Assumed Liability Call
This trap appears as a wrong-answer choice in 1 active question. Spotting how it is built is the repair: read each example's “why it's attractive” before the “why it's wrong.”
Subject distribution
- Contracts1
Example wrong choices
14530_lantern_courtyard · CONTRACTS · Choice AThe fair market value, if any, of an assignable option to purchase the Lantern Courtyard for $470,000.
Why it's attractive
The call assumes Ruth wins and asks for recovery; this choice prices the option itself.
Why it's wrong
The call assumes Ruth wins and asks for recovery; this choice prices the option itself.
14530_lantern_courtyard · CONTRACTS · Choice CNominal damages only, because the remedy of specific performance was not available to Ruth.
Why it's attractive
The word 'only' tries to collapse the remedy because specific performance is unavailable.
Why it's wrong
The word 'only' tries to collapse the remedy because specific performance is unavailable.
14530_lantern_courtyard · CONTRACTS · Choice D$45,000, plus the amount, if any, by which the fair market value of the Lantern Courtyard on the date of Lydia's breach exceeded $515,000.
Why it's attractive
The answer grabs the visible resale spread and then adds a second market-value layer.
Why it's wrong
The answer grabs the visible resale spread and then adds a second market-value layer.
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