Exam 17: Performance and Discharge

A party's refusal to perform an executory contract is a rescission.

Jane and Kelly want Lucy to replace Kelly as a party to their con?tract. They can best accomplish this by

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

A seller's duty to deliver becomes absolute once a contract is formed.

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

Investment Properties, Inc., hires Commercial Construction Company (CCC) to renovate the interior of Investment's office building. CCC sub?mits plans that Investment approves. CCC 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 CCC to finish the work or to col?lect payment. Could CCC sue successfully for payment for the entire contract?

Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a dif?ferent brand of discounted paint. This is most likely

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. Lacy's refusal to make further payments is most likely

Super Toolmakers, Inc., contracts to sell its business to True Hardware Corpo?ration. Before either party has performed, rescission of this con?tract requires

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. Bell's repudiation is most likely

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

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

Fred, the owner and manager of Green Grocer Store, contracts to buy sixty crates of fresh peaches from Holly, the owner and manager of Ideal Farms. Suppose that Holly dies before she can harvest and deliver the peaches. How does Holly's death affect their contract? If Holly does not die, but does not deliver, and Fred suffers a loss, is there any limit to the time within which Fred can file a suit against Holly for breach of con?tract? If so, how might Fred extend this time?

Standard Construction, Inc. (SCI), contracts to build a store for Tasty Confection Company (TCC), with TCC's payment due on June 1. On June 1, TCC's bank is closed, and for this reason, TCC claims it cannot pay SCI on time. In this situation

Lon enters into a contract to mine limestone in Mica's quarry, sell it, and share the profits on its sale with Mica. If the duties under this contract are discharged like those under most contracts, the duties will be

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

Frank agrees to lease an apart?ment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is can?celed ten days before its delivery date. The con?tract

Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is

Jill contracts to sell Ken her MP3 player for $50. This contract will be fully discharged when Jill and Ken

Despite deviations from the specifications in a construction con?tract, a builder can be considered to have substantially per?formed.