Exam 17: Performance Breach and Discharge

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case:

An anticipatory repudiation by one party to a contract precludes a discharge by performance by that same party.

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. Even if the chairs are available from other sources:

Which of the following is correct with regard to conditions subsequent?

Substituted contracts immediately discharge the original contracts.

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

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be:

A breach of contract always gives rise to a cause of action for damages by the injured party.

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

Natalie owes Nathan $1,200 and they agree that Natalie will repair Nathan's fence in satisfaction of the debt. The debt is not discharged until Natalie performs the substituted agreement by completing the fence repairs.

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.

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?

Alfred is worried about a contract that may be breached by the other party.  He is discussing it with his friend, Carl.  Carl tells Alfred , "The law generally restricts the time within which an action can be brought by either party to a contract." Carl's statement is:

Molly and Lucy entered into a bilateral contract and Lucy has fully performed. They may rescind the contract and that rescission is binding at common law.

Bob, the 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:

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:

An accord and satisfaction discharges the original debt.

A contract may condition the duty of one contracting party to accept and pay for the performance of the other contracting party upon the approval of a third party who is not a party to the contract.

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

If a party's principal purpose is substantially frustrated without his fault by the occurrence of an event whose nonoccurrence was a basic assumption on which the contract was made, the party's remaining duties to render performance are discharged, unless the party has assumed the risk.