Exam 17: Performance, Breach, and Discharge

An accord and satisfaction discharges the original debt.

Milt built a barn for the Lowreys, but unintentionally deviated from the agreed specifications.The contract price for Milt's work was $10,500.The barn is usable, but the damages for his deviation were $700.Identify the type of breach the courts would probably deem Milt's departure from the contract to be, and discuss the result of this type of breach.

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible in order to excuse a party from contractual duties.

Steven owes Theresa $100 for a used computer which he bought last year at Theresa's garage sale.The two agree that the debt can be paid by Steven's shoveling Theresa's driveway from January through March.The new contract is a(n):

A condition subsequent is a much more frequent occurrence than a condition precedent.

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Tender is an offer by a party, who is ready, willing, and able, to perform his obligations under the contract.

What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent.

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Al owes Tracy $500, due June 1.Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes Al.Such an agreement is an example of:

An implied-in-law condition need only be substantially performed.

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:

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired.The rate would then be $3.50 per bushel.A freeze warning required Louis to hire 10 additional overtime workers, raising the cost per bushel to $4.75.Louis wants to get out of his contract.Can he?