Exam 13: The Discharge of Contracts

Builder contracts to construct your house for $75,000. Halfway through the project he stops and demands $10,000 extra. You agree because you won't have a place to live if you don't. You don't legally have to pay because there is

David, a manufacturer's agent, is under contract to represent Joseph Tool Co. in Western Canada. This contract contains "an option to terminate" clause. What is the likely meaning of this clause?

Which of the following provides the best example of discharge by accord and satisfaction?

In December, a California Importer contracted with a Guatemala Exporter for a plane load of roses to be shipped to Los Angles from Guatemala City the first week in February. Because of a regional hail storm in January, the Exporter's usual sources of supply dried up to where he could not obtain sufficient quantities of quality roses in Guatemala, so arranged for a shipment from the Cameron Highlands in Malaysia. When the shipment arrived in Los Angles, the Importer refused it-based on the fact the roses didn't come from Guatemala. Give the legal arguments of each party.

What is a material alteration in terms, and how can it affect contractual obligations?

The general rule for the discharge of a contract through frustration is:

The Browns contracted for the outside of their house to be painted while they were away on holidays. However, they neglected to leave the gate unlocked nor did they chain up their guard dogs. When the painters arrived, they found no reasonable way to get to the house to do their painting. Legally, what could take place?

Give an example of self- induced frustration. What is the legal results?

Which of the following is TRUE regarding the Doctrine of Frustration?

Since any possible frustrating event can be made a term of the contract, why do we need the Doctrine of Frustration?

Tender of Performance means to perform an obligation under a contract.

Bulldog Logging Co. agreed to clear 40 hectares of land for Palmer Construction Corp. who had paid in advance for this service. Later, Palmer realised that they only needed 35 hectares cleared and released Stapleton Logging from the contract after they had cleared just 35 hectares. What should take place in order for the original contract to be legally discharged?

Interlake Shipping Co. transports grain in large barges across Lake Michigan. In March, one of its barges was caught in an Ice flow where it "jammed" with the resultant destruction of its cargo. The carrier's property insurance refused to pay because the hazard was not covered under the policy. And the owner of the cargo had no insurance. Does this occurrence fall under the Doctrine of Frustration for the carrier?

A party to a contract might forego the defense of frustration by

Jekyl agrees to sell Hyde a certain super strength hair remover capsule. While still in Jekyl's laboratory the only capsule is swallowed by a night- time guard dog.

Charles and family live in Halifax. He was offered a good accounting position at Johnstone & Custer Ltd. in Vancouver. He agreed to take the job if the company could find his family suitable housing in the vicinity of the company. After two months, and the presenting of seventeen different "suitable" houses, Charles declared the condition to the employment contract had not been met. Does the firm Johnstone & Custer have any legal claim on the employment contract?

In material alteration

A frustrating event is one that was not forseeable by the parties.

If the parties are primarily seeking a way to discharge their existing contract, then they are looking to

John and Sally enter into a contract for the lease of a used automobile. The term of the contract states that John can terminate the lease agreement if Sally fails to make a required lease payment within ten days of the due date. Sally fails to make the required payment and on the eleventh day declared the contract cancelled. Will Sally be successful? Explain your answer.