LEGAL 2700 EXAM 3 JESSICA TRIPP FINAL
STUDY PAPER 2026 COMPLETE QUESTIONS
AND ANSWERS
◉ Igor hires Charles to clean his buildings but then they are
destroyed in a fire. Answer: Impossibility of performance
◉ East Capital View Community Development v. Robinson. Answer: -
hired robinson for a one year term
- prior to expiration of the contract, they fired robinson for lack of
funding. however, there was no language stating that a shortage of
external funding could exclude East Capital from permanently
terminating the employment- robinson sued for breach of contract
- appellant contends with the trial court, specifically distinguishing
between the objective impossibility and personal impossibility
- since parties can allocate known risks in a contract, impossibility
must be an unexpected occurrence
◉ BB enters into a contract with LG to purchase 15 refrigerators.
Due to an unexpected tariff on imported steel the cost of producing
doubles. If LG continues with the contract the company will lose
money.. Answer: Commercial impracticability
,◉ Breach of Contract. Answer: Arises when a party does not
accomplish the obligation of contractual performance
Remedies: Damage awards and Equitable
◉ Compensatory Damages. Answer: A monetary award equivalent to
the actual value of injuries or damage sustained by the aggrieved
party.
◉ Consequential Damages. Answer: Special damages that
compensate for a loss that is not direct or immediate (for example,
lost profits). The special damages must have been reasonably
foreseeable at the time the breach or injury occurred in order for the
plaintiff to collect them.
◉ Liquidated Damages. Answer: An amount, stipulated in the
contract, that the parties to a contract believe to be a reasonable
estimation of the damages that will occur in the event of a breach.
◉ Sherry hires Misty to cater her tradeshow. A week before Misty
backs out of the contract and Sherry must hire a new caterer with a
rush order that costs her $5,000 more than the original amt. Sherry
sues Misty for $5,000.. Answer: Compensatory Damages
◉ Compensatory Damages. Answer: Contract price: if defendant fails
to pay for goods/services
, Lost Profits: if defendant fails to pay but plaintiff makes a
replacement sale for a lower price
Difference between market price v. contract price: if defendant fails
to deliver goods/services and it is procured at a higher price
◉ Duty to Mitigate. Answer: Victim of a breach of contract must take
reasonable steps to mitigate damages
◉ Brandi enters into a 12 month lease agreement with Athenian
Housing. Two months into the leases, Brandi has to move to NC.
Athenian housing makes no effort to relet the townhome and sues
for the remaining 10 months.. Answer: Housing has duty to
mitigate/lease place
Court determines reasonable price to compensate
Brandi would be on hook for full 10 months if housing tried to
release place if not she is on the hook for it
◉ GC orders steel rebar from SteelCo for a large project. At the time
of the order GC expresses the rebar will be used for a large contract
and the timing of the delivery is important. SteelCO fails to deliver
and GC incurs substantial penalties under the contract for failure to
complete the building on time. In addition because it took GC several
more months to complete the job, GC's bond provider increased its
rates, the GC incurred additional financing and overhead cost to
complete the project.. Answer: Consequential Damages
STUDY PAPER 2026 COMPLETE QUESTIONS
AND ANSWERS
◉ Igor hires Charles to clean his buildings but then they are
destroyed in a fire. Answer: Impossibility of performance
◉ East Capital View Community Development v. Robinson. Answer: -
hired robinson for a one year term
- prior to expiration of the contract, they fired robinson for lack of
funding. however, there was no language stating that a shortage of
external funding could exclude East Capital from permanently
terminating the employment- robinson sued for breach of contract
- appellant contends with the trial court, specifically distinguishing
between the objective impossibility and personal impossibility
- since parties can allocate known risks in a contract, impossibility
must be an unexpected occurrence
◉ BB enters into a contract with LG to purchase 15 refrigerators.
Due to an unexpected tariff on imported steel the cost of producing
doubles. If LG continues with the contract the company will lose
money.. Answer: Commercial impracticability
,◉ Breach of Contract. Answer: Arises when a party does not
accomplish the obligation of contractual performance
Remedies: Damage awards and Equitable
◉ Compensatory Damages. Answer: A monetary award equivalent to
the actual value of injuries or damage sustained by the aggrieved
party.
◉ Consequential Damages. Answer: Special damages that
compensate for a loss that is not direct or immediate (for example,
lost profits). The special damages must have been reasonably
foreseeable at the time the breach or injury occurred in order for the
plaintiff to collect them.
◉ Liquidated Damages. Answer: An amount, stipulated in the
contract, that the parties to a contract believe to be a reasonable
estimation of the damages that will occur in the event of a breach.
◉ Sherry hires Misty to cater her tradeshow. A week before Misty
backs out of the contract and Sherry must hire a new caterer with a
rush order that costs her $5,000 more than the original amt. Sherry
sues Misty for $5,000.. Answer: Compensatory Damages
◉ Compensatory Damages. Answer: Contract price: if defendant fails
to pay for goods/services
, Lost Profits: if defendant fails to pay but plaintiff makes a
replacement sale for a lower price
Difference between market price v. contract price: if defendant fails
to deliver goods/services and it is procured at a higher price
◉ Duty to Mitigate. Answer: Victim of a breach of contract must take
reasonable steps to mitigate damages
◉ Brandi enters into a 12 month lease agreement with Athenian
Housing. Two months into the leases, Brandi has to move to NC.
Athenian housing makes no effort to relet the townhome and sues
for the remaining 10 months.. Answer: Housing has duty to
mitigate/lease place
Court determines reasonable price to compensate
Brandi would be on hook for full 10 months if housing tried to
release place if not she is on the hook for it
◉ GC orders steel rebar from SteelCo for a large project. At the time
of the order GC expresses the rebar will be used for a large contract
and the timing of the delivery is important. SteelCO fails to deliver
and GC incurs substantial penalties under the contract for failure to
complete the building on time. In addition because it took GC several
more months to complete the job, GC's bond provider increased its
rates, the GC incurred additional financing and overhead cost to
complete the project.. Answer: Consequential Damages
