BIM Co. acquired land with the intention of building a shopping mall. For this purpose, it entered into an agreement with MBI Co., a contractor. HAL Co. learned of BIMs plan, promptly bought adjacent property, and began constructing a fast-food outlet to take advantage of the anticipated increase in traffic. After HAL began construction, BIM decided not to build the shopping mall. As a result, the fast-food outlet is unlikely to be viable. Consequently, HAL has sued BIM and MBI for breach of contract. HAL will

• A.Win because it is a third-party creditor beneficiary.

• B.Lose because it is a donee beneficiary.

• C.Win because it is an intended beneficiary.

• D.Lose because it is a third-party incidental beneficiary.

On June 1, Seller and Buyer entered into a contract for the sale of goods to be delivered on June 30. On June 15, Seller repudiated the contract because the agreed price was less than the market value of the goods at that date. Buyer did not cover. On June 30, Buyer tendered the contract price, but Seller did not accept the tender and deliver the goods. On that date, the market price was greater than it had been on the date of the anticipatory repudiation. What is Buyers remedy?

• A.Damages equal to the difference between the contract price and the market value on June 15.

• B.Damages equal to the difference between the contract price and the market value on June 30.

• C.None, because Buyer failed to cover.

• D.Specific performance.

If collateral is described in a security agreement as the debtors currently existing and after-acquired inventory, the description

• A.Is sufficient for the security interest to attach to the after-acquired inventory.

• B.Is insufficient to cover any inventory.

• C.Is insufficient unless the secured party takes possession.

• D.Is sufficient, but the security interest is limited to currently existing inventory.

A reasonable estimation of the damages owed in the event of a breach may be stipulated by the parties to a contract as liquidated damages. This amount should

• A.Maintain legal equality between the parties.

• B.Result from a good faith effort to estimate probable damages.

• C.Provide restitution to the nonbreaching party.

• D.Be intended as a penalty imposed on the breaching party.

In general, if the goods fail in any respect to conform to the contract, the buyer

• A.May not accept the whole despite its nonconformity.

• B.May accept any nonconforming articles and reject the rest.

• C.May accept any commercial unit or units and reject the rest.

• D.May not reject the whole because of the nonconformity of part.