Exam 17: B: Performance and Discharge

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Elin contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Elin's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,and no wine is delivered that day.On the morning of May 2,Elin buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Elin's residence.Elin refuses tender.Grapes & Vines sues Elin for breach of contract.How is the court most likely to rule?

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In most courts,the decision will rest on whether the inclusion of the contract clause "to be used for daughter's wedding reception on May 2" created an ex?press condition render?ing the time of performance vital to the purpose of the contract.If the time stated is of the essence,the time for performance must be strictly complied with.Any failure of full per?formance constitutes a material breach and discharges any duty or liability of the other party.If the time for per?formance is not of the essence,a reasonable time for perfor?mance is allowed.A late performance in such a case does not constitute a material breach,but the party rendering late performance is liable for damages caused by the de?lay.In this case,although May 2 would ordinarily be a reasonable time for perfor?mance,the inclusion of the phrase giving the use of the wine and date of the recep?tion would render the time vital to performance and would require strict compliance.Grapes & Vines's failure to deliver on May 1 is a material breach releasing Elin from any liability under the contract.

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

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False

When a condition operates to terminate a party's promise to per?for?m,it is a condition subsequent.

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True

If no time for performance is stated in a contract,any time is acceptable.

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Any breach allows the nonbreaching party to sue for damages.

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Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.Even-Bilt completely performs.Discount E-Sales is entitled to

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

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Fact Pattern 17-A2 ( Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc. ,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.When bad weather destroys Eve's Garden's apple crop,the obliga?tion to deliver apples to Hill & Dale is

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A contract is substantially performed when performance creates sub?stan?tially the same benefits as those promised in the contract.

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Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing.This approval is

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

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Fact Pattern 17-A1 Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments. -Refer to Fact Pattern 17-A1.With respect to Mutual's duties,Neil's performance most likely

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An event must be certain to occur to constitute a contractual condition.

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Ruth contracts to provide Shelly 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

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Fact Pattern 17-A2 ( Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc. ,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.A strike delays delivery of the apples by ten days.Evelyn's contract with Hill & Dale is

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In most contracts,promises of performance are not expressly conditioned.

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Express conditions are provided for by the parties' agreement.

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Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year.Belle's duty to perform is

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A party who substantially performs his or her duties under a con?tract can enforce the contract against the other party.

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Frisco 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 scheduled date.The con?tract

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