Exam 15: Performance and Discharge

A novation revokes and discharges a prior contract.

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

A promise to perform under a contract is never absolute.

A contract that involves mechanical fitness is a contract in which performance must personally satisfy the party to whom performance is owed.

Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously.

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 15-3.Bell's repudiation is most likely

An intentional variation from a contract prevents substantial performance.

The most common way to discharge a contract is by performance.

A seller's duty to deliver always becomes absolute once a contract is formed.

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 15-1.Lacy's refusal to make further payments is most likely

Jane and Kelly want Lucy to replace Kelly as a party to their contract.They can best accomplish this by

On April 1,OK 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 OK.In this situation

Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Ellen's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,no wine is delivered that day,and no one from Grapes & Vines tells Ellen.On the morning of May 2,Ellen buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Ellen's residence.She refuses tender.Grapes & Vines sues her for breach of contract.How is the court most likely to rule

Tender is an unconditional offer to perform.

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

A condition subsequent terminates a party's promise to perform.

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

Building Restoration,Inc.(BRI),enters into a contract to refurbish an old train depot for Casual Dining,Inc.,which plans to open Eat Up Restaurant in that location.If BRI completes most of the work promised in the contract,its performance will be

Daphne agrees to buy Eduardo's Chef's Table restaurant on the condition that Financial Credit Company approves the financing.This approval is