Exam 17: Performance and Discharge

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Elin 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 Elin'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,and no wine is delivered that day.On the morning of May 2,Elin buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Elin's residence.Elin refuses tender.Grapes & Vines sues Elin for breach of contract.How is the court most likely to rule?

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Question 1

Correct Answer:

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In most courts,the decision will rest on whether the inclusion of the contract clause "to be used for daughter's wedding reception on May 2" created an express condition rendering the time of performance vital to the purpose of the contract.If the time stated is of the essence,the time for performance must be strictly complied with.Any failure of full performance constitutes a material breach and discharges any duty or liability of the other party.If the time for performance is not of the essence,a reasonable time for performance is allowed.A late performance in such a case does not constitute a material breach,but the party rendering late performance is liable for damages caused by the delay.In this case,although May 2 would ordinarily be a reasonable time for performance,the inclusion of the phrase giving the use of the wine and date of the reception would render the time vital to performance and would require strict compliance.Grapes & Vines's failure to deliver on May 1 is a material breach releasing Elin from any liability under the contract.

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 Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is

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Question 2

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Fact Pattern 17-A2 (Questions A16-A19 apply) Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.When the market price for apples exceeds the price in the contract with Hill & Dale,Evelyn decides not to deliver the apples.Evelyn's contract with Hill & Dale is

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Question 3

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A contract is discharged when a change in the law renders the performance illegal.

(True/False)

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Question 4

Investment Properties,Inc.,hires Justus Construction Company to renovate the interior of Investment's office building.Justus sub?mits plans that Investment approves.Justus completes the major recon?struction,paints the interior,and buys the fixtures and furnishings.Investment rejects some of the furnishings because they do not match the plans,and subsequently refuses to allow Justus to finish the work or to col?lect payment.Could Justus sue successfully for payment for the entire contract?

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Question 5

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

(True/False)

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Question 6

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing.This approval is

(Multiple Choice)

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Question 7

Fact Pattern 17-A2 (Questions A16-A19 apply) Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.A strike delays delivery of the apples by ten days.Evelyn's contract with Hill & Dale is

(Multiple Choice)

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Question 8

Fact Pattern 17-A1 (Questions A9-A10 apply) Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. -Refer to Fact Pattern 17-A1.With respect to Mutual's duties,Neil's performance most likely

(Multiple Choice)

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Question 9

Fact Pattern 17-A1 (Questions A9-A10 apply) Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. -Refer to Fact Pattern 17-A1.Neil's performance is most likely

(Multiple Choice)

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Question 10

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

(True/False)

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Question 11

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

(Multiple Choice)

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Question 12

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

(Multiple Choice)

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Question 13

Real Cheap Painters,Inc.,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely

(Multiple Choice)

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Question 14

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching.The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal.This law will

(Multiple Choice)

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Question 15

A compromise that arises out of a dispute over the obligations under a contract may be substituted for the original contract.

(True/False)

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Question 16

Any breach excuses the nonbreaching party's duty to perform.

(True/False)

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Question 17

Most contracts need to be performed to per?sonally satisfy the party to whom per?formance is owed.

(True/False)

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Question 18

Any breach allows the nonbreaching party to sue for damages.

(True/False)

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Question 19

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

(True/False)

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Question 20

Showing 1 - 20 of 42

Exam 17: Performance and Discharge

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 Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is

A contract is discharged when a change in the law renders the performance illegal.

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

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing.This approval is

Fact Pattern 17-A2 (Questions A16-A19 apply) Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.A strike delays delivery of the apples by ten days.Evelyn's contract with Hill & Dale is

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

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

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

Real Cheap Painters,Inc.,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching.The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal.This law will

A compromise that arises out of a dispute over the obligations under a contract may be substituted for the original contract.

Any breach excuses the nonbreaching party's duty to perform.

Most contracts need to be performed to per?sonally satisfy the party to whom per?formance is owed.

Any breach allows the nonbreaching party to sue for damages.

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

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