Exam 18: Discharge of Contracts

A contract may be discharge in all of the following scenarios except:

The time for performance is typically essential in a contract for the sale of perishable property.

Kentucky Lumber and Millwork Company contracted to supply Rommell Company millwork for use in the construction of a school building. While the work was in progress, the Kentucky Lumber mill was destroyed by fire. For two months thereafter, Kentucky Lumber and Millwork supplied Rommell with millwork purchased from a third party. Kentucky Lumber and Millwork did not wish to continue this plan and declared that the contract was ended. Rommell brought an action against Kentucky Lumber and Millwork to enforce the contract. How will the court decide?

An offer to perform is known as a(n) __________.

A contract can be discharged by impossibility in all the following scenarios except:

When a debtor makes a payment to a creditor specifying how it should be applied, the creditor must apply the payment:

When parties contract expressly for a particular subject matter, the contract is discharged if the subject matter is destroyed through no fault of either party.

The death or disability of a party to a contract discharges the contract when:

In the absence of an agreement to the contrary, weather conditions constitute a risk that is assumed by a contracting party.

A valid tender of payment consists of an unconditional offer of the exact amount due on the date when due.

A person who substantially performs a contract is liable for damages to the other party.

Sam Student had borrowed $1,000 from his cousin. Sam and the cousin became involved in a heated disagreement when the cousin began to press Sam for repayment of the loan. Finally, Sam wrote a check for $190 to the cousin and conspicuously wrote on the check in big letters that it was full and final payment of the $1,000 loan. In need of money, the cousin cashed the check and demanded the remaining $810 from Sam. Sam refused to pay, claiming that they had entered into an accord and satisfaction that discharged Sam's obligation to pay anything more. The cousin sued Sam. Discuss the probable outcome.

Which of the following is not an element of an accord and satisfaction?

Sales of goods transactions are subject to a statute of limitations period of:

A house-painting contract is discharged if continual rain makes it impossible to complete the painting by the time specified in the contract.

An agreement that does not specify the time for performance is not binding because it is too indefinite.

The federal Consumer Credit Protection Act gives the debtor the right to rescind a credit transaction within three (3) business days when the transaction would impose a lien on the debtor's home.

In most bilateral contracts, the performances of the parties are concurrent conditions.

In which case will performance on the exact date specified in the contract most likely be deemed essential?

If no time period for performance is specified in a contract: