Exam 18: Performance and Dischapterarge

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

The most common way to terminate contractual duties is by repudiation.

Any contract can be discharged by agreement of the parties.