Quiz 19: Discharge of Contracts


a) False. The intention of the contract is for G to remodel P 's office. As long as G did a substantial amount of work in good faith it can recover the work done. b) True. Substantial performance is performance satisfying the essence of the contract in this case to remodel an office. G was able to paint and do all necessary constructions. However, P refused them from continuing due to minor objects. G should be given the value of work owed to them. c) False. Purchasing the wrong minor accessories for a remodeling job would not be a material breach. Material breach may be using non-standard wall material, wrong colored paint, etc. d) False. See b

The case revolves around CIT who entered into a sale/leaseback contact with CT Corporation for 11 tire presses at CT's tire plant in country M. CT Corporation ceased making payments on these presses owned by CIT and filed for Chapter 11 bankruptcy. After that, CIT entered into a contract with S Tires Inc. to sell the presses for $250,000. When the contract was made, CIT was the owner of the presses and was entitled to immediate possession. When CIT tried to gain access to the presses to have them shipped, CT changed its position and refused to allow the equipment to be removed from the plant. In light of the case, CIT had no way out when CT changed his mind and refused to allow the equipment to be removed from his plant. So, in such a case, CIT was not able to deliver the presses to S Tires. S Tires is also correct at its place by suing CIT for damages for non-delivery of tire presses as he had no idea about the point of communication between the CIT and CT. S tired could not bear the brunt due to other's dispute, hence, the company can claim for damages. On the other hand, the CIT can defend itself by emphasizing on impartibility in the US court.

The Statute of limitations is the limit on the time period in which a claim against a party may be filed. The answer is c, The limitation begins on when the offense happens , that means a claim may be filed when a contract has been breached.

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