In Which of the Following Cases Will a Court Order

question 30

Multiple Choice

In which of the following cases will a court order specific performance of the contract? i. Gigantic Electrical Warehouse repudiates its contract with Video Co. to purchase 2,000 VCRs. The loss of this deal might push Video into bankruptcy.
ii. Joan, a great opera singer, decides it is too far from New York to the National Arts Centre in Ottawa and so she will not perform at the sold-out concert there next week for which she had contracted months ago.
iii. Mitsuko had a contract with Refined Galleries to purchase a small Rembrandt drawing, which Refined wants now to sell to a regular and very wealthy customer of theirs. They will not give Mitsuko the drawing.
iv. John is refusing to perform a contract to sell his house to Eli. Eli has wanted to live in that house since he was a small boy.
v. Alvin is refusing to perform a contract to purchase Huma's house. Huma has another purchaser but her highest offer is $10,000 less than Alvin's.

• A) iii and iv.
• B) i, iii and iv.
• C) i, iii, iv and v.
• D) i, ii, iii and iv.
• E) All of the responses are correct.

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Definitions:

Cost Of Goods

The total expense associated with producing goods, including raw materials and labor costs.

Beginning Inventory

The value of all inventory held by a business at the start of an accounting period.

Periodic Inventory System

An inventory accounting system where the inventory is physically counted at specific intervals to determine the cost of goods sold and ending inventory value.

Average Cost

An inventory costing method where all costs of inventory purchased are averaged to determine the cost of goods sold and ending inventory value.