Question11

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Contracts/Defenses. Don is cleaning out his apartment and contracts with Peggy to sell her his country club membership for $5,000. Neither Don nor Peggy knows what this membership is worth, but when Don later finds out that this membership is worth more than twice as much, he refuses to perform. Peggy sues him for breach of contract, and Don raises all possible affirmative defenses. Who wins?

Select one:

a.Don: unilateral mistake

b.Don: mutual mistake

c.Peggy: unilateral mistake

d.Peggy: mutual mistake

Question12

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Contracts/Defenses. Assume the same facts as in Question 11, above, but this time Peggy knows, and reasonably thinks Don does too, that this membership is worth more than twice as much. In fact, Don does not know this, and when he later finds out, he refuses to perform. Peggy sues him for breach of contract, and Don raises all possible affirmative defenses. Who wins?

Select one:

a.Don: unilateral mistake

b.Don: mutual mistake

c.Peggy: unilateral mistake

d.Peggy: mutual mistake

Question13

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Contracts/Performance. Trudy has become a celebrated artist, specializing in paintings of cheating husbands. Don hears this and contracts with her to paint his portrait for $5,000. However, Trudy later decides not to do the work and assigns her rights in the contract to Peggy. The contract is silent as to assignability. Has there been a valid assignment of rights?

Select one:

a.Yes, contracts are generally assignable

b.Yes, personal service contracts are generally assignable

c.No, contracts are generally not assignable

d.No, personal service contracts are generally not assignable

Question14

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Contracts/Performance. Harry has hired Joan to be his TV assistant, but shortly before Joan is due to start, she takes another, better-paying job at a rival advertising firm. Harry contracted with Joan for two years at a salary of $5,000/month, but now has to hire Peggy instead, for two years at a salary of $8,000/month. Harry sues Joan for breach of contract. What result?

Select one:

a.No recovery; Harry found another employee

b.Compensatory damages of $36,000

c.Compensatory damages of $48,000

d.Compensatory damages of $72,000

Question15

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Contracts/UCC. Betty, the owner of a retail coffee and tea shop, gives Jiang a written offer to sell her 100 lbs. of Mao's Delight tea for $1,000, with signed separate assurance the offer will remain open for 30 days. Shortly after, however, Lane offers Betty $1,500 for the tea and Betty sells it to him. When Jiang finds out, she makes a written acceptance and sues Betty for breach of contract. Jiang argues that UCC Article 2 and the Merchant's Firm Offer Rule (MFOR) both apply. Who wins?

Select one:

a.Jiang: the UCC and the MFOR both apply

b.Jiang: the UCC does not apply

c.Betty: the UCC applies, but the MFOR does not

d.Betty: the UCC does not apply