SAT Prep Questions

Scenario 3

Best had a yearly contract to supply goods to Discount. Each order was worth at least $1,750. When Discount failed to place an order for the goods described in the contract by the date specified in the contract, Best sued Discount for breach of contract. Discount contended that the contract that its employee Robert signed was a standard preprinted supply contract without specifics concerning the time of order or quantity. Furthermore, Discount claimed that, while Robert had authority to sign a standard supply contract, he could not authorize specific terms. This was unknown to Best. Best argued that the contract terms were boilerplateand could therefore be modified by acceptance. Best offered oral testimony at trial to prove that Robert agreed to the contract terms.

Discuss the following issues, using an IRAC analysis of law and facts to support your responses:

·Is there a contract? If so, what are its terms? If not, why not?

·Analyze the application of common law of contracts and UCC Article 2 as they relate to whether a contract was formed.

·Analyze the gap filling provisions of UCC Article 2 as they relate to the terms of this contract.

·Discuss the use of Best's oral testimony at trial.

·What rights or defenses, if any, does Super have under contract law?

·What rights or defenses, if any, does Discount have under contract law?

·Who will win the lawsuit and why?

·Discuss the remedies and/or damages available to the winning party in the lawsuit.

·How will the winning party’s damages be calculated?

Scenario 4

Martin contracted with Reliable Construction (Reliable) to build an addition to his house. After the work started, due to an increase in new business, Reliable was unable to complete the construction within the 7-month period specified in the contract and subcontracted the job to Sun Construction (Sun). Martin was unaware of the subcontracting. Six months into the building, Martin discovered that Sun was doing the construction. In addition, the work was defective. Martin sued Reliable for breach of contract and for specific performance. In addition, Martin petitioned the court for an injunction prohibiting Sun from doing any more work on the store. Reliable argued that it had a right to delegate its duties under the contract or, in the alternative, to discharge the contract due to impossibility of performance.

Discuss the following issues:

·What are Martin’s claims against Reliable?

·What, if any, are Reliable’s defenses?

·What will be the probable outcome of this lawsuit?

·What will be the damages awarded in the lawsuit and how will they be calculated?

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