Contracts and Sales Flashcards
7 cards from real OR BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.
Read the first 7 Contracts and Sales flashcards as text
The standard measure of expectation damages for breach of contract places the non-breaching party:
Answer: In the position they would have been in had the contract been fully performed
Expectation damages give the non-breaching party the benefit of the bargain by restoring them to the position full performance would have provided.
Under Hadley v. Baxendale, consequential damages for breach of contract are recoverable only if:
Answer: They were foreseeable to the breaching party as a probable result of breach at the time of contracting
Consequential damages are limited to losses within the contemplation of the parties as a probable consequence of breach at the time of contracting.
Specific performance is available as a remedy for breach of contract when:
Answer: The subject matter is unique and monetary damages are inadequate
Specific performance is an equitable remedy granted when the subject matter is unique — such as real property or rare goods — making money damages inadequate.
An intended third-party beneficiary's rights vest — preventing the original parties from modifying or rescinding without consent — when the beneficiary:
Answer: Relies on the contract, assents to it, or brings suit to enforce it
An intended beneficiary's rights vest upon reliance, assent, or suit, after which the original parties lose power to modify or cancel without the beneficiary's consent.
Amy assigns her right to receive $5,000 from Carl to Bank as collateral for a loan. Carl may assert against Bank:
Answer: Any defense Carl had against Amy that arose before Carl received notice of the assignment
An assignee takes subject to all defenses the obligor had against the assignor at the time of the assignment and before receipt of notice.
Which contractual duty CANNOT be delegated to a third party without the obligee's consent?
Answer: A duty requiring the unique personal skill or judgment of the original promisor
Duties involving unique personal skill, trust, or confidence cannot be delegated without consent because the obligee bargained for that specific person's performance.
A contract's liquidated damages clause specifies $5,000 for late delivery. The clause is enforceable if:
Answer: The amount was a reasonable pre-estimate of anticipated harm and actual damages are difficult to prove
Liquidated damages clauses are enforced when they represent a reasonable pre-estimate of anticipated harm and actual damages would be difficult to ascertain.
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