Exam 17: Performance, Breach, and Discharge

Robert and John entered into a bilateral contract.If they agree to a rescission of the contract while it is executory, there is a lack of consideration for the rescission.

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

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

What is a condition? Give an example of each of the following: condition precedent, condition concurrent, and condition subsequent.

A condition may be inserted into a contract to terminate the duty to perform.

Henry hires Ace Roofing to put a new roof on his house.When Ace comes, Henry refuses to let them on the roof, saying that he has a headache and doesn't want to listen to pounding.The next day, Henry still has a headache and he refuses to allow them on the roof.The day after, the baby is sleeping and Henry refuses to allow them to work.After four weeks of this, Ace:

Lou and David have an executory contract that is supposed to be performed on June 1.On May 1, David indicates that he has no intention of performing the contract as agreed.Lou must wait until June 1 before he can pursue any remedies for breach of contract against David.

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

"The law generally restricts the time within which an action can be brought by either party to a contract." This statement is:

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.

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party.

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.

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

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

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

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.

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

Conditions may be classified:

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.

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: