1.

Timothy contracts with Fabian to renovate his kitchen for $35,000. Before beginning the project, Fabian anticipatorily repudiates. Timothy brings in four more contractors to bid on the project, using the same specifications that he had given to Fabian. The highest bid was for $49,000. The lowest was for $38,000. The average bid was $41,000. Timothy takes the lowest bid for $38,000. The contractor completes the project competently.

Timothy then brings a suit against Fabian for $3,000. Fabian, during the trial, introduces evidence that Grant, another contractor in the area, would have bid $32,000 for the job if Fabian had contacted him. Accordingly, Fabian argues that he should owe Timothy nothing.

Based on the facts provided, which is the most accurate statement about this situation:

A. Fabian is correct. Timothy failed to appropriately mitigate his damages and thus is limited to recovering the difference between the amount of the contract and the amount that he could recover if he had mitigated, which in this case is zero.

B. Fabian is correct. Timothy failed to act in good faith. Accordingly, he should be barred from a recovery.

C. Fabian is incorrect. Timothy reasonably attempted to mitigate his damages.

D. Fabian is incorrect. Timothy had every right to go with any substitute contractor that he believed would provide quality services.

2. Which of the following is a key distinction between an anticipatory repudiation and doubts giving rise to a request for adequate assurances for performance? A. Repudiation is final, whereas doubts giving rise to a request for adequate assurances for performance may be retracted.

B. Repudiation must be unequivocal, whereas doubts giving rise to a request for adequate assurances for performance are based on the subjective fears of the insecure party.

C. Repudiation may be retracted, whereas doubts giving rise to a request for adequate assurances for performance cannot be retracted.

D. Repudiation must be unequivocal, whereas doubts giving rise to a request for adequate assurances for performance are determined by the objective doubts of the insecure party.

3. Developer contracts with Contractor to build an office building for $10 million. Midway through the project, however, developer repudiates. At the time of the repudiation, Contractor had incurred $2.5 million in labor and material expenses. Contractor will be able to reuse some of the materials on another project, saving Contractor $250,000 on that project. Contractor would have spent an additional $6 million to finish the office building for Developer.

Which of the following statements is most accurate about the Contractor's expectation damages:

A. The Contractor should get $4 million in damages.

B. The Contractor should get $1.5 million in damages.

C. The Contractor should get $3.75 million in damages.

D. The Contractor should get $1.25 million in damages.

4. Portia hires Fred under a 2-year employment contract for a salary of $70,000 per year, payable in installments at the end of each month. Six months after Fred starts work, Portia wrongfully fires him. Fred looks for work, diligently, for four months but is unable to find a job. Finally, Fred hires an employment agency, paying a one-time fee of $2,000. Two months later, he obtains a job very similar to the one from which he was fired paying $65,000 per year.

Imagine that Fred sues Portia and wins on liability. What are Fred's damages?

A. $142,000

B. $42,000

C. $107,000

D. None of the above is accurate.

5. Audrey enters into a contract to sell cast a picture of Robert Downey Jr. (Ironman), Chris Evans (Captain America), Chris Helmsworth (Thor), Scarlett Johansson (Black Widow), Mark Ruffalo (The Hulk), Chadwick Boseman (Black Panther), and Brie Larson (Captain Marvel), signed by all of the actors, for $350 to Gemma on May 1. May 1, however, comes and goes and Gemma never shows up with the money, never calls, and provides no explanation for her absence. After several efforts to contact Gemma, Audrey rightfully declares Gemma in total breach. Which of the following statements is most accurate. A. Audrey has a duty to try to resell the picture. B. If Audrey does not try to resell the picture, she will nevertheless be treated as if she had done so and her damages will be capped at whatever the differential would have been between the a hypothetical but reasonable resale price and the contract price with Gemma. C. Gemma has a duty to try to find another buyer for the picture. D. All of the above are accurate

6. Clive is a big-time actor in Hollywood. He contracts with Paula Producer to give Producer his exclusive services for the next seven months to film a new political thriller. Clive was to be the featured star of the film. Just a few days after signing that contract, however, Clive signs a contract to make a Marvel superhero movie. The filming schedules overlap by two months. In order to do both movies, Clive will have to divert significant attention from Producer's movie, in the final two months of its filming. Producer brings suit for specific performance to compel Clive to exclusively make her movie. Assume that Producer prevails on the merits. Which of the following statements is most accurate: A. Paula Producer will likely prevail because she hired Clive for his unique and particular acting talents and those talents cannot be replaced by an award of monetary damages. B. Paula Producer will likely lose because Clive can still complete both projects and she cannot prove that her project will meaningfully suffer. C. Paula Producer will likely prevail because Clive was under a preexisting duty to her. D. Paula Producer will likely lose because the contract calls for personal services and Clive cannot be forced to provide such services.

7. Douglas was hired by Veritas Adventures to build a new wizard-themed adventure park for $25 million. Douglas anticipated that it would cost $21 million in labor and materials to finish the job. After completing the initial grading of the land and about three-quarters of the required preparatory work for the park, at a cost of $750,000, Douglas was contacted by Veritas and told to "immediately stop all work." Veritas explained that it was on the verge of bankruptcy and needed to conserve cash, "at least until we can work out a bridge loan." Veritas went on to say that it "hoped it could get the project back on track" but it ended by saying that there was a non-trivial possibility that the project would never be able to be finished. Douglas decided that he would finish at least the preparatory work for the park at a cost of $350,000. He rationalized this as a smart decision. If Veritas was able to get the bridge loan and restart the project, having the preparatory work done would preserve the state of the project. If, on the other hand, Douglas left the project in its current state, depending on how long the delay was, much of the value of the preparatory work could be undone by weather and neglect, resulting in up to $100,000 or so of additional preparatory work, to essentially redo what had already been done. Imagine that Veritas never gets the bridge loan but that Douglas does finish the preparatory work for $350,000. Imagine that Veritas had paid Douglas a down payment of $1 million and progress payments of $250,000. Imagine further that Douglas brings a lawsuit against Veritas for breach and prevails on liability. Which of the following statements is most accurate. A. Douglas should recover $3.5 million. B. Douglas should recover $5.1 million. C. Douglas should recover $4.4 million. D. Douglas should recover 3.85 million.

8. Vincent agrees to sell his beloved manor house in upstate New York for $1.5 million to his dear friend Mildred, closing on September 1. Mildred promptly gets the house appraised, at a cost of $5,000, and discovers that it is really worth $1.9 million. She also learns that she can acquire a 25-acre parcel of property next to the manor house for a great price -- $350,000. If she combines the manor house and its land with the new parcel of property, and builds a horse stable on the new parcel for $100,000, the appraiser says that the combination would be worth $2.7 million. Mildred promptly pays a $15,000 option fee on the neighboring 25-acre parcel, giving her the ability to exercise the option through August 20. Mildred then hires an architect to begin designing a horse stable, at a cost of $10,000. On August 20, Mildred signs a purchase agreement for the 25-acre parcel. On August 25, Vincent anticipatorily repudiates. Assume that Mildred sues Vincent and wins on liability. What are Mildred's likely recoverable damages? A. $1.2 million B. $1.55 million C. $420,000 D. $400,000 E. $760,000

10. A farmer who wanted to sell her land received a letter from a developer that stated, "I will pay you $1,100 anacre for yourland." The farmer's letter of reply stated, "I accept your offer." Unbeknownst to the farmer, the developer had intended to offer only $1,000 per acre but had mistakenly typed "$1,100." As both parties knew, comparable land in the vicinity had been selling at prices between $1,000 and $1,200 per acre. A. There is no contract, because the parties attached materially different meanings to the price term. B. There is no enforceable contract, because the developer is entitled to rescission due to a mutual mistake as to a basic assumption of the contract. C. There is a contract formed at a price of $1,000 per acre. D. There is a contract formed at a price of $1,100 per acre.