Question

QUESTION 1

1. Which of the following modified contracts falls within the statute of frauds?

	a.	A contract for the sale of 800 widgets at $1.00 each is modified to 400 widgets at $1.00 each.
	b.	A contract for the sale of 400 widgets at $1.00 each is modified to 800 widgets at $1.00 each
	c.	A contract for the sale of 40 widgets at $1.00 each is modified to 400 widgets at $1.00 each.
	d.	A contract for employment for 13 months at $400 per month is modified to 8 months at $550 per month.

QUESTION 2

1. Nominal damages are awarded

	a.	whenever specific performance is unavailable.
	b.	whenever a liquidated damage clause is invalid.
	c.	whenever a plaintiff can not show monetary loss as a result of a breach of contract.
	d.	All of the above.

QUESTION 3

1. The situation where one party notifies the other of her intention to breach a contract prior to her date of performance is known as

	a.	recission and restitution
	b.	immediate repudiation
	c.	material breach
	d.	anticipatory repudiation

Answer 1

Answer 1:-

(a) A contract for the sale of 800 widgets at $1.00 each is modified to 400 widgets at $1.00 each.

Explanations:-

The statute of frauds has its roots in An Act for Prevention of Frauds and Perjuryes, which was passed by the English Parliament in 1677. The statute of frauds (SOF) is a legal concept that requires certain types of contracts to be executed in writing. Among others, these typically include those for the sale of land, of any goods over $500 in value, and contracts of a year or more in length.

Answer 2:-

(c) Whenever a plaintiff cannot show monetary loss as a result of a breach of contract.

Explanations:-

Nominal damages are awarded where the innocent party has suffered no loss as a result of the other's breach. The term nominal damages means a trivial sum-usually one cent or one dollar-awarded to a plaintiff whose legal right has been technically violated but who has proved no real damage.

Answer 3:-

          (c) Material breach

Explanations:-

A breach is committed where a party without lawful excuse fails or refuses to perform what is due from him under the contract, performs defectively or incapacitates himself from performing.