Cleo Entered into a Contract with Harvey in June to Redecorate

question 6

Multiple Choice

Cleo entered into a contract with Harvey in June to redecorate his apartment before Christmas. However, in the middle of October, she informed him that she would not be able to do his job because she had been offered a big contract in Japan that would take her away until spring. Which of the following is true with respect to this situation?

• A) The most likely remedy would be for the court to award specific performance to make her do the job.
• B) Harvey must wait until Christmas to see if Cleo actually performs before he can take legal action.
• C) Cleo has repudiated the contract and Harvey can take legal action immediately.
• D) Their contract has been frustrated by circumstances outside their original contemplation, and thus they are excused from their previous obligations.
• E) Cleo could claim quantum meruit for any work she had done so far and that would be the end of the matter.

Understand the principles that render contracts unenforceable due to illegality.

Analyze the consequences and enforcement of contracts involving illegal actions.

Distinguish between regulatory and revenue-raising licensing statutes and their impact on contract enforcement.

Recognize enforceability issues related to noncompetition clauses within contracts.

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Definitions:

Freedoms

The rights and privileges that allow individuals to act without interference or restriction within a society, subject to legal parameters.

Common Law

A collection of laws that are not codified but are founded on judicial decisions made by courts.

Equity

A branch of law that deals with justice and fairness, providing remedies and relief that are not available in the regular legal system.

Legal System

The comprehensive framework of laws, regulations, and procedures that guide the administration of justice in a society.