Exam 17: Performance, Breach, and Discharge

Ashley contracted to perform on her horse, Coronation, in the opening ceremonies of the World Equestrian Games. If, before the event, Coronation pulls a tendon in its leg and Ashley has to cancel her appearance, this is a case of:

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

Paul, a contractor, has a contract to build a new office building for Bill. The contract contains a provision requiring Paul to furnish a certificate of occupancy from the building inspector before Bill is required to pay. This provision is:

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

Robert and John entered into a bilateral contract and Robert has fully performed. Their mutual rescission of the contract is binding at common law.

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?

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.

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.

The majority of courts hold that the running of the statute of limitations operates to discharge a contract.

Substituted contracts immediately discharge the original contracts.

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

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:

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:

Implied-in-fact conditions must fully and literally occur, and they are understood by the parties to be part of the agreement.

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.

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:

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.

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:

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.