Exam 17: Performance, Breach, and Discharge

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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.

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Nina's notification of choice of type and color of carpeting is an implied-in-fact condition, an operative event that must occur before Russell is subject to the duty of installing the carpet. Implied-in-fact conditions are similar to express conditions in that they must fully and literally occur and in that they are understood by the parties to be part of the agreement. They differ in that they are not stated in express language, but are inferred from the contract terms, the nature of the transaction, or parties' conduct. Implied-in-law or constructive conditions are imposed by law to accomplish a fair result. They differ from express or implied-in-fact conditions in that they are not contained in the language of the contract or necessarily inferred from the contract, and they need only be substantially performed.

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

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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:

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B

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

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

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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?

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

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An accord and satisfaction discharges the original debt.

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

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

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All contractual promises are absolute promises to perform.

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If the performance of a contract that was legal when formed becomes illegal because of a subsequently enacted law, the duty of performance is discharged.

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

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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:

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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:

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

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

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The definition of "discharge by breach" is:

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Unless one of the parties contractually assumes the risk, the __________ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible.

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

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