Assignment:
Question 1. In which of the following cases is there a material breach of a contract?
- Al fails to substantially perform on his promise to construct a road for City.
- Bill tells Mike that he will not deliver the goods as promised.
- The Gazette fails to print an advertisement for a New Year's Day sale until January 5.
- All of the above materially breach a contract.
Question 2. Which of the following generally is least likely to be awarded in a contract suit?
- Consequential damages.
- Incidental damages.
- Punitive damages.
- Nominal damages.
Question 3. X contracts to build a building for Y. Changes in the building code that were made after the contract was signed will increase X's costs in performing his duties. X is not excused from performance under the contract.
Question 4. A and B have made a contract with an enforceable liquidated damages provision that states that B's recovery will be $10,000 in the event of A's breach. A breaches the contract, and B loses $50,000 in consequential damages as a result. B's recovery is limited to $10,000.