Isaac Holds One Ton of Perishable Fruit in Storage for Juice

question 67

Multiple Choice

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents

• A) ​a breach of contract.
• B) ​a mitigation of damages.
• C) ​liquidated damages.
• D) ​a quasi contract.

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Definitions:

Duress

A situation where a person performs an act as a result of violence, threat, or other pressure against the person, raising questions about the voluntariness of the act.

Scienter

In legal contexts, scienter is the knowledge or intent to deceive, defraud, or violate statutes or regulations.

Representations

Statements or assertions made by one party to another, often regarding the condition or status of something, which can impact agreements or contracts.

Innocent Misrepresentation

A misrepresentation made without fault or knowledge of its falsity, which may allow the misled party to void the contract but not claim damages.