Exam 17: Performance, Breach, and Discharge

On November 1,Paula and Roberta enter into a contract where both parties are obligated to perform on December 31.On December 1,Paula tells Roberta,"I can,in no way,perform my duties in our contract." This statement is:

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

A and B enter into a contract on January 1 of this year.A's friend C tells A,"The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:

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

A breach of contract always discharges the injured party from performance under the contract.

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired.The rate would then be $3.50 per bushel.A freeze warning required Louis to hire 10 additional overtime workers,raising the cost per bushel to $4.75.Louis wants to get out of his contract.Can he?

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible in order to excuse a party from contractual duties.

Unless one of the parties contractually assumes the risk,the __________ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible.

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.Such an agreement is an example of:

Which of the following is correct with regard to conditions subsequent?

Milt built a barn for the Lowreys,but unintentionally deviated from the agreed specifications.The contract price for Milt's work was $10,500.The barn is usable,but the damages for his deviation were $700.Identify the type of breach the courts would probably deem Milt's departure from the contract to be,and discuss the result of this type of breach.

Tender is an offer by a party,who is ready,willing,and able,to perform his obligations under the contract.

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

An accord and satisfaction discharges the original debt.

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Implied-in-fact conditions must fully and literally occur,and they are understood by the parties to be part of the agreement.

All contractual promises are absolute promises to perform.

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.

Daniel,a cabinetmaker,contracts to make a china cabinet to Lora's satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed.Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen.If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it,Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable.

Objective impossibility occurs if a particular contracting party is unable to perform because of financial inability or lack of competence.