A Makes a Contract Under Which B Company Is to Repair

question 100

Multiple Choice

A makes a contract under which B Company is to repair and repaint A's pier.Under the contract,A has the right to specify the materials to be used.B Company induces A to specify the use of a particular paint that it made,giving A assurances of its quality.The paint is supplied by B Company,but it is found to be unsuitable,and A has to spend $40 000.00 to correct the matter.In a lawsuit by A against B

• A)the court will find that the inducement of the quality of paint was a collateral contract that formed the consideration for the main contract to repair and repaint A's pier.
• B)the court will find that B Company's inducement of the quality of the paint was a mere invitation to treat and nothing more.
• C)the court will be unable to get around the parol evidence rule and A will lose her or his law suit.
• D)the court will find that A should have ensured that the inducement of the quality of the paint was put into the written contract.
• E)the court will find that B Company's assurances about the quality of the paint is a condition precedent to the contract.

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Definitions:

Damages Determination

The process by which courts calculate the amount of money to be awarded to a party in a lawsuit for losses or injuries suffered.

Special Use Loss

A financial loss incurred due to the specialized nature of property or equipment that limits its use or marketability.

Fundamental Breach

A severe violation of a contract that permits the aggrieved party to terminate the agreement and potentially seek damages.

Exemption Clause

Language within a contract designed to protect a party by restricting certain legal claims or liabilities.