Exam 17: Performance, Breach, and Discharge

Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design.Prior to their manufacture,the factory is destroyed in an accidental fire that is no one's fault.If the chairs are available from other sources:

Which of the following is true with respect to substantial performance?

Ashley contracted to perform on her horse,Coronation,in the opening ceremonies of the World Equestrian Games.If,before the event,Coronation pulls a tendon in its leg and Ashley has to cancel her appearance,this is a case of:

Paul promises Marty $1,500 if he will completely landscape Paul's yard.Which of the following would discharge Paul's obligations to pay under this contract?

A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability.

A novation is an agreement between two parties to have one substitute for the other in a contract.

The definition of "discharge by breach" is:

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor.

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

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." If the shopkeeper signs a note that says,"Will hold for Rebecca silver shoes,style 1028,size 8," will he have to honor that promise?

Belinda has a household 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.

If there is a novation,the original promisor remains liable to the original promisee if the new promisor fails to perform.

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

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

If the contract does not state otherwise,standard goods under a contract for sale to meet the satisfaction of the buyer must:

Sid contracts to put new kitchen cabinets in Ned's house.Sid repeatedly tries to install the cabinets,but Ned does not grant him access to the house.In this case: a.Ned is discharged from his duties under the contract because of material breach. b.the frustration of purpose doctrine applies to discharge the contract. c.Sid is discharged from his duties under the contract because Ned's prevention of Sid's performance constitutes a material breach. d.Both Sid and Ned are discharged from their duties because of impossibility of performance.

Carl,a contractor,has a contract with Ron,a realtor,to construct a new condominium complex.The contract provides that Carl 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.

Wilmer and Grace have an executory contract for the sale of some goods.Wilmer files for bankruptcy and is then discharged by the bankruptcy court.Wilmer has no obligation to perform under the contract with Grace.

The Code greatly alters the common law doctrine of material breach by adopting what is known as the:

Which of the following would be considered a material breach of a contract?