Deck 14: Discharge and Remedies

Question 1

Courts do not allow a nonbreaching party to increase his damages for breach of contract intentionally.

Answer 1

True
Explanation: Courts do not allow a nonbreaching party to increase his damages for breach of contract intentionally.In fact,to recover damages in a breach of contract case,the plaintiff must demonstrate that he used reasonable efforts to minimize the damage resulting from the breach.

Question 2

Once a contract has been anticipatorily repudiated,the nonbreaching party must wait until the other party's contractually specified time period for performance has expired to sue for breach of contract and take other remedial measures.

Answer 2

False
Explanation: Once a contract has been anticipatorily repudiated,the nonbreaching party is discharged from his obligations under the contract.He is free to go ahead and sue for breach and to find a similar contract elsewhere.However,if the nonbreaching party wishes,he may decide to give the party who repudiated the opportunity to change her mind and still perform.

Question 3

Courts are very willing to grant specific performance.

Answer 3

False
Explanation: Specific performance is sometimes called specific enforcement.It is an order requiring the breaching party to fulfill the terms of the agreement.Courts are very reluctant to grant specific performance and will do so only when monetary damages simply are not adequate,typically because the subject matter of the contract is unique.

Question 4

Liquidated damage clauses in construction contracts are,as a matter of law,void.

Question 5

The three types of contractual conditions are condition precedent,condition subsequent,and recurrent conditions.

Question 6

Recovery under a quasi-contract theory requires proof that the defendant would be unjustly enriched from receiving a benefit conferred to him by the plaintiff without compensating the plaintiff for it.

Question 7

Under Japanese law,parties to a contract may specify liquidated damages recoverable when a contractual obligation is not performed at all or not performed by a specified date.

Question 8

Express conditions are usually preceded by words such as conditioned on,if,provided that,or when.

Question 9

To recover damages in a breach of contract case,the plaintiff must demonstrate that he used reasonable efforts to minimize the damage resulting from the breach.This obligation is referred to as the duty of substantial performance.

Question 10

Under ordinary circumstances,a party's duty to perform the promise agreed to in a contract is conditional.

Question 11

A breach occurs whenever a party fails to perform her obligations under the contract.

Question 12

Usually,injunctions are prohibitions against actions.

Question 13

Reformation is an equitable remedy.

Question 14

A concurrent condition is a future event that terminates the obligations of the parties when it occurs.

Question 15

Accord and satisfaction is used when one of the parties wants to substitute a different performance for his original duty under the contract.

Question 16

Restitution is the termination of a contract,and rescission is the return of any property given up under the contract.

Question 17

Contractual conditions may be either implied by law or expressly inserted into the contract by the parties.

Question 18

The most frequently awarded damages in a breach of contract action are consequential damages.

Question 19

Specific performance is also referred to as reformation.

Question 20

If the contract contains a clause in which an event must occur in order for a party's duty to arise,then that contract contains a condition precedent.

Question 21

A(n)________ occurs whenever a party fails to perform her obligations under the contract.

A)breech
B)quasi-contract
C)breach
D)illusory contract
E)mistake

Question 22

Which of the following describes conditions that are inferred from the nature and language of the contract?

A)Express
B)Implied
C)Concordant
D)Concurrent
E)Both express and concurrent

Question 23

Which of the following are types of conditions that affect the performance obligations of the parties?

A)Conditions precedent and subordinate conditions
B)Conditions subsequent and executory conditions
C)Concurrent conditions and conditions subsequent
D)Conditions precedent,conditions subsequent,and concurrent conditions
E)Conditions precedent and executed conditions

Question 24

Which of the following describes conditions explicitly stated in the contract?

A)Express
B)Executory
C)Concordant
D)Concurrent
E)Both express and concordant

Question 25

Which of the following is a correct statement regarding complete performance?

A)Courts today require complete performance in order enforce,in any respect,the rights of the obligor.
B)Courts today do not recognize the doctrine of substantial performance.
C)In many instances,complete performance is difficult,if not impossible,to attain,and courts today generally require only substantial performance.
D)In many instances,complete performance is difficult,if not impossible,to attain,but courts today generally require something more than substantial performance.
E)With due diligence,complete performance is always possible to attain.

Question 26

________ performance occurs when every aspect of the parties' duties under the contract is carried out perfectly.

A)Complete
B)Substantial
C)Significant
D)Executory
E)Reasonable

Question 27

Monetary damages are also referred to as equitable damages.

Question 28

Contracts containing conditions affecting the performance obligations of the parties are called ________ contracts.

A)executory
B)conditional
C)illusory
D)voidable
E)void

Question 29

Which of the following are the two primary kinds of performance?

A)Partial and significant
B)Partial and complete
C)Partial and substantial
D)Complete and substantial
E)Complete and significant

Question 30

Express conditions are usually preceded by which words?

A)Conditioned on or if
B)If or when
C)Provided that,if,or when
D)When or provided that
E)Conditioned on,if,when,or provided that

Question 31

The discharge by parties of their obligations by doing what they respectively agreed to do under the terms of the contract is called discharge by ________.

A)tender
B)performance
C)abeyance
D)absolution
E)reason

Question 32

When a party's obligations under a contract are terminated,the party is said to be ________.

A)rescinded
B)executory
C)subrogated
D)discharged
E)remanded

Question 33

________ occur when each party's performance is conditioned on the performance of the other party.

A)Conditions precedent
B)Conditions subsequent
C)Concurrent conditions
D)Conjunctive conditions
E)Mutually exclusive conditions

Question 34

A ________ is a particular event that must occur in order for a party's duty to arise.

A)condition precedent
B)condition subsequent
C)concurrent condition
D)subordinate condition
E)concordant condition

Question 35

A party's contractual obligations are terminated through ________.

A)performance
B)the failure of a condition to occur
C)operation of law
D)performance,the failure of a condition to occur,or operation of law
E)performance and the failure of a condition to occur,but not by operation of law

Question 36

An offer of performance by being ready,willing,and able to perform is known as ________.

A)manifesting
B)subjugation
C)tender
D)execution
E)implied acceptance

Question 37

A(n)________ breach discharges the nonbreaching party from his obligations under the contract.

A)illusory
B)inconsequential
C)material
D)implied
E)executory

Question 38

If a contract does not clearly specify that the satisfaction is to be personal,the ________ standard applies.

A)implied
B)subjective
C)objective
D)absolute
E)implied-in-law

Question 39

Frequently,real estate contracts are conditioned on an event such as the buyer's ability to sell his current home by a certain date.If the home does not sell,the condition does not arise,and the parties have no duty to perform and are thus discharged from the contract.This is an example of a contract that is subject to a ________.

A)condition subsequent
B)condition precedent
C)concurrent condition
D)real condition
E)fixed condition

Question 40

Which of the following is a condition courts require in order to recognize substantial performance?

A)Complete performance
B)An executed,rather than an executory,contract
C)Completion of all the terms of the agreement
D)A bad faith effort to complete all the terms of the agreement
E)No willful departure from the terms of the agreement.

Question 41

When a contracting party refuses to complete the contract before the actual time of performance,it is called a(n)________.

A)preemptive strike
B)anticipatory repudiation
C)ante-breach
D)advance renunciation
E)executory renunciation

Question 42

Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and,therefore,rescind or cancel the contract?

A)Accord and satisfaction
B)Novation
C)Substituted contract
D)Mutual rescission
E)Accord and abeyance

Question 43

If the plaintiff is seeking legal damages which would put him in the same position he would have been in had the contract been fully performed,he is suing for ________ damages.

A)equitable
B)compensatory
C)nominal
D)exemplary
E)punitive

Question 44

Monetary damages are also referred to as ________ damages.

A)equitable
B)implied-in-law
C)public
D)legal
E)injunctive

Question 45

If the parties to a contract put a new agreement in place of their original agreement,it is called a(n)________.

A)accord and satisfaction
B)novation
C)substituted contract
D)mutual rescission
E)subrogation

Question 46

If the plaintiff is seeking legal damages that are designed to punish the defendant and deter him and others from engaging in similar behavior in the future,the plaintiff is seeking ________ damages.

A)consequential
B)punitive
C)liquidated
D)nominal
E)statutory

Question 47

What doctrine arose from cases in England in which parties,who had contracted for rooms along a parade route for the king's coronation,received their money back when the coronation was canceled because the king became ill?

A)Frustration of purpose
B)Commercial impracticability
C)Substantial performance
D)Anticipatory repudiation
E)Impossibility of performance

Question 48

From what country did equitable remedies recognized in the United States originate?

A)France
B)Italy
C)England
D)Spain
E)Portugal

Question 49

Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party?

A)Accord and satisfaction
B)Novation
C)Substituted contract
D)Mutual rescission
E)Abeyance

Question 50

Suppose that Jeremiah was unfairly terminated before his employment contract expired,and he had to spend $500 to find another job.His job search expenditures would be considered ________ damages.

A)incidental
B)punitive
C)liquidated
D)nominal
E)statutory

Question 51

Monetary damages awarded to a plaintiff in a very small amount are ________ damages.

A)consequential
B)punitive
C)liquidated
D)nominal
E)exemplary

Question 52

A(n)________ breach occurs when a party unjustifiably fails to substantially perform his obligations under the contract.

A)material
B)executory
C)immaterial
D)implied
E)illusory

Question 53

The obligation to use reasonable efforts to minimize damage resulting from a breach is referred as the duty to ________ one's damages.

A)factor
B)subjugate
C)subrogate
D)mitigate
E)estimate

Question 54

Which is not considered a discharge of contractual obligations by agreement?

A)Mutual rescission
B)Substituted contract
C)Accord and satisfaction
D)Novation
E)Bankruptcy

Question 55

Which of the following is not an equitable remedy available for a breach of contract?

A)Rescission
B)Restitution
C)Specific performance
D)Injunction
E)Novation

Question 56

When one of the parties to an agreement wants to substitute a different performance for his original duty under the contract,he is seeking a(n)________.

A)accord and satisfaction
B)novation
C)substituted contract
D)mutual rescission
E)addendum

Question 57

Which type of damages would occur if the parties specify in advance the amount of losses or a formula in assessing the losses against the breaching party?

A)Consequential
B)Punitive
C)Liquidated
D)Nominal
E)Statutory

Question 58

A contract may be discharged by operation of law through ________.

A)alteration of the contract
B)bankruptcy
C)objective impossibility of performance
D)alteration of the contract,bankruptcy,or objective impossibility of performance
E)alteration of the contract or bankruptcy,but not by objective impossibility of performance

Question 59

Why did equitable remedies come into being?

A)To fashion remedies when existing laws did not provide adequate ones.
B)To fashion substitute remedies for established and adequate legal remedies.
C)To provide a means by which to award nominal damages.
D)To provide a means by which to award consequential damages.
E)To provide a means by which to award liquidated damages.

Question 60

________ is used as a basis for discharge by operation of law when performance is still objectively possible but would be extraordinarily injurious or expensive to one party.

A)Frustration of purpose
B)Commercial impracticability
C)Subjective impossibility
D)Anticipatory repudiation
E)Substantial performance

Question 61

Earthquake.Stewart,the owner of ABC Construction,agreed with Joan,the owner of XYZ Hotel,that he would complete renovations on her upscale hotel on the beach in Florida by October 1.The amount due to Stewart under the contract was $250,000.The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project.Unfortunately,an unexpected strong earthquake shook the area,and while the earthquake did not damage the hotel itself,Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake.Because he believed that traveling himself to other states to obtain supplies would be prohibitively expensive,he delayed the project for two weeks while waiting for local stores to have sufficient supplies available.Stewart finished renovations six days late.Joan told Stewart that she owed him nothing but that he owed her $50,000.Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters.Which of the following is the appropriate term for the agreement that Stewart would pay Joan $50,000 for each day he was late in completion?

A)Mitigated damages term
B)Liquidated damages clause
C)Stipulated damages
D)Acknowledged damages clause
E)Approved and acknowledged damages clause

Question 62

Powder Room Mess.For $300,000,Willis agrees to build a new home for Robert,who is very picky.Willis builds the home to Robert's specifications with one exception.The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified.That was a mistake on Willis's part,but he had not intentionally failed to follow specifications.When Robert sees the powder room,he goes ballistic and tells Willis that he will not pay Willis anything for the house.It will take $300 to put in correct faucets and linoleum.Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used,but that is all he is willing to pay.Willis's offer to put Robert in the position he would have been in had the proper faucets and linoleum been used is based on the measure used for what type of damages?

A)Nominal
B)Punitive
C)Compensatory
D)Liquidated
E)Consequential

Question 63

Under the Uniform Commercial Code,when may a court order specific performance of a contract for the sale of goods?

A)Only when the goods are unique.
B)Only when five hundred or more units of goods are specified in the contract.
C)Only when the goods have been ordered at least six months in advance.
D)When the goods are unique and when five hundred or more units of goods are specified in the contract.
E)When the goods are unique or in other proper circumstances.

Question 64

Creaky and Toady.Beverly decides to go on a great trip to Hawaii.She needs someone,however,to take care of her two dogs,Creaky and Toady,while she is gone.Creaky has hives,and Toady passes gas frequently because of a digestive problem.Beverly hires Frank three months in advance,and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks.Frank comes over two months before Beverly is set to leave,takes one look at Creaky and Toady,and declares that they are too creepy to be around.Beverly then hires Alice who agrees to care for Creaky and Toady.Two weeks before Beverly is set to leave,however,Alice calls and tells her that she just broke both her legs in an automobile accident,sustained other injuries,and has been put on bed rest for two months.Finally,Alice hires Betty to care for the dogs and heads off to Hawaii,where she has a great time.Unfortunately,when Beverly returns home,she finds that Betty fell in love with Creaky and Toady and has absconded with them.It was a month before Beverly was able to get a court order requiring their return.Which of the following would be an order from the court requiring that Betty return Creaky and Toady to Beverly?

A)An injunction
B)A conciliation
C)A mitigation
D)A directive
E)A specific

Question 65

Powder Room Mess.For $300,000,Willis agrees to build a new home for Robert,who is very picky.Willis builds the home to Robert's specifications with one exception.The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified.That was a mistake on Willis's part,but he had not intentionally failed to follow specifications.When Robert sees the powder room,he goes ballistic and tells Willis that he will not pay Willis anything for the house.It will take $300 to put in correct faucets and linoleum.Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used,but that is all he is willing to pay.Which of the following is most likely true regarding Robert's entitlement to damages from Willis?

A)There are no damages because Willis did not breach the contract.
B)Robert will not have to pay for the house because Willis failed to substantially perform.
C)Even though Willis substantially performed,Robert will not have to pay for the house because Willis materially breached the contract.
D)Robert is released from paying for the house because of an anticipatory breach.
E)Any damages awarded would be in the range of $300,which is the amount it would take to fix the breach.

Question 66

Powder Room Mess.For $300,000,Willis agrees to build a new home for Robert,who is very picky.Willis builds the home to Robert's specifications with one exception.The faucets and linoleum flooring in an upstairs powder room are not exactly what Robert specified.That was a mistake on Willis's part,but he had not intentionally failed to follow specifications.When Robert sees the powder room,he goes ballistic and tells Willis that he will not pay Willis anything for the house.It will take $300 to put in correct faucets and linoleum.Willis says that he is willing to pay $300 to put Robert in the position he would have been in had the correct faucets and linoleum been used,but that is all he is willing to pay.Which of the following is true regarding whether Willis breached the contract?

A)Willis did not breach the contract.
B)Willis materially breached the contract.
C)Willis substantially breached the contract.
D)Willis breached the contract,but the breach was not material.
E)Willis committed an anticipatory breach of the contract.

Question 67

Dream Home.Maurice finds a dream home on the lake.He wants to buy it but is unsure whether he can get a loan.He signs a contract with the seller that he will buy the home if he can get a loan.Maurice also includes a contractual clause in the contract with the seller that if the purchase goes through but he loses his job within one year,the seller will repurchase the house for the same price Maurice paid for it.After getting a loan and buying the home,Maurice decided that he wanted new windows put into the home.He entered into a contract with a window contractor.The window contractor visited the home,but Maurice was always gone.The contractor made several attempts to reach Maurice,but Maurice would not return phone calls and made no attempt to assist the contractor with installation.The provision that Maurice did not have to buy the house unless he was able to get a loan is referred to as which of the following?

A)A condition subsequent
B)A condition precedent
C)An implied condition
D)An express condition
E)Both a condition precedent and an express condition

Question 68

If the plaintiff wants a court order that requires the defendant to fulfill the terms of the contract,the plaintiff is seeking ________.

A)specific performance
B)substantial performance
C)frustration of purpose
D)quasi-in-rem relief
E)an injunction

Question 69

Earthquake.Stewart,the owner of ABC Construction,agreed with Joan,the owner of XYZ Hotel,that he would complete renovations on her upscale hotel on the beach in Florida by October 1.The amount due to Stewart under the contract was $250,000.The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project.Unfortunately,an unexpected strong earthquake shook the area,and while the earthquake did not damage the hotel itself,Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake.Because he believed that traveling himself to other states to obtain supplies would be prohibitively expensive,he delayed the project for two weeks while waiting for local stores to have sufficient supplies available.Stewart finished renovations six days late.Joan told Stewart that she owed him nothing but that he owed her $50,000.Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters.Which of the following is Stewart's best defense?

A)Impossibility
B)Commercial impracticability
C)Frustration of purpose
D)Profit reduction
E)Material breach

Question 70

Dream Home.Maurice finds a dream home on the lake.He wants to buy it but is unsure whether he can get a loan.He signs a contract with the seller that he will buy the home if he can get a loan.Maurice also includes a contractual clause in the contract with the seller that if the purchase goes through but he loses his job within one year,the seller will repurchase the house for the same price Maurice paid for it.After getting a loan and buying the home,Maurice decided that he wanted new windows put into the home.He entered into a contract with a window contractor.The window contractor visited the home,but Maurice was always gone.The contractor made several attempts to reach Maurice,but Maurice would not return phone calls and made no attempt to assist the contractor with installation.The provision that the seller will repurchase the home if Maurice loses his job within one year of the sale is referred to as which of the following?

A)A condition subsequent
B)A condition precedent
C)An implied condition
D)An express condition
E)Both a condition precedent and an express condition

Question 71

The termination of a contract is known as ________.

A)rescission
B)reformation
C)restitution
D)injunction
E)execution

Question 72

College president Wally contracts with Alice to teach a business law class.Alice does a fine job teaching,but she has an argument with Wally and will not submit her course grades.What type of order would Wally seek to require Alice to abide by her contract?

A)An order of specific performance
B)A compensatory order
C)A nominal order
D)A consequential order
E)A demand order

Question 73

Which of the following was the result in Thrifty Rent-A-Car System v.South Florida Transport,the case in the textbook where in response to a claim for amounts due on a franchise agreement involving the rental of vehicles,the defendant claimed that hurricanes had rendered its rental car business commercially impracticable?

A)That a jury question existed as to whether the hurricanes made the business commercially impracticable.
B)That as a matter of law,the defense of commercial impracticability was unavailable to the defendant for reasons including that the absence of hurricanes was not a basic assumption of the agreement.
C)That as a matter of law,the defense of commercial impracticability was available to the defendant because the defendant established that it was current on its payments until the advent of the hurricane season.
D)That as a matter of law,the defense of commercial impracticability was available to the defendant because the defendant established that the hurricanes made the cost of performance of the terms of the agreement unduly burdensome.
E)That as a matter of law,the defense of commercial impracticability was available to the defendant because the plaintiff failed to establish that the defendant had been given sufficient opportunity to recover from its business interruption due to several hurricanes.

Question 74

Dream Home.Maurice finds a dream home on the lake.He wants to buy it but is unsure whether he can get a loan.He signs a contract with the seller that he will buy the home if he can get a loan.Maurice also includes a contractual clause in the contract with the seller that if the purchase goes through but he loses his job within one year,the seller will repurchase the house for the same price Maurice paid for it.After getting a loan and buying the home,Maurice decided that he wanted new windows put into the home.He entered into a contract with a window contractor.The window contractor visited the home,but Maurice was always gone.The contractor made several attempts to reach Maurice,but Maurice would not return phone calls and made no attempt to assist the contractor with installation.The responsibility of Maurice to make arrangements to give the window installer access to the home is referred to as which of the following?

A)A condition subsequent
B)A condition precedent
C)An implied condition
D)An express condition
E)Both a condition precedent and an express condition

Question 75

________ is the return,to its original owner,of any property transferred under a contract.

A)Rescission
B)Reformation
C)Restitution
D)Injunction
E)Execution

Question 76

Which of the following was the result on appeal in the Case Opener,the case in which Sara Creek Property Company argued that an award of damages,rather than an injunction,was the appropriate remedy in response to its alleged breach of contract by allowing a new pharmacy to move into a shopping mall in competition with Walgreen's?

A)That specific performance,but not an injunction,was the appropriate remedy.
B)That an injunction,as well as damages,were appropriate remedies.
C)That damages,rather than an injunction,were the appropriate remedy because damages could be calculated.
D)That an injunction,rather than damages,was the appropriate remedy.
E)That the contract had not been breached and that neither an injunction nor damages were appropriate.

Question 77

Creaky and Toady.Beverly decides to go on a great trip to Hawaii.She needs someone,however,to take care of her two dogs,Creaky and Toady,while she is gone.Creaky has hives,and Toady passes gas frequently because of a digestive problem.Beverly hires Frank three months in advance,and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks.Frank comes over two months before Beverly is set to leave,takes one look at Creaky and Toady,and declares that they are too creepy to be around.Beverly then hires Alice who agrees to care for Creaky and Toady.Two weeks before Beverly is set to leave,however,Alice calls and tells her that she just broke both her legs in an automobile accident,sustained other injuries,and has been put on bed rest for two months.Finally,Alice hires Betty to care for the dogs and heads off to Hawaii,where she has a great time.Unfortunately,when Beverly returns home,she finds that Betty fell in love with Creaky and Toady and has absconded with them.It was a month before Beverly was able to get a court order requiring their return.Which of the following is true regarding Frank's refusal to keep Creaky and Toady?

A)He committed an anticipatory repudiation.
B)He is not guilty of any breach because he gave Beverly sufficient warning that he was not willing to perform.
C)He is not guilty of any breach because of the frustration of purpose doctrine.
D)He is guilty of an immaterial breach because of the low value of the contract.
E)He is guilty of a nominal breach.

Question 78

If the plaintiff wants a court order requiring the defendant to stop doing something,the plaintiff is seeking a(n)________.

A)subpoena duces tecum
B)abeyance
C)continuance
D)in rem decree
E)injunction

Question 79

Earthquake.Stewart,the owner of ABC Construction,agreed with Joan,the owner of XYZ Hotel,that he would complete renovations on her upscale hotel on the beach in Florida by October 1.The amount due to Stewart under the contract was $250,000.The contract contained a clause by which Stewart would pay Joan $50,000 for each day he was late on completing the project.Unfortunately,an unexpected strong earthquake shook the area,and while the earthquake did not damage the hotel itself,Stewart encountered significant difficulty in getting supplies due to the high demand for building material following the earthquake.Because he believed that traveling himself to other states to obtain supplies would be prohibitively expensive,he delayed the project for two weeks while waiting for local stores to have sufficient supplies available.Stewart finished renovations six days late.Joan told Stewart that she owed him nothing but that he owed her $50,000.Stewart told Joan that he was suing for the entire $250,000 because it was not his fault the earthquake delayed matters.Assuming the earthquake does not affect Stewart's liability for damages,which of the following is true regarding the provision that he will pay $50,000 for each day he is late?

A)It will be upheld based on the principle of freedom of contract.
B)It will be upheld because the penalty per day is less than one-half the amount due for the job.
C)It will be upheld as a stipulated amount.
D)It is unenforceable because parties are prohibited as a matter of law from specifying damages.
E)It is unenforceable as a penalty.

Question 80

Creaky and Toady.Beverly decides to go on a great trip to Hawaii.She needs someone,however,to take care of her two dogs,Creaky and Toady,while she is gone.Creaky has hives,and Toady passes gas frequently because of a digestive problem.Beverly hires Frank three months in advance,and they reach a contractual arrangement whereby he will be paid $200 for keeping the dogs for two weeks.Frank comes over two months before Beverly is set to leave,takes one look at Creaky and Toady,and declares that they are too creepy to be around.Beverly then hires Alice who agrees to care for Creaky and Toady.Two weeks before Beverly is set to leave,however,Alice calls and tells her that she just broke both her legs in an automobile accident,sustained other injuries,and has been put on bed rest for two months.Finally,Alice hires Betty to care for the dogs and heads off to Hawaii,where she has a great time.Unfortunately,when Beverly returns home,she finds that Betty fell in love with Creaky and Toady and has absconded with them.It was a month before Beverly was able to get a court order requiring their return.Which of the following is true regarding Alice's refusal to keep Creaky and Toady?

A)She is discharged from performance because of frustration of purpose.
B)She is discharged from performance because of impossibility of performance.
C)She committed a material breach.
D)She failed to substantially perform but only committed an immaterial breach.
E)She is liable for only a nominal breach because she had a good excuse for breaching.