Exam 7: Contract Performance: Conditions, Breach, and Remedies

Sam has contracted with Dave to purchase Dave's racing bike with payment and delivery of the bicycle to be in 10 days.Three days later Sam hears that Dave is going to sell the bike to Gene in three days at a higher price.If Sam really wants the bike,what should he do?

Generally,courts do enforce a strict compliance standard for contact conditions.

Burt has contracted with Mel to put a concrete driveway on Mel's property.If Burt delegates the duty of laying the driveway to Chuck,and Chuck does an unacceptable job,Mel may sue Burt for damages.

Beth has a contract with Annie in which Annie is to deliver 1000 hand decorated beverage holders in 60 days.When Beth calls the Psychic Hotline for her weekly reading,the psychic informs her that she has entered into a contract and the other party will not perform all the conditions and specifications as per the agreement.Beth may sue for an anticipatory repudiation.

Pablo has entered into a contract to paint Linda's portrait.The next day,Pablo is called by the White House to paint the official portrait of the first family.Since it will be impossible for Pablo to do both simultaneously,Pablo calls Salvador and asks him to substitute for him and paint Linda's portrait.Because Salvador is a world famous artist with paintings hanging in the New York Metropolitan Museum of Art and the Louvre in Paris,Salvador does not have to get Linda's permission for this novation as long as none of the contract terms and conditions are changed.

When an accord and satisfaction is agreed to,the original obligation subject to the accord is immediately discharged.

Specific performance is almost always available when a real estate contract is involved.

In which of the following scenarios would enforcement of specific performance be appropriate?

Toy Tech (TT)has ordered 50,000 aluminum widgets from the Acme Widget Corporation (AWC)with delivery to be made on November 1.These widgets will be used in TT products to create toys for the holiday season.Under which circumstance may TT claim an anticipatory repudiation?

An assignment may be of current and/or future rights.

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.

When a party breaches a contract,the nonbreaching party always has the option of seeking legal or equitable remedies.

Which of the following situations is a court most likely to find substantial performance?

Sharon has contracted with Craig to buy Craig's car.She will pay $5,000 in cash and he will provide the title and registration.They agree to meet at 10:00 am on Wednesday to exchange their consideration.Unfortunately,Craig dies Tuesday evening.

Which of the following is rarely awarded in contracts cases?

The Sportsman's Club is having their annual banquet and fundraiser and has decided to feature a speaker that will attract a huge crowd.They contract with Hall of Fame football announcer John Madden to be the keynote speaker.A week before the event,John calls and says that he would like to give his brother Fred the opportunity to speak and that John would sit in the audience rather than speak.What options does The Sportsman's Club have?

When a party successfully sues for an equitable remedy for a breach of contract,they do not receive a monetary award.

In Mobil Oil Exploration & Producing Southeast,Inc.v.United States:

Oscar is speeding and driving inattentively when he runs into Felix who is driving very cautiously.As a result of the accident,Felix's car needs $2,500 worth of repairs and Felix loses a weeks salary because he had to take off from work to recover from injuries sustained during the crash.

When the original parties to a contract agree to allow one of them to substitute another to perform the contract,this is called _______.