Exam 17: Performance, Breach, and Discharge

The UCC is substantially the same as the common law with regard to the doctrine of material breach of contract.

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:

On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is a(n):

Substituted contracts discharge the original duties immediately.

A(n) is a contract between a promisee and a promisor by which the promisee agrees to accept and the Promisor agrees to render a substituted performance in satisfaction of an existing contractual duty.

Meg has contracted to paint a portrait of Julio, but dies before completing the portrait. Which of the following is correct?

A change in Sal's financial condition, making it impossible for him to fulfill a contractual obligation, would be considered objective impossibility, which would discharge his contractual duty.

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

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.

An accord and satisfaction discharges an existing debt.

After the coronation of Edward VII did not take place on the scheduled date and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose was added to the law of contracts.

Lynn, a tailor, agrees to sew a pair of drapes for Zach's living room. Zach promises to pay Lynn $300. Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them. In this case:

Belinda has a household insurance policy, which requires that she notify the insurance company within thirty 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.

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.

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

In building a $30,000 addition to the Murphys' house, the contractor used the wrong flooring, causing the Murphys $2,000 in damages. Under the substantial performance doctrine, the contractor's performance is substantial and therefore he is entitled to the contract price of $30,000, but if the deviation from the specifications were considered material, the Murphys would not have to pay for the addition.

Which of the following generally is not grounds for discharge of a contract by operation of law? a. Objective impossibility b. Subsequent illegality c. Running of the statute of limitations d. Bankruptcy

The "perfect tender rule" would allow a buyer to keep merchandise that deviates from the contract without having to perform himself.

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

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2005 V­6 motor provided that Phelps' Garage approves the quality of the motor." This provision: