Exam 17: Performance, Breach, and Discharge

Arnold and Doug make a contract for Arnold 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.The chairs are available from other sources.Arnold:

There is only one way to completely and legally discharge a contract.

Which of the following is a contract with a condition subsequent?

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.

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

Miller has a contract to sell 1,000 bushels of wheat to a bakery.The wheat is stored in a grain elevator and has become infested with insects.Miller is:

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.

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.

Mark agrees to a three-year employment contract with State University as long as they become accredited after one year.This contract contains a "condition subsequent."

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

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

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.

A(n) is a substituted contract that involves an agreement among three parties to substitute a new promisee in Place of an existing promisee, or to replace an existing promisor with a new one.

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

The law assumes that respective performances under a contract are concurrent conditions, unless there is an agreement to the contrary.

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

Phil, a tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year.He completes all but the gift taxes.Under the substantial performance doctrine, Marge will:

Professor Glass is hired by Towers University to teach business law at a salary of $3,000 per month.After school has been in session for two months, the Business Administration Building is destroyed by fire.The University refuses to pay him any further salary, claiming they are discharged from their obligation of performance.Is the University discharged from its obligation of performance? Is Professor Glass discharged from his obligation of performance? Explain, citing the legal principles involved.

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:

"Discharge" has to do with the termination of contractual duties.