Business Law

Business

Quiz 17 :
Third Party Rights

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Quiz 17 :
Third Party Rights

Generally, since the owners of the house specified a particular brand and the contractor failed to follow the term of this contract, the contractor is in breach of contract. However, they did substantially perform their part of the contract if the following requirements have been met. For instance, if the contractor knew that a certain pipe was unavailable when they signed the contract, but did so anyway, this could be considered bad faith and they would not be entitled to payment. Furthermore, it could have been impossible to perform the contract under the terms because this pipe company had closed and they could not purchase the pipes. It also depends on whether the court views this as a substantial breach of contract. If it considered a substantial breach, then the owners can recover for the amount that it would take to reinstall the correct pipes. However, the court will probably find this a trivial issue and grant the owner the difference in the value of the two types of pipes.

Refusal of the Contract. The present subject relates to the concept of condition example. When an incidence or non-incidence of an event activates the performance of the party under the contract, then such a condition is recognized as the condition precedent. The condition leads the complete obligation to achieve. And many contracts are habituated on a self-governing assessment of value. In the present case, the chemical-residue examination to be led by the evaluator is condition precedent to the party's requirements. And as the condition is not satisfied, that is, the basil does not pass through the inspection. And so the responsibilities of both the parties are cleared. Therefore, V can decline to perform the agreement.

This agreement is a novation. A novation occurs when a new, valid contract is replaces the first, either explicitly or implicitly. Accord and satisfaction exists when both parties agree that the original performance of the contract can be replaced with a substituted performance. In this case, F and I made a contract that replaces Jr.'s contract with F. Jr. is now off the hook for any debts. This would be a novation.

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