Exam 17: Performance and Discharge

Anticipatory repudiation discharges a contract.

City Restoration Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to

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

The formation of a contract whose performance will discharge a previous contract is a novation.

Rod operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pablo in six months. An un?fore?seen shortage of scrap steel suddenly develops, making it impossible for Rod to fulfill his contract for less than $500 per ton. Rod's best de?fense against performing the contract would be

Sam contracts to harvest Tina's crop on August 1. Due to bad weather, Sam cannot perform on the specified date. In this situation

Performance of an accord discharges an original contractual obligation.

Able Builders, Inc., contracts with Beach Investment Company to build a Cool Juice 'n Fruit stand near Delta 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 does not finish until June 14. The stand opens but Beach Investment loses two weeks' early summer sales due to the delay. Is Beach Investment's duty to pay for the construction of the stand discharged?

If a contract requires performance to the personal satisfaction of a party, the party to be satisfied must act honestly and in good faith.

Luke is a farmer. When bad weather destroys his crop, his obliga?tion to deliver that crop un?der an existing contract with Macro Food Corporation is

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

Complete performance occurs when conditions in a contract are fully satisfied.

An intentional variation from a contract prevents substantial performance.

Fact Pattern 17-B1 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 17-B1. Kip's late attempt to fix the roof is most likely

Bob signs a five-year contract with CSB, a television station, to host a TV show. One year later, CSB re?places Bob with a younger host. Bob is paid, but does not appear on TV. Bob sues CSB for breach of contract. The court is most likely to rule in favor of

Fact Pattern 17-B2 Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. -Refer to Fact Pattern 17-B2. Under the circumstances, with respect to damages, Chris can

A condition precedent must be met before a party's performance can be required.

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 pur?chase price on July 31. The delivery of the washing machine and the payment of $500 are ex?amples of

Hu contracts with Internet Service, Inc. (ISI), to pay $500 for its serv?ices. After ISI performs, they sign an accord, in which Hu promises to pay $400 within ten days instead of $500. Hu does not pay. ISI can sue Hu under

Fact Pattern 17-A2 Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples. -Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. This circumstance