AIC 301 - EXPANDING YOUR 2024
CLAIMS PERSPECTIVE EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Andrew promised Katy he would roof her house on October 30. On October 15,
Andrew told Katy he could not find the correct shingles and stated he was probably
going to be too busy to do the job. Andrew has
Select one:
A. Not repudiated the contract.
B. Voided the contract.
C. Breached the contract.
D. Rescinded the contract. - ANSWERS-A. Not repudiated the contract.
A repudiation of a contract is the refusal to meet obligations under the contract, but
it must be positive and unequivocal to constitute a breach. Andrew's statement of
inability to perform in the future is not repudiation. Katy cannot sue for breach of
contract until October 30 has arrived, and Andrew has failed to roof her house.
END OF
PAGE 1
, AIC 301 - EXPANDING YOUR 2024
CLAIMS PERSPECTIVE EXAM
QUESTION 2
Benny sold his copy shop to Yolanda and promised not to compete with her in a
specific area for six months. Benny breached the provision and began to compete
with Yolanda's business only two months later. Which one of the following actions
would be most appropriate as an equitable remedy for Yolanda?
Select one:
A. Injunction
B. Damages
C. Contract price
D. Specific performance - ANSWERS-A. Injunction
Yolanda does not want the competition, and it is likely the equitable remedy would
be for Benny to cease to compete. An injunction would prevent Benny from
continuing to compete with Yolanda.
QUESTION 3
Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures.
When Karl woke up, he refused other medical services and he also indicated that
he could not be held liable for any expenses that he did not personally authorize or
END OF
PAGE 2
, AIC 301 - EXPANDING YOUR 2024
CLAIMS PERSPECTIVE EXAM
to which he did not consent. It is likely that Karl might be required to pay the
reasonable value of the services received based on
Select one:
A. An implied-in-law contract.
B. An implied-in-fact contract.
C. An executory contract.
D. A unilateral contract. - ANSWERS-A. An implied-in-law contract.
If a doctor renders professional services to an unconscious person then the law
might obligate the patient to pay for those services based on an implied-in-law
contract, to avoid unjust enrichment.
QUESTION 4
In a written contract to purchase ten electric guitars from Phillip, Vivian agreed to
pay $100 per guitar. The contract did not describe the guitars even though Phillip
and Vivian had discussed the condition and quality of the guitars. When Phillip
delivered the guitars, Vivian would not pay because they were not what she
expected in terms of quality. In a legal action, it is likely Vivian
Select one:
A. Will be allowed to submit oral evidence to help interpret or explain ambiguity
in the contract.
END OF
PAGE 3
CLAIMS PERSPECTIVE EXAM
ANSWER ALL QUESTIONS IN THIS SECTION
QUESTION 1
Andrew promised Katy he would roof her house on October 30. On October 15,
Andrew told Katy he could not find the correct shingles and stated he was probably
going to be too busy to do the job. Andrew has
Select one:
A. Not repudiated the contract.
B. Voided the contract.
C. Breached the contract.
D. Rescinded the contract. - ANSWERS-A. Not repudiated the contract.
A repudiation of a contract is the refusal to meet obligations under the contract, but
it must be positive and unequivocal to constitute a breach. Andrew's statement of
inability to perform in the future is not repudiation. Katy cannot sue for breach of
contract until October 30 has arrived, and Andrew has failed to roof her house.
END OF
PAGE 1
, AIC 301 - EXPANDING YOUR 2024
CLAIMS PERSPECTIVE EXAM
QUESTION 2
Benny sold his copy shop to Yolanda and promised not to compete with her in a
specific area for six months. Benny breached the provision and began to compete
with Yolanda's business only two months later. Which one of the following actions
would be most appropriate as an equitable remedy for Yolanda?
Select one:
A. Injunction
B. Damages
C. Contract price
D. Specific performance - ANSWERS-A. Injunction
Yolanda does not want the competition, and it is likely the equitable remedy would
be for Benny to cease to compete. An injunction would prevent Benny from
continuing to compete with Yolanda.
QUESTION 3
Physician Betty administered medical services to stroke victim Karl who was
unconscious. She provided medication and direction and followed all procedures.
When Karl woke up, he refused other medical services and he also indicated that
he could not be held liable for any expenses that he did not personally authorize or
END OF
PAGE 2
, AIC 301 - EXPANDING YOUR 2024
CLAIMS PERSPECTIVE EXAM
to which he did not consent. It is likely that Karl might be required to pay the
reasonable value of the services received based on
Select one:
A. An implied-in-law contract.
B. An implied-in-fact contract.
C. An executory contract.
D. A unilateral contract. - ANSWERS-A. An implied-in-law contract.
If a doctor renders professional services to an unconscious person then the law
might obligate the patient to pay for those services based on an implied-in-law
contract, to avoid unjust enrichment.
QUESTION 4
In a written contract to purchase ten electric guitars from Phillip, Vivian agreed to
pay $100 per guitar. The contract did not describe the guitars even though Phillip
and Vivian had discussed the condition and quality of the guitars. When Phillip
delivered the guitars, Vivian would not pay because they were not what she
expected in terms of quality. In a legal action, it is likely Vivian
Select one:
A. Will be allowed to submit oral evidence to help interpret or explain ambiguity
in the contract.
END OF
PAGE 3
