Exam 14: Performance and Discharge

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

Tender is a timely offer or expression of willingness to pay a debt or perform an obligation.

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

A material breach occurs when performance is substantial, but not complete.

A condition is a qualification in a contract based on a future event that is certain to occur.

Fact Pattern 14-1 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 14-1. Noelle's refusal to make further payments is most likely

Any breach allows the nonbreaching party to sue for damages.

Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer. Wilson has financial troubles and he and Shelby sign an accord, in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000. Wilson's delivery of the bike and $4,000 to Shelby is

Fact Pattern 14-4 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 14-4. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is most likely

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums, Inc. Shady Grove is entitled to

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

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

Fact Pattern 14-2 Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job. -Refer to Fact Pattern 14-2. Natalie's performance most likely

The only way that a party can discharge a contract is by performance.

Performance that provides a party with most of the benefits of a con?tract, in spite of a deviation from the terms, is substantial performance.

Ruth contracts to provide Stan 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

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

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

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

A novation requires the existence of a previous, valid obligation.