Exam 17: Performance, Breach, and Discharge

Russell promises to deliver and install living room carpeting for Nina.Classify as an express, implied-in-fact, or implied-in law condition Nina's notification to Russell of her choice of type and color of carpeting.Compare and contrast this condition with the other two types of contractual conditions.

The principle illustrated in the Christy v.Pilkinton case is:

A material breach by the seller will discharge the buyer from his obligations under a contract.

Discharge by performance is the most frequent method of discharging a contractual duty.

In the case of Michael Silvestri v.Optus Software, Inc., the court held:

Rich, a contractor, has a contract with Ron, a realtor, to construct a new condominium complex.The contract provides that Rich must furnish a certificate of occupancy and conformity with the local fire code before Ron has an obligation to pay.The furnishing of the certificate is an implied-in-fact condition subsequent to the construction of the building.

An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract.

Steven owes Tina $100 for a used computer which he bought last year at Tina's garage sale.The two agree that the debt can be paid by Steven's shoveling snow from Tina's driveway from January through March.The new contract is a(n):

Jack recently borrowed $50 from Ricardo for a couple of weeks.Jack, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Jack, "OK, that's great!" Jack's performance of his new duty will be:

Al owes Tracy $500, due June 1.Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes Al, and Al will be discharged from his debt to Tracy.Such an agreement is an example of:

Refusal of a tender of performance by one party to a bilateral contract will:

Rebecca sees a pair of beautiful silver shoes in a store window.She goes in and tells the shopkeeper, "If I am asked to the prom, I will buy those shoes.Please hold them for me for two weeks." If the shopkeeper signs a note that says, "Will hold until May 5 for Rebecca silver shoes, style 1028, size 8," will he have to honor that promise?

A fundamental difference exists between the breach or nonperformance of a contractual promise and the failure or nonhappening of a condition.

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $5 per bushel unless weather conditions require additional labor to be hired.The rate would then be $5.50 per bushel.A freeze warning required Louis to hire additional overtime workers, raising the cost per bushel to $6.75.Louis wants to get out of his contract.Can he?

A condition subsequent is a much more frequent occurrence than a condition precedent.

An implied-in-law condition and constructive condition are the same.

Conditions may be classified by how they are imposed and by when they affect a duty of performance; these ways of classification are mutually exclusive.

Austin enters a contract with Bess to remodel her kitchen within one month.He repeatedly comes to her house to start the project, but Bess does not let him begin because she says she needs unrestricted use of her kitchen.Bess has: a.not caused a discharge of Austin's duty under the contract; they will have to work out another time. b.violated the perfect tender rule. c.materially breached the contract by substantially interfering with or preventing Austin's performance. d.created an accord.

Belinda has a homeowner's insurance policy, which requires that she notify the insurance company within 30 days of any loss before she is eligible to receive payment for her loss.The notification requirement is a condition precedent to the insurance company's obligation to perform, even though the notification must occur subsequent to the loss.

In the case of Hochster v.De La Tour the plaintiff was allowed to treat the repudiation by De La Tour as breach of contract and immediately bring suit.