Exam 8: Contract Performance: Conditions, Breach, and Remedies

Craig is a licensed plumber and has a contract to install a replacement toilet for Mary. When Craig realizes that he has booked two appointments simultaneously, he calls Brian, another licensed plumber, and asks him to install Mary's toilet. Craig has assigned his duties to Brian.

Fred's Flooring (FF) contracted with Harry homeowner to install wood flooring throughout Harry's home. Harry was to purchase the flooring, and the contract was solely for installation. Payment was to be 20 percent at the time that the work commenced and 80 percent once the flooring was installed. Harry purchased the flooring materials and paid the 20 percent, so FF began work. When FF's work was halfway completed, Harry realized that he didn't have the money to pay FF on completion, so he bolted the doors and refused access. If FF wants to rescind the contract and be paid for work completed, FF would sue for:

A delegation will be allowed in which of the following situations?

In an assignment or delegation, any third-party rights or duties occur after the contract is formed.

Pete has been fired from his job and believes that he has been wrongfully terminated. As he decides how to fight the perceived injustice, how can he best mitigate damages?

A court order to refrain from performing a particular act is known as _______.

George has entered into a contract with Mark to supply raw materials to Mark's factory. The contract does not contain an antidelegation clause. George then delegates his duty to supply the raw materials to Wayne, a competitor of Mark. This is a valid delegation.

Beth has just signed a contract to work for a bank. A clause in the contract says that before she begins work, she must pass a drug test and should drug use be discovered, the contract becomes void. This clause would be a:

In Hadley v. Baxendale, when Hadley sued because Baxendale took unnecessary time to get a crankshaft repaired, causing Hadley's mill to close for an extended time, the court found:

Clyde contracts with Seaside Resorts to rent an oceanfront room for a romantic weekend with his girlfriend Anne. In fact, Clyde intends to propose to Anne on the beach under the full moon during their stay. He made this decision after booking the room. The contract with Seaside Resorts requires a $250 deposit with the remaining $250 due upon check-in. The deposit is nonrefundable unless the reservation is canceled at least 48 hours prior to check-in. The day before they are to leave for the resort, Clyde and Anne have a huge fight and break up. Clyde calls Seaside and cancels the reservation and demands a refund of his deposit.

Harry entered into a contract with Sally in which she was to pay $50,000 for Harry's hunting cabin. All negotiations, witnessed by various third parties, stated the $50,000 figure as the sales price. When the contract was written, a typographic error was made indicating a price of $5,000. At settlement, Sally tendered $5,000 and demanded the deed in accordance with the written contract. Must Harry sell the cabin for $5,000?

Which of the following involves a third-party substitution?

You are an accounting major at your school. Your goal is to go to graduate school to obtain further education and the appropriate credits necessary to become a certified public accountant. Your goals are well known to your faculty and administration, and it is also well known that your parents and grandparents are CPAs, as well as your older brothers and sisters. As you enter your junior year, after paying your tuition and room and board fees in full, your school loses its regional accreditation, making any degree issued by the school essentially worthless. A worthless degree will not be recognized by graduate schools and will not be recognized by state accounting boards. When you demand a refund, the school refuses, claiming that it will still provide classes and knowledge. Do you have grounds to have the contract terminated and receive a refund?

Substantial performance will be enforced only if the deviation from complete performance is not material to the contract.

When an assignment is made, the assignee has the right to reform the contract and change the obligor's rights and duties as the assignee wishes.

In some states, a statute of limitations is called a statute of _______.

Assignments require the consent and agreement of all parties to the contract.

Lisa is doing some landscaping around her house and ordered a delivery of topsoil. Her agreement says that the delivery will be made on Wednesday and payment for the soil will be due when the truck arrives at her house. This is an example of a concurrent condition.

Lance is an avid bicyclist and sends in a $150 fee to participate in an across-the-state ride in the Midwest. A week before the ride, he breaks his leg. Unless the contract specifically provides for no refunds under any conditions, he will be able to receive a refund based on impossibility.

Moe has entered into a contract with Larry. Subsequently, Moe assigns his rights in that contract to Curley. Which of the following would not prevent that assignment?