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Pavel Agreed to Build a Yacht for Dixie

Question 39

Multiple Choice

Pavel agreed to build a yacht for Dixie.The yacht was to be delivered to Dixie on July 15 and Pavel was to be paid the total price of $100 000 on the same day.Which of the following statements is TRUE?


A) If Pavel delivers the yacht,and Dixie pays the price,on July 15,she will be required to provide him with a signed document called a "novation" that signifies his proper completion of the agreement.
B) If Pavel delivers the yacht on July 15,but has not stenciled the name Sea Bird on the back of the boat as he had promised to do,Dixie is certainly entitled to refuse delivery and withhold the purchase price.
C) If Pavel completes construction of a yacht on July 1,only to see it destroyed by a hurricane the next day,the contract will be certainly discharged on the basis of self-induced impossibility if Pavel does not have enough time to build another yacht for Dixie by July 15.
D) If Pavel delivers the frame of the yacht,together with the materials that will be required to actually complete construction of the boat,he is entitled to have the contract discharged on the basis of "substantial performance" as long as he compensates Dixie for the price that she will have to pay to have another person finish the project.
E) If the parties created an entire contract,then,unless and until he completes the project,Pavel will not be entitled to any payment,even if spent $75 000 trying to perform his obligations.

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