Exam 17: Performance, Breach, and Discharge

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

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.If the chairs are available from other sources:

Substituted contracts immediately discharge the original contracts.

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

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

Russell contracts to install for Nina her choice of living room carpeting.Classify as an express, implied-in-fact, or implied-in law condition Nina's notification to Russell of her choice of type and color of carpeting.Compare and contrast this condition with the other two types of contractual conditions.

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.

After the coronation of Edward VII was postponed and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose evolved.

a.List and summarize the situations where a contract is discharged by agreement of the parties. b.List and summarize the situations where a contract is discharged by operation of law.

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

Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price.In this case:

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.

A contract may condition the performance of a party upon the approval of a third party.

Refusal of a tender of performance by one party to a bilateral contract will:

By agreement, parties to a contract may discharge each other from performance under a contract.

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

All contractual promises are absolute promises to perform.

Belinda has a household insurance policy, which requires that she notify the insurance company within 30 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.

Rebecca sees a pair of beautiful silver shoes in a store window.She goes in and tells the shopkeeper, "If I am asked to the prom, I will buy those shoes.Please hold them for me." If the shopkeeper signs a note that says, "Will hold for Rebecca silver shoes, style 1028, size 8," will he have to honor that promise?