Mesa County contracts with New Construct Inc. to build acourthouse. New Construct hires Odell to excavate the
Question:
Mesa County contracts with New Construct Inc. to build acourthouse. New Construct hires Odell to excavate the site. Odell’swork damages adjacent properties. Mesa files a suit against theexcavator, who argues that the county is not named in his contractwith New Construct. Most likely, the court will hold that Odellis
a. not liable because Mesa is not named in Odell’s contract.
b. liable on the ground that Mesa is an incidental third-partybeneficiary.
c. liable on the ground that Mesa is an intended third-partybeneficiary.
d. not liable because Odell’s contract was with New Construct,not Mesa.
2. Jim and Kiel agree that Jim will fix the refrigerationunit in Kiel’s Food Truck in exchange for payment of a debt thatJim owes to Lenders Bank. Under this contract, the intendedbeneficiary is
a. Lenders Bank.
b. any customer, client, or employee of Kiel’s Food Truck orLenders Bank.
c. Jim.
d. Kiel’s Food Truck.
3. Ira owes Jess $1,000. Kerr owes Ira $1,000. Iraunconditionally assigns to Jess the right to Kerr’s payment. Jess’sright to the $1,000 is subject to the defenses that
a. Ira had against Kerr.
b. none of the choices.
c. Kerr had against Ira.
d. Jess had against Ira.
4. Architect LLC enters into a contract with Barn &Silo Inc. to provide designs for a certain number of farmbuildings. Architect provides fewer than half of the designs by thetime specified in the contract because the firm is busy with otherprojects. Architect’s performance is most likely
a. a reasonable breach.
b. a material breach.
c. no breach.
d. a minor breach.
5. Discharging a contract by executing a new agreement withperformance different from what was originally promised is
a. a novation.
b. a material breach.
c. substantial performance.
d. an accord and satisfaction.
6. Food Court Inc. leases space to Gourmet Café. Gourmetabandons the premises when the amount of the rent due on the lease is $5,000. Food finds a new tenant, Hasty Bowls, which agrees to pay $3,500 for the space over the remainder of Gourmet’s term. Food’s measure of damage is
a. $5,000.
b. $1,500, plus any additional expenses to find the new tenant.
c. $1,500, minus any expenses reduced by mitigating the damage.
d. $6,500.
Business Law Today Comprehensive Text And Cases Diverse Ethical Online And Global Environment
ISBN: 9781285428932
10th Edition
Authors: Roger LeRoy Miller