Exam 18: Performance and Discharge in Traditional E-Contracts

Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc., in seven months. An un?fore?seen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best de?fense against performing the contract would be that

The most common way to discharge one's contractual duties is by breach of contract.

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

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's estate

A contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when they made the contract.

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo?ration. Before either party has performed, rescission of this con?tract requires

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

A condition that must be fulfilled before a party's performance can be required is a condition subsequent.

Restoration, Inc., contracts to repair a crack in a supporting beam for Stagecraft Theater for $10,000. If Restoration does not per?form, Stagecraft must pay

Nina contracts with Office Suites Corporation to buy a suite in its Prospect Point Tower at a premium for its view of Quay Harbor. Unforeseeably, the town of Quay Harbor changes its zoning law, and Resort Hotels, Inc., constructs Seaview Resort, blocking what would have been Nina's view. Nina's best argument for a change in the Office Suites contract or its price is

When a party's performance is perfect, it is said to be complete.

Any breach entitles the nonbreaching party to sue for damages.

The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.

A contractual obligation may not be discharged through novation.

After a contract is made, a supervening event may make performance impossible in an objective sense.

Fact Pattern 18-B1 (Questions B9-B10 apply) Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle. -Refer to Fact Pattern 18-B1. Noelle's refusal to make further payments is most likely

Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1. Herb's offer, on the same date, to pay Idris is

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

Fact Pattern 18-B1 (Questions B9-B10 apply) Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle. -Refer to Fact Pattern 18-B1. Moses's late attempt to install the ventilation system is most likely

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to