Exam 17: Performance, Breach, and Discharge

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:

Wilmer and Grace have an executory contract for the sale of some goods.Wilmer files for bankruptcy and is then discharged by the bankruptcy court.Wilmer has no obligation to perform under the contract with Grace.

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

In the case of Hochster v.De La Tour the plaintiff was allowed to treat the repudiation by De La Tour as breach of contract and immediately bring suit.

The definition of "discharge by breach" is:

A fundamental difference exists between the breach or nonperformance of a contractual promise and the failure or nonhappening of a condition.

An implied-in-law condition and constructive condition are the same.

The principle illustrated in the Christy v.Pilkinton case is:

If a party's principal reason for a contract is substantially impaired without his fault by the occurrence of an unexpected event, that party's remaining duties to render performance are discharged due to the doctrine of:

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

Which of the following is true with respect to substantial performance?

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

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

In the case of Michael Silvestri v.Optus Software, Inc., the court held:

a.Velinda and Thelma enter into a contract.What are the ways in which Velinda can be discharged? b.What are the ways in which both parties can be discharged?

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 and B enter into a contract on January 1 of this year.A 's friend C tells A , "The law generally restricts the time within which an action can be brought by either party to a contract." C 's statement is:

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31.On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:

Daniel, a cabinetmaker, contracts to make a china cabinet to Lora's satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed.Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen.If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it, Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable.

An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract.