Exam 12: Third Parties, Discharge, and Remedies

An anticipatory breach occurs when a party to a contract expresses or clearly implies an intention not to perform to contract, even before being required to act.

Alphonse owes huge debts to many creditors. A month before filing for bankruptcy, he distributes all of his assets to his church. Discuss the case.

Promising to pay when goods are delivered is an example of a condition subsequent.

Jackson transfers his business accounts receivable to Friendly Finance Company. Friendly would be considered the assignee.

The City of Newburyport contracted with Ace Paint Contractors for the repainting of a steel bridge. The contract specifically called for the use of a particular brand of paint called Nopeel Paint. It was later discovered that Ace used another brand of paint. Discuss the situation if Nopeel Paint decides to bring a lawsuit against Ace Paint Contractors.

____________ performance occurs when a party, in good faith, executes all promised terms and conditions with the exception of minor details that do not affect the real intent of their agreement.

Which of the following is true of "time for performance"?

Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexpectedly announced that it was not going to finish the job. Better Houses' decision to stop the job is called a(n):

Which of the following is true of consequential damages?

When an assignment occurs, the assignee assumes the contractual obligations previously held by the assignor.

John, a highly skilled mechanic specializing in Jabooti motorcycles, agrees to repair Gladys' Jabooti's motorcycle, but when he becomes ill, he transfers that responsibility to Clark, a friend of his. The transfer to Clark is called a(n):

Which of the following is an equitable remedy under contract law?

A transfer of a contract right is called a delegation.

Stella contracts to purchase Wilma's horse, Running Cloud, for $10,000. The horse dies soon after the contract is signed, but prior to Stella taking possession of the horse. Stella is still obligated to pay for the horse.

The satisfactory performance by a car dealer of a contract for the purchase of a new car would be judged by a subjective standard.

Basic Carpet contracts to install stain-resistant carpet in Alice's house for $6,000. Basic Carpet then assigns the right to receive payment from Alice to Home Finance Company. When payment comes due, Alice refuses to pay more than $2,000, asserting that the installed carpet was not stain-resistant. Home Finance asserts that Alice must pay $6,000, since Home Finance was not responsible for installing the carpet. Alice decides to sue Basic Carpet. Discuss the case.

If Ann is named as a donee beneficiary on Carl's life insurance policy, Ann can sue the insurance company if it fails to pay her when Carl dies.

Morey and Sheryl enter into a contract in which Morey agrees to pay Sheryl $40 to collect his mail while he is on a month-long vacation. Sheryl then delegates the duty to her son, Greg. In this delegation, Sheryl is the:

Aspen assigns his right to receive payment from Donna to Henry. Later, Aspen assigns this same right to Doris. Doris gives notice to Donna on May 1, and Henry gives notice to Donna on May 2. Which of the following is most likely to be the court's ruling?

Sue is selling her home to Ben and wants to be released from her mortgage obligation to Bigger Bank. Sue, Ben, and Bigger Bank may enter a novation.