QUESTION 1

1. Valerie wants to splurge on her new she-shed (outdoor female equivalent of a man cave) Although her she-shed did have a lovely wine fridge and a crystal chandelier, something was missing. She hired a landscaping company Major Toms Ground Control to provide a boxwood hedge, an angel stone path leading up to the shed, and several exotic plants and trees. A contract was drawn up which spelled out what Major Tom would do in exchange for $10,000.00. Valerie provided Major Tom with a $5,000.00 deposit to begin the work they had agreed upon. One stipulation in the contract, was that Major Tom would remove all leftover plant material and debris and clean the property before they left.

   On the afternoon the landscaping was to be completed, she arrived home from work with her friends ready to begin enjoying the she-shed. The she shed looked lovely. Major Tom was nowhere to be found but they had left behind a hill of dirt, several shovels, a pair of work boots and two empty cases of beer. Valerie was not happy.

   She called Major Tom and told them that she would not pay the balance of $5000.00 because they had failed to clean the property as indicated by the contract after the work was completed.

   Based on this week's case "Surround Yourself with Nature " has Major Tom's Ground Control completed their part of the contract?

   		No, Major Tom is in breach of contract according to the terms as the work was not completed to Valerie's satisfaction.
   		Yes, Major Tom has completed their part of the contract because they completed the work on time and should be paid the remaining $5000.00 that is owed to them.
   		No, they have not completed their part of the contract as they did not clean the property after the work was completed as specified by the contract.
   		Depending on whether the failures were serious enough to count as conditions of the contract, Major Tom has completed Substantial Performance of the contract.

1 points

QUESTION 1.B

1. If it began to storm and a bolt of lightening struck Valerie's she shed burning it to the ground before the landscaping was completed, Major Tom's Ground Control would be discharged from their obligation under the contract. This is known as:

   		Express repudiation
   		A frustrated contract
   		An anticipatory breach
   		An operation of law.

1 points

QUESTION 1.C

1. Why do the courts allow for substantial performance to satisfy a contract's obligation?

   		To keep legal proceedings efficient and effective
   		Because contracts are the basis of all commercial transactions
   		To avoid allowing one party to abuse the law at the cost to another party over a minor failure.
   		Because express repudiation is rarely successful.

1 points

QUESTION 1.D

1. What is a liquidated damages clause?

   		An order of specific performance decreed by a court.
   		A remedy the follows a breach of cost.
   		An anticipated cost of a breach that is negotiated into the contract if it is breached.
   		A term that removes liability in certain types of contracts.