Business Law: Chapter 15
A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract
true
An intentional failure to comply with the terms of a contract is not a breach.
true
State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
A condition precedent
Joe Lawschool just graduated from law school and has taken the California bar exam (the licensing exam so one can practice law in California). He got a job at Grumpy, Stuffy and Stodgy law firm. The employment contract states that he has one year to pass the bar exam or he will no longer be employed. This condition to the contract would be classified as
A condition subsequent
Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is
A novation
Robert Parr made an agreement with Safari Motel that he would vacate the hotel room he was occupying in 30 days. If he did, then he would not owe $3,000 in rent to Safari Motel. The contract also stated that "time is of the essence." Robert vacated in 35 days. Safari Motel brings an action against Mr. Parr for $3,000. Which of the following is the most probable result by the court?
Safari Motel will get a monetary judgment for $3,000
Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation
The contract is discharged
Charlie Brown rents an apartment from Lucy for $1,000 per month with rent due on the 1st of the month. Charlie's job does not pay him until the 10th of each month. He pays Lucy on the 10th of the month for the next two years. There is no anti-waiver provision in the lease. Which statement if the best summary of the situation?
The rent is due on the 10th of the month.
Amy and Bob enter into a contract for Bob to perform waste management services for Amy's commercial properties. Later, Bob alters a material term—increases the price—without Amy's knowledge or consent. Amy
can treat the contract as discharged.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. In particular, the contract calls for all plumbing pipes to be cooper and to be made by Continental Steel & Tube Co. However, due to supply issues that will not be available for 8 months. However, there is similar cooper pipes of equal quality made by California Metal & Supply available. If BRI completes the work as promised in the contract but with pipe made by California Metal & Supply the performance will be classified as
substantial