Woody Entered into a Contract with Jezebel

question 70

Multiple Choice

Woody entered into a contract with Jezebel.She promised to pay $10 000 and he promised to build a sun deck in her backyard.The contract contained specific terms regarding the quality of the materials that Woody would use.Woody built a sun deck,but many of the materials that he used fell below the standard required by the contract.As a result of that breach,the deck is worth $1000 less than Jezebel expected.It will cost $9000 to replace the defective materials with materials that satisfy the terms of the contract.Which of the following statements is TRUE?

• A)A court will certainly award cost of cure damages if Woody deliberately used materials that did not satisfy the terms of the contract.
• B)A court will probably refuse to award cost of cure damages because the difference between the loss of value and the expense of repairing the defect is very large.
• C)If Jezebel is awarded cost of cure damages,she must use that money to cure the defect.
• D)Cost of cure damages are classified as a form of punitive damages because they often require the defendant to pay for more than the plaintiff's actual loss of value.
• E)If Woody deliberated breached the contract by using inferior materials,Jezebel will receive total damages worth $18 000.

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Definitions:

Stock Dividends

Financial shares of a company's profit distributed to its shareholders typically issued in proportion to the number of shares held.

Current Account

A component of a country's balance of payments that measures the trade of goods and services, investment income, and direct transfers with foreign entities.

Goods Exports

The act of selling and shipping goods from one country to another country.

Net Investment Income

The total income received from investment assets, after deducting all related expenses.