Blah chip 16
What is the most common way that duties under a contract are discharged?
by performance
What does the law require for a personal service contract?
The personal service requirement must be stated.
What is the difference between commercial impracticability and frustration of purpose?
- commercial impracticability focuses on the challenges the party faces to perform the duties under the contract -frustration of purpose focuses on the reasons the party entered into the contract.
What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers.
-A party to a personal contract dies or becomes incapacitated. -The specific subject matter of the contract is destroyed. -The subject matter of the contract becomes illegal.
What is the evaluation standard for a personal satisfaction contract? Choose 2 answer choices.
-Subjective personal taste -Objective, reasonable person standard
What must a party show to win a substantial performance lawsuit? Choose 2 answer choices.
-The breach was not intentional. -He or she acted in good faith.
In what situation could a party enforce strict performance? Choose 2 answer choices.
-When the parties specifically agree to it in the contract -When the requirement is reasonable
What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers.
-satisfaction of a reasonable person -Satisfaction of performing party (seller)
What is the difference between a material breach and an immaterial breach?
A material breach results in damages to the non-breaching party, while an immaterial breach is minor.
Logan agrees to deliver fifty pounds of crab claws to Dominique by May 15. Dominique needs the crab claws for a wedding party that Dominique is catering on May 16, so time is of the essence of the contract. Logan contacts Dominique on May 15 and tells Dominique that the earliest Logan can deliver the crab claws is on May 17. Dominique cancels the order and quickly makes other arrangements for the wedding party she is catering. Logan then demands payment from Dominique for the full contract price, and Dominique refuses. If Logan sues Dominique for damages under the contract:
Dominique will not have to pay because Logan breached the contract.
Korbyn enters into a contract with Peyton to sell Peyton a 1956 roadster. The contract has a condition precedent that the roadster will pass inspection by an independent appraiser, verifying that the roadster contains all original parts and is in good working order. This contract provision means that:
Peyton is not required to perform under the contract until the appraisal is complete.
What is an example of commercial impracticability?
Tariffs quadruple on a key raw material, making the manufacturing of a product very expensive.
Frustration of Purpose
The parties did not anticipate the occurrence of the event. The principal purpose of the contract is frustrated or rendered useless for one of the parties. In other words, the value of what the party receives from the contract is greatly diminished or of no value.
What type of condition specifies an event that must happen before a person is obligated to perform the duties specified in the contract?
a condition precedent
When one party's performance in a contract is substantial, then the other party's duty to perform is
absolute
Commercial Impracticability
allows for parties to be excused from performance under the contract when an unforeseen, external event beyond the parties' control disrupts the contractual relationship.
When may a contract be modified?
at any time, if the parties are in agreement
Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused?
commercial impracticality
In January, Victor contracted with Delrita to cater a Cinco de Mayo (May 5th raised to the th power) party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita?
frustration of purpose
Sylvia agrees to deliver one hundred computers to Ralph's Tech Store by Saturday. On Friday, Sylvia delivers ninety-nine computers. Ralph's Tech Store refuses to accept the shipment and accuses Sylvia of breaching the contract. By not delivering the entire one hundred computers, Sylvia:
has not materially breached the contract and will be allowed the opportunity to cure by providing the one remaining computer.
Ben and Jerry have an agreement whereby Ben will deliver ice cream for Jerry to all of Jerry's retail customers for the next three years. After delivering ice cream for the first nine months, Ben decides that this is not how he wants to spend his time. Ben does not want to let Jerry down, though, so he contacts his buddy Baskin about delivering the ice cream. To protect Jerry from liability, the contract that the parties need to form to transfer the rights and duties under the contract to Baskin and relieve Ben from all responsibility should be a(n):
novation
Landscape Supply agrees to provide Delta Lawn Service eight pallets of sod for the price of $260 per pallet. The agreement contains the following provision: "This Agreement may not be amended or modified except by an instrument in writing signed by the party to be charged with such amendment or modification." Delta decides it now needs 160 pallets of sod, and Landscape is willing to reduce the price to $255 per pallet because of the increased amount. Delta and Landscape can accomplish this change to the contract by:
signing an amendment, crossing out the incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
What is the term for when a party to a contract performs his duties exactly according to the terms of the contract?
strict performance
discharge of a contract
when the parties to a contracthave no more duties