Exam 18: Performance and Discharge in Traditional E-Contracts

Implied conditions are not understood to be part of an agreement but are found in the express language of the agreement.

Able Builders, Inc., contracts with Beach Assets Company to build a Cool Juice stand near Divers' Beach. The work is to begin on April 1 and be done by June 1, so that the stand can open for the summer. Able Builders does not finish until June 14. The stand opens but Beach Assets loses two weeks' early summer sales due to the delay. Is Beach Assets's duty to pay for the construction of the stand discharged?

Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.

OnTrack Rehabilitation Center signs an agreement with Platinum 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 per?cent. OnTrack's best argument for avoiding payment to Platinum Bank is that

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

Fact Pattern 18-B2 (Questions B11-B12 apply) Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra. -Refer to Fact Pattern 18-B2. Business Computer's repudiation of its contract to employ Chandra is most likely

In most contracts, promises of performance are not expressly conditioned or qualified.

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subse?quently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is

Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel Coffee agrees to support as long as Bernadette maintains her business license. Caramel Coffee's duty to perform is

Performance can be accomplished by tender.

Fact Pattern 18-B2 (Questions B11-B12 apply) Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra. -Refer to Fact Pattern 18-B2. Under the circumstances, with respect to damages, Chandra can

Any breach discharges the nonbreaching party from the contract.

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. They can best accomplish this by

Any breach allows the nonbreaching party to cancel the contract.

If a contract condition is not satisfied, the obligations of the parties are suspended.

Polly agrees to buy Quinn's Cycle World store business on the express condition that Ridgeline Credit Union approves the financing. This approval is

On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Electro City. On April 10, Electro changes its zoning law to prohibit the construction of a commercial building at that location. Discount Retail files a suit against Construction Contractors. In this situation

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

An occurrence or event that makes performance temporarily impossible operates to discharge the parties' contractual duties.

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.