Question

Question 10 Eve contracts to repair a computer for National Distributors, Inc. Eve knows that without the computer, National will lose a sale. Eve does not perform as promised. National files a suit against Eve. As consequential damages, National can recover A. the cost of a new computer B. the difference between Eve’s price and the actual cost of repair C. the loss of profit from the lost sale D. nothing

Question 11 Tina and Melvin enter into a contract by which Melvin agrees to cut Tina's grass once a week for $30. Melvin dies two weeks later. His estate A. must find another person to cut Tina's lawn for $30 once a week. B. is discharged from any further obligations under the contract. C. is discharged from any further obligations under the contract only if Tina knew it was unlikely that Melvin would live to complete the contract. D. none of the above

Question 12 Carol pays nicks $10,000 for nick to design an advertising campaign for Carol’s health club. The next day, nick tells Carol that he has accepted a job in New York and cannot design the campaign. Carol files a suit against nick. As compensatory damages, Carol can recover A. $100,000. B. $10,000. C. $1,000. D. nothing

Question 13 Consumer Goods, Inc., breaches its contract with Local Stores Company. Local Stores files a suit to recover compensatory damages, which are typically assessed A. only in contracts for the sale of goods valued in excess of $500 B. to compensate the nonbreaching party the loss of the bargain C. to penalize a party for failing to carry out its contractual obligations D. none of the above

Question 14 Business Office, Inc., hires Carl to repair a computer on site for $400, but Carl does not show up as agreed. Business Office hires Dan to do the job for $350. Business Office may recover from Carl A. compensatory damages B. consequential damages C. nominal damages D. punitive damages

Answer 1

Answer 10 - C. the loss of profit from the lost sale

As consequential damages, National can recover the loss of profit from the lost sale from Eve. As due to Eve’s failure to repair a contract, National Distributors has faced loss of profit by losing a sale.

Answer 11 – B. is discharged from any further obligations under the contract.

When Melvin dies, his estate is discharged from any further obligations under the contract. As per law if any party in a contract dies without stating otherwise he will get discharged from any further obligation under the contract.

Answer 12 - B. $10,000

As compensatory damages, Carol can recover only the amount which she has paid to Nicks that is $10,000.

Answer 13 – B. to compensate the non breaching party the loss of the bargain

Consumer Goods, Inc. breaches its contract with Local Stores Company. Local Stores files a suit to recover compensatory damages, which are typically assessed to compensate the non breaching party the loss of the bargain.

Answer 14 - C. nominal damages

Business Office may recover from Carl only the nominal damages because Business Office has not suffered any actual financial loss due to legal wrong done by Carl.