Exam 15: Performance and Discharge

Jill contracts to sell Ken her MP3 player for $50.This contract will be fully discharged when Jill and Ken

A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.

A promise to perform under a contract may be absolute.

A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract.

Complete performance occurs when conditions in a contract are fully satisfied.

A discharge in bankruptcy will ordinarily bar enforcement of most of a debtor's contracts by creditors.

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. -Refer to Fact Pattern 15-2.Neil's performance is most likely

Most contracts are discharged by rescission.

Best Construction,Inc.,contracts to build a store for Cheesy Pizza Company,with Cheesy's payment due on June 1.On June 1,Cheesy's bank is closed,and for this reason,Cheesy claims it cannot pay Best on time.In this situation

Any breach of contract discharges the breaching party.

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

Anticipatory repudiation discharges a contract.

Solid Toolmakers,Inc.,contracts to sell its business to Titan Hardware Corporation.Before either party has performed,rescission of this contract requires

A party normally satisfies its duties under a contract by novation.

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

An event must be certain to occur to constitute a contractual condition.

Quito contracts with Rewind Graphix,Inc.,to pay $5,000 for its work on the animated film "Song." After Rewind performs,they sign an accord,in which Quito promises to pay $4,000 within ten days instead of $5,000 later.But Quito does not pay.Rewind can sue Quito

Performance of an accord discharges an original contractual obligation.

Contracts that are executory on both sides can be rescinded by agreement.

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