Exam 18: Performance and Discharge

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

A novation requires the existence of a previous, valid obligation.

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is

When a contract party materially alters a written contract without consent, the other party must adapt his or her performance accordingly.

Fact Pattern 18-1 Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job. -Refer to Fact Pattern 18-1. ​Natalie's performance most likely

Contracts that are executory on both sides can be rescinded by agreement.

A contract for medical work is not a personal contract.

When a party's performance is perfect, it is said to be complete.

​State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be student at State. This requirement is

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

Oren and Pat are parties to a contract for the management of Oren's residential rental properties. A dispute arises between them over the obligations due under the contract. They negotiate a compromise and form a different agreement to substitute for the original one. This settlement agreement does not require

Floors n' More, Inc., hires Gordon to renovate Floors n' Mores showroom. Gordon submits plans that Floors n' More approves. Gordon completes the major reconstruction, paints the interior, and buys the fixtures and furnishings. Floors n' More rejects some of these items because they do not match the plans, and subsequently refuses to allow Gordon to finish the work or to collect payment. Could Gordon sue successfully for payment for the entire contract?

A condition that must be fulfilled before a party's promise becomes absolute is a condition subsequent.

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

​The most common way to discharge contractual duties is by breach of contract.

Anything less than complete performance is a material breach of contract.​

If no time for performance is stated in a contract, a reasonable time is implied.

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

Fact Pattern 18-2 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 18-2. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order, her contract with the grocery is

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.