Cyril made two contracts. The first was to have his house painted one month from the date of the written contract. The second was for his neighbor's 1957 Ford Thunderbird. Each contract was definite and clear in all respects. As to the house painting,

Cyril inquired with the painter as to when the work could begin. The painter explained that he was extremely busy and was not sure if he could fulfill the contract. Cyril flew into a rage and immediately hired someone else who painted the house, but at a higher price. Cyril then sued the painter, claiming that there was an anticipatory repudiation of the contract by the painter. With regard to the automobile purchase contract, after signing the contract, the neighbor decided that she did not wish to sell her car and refused to complete the transaction. Cyril attempted to purchase a similar car elsewhere, but the car was a vintage automobile which was not available on the open market. Cyril sued the neighbor for specific performance of the contract. Discuss the probable outcomes of the lawsuits.


?Cyril will lose the case against the painter because there was no anticipatory repudiation of the contract. An anticipatory repudiation must be clear, positive, and unequivocal. Merely stating that you are not sure if you can complete a contract does not constitute repudiation.
Cyril will win the lawsuit for specific performance because the car is unique and no adequate remedy in the form of monetary damages is available to Cyril. Cyril cannot simply go out and purchase a similar car elsewhere.

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Percy, age 17, purchased a used mobile home from a mobile home dealer for $20,000 . This price, however, is twice the reasonable value of that mobile home. Several months later, Percy wants to disaffirm the contract. If the mobile home is considered a necessary item:

a. Percy can disaffirm the contract based on the wrongful act of the dealer. b. Percy can disaffirm the contract because the minor can live in an apartment rather than a mobile home. c. Percy is only liable for the reasonable value of the mobile home. d. Percy must keep the mobile home and abide by the original terms of the contract.

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Compared to money market securities, capital market securities have

A) more liquidity. B) longer maturities. C) lower yields. D) less risk.

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Under the strict liability doctrine, the focus is on the problems with the product, rather than:

a. problems with the court process b. integrity of the manufacturer c. the reasonableness of the conduct of the manufacturer d. the appropriateness of the conduct of the manufacturer e. none of the other choices are correct

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To avoid the problem of not having access to Tables of F distribution when F values are needed for the lower tail, the numerator of the test statistic for a two-tailed test should be the one with

a. the larger sample size. b. the smaller sample size. c. the larger sample variance. d. the smaller sample variance.

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