Your client is an ex-husband. As part of a divorce settlement, the ex-husband made a legally binding promise to his ex-wife to provide housing for their twin 18-year-old daughters throughout their undergraduate college careers. Pursuant to that promise, the ex-husband entered into a contract with a contractor for the renovation of a condominium that the ex-husband purchased near the daughters’ college campus. The contract called for the renovations to be complete before school began on August 1. The contractor began renovating the condo but breached the contract by abandoning the condo unfinished on July 1. The contractor was aware when the agreement was made of the purpose for which the ex-husband wanted the completed condo. On behalf of the ex-husband, you file a lawsuit for breach of contract against the contractor. Which of the following, if true, would best support your claim for consequential damages on account of the condo not being finished by August 1? Select one.

You represent a doctor who has filed a defamation action against a nurse after the nurse published a blog that accused the doctor of being a “drug dealer.” As part of his defense at trial, the nurse seeks to offer evidence that the doctor previously operated a “pill mill” and was ultimately convicted of drug trafficking two years ago. Is the evidence of the doctor’s conviction likely to be admissible? Select one.

The client asks whether and to what extent it will receive the protection of any warranties in its dispute with the supplier.  Which of the following statements best articulates which warranties, if any, will most likely apply to the client’s matter? Select one.

You represent a seafood importer. Recently, the importer entered into a written agreement with a restaurant chain to sell the restaurant chain 500 pounds of prawns for a total price of $10,000. Prior to the date set for execution of the contract, the market price for prawns soared because of a natural disaster in an area where a large percentage of prawns are cultivated. The importer informed the restaurant chain that the cost of prawns had risen and requested that the contract price be adjusted to $12,000 for the 500 pounds of prawns as a result. The restaurant chain agreed orally to pay the $12,000, but no written confirmation was exchanged between the parties. Shortly thereafter, the market for prawns stabilized and prawns became available again at predisaster price levels. The importer shipped 500 pounds of prawns to the restaurant chain. On receipt, the restaurant chain sent the importer a certified check in the amount of $10,000, marking it “payment in full.” The importer did not cash the check, but telephoned the restaurant chain demanding an additional $2,000. The restaurant chain refuses to pay the additional sum. The importer would like to sue the restaurant chain to recover the additional $2,000 and meets with you to discuss filing a lawsuit. Should you advise the importer that it is likely to be successful? Select one.

The owner of an award-winning thoroughbred racehorse sent an e-mail to a horse breeder offering to sell him the horse for $80,000 if he bought the horse before November 15. The breeder was extremely knowledgeable about horses and knew that comparable horses were being sold for $100,000. On November 1, just as the breeder was headed to his bank to get a certified check for the purchase of the horse, he received another e-mail from the owner stating that she had changed her mind and the horse was no longer for sale. The breeder got the check and drove to the owner’s stable anyway, where he saw a “horse for sale” sign nailed to the outside of the horse’s stall. The breeder located the owner behind the stable, tendered the $80,000 certified check, and demanded the horse. The owner refused. The breeder meets with you because he would like to sue the owner for breach of contract. While discussing the possibility of a lawsuit, the breeder asks you how much he can expect to recover from the owner. Which of the following amounts should you advise the breeder that he is likely to recover? Select one.

A retiring dentist entered into a written agreement with an agent whereby the agent would receive a commission of 10% of the sale price if he procured a “ready, willing, and able buyer” for the purchase of the dentist’s dental practice and if the sale of the practice actually occurred. The agent found a buyer who agreed in writing to buy the practice from the dentist for $500,000, the dentist’s asking price. The buyer put up $30,000 as a down payment. The agreement between the dentist and the buyer contained a liquidated damages clause providing that, if the buyer defaulted by failing to tender the balance due of $470,000 within 60 days, damages would be 10% of the purchase price. The dentist included that clause because she was counting on using the proceeds of the sale for another business venture that would likely net her at least $50,000. The buyer became seriously ill and defaulted. When he recovered, he demanded that the dentist return his $30,000, but the dentist refused. The agent also demanded the $30,000 from the dentist and was refused. The agent and the buyer filed separate suits against the dentist, with the buyer pleading impossibility of performance. The two cases are consolidated into a single case. The dentist would like you to represent her and meets with you to discuss the case. What should you advise the dentist is the court’s most likely ruling as to the disposition of the $30,000? Select one.

You are prosecuting a defendant on trial for burglary. The defense called the defendant’s cousin as an alibi witness to testify that the defendant was playing video games with the cousin when the burglary took place. On cross-examination, you asked the cousin, “Aren’t you under indictment for the same crime as the defendant?” The cousin had in fact been indicted in connection with the same burglary and was awaiting trial. Is your question likely to be considered proper by the court? Select one.

Your client is a small gas station. On October 15, the owner of a local tree farm telephoned the owner of the gas station and offered to sell the gas station 100 cut evergreen trees for resale as Christmas trees in the gas station’s parking lot for $2,500, not including delivery charges. The gas station owner accepted immediately. On October 17, the gas station owner sent the tree farm an e-mail confirming the deal for the sale of 100 trees for $2,500, and stating that it anticipated a waiver of the delivery charges because of the size of the order. On December 3, the tree farm owner again telephoned the gas station and stated that, due to a tree loss caused by a recent storm, the tree farm would not be able to supply any trees to the gas station. The gas station contacts you and you file a lawsuit against the tree farm for breach of contract. If the tree farm asserts the Statute of Frauds as a defense, will you still prevail on behalf of the gas station? Select one.

The client has asked for advice on what remedies it might obtain from the supplier. So, you review the Franklin UCC Deskbook on Remedies, which reads in relevant part as follows: §77.201 Remedies Broadly speaking, Franklin’s UCC Article 2 affords the following remedies upon breach of a contract for the sale of goods: I. Seller’s General Damages for Nonacceptance or Repudiation If the buyer repudiates the contract or wrongly rejects the goods, the seller’s general damages equal the goods’ market price minus the contract price. If this measure is inadequate for some reason, the seller may recover lost profits. In either case, the seller may also recover incidental damages. II. Buyer’s Remedies A. Generally Usually, if the seller breaches, the buyer may (1) cancel the contract, (2) recover any portion of the purchase price paid, or (3) implement cover. Incidental and appropriate consequential damages are also available. B. Cover Cover means that the buyer may make any reasonable purchase of, or contract to purchase, substitute goods and then recover the difference between the cover price and contract price from the seller. Cover is optional. C. Incidental and Consequential Damages Incidental damages include reasonable expenses flowing from the breach, such as the cost of cover or the cost of properly situating rejected goods. Consequential damages include loss flowing from the buyer’s particular requirements of which the seller knew or had reason to know, and which could not be prevented through cover or otherwise, and may include lost profits. D. Specific Performance Specific performance is available if the goods are unique, the goods are specially manufactured for the buyer, or in other proper circumstances. E. Liquidated Damages Liquidated damages are available if they are (1) spelled out in the contract, (2) reasonable, and (3) not unreasonably large (and thus a penalty). F. Buyer’s Restitution If the buyer breaches, prompting the seller to justifiably withhold the goods, then the buyer may recover, as restitution, the amount by which the buyer’s payments exceed the smaller of (1) liquidated damages or (2) damages determined by a statutory formula. End of excerpt Assuming the client rightfully rejected the defective engines, which of the following remedies would be available to the client concerning the defective engines? Select two.

You represent the owner of a historic home that had previously been converted into a bed and breakfast. On September 1, the owner mailed a letter to the granddaughter of the original builder of the home who had expressed an interest in buying the home and business. In this letter, the owner offered to sell the home to the granddaughter for $500,000. The offer expressly stated that the offer expires on November 1, “if your acceptance has not been received by me on or before that date.” On the morning of November 1, the grand-daughter sent a written acceptance to the owner by messenger. However, through negligence of the messenger, the acceptance was not delivered to the owner until November 2. On November 4, the owner entered into a contract to sell the home to another buyer for more money but did not inform the granddaughter of the transaction. When the granddaughter followed up by phone on November 10, the owner told her that he had sold the home to another buyer. Concerned that the granddaughter may try to sue him, the owner contacts you for advice. What should you advise the owner regarding the relationship between the parties? Select one.