Exam 17: A: Performance and Discharge

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?

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(Essay)

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Question 1

Correct Answer:

Verified

Holly's death,before fulfilling the contract,dis?charge both the contract and Holly's estate's liability for her nonperformance.If Holly does not die,but does not deliver,there is a limit on how long Fred has to file a suit for breach of contract.Statutes of limitations limit the period during which a party can sue on a cause of action.The running of a limi?tations statute does not extinguish the contrac?tual obligation,how?ever-the obligor can revive it by making a new promise to perform.Thus,if the time has run out,the breaching party can make a new prom?ise to perform,for which it can be held liable.

To rescind a contract,the parties must make a second agreement that satisfies the legal requirements for a contract.

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(True/False)

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Question 2

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True

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

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Question 3

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A contractual obligation may not be discharged through novation.

(True/False)

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Question 4

Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination.Union City's zoning board adopts an affecting zoning classification.This adoption satis?fies

(Multiple Choice)

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Question 5

Performance can be accomplished by tender.

(True/False)

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Question 6

After a contract is made,a supervening event may make performance impossible and discharge the contract.

(True/False)

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Question 7

McCoy enters into a contract to operate a Tasty Yogurt franchise,which Tasty agrees to support as long as McCoy maintains his business license.Tasty's duty to perform is

(Multiple Choice)

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Question 8

Dinah contracts to repair a rip in a ventilation duct for Ernie's Café for $100.If Dinah does not per?form,Ernie must pay

(Multiple Choice)

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Question 9

Any breach discharges the nonbreaching party from the contract.

(True/False)

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Question 10

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

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Question 11

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors,which Parker delivers on June 1.Candace's offer,on the same date,to pay Parker is

(Multiple Choice)

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Question 12

Performance of an accord discharges an original contractual obligation.

(True/False)

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Question 13

Estimable Builders,Inc. ,contracts with Beach Investment Company to build a Cool Juice 'n Fruit 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.Estimable 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?

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Question 14

The most common way to discharge a contract is by performance.

(True/False)

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Question 15

Tanya contracts with Suite Condos Corporation to buy a unit in Suite's Bayview Tower at a premium for its view of River Bay.Unforeseeably,the town of River Bay changes its zoning law.Resort Hotels,Inc. ,constructs River Bay Resort,blocking what would have been Tanya's view.Tanya's best argument for a change in the Suite contract or its price is

(Multiple Choice)

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Question 16

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

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Question 17

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

(Multiple Choice)

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Question 18

A condition that must be fulfilled before a party's performance can be required is a concurrent condition.

(True/False)

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Question 19

Blueberry Café signs an agreement with County Credit 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.Blueberry's best argument for avoiding payment to County Credit is that

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Question 20

Showing 1 - 20 of 41

Exam 17: A: Performance and Discharge

To rescind a contract,the parties must make a second agreement that satisfies the legal requirements for a contract.

A contractual obligation may not be discharged through novation.

Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination.Union City's zoning board adopts an affecting zoning classification.This adoption satis?fies

Performance can be accomplished by tender.

After a contract is made,a supervening event may make performance impossible and discharge the contract.

McCoy enters into a contract to operate a Tasty Yogurt franchise,which Tasty agrees to support as long as McCoy maintains his business license.Tasty's duty to perform is

Dinah contracts to repair a rip in a ventilation duct for Ernie's Café for $100.If Dinah does not per?form,Ernie must pay

Any breach discharges the nonbreaching party from the contract.

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors,which Parker delivers on June 1.Candace's offer,on the same date,to pay Parker is

Performance of an accord discharges an original contractual obligation.

The most common way to discharge a contract is by performance.

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

A condition that must be fulfilled before a party's performance can be required is a concurrent condition.

Blueberry Café signs an agreement with County Credit 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.Blueberry's best argument for avoiding payment to County Credit is that

A: Introduction to Law and Legal Reasoning

B: Introduction to Law and Legal Reasoning

C: Introduction to Law and Legal Reasoning

D: Introduction to Law and Legal Reasoning

A: Courts and Alternative Dispute Resolution

B: Courts and Alternative Dispute Resolution

A: Court Procedures

B: Court Procedures

A: Constitutional Authority to Regulate Business

B: Constitutional Authority to Regulate Business

A: Ethics and Business Decision Making

B: Ethics and Business Decision Making

A: Intentional Torts and Privacy

B: Intentional Torts and Privacy

A: Negligence and Strict Liability

B: Negligence and Strict Liability

C: Negligence and Strict Liability

D: Negligence and Strict Liability

A: Intellectual Property and Internet Law

B: Intellectual Property and Internet Law

A: Criminal Law and Cyber Crimes

B: Criminal Law and Cyber Crime

A: Nature and Terminology

B: Nature and Terminology

C: Nature and Terminology

D: Nature and Terminology

A: Agreement in Traditional and E-Contracts

B: Agreement in Traditional and E-Contracts

A: Consideration

B: Consideration

A: Capacity and Legality

B: Capacity and Legality

A: Mistakes,fraud,and Voluntary Consent

B: Mistakes,fraud,and Voluntary Consent

A: The Statute of Frauds

B: The Statute of Frauds

A: Third Party Rights

B: Third Party Rights

B: Performance and Discharge

A: Breach of Contract and Remedies

B: Breach of Contract and Remedies

A: The Formation of Sales and Lease Contracts

B: The Formation of Sales and Lease Contracts

C: The Formation of Sales and Lease Contracts

D: The Formation of Sales and Lease Contracts

A: Title,risk,and Insurable Interest

B: Title,risk,and Insurable Interest

A: Performance Breach of Sales Lease Contracts

B: Performance Breach of Sales Lease Contracts

A: Warranties and Product Liability

B: Warranties and Product Liability

A: International Law in a Global Economy

B: International Law in a Global Economy

A: The Function Creation of Negotiable Instruments

B: The Function Creation of Negotiable Instruments

C: The Function Creation of Negotiable Instruments

D: The Function Creation of Negotiable Instruments

A: Transferability and Holder in Due Course

B: Transferability and Holder in Due Course

A: Liability,defenses,and Discharge

B: Liability,defenses,and Discharge

A: Checks,the Banking System,and E-Money

B: Checks and Banking in the Digital Age

A: Creditors Rights and Remedies

B: Creditors Rights and Remedies