Exam 16: Contract Discharge and Remedies

Carol enters into a contract to hire Joanne to paint a portrait of Carol's favorite cat.Joanne agrees to do the portrait to Carol's satisfaction for $100.When Joanne finishes the portrait,Carol announces that she is not satisfied with the portrait because it does not look like her cat.Carol

Mona and Nero want to discharge their contract by executing and per?forming a new agreement.They can best accomplish this by

Usually,a contract that involves mechanical fitness only needs to be performed to the satisfaction of a reasonable person.

Fashion Retail Center enters into a contract with Great Promotions,Inc.,to provide Fashion with a plan to retool its merchandising strategy.If Great Promotions breaches the contract,Fashion has a duty to

Contracts that are executory on both sides can be rescinded by agreement.

Hal contracts with Credit Services,Inc.(CSI),to pay $500 for its serv?ices.After CSI performs,they sign an accord,in which Hal promises to pay $400 within ten days instead of the $500.Hal does not pay.CSI can sue Hal under

Lon enters into a contract to mine limestone in Mica's quarry,sell it,and share the profits on its sale with Mica.If the duties under this contract are discharged like those under most contracts,the duties will be

Jason owes Stephen $1,000 for yard work Stephen performed for Jason.The money is due on May 1.On April 30,Jason goes to the bank to get the money and discovers that the bank will be closed until May 2.Jason

To rescind a contract,each party essentially advances to the position he or she would have been in if the contract had been fully executed.

The only way that a party can discharge a contract is by performance.

A party is entitled to cancel a contract based on the other party's material breach.

Quest Resources,Inc.,contracts with Ring Communications Corporation (RCC) for RCC to design and build an all-weather communications sys?tem for Quest's field operations.RCC builds the system,but it func?tions effec?tively only in good weather.Is this a breach of the contract? If so,what remedies does Quest have?

Hybrid Corporation enters into a contract with Insure Service,Inc.(ISI),to obtain health insurance for Hybrid employees.If ISI breaches the contract and Hybrid is awarded compensatory damages,the purpose would be to

Coco agrees to work as Darcy's personal accountant for one year but dies in the sixth month of the contract.Coco's estate

Fact Pattern 16-1 (Questions 7-8 apply) Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. -Refer to Fact Pattern 16-1.Neil's performance is most likely

On April 1,O.K.Contractors,Inc.,contracts to build a store for Lo-Cost Jewelers at a specific location in Metro City.On May 1,Metro changes its zoning laws to prohibit the construction of a commercial building at that location.When the store is not built,Lo-Cost files a suit against O.K.In this situation

If one party's performance is substantial,the other party's duty to perform remains absolute.

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 A.m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been

Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer.Wilson has financial troubles and he and Shelby sign an accord,in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000.Wilson's delivery of the bike and $4,000 to Shelby is

A contract for a portrait is an example of a personal contract.