Exam 15: Performance and Discharge

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.Kip's late attempt to fix the roof is most likely

Xavier enters into a contract to operate a Yummy Yogurt franchise,which Yummy agrees to support as long as Xavier maintains his business license.Yummy's duty to perform is

Clyde contracts with Deephole Excavation,Inc.,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Earl challenges the dig as an illegal gravel pit.A court orders the digging to stop.Clyde's contract with Deephole is

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This

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.With respect to Mutual's duties,Neil's performance most likely

Tia signs a lease that states that any change in the zoning law that affects the lease will cause its termination.Union City's zoning board adopts a new zoning classification that affects the lease.This adoption satisfies

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 purchase price on July 31.The delivery of the washing machine and the payment of $500 are examples of

Candy enters into a contract under which she agrees to pay Dino for a business survey and review of her competitors.Dino agrees to deliver the survey by July 1.Candy's offer,on July 1,to pay Dino is

Anything less than substantial performance is a material breach of contract.

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.

Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest.Later,the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent.Blueberry's best argument for avoiding payment to County Credit is that

Despite deviations from the specifications in a construction contract,a builder can be considered to have substantially performed.

Frank agrees to lease an apartment from Gena for one day to see Harry,the president of the United States,deliver a speech in the street below.The speech is canceled ten days before its date.Frank's contract with Gena

A party's refusal to perform his or her contractual obligations is a rescission.

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

If a contract requires performance to the personal satisfaction of a party,the party must in all cases be personally satisfied.

To rescind a contract,the parties must make a second agreement that includes consideration.

Dylan enters into a contract to manage the operations of Cash's accounting office for one year,renewable for subsequent one-year terms.If this contract is discharged like most contracts,it will be

After a contract is made,a supervening event may make performance impossible and discharge the contract.

Magnifico Properties,Inc.,hires Commercial Construction Company (CCC)to renovate the interior of Magnifico's office building.CCC submits plans that Magnifico approves.CCC completes the major reconstruction,paints the interior,and buys the fixtures and furnishings.Magnifico rejects some of the furnishings because they do not match the plans,and subsequently refuses to allow CCC to finish the work or to collect payment.Could CCC sue successfully for payment for the entire contract