no loger wants the house and that he's cancelling the contract. Natasha continues to build the house anyway and spands another $100,000 in laboe and materials to build the house. Rocky refuses to pay anything and Natasha sues. How much, if anything, can Natasha recover?
nothing	$200,000, plus whatever profit Natasha would have made on the contract	the full contract price of $300,000	$100,000, plus whatever profit Natasha would have made on the contract
Question 11:  A court can refuse to apply the statute of frauds in which of these cases?
one party relied on the agreement to its detriment	the party who is being sued admits that the contract exists in open court	one party fooled the other party into making the agreement orally by making the other party thin the contract would be enforceable	A court can refuse to apply the statute of frauds in all of these cases
Question 12:  Rod, a 16-year-old boy, agrees to work for 'Burgers n More', a fast food restaurant, for 6 months, at a rate of $1,000 a month. Assume that it is legal to hire 16 year olds for such tasks. Who can enforce the contract?
Burgers n More only	neither Rod, nor Burgers n More	both Rod and Burgesr n More	Rod only
Question 13:  James contracts to buy a house from Silky. The contract calls for Silky to leave the house by January 1. the cotnract states that for every day Silky stays in the house beyond January 1, Silky must pay James $100. Is this clause enforceable?
No, because the $100 per day damages cannot be proven to a reasonable certainty	Yes, because liquidated damages clauses are always enforceable	Yes, if the $100 per day is a reasonable estimate of the actual damages.	No, because liquidated damages clauses are never enforceable
Question 14:  Owner hires Painter to paint all three of Owner's cars red. Painter paints two of the cars red, but he paints the third car blue. Assume that painting a car the wrong color is a material breach of that assignment. What, if any, payment is Painter likely to be entitled to?
Painter cannot collect anything because he has committed a material breach	Painter can collect payment for the two cars that he did paint properly because those the parts of the contract that he did successfully perform are divisible from the part of the contract that he breached.	Painter can collect payment on the entire contract, because he has 'substaintially performed' on the entire contract	Painter cannot collect anything because he has not rendered adequate performance to satisfy the 'perfect tender' rule
Question 15:  Mike is a contractor. Jill hires Mike to build her a log cabin in the woods. Under the contract, the cabin is to be 50 feet long. When Mike completes the cabin, however, it is only 49 feet long. In every other way, the cabin is perfect. Jill refuses to pay for the boat and Mike sues. What will be the result?
Mike cannot recover anything because he breached the contract	Mike can get his payment, but Jill may deduct from the price whatever loss in value is caused by the fact that the cabin is a foot shorter than it was supposed to be	Mike cannot recover anything and Jill can sue him for breach of contract under the 'perfect tender' rule	Mike can get his full payment with no deduction, under the 'substantial performance' rule
Question 16:  In which of the following cases can specific performance be awarded?
Specific performance can be awarded in all of these cases.	Jeri breaches her contract to sell a unique painting to Jim.	Mike is seeking an injunction from a court to force a former employee to stop telling trade secrets to a competitor, based on a confidentiality agreement between Mike and the employee.	Mark breaches a contract under which he was supposed to sell his house fo Cindy for $500,000.
Essay Question:   (maximum 25 points) On April 1, Ann Star, a young television personality, signs a contract with Bland Television Network to perform on May 1 in a one hour live TV show from 8 to 9 PM. Bland agrees to pay Star $1,000 for this performance. The contract also provides that if, for any reason, Star does not appear as scheduled, she will "owe the sum of $25,000 to Bland as liquidated damages." On April 10, Star informs Bland that she will is suffering from acute fatigue and that she can and will not appear as scheduled. Bland urges Star to reconsider and to perform as promised. On April 15, Star tells Bland that she has recovered and that she will, after all, appear on May 1 to render her performance as originally scheduled. On April 23, Bland informs Star that, due to her unpredictability, it has hired actress Prima Donna to take Star's place. On April 28, Prima Donna breaks her leg in an accident. Bland immediately calls Star and tells her that it has reconsidered the whole matter and will hire her to do the performance as originally scheduled. On the evening of May 1, Star appears at the studio ready to render her performance. However, Bland, acting under special orders from the FCC, cancels the show in order to broadcast a special address by the President of the united States. Please discuss the legal issues involved in this case by answering the following questions and justifying your answers with explanations: a) Is the liquidated damages clause (the $25,000 clause) binding? b) Did Bland have the right to cancel the contract on April 23? c) Can Star sue Bland to enforce the contract for the May 1 performance or does Bland have an adequate defense?