Exam 17: A: Performance and Discharge

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

Any breach allows the nonbreaching party to cancel the contract.

Implied conditions are found in the express language of an agreement.

In most contracts,promises of performance are expressly qualified.

A contract is not discharged by a foreseeable circumstance no matter how difficult or costly the performance may become.

On April 1,KO Contractors,Inc. ,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation

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

If a contract condition is not satisfied,the obligations of the contracting parties are discharged.

Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio

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

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

Melissa agrees to work as Garry's personal accountant for one year but dies in the sixth month of the contract.Melissa's estate

A contract is discharged when its specific subject matter is destroyed.

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.

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

Building Restoration,Inc.(BRI),enters into a contract to refurbish an old train depot for Casual Dining,Inc. ,to open as Eat Up Restaurant.If BRI completes most of the work promised in the contract,its performance will be

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

Straitedge Toolmakers,Inc. ,contracts to sell its assets to Trulevel Hardware Corpo?ration.Before either party has performed,rescission of this con?tract requires

Anticipatory repudiation is a material breach of a contract.

Intentional failure to comply with the terms of a contract is a breach.