Question 1

In the case of Michael Silvestri v. Optus Software, Inc., the court held:

Accepted Answer

In the case of Michael Silvestri v. Optus Software, Inc., the court held that in judging a high-level manager's satisfactory performance, a subjective test is appropriate. This acknowledges the complexity and nuanced nature of evaluating the performance of individuals in high-level managerial positions, where objective metrics may not fully capture the scope of their responsibilities or the qualitative aspects of their performance.

Question 2

Explain what may constitute a material breach and list the several basic principles that must be applied to determine if a material breach exists in a given contract.

Accepted Answer

The answer of Explain what may constitute a material breach...

Question 3

Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design. Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. Even if the chairs are available from other sources:

Accepted Answer

Russell's duty to deliver the chairs is discharged by the destruction of the factory because the event was unforeseen and beyond his control, making performance of the contract impossible.

Question 4

Russell contracts to install for Nina her choice of living room carpeting. Classify as an express, implied-in-fact, or implied-in law condition Nina's notification to Russell of her choice of type and color of carpeting. Compare and contrast this condition with the other two types of contractual conditions.

Accepted Answer

The answer of Russell contracts to install for Nina her...

Question 5

a. List and summarize the situations where a contract is discharged by agreement of the parties. 
b. List and summarize the situations where a contract is discharged by operation of law.

Accepted Answer

The answer of a. List and summarize the situations where...

Question 6

a. Velinda and Thelma enter into a contract. What are the ways in which Velinda can be discharged? 
b. What are the ways in which both parties can be discharged?

Accepted Answer

The answer of a. Velinda and Thelma enter into a...

Question 7

If a party's principal reason for a contract is substantially impaired without his fault by the occurrence of an unexpected event, that party's remaining duties to render performance are discharged due to the doctrine of:

Accepted Answer

The doctrine of frustration of purpose applies when a party's principal reason for entering into a contract is substantially frustrated by an unforeseen event through no fault of their own, making the performance of the contract meaningless in relation to the original purpose.

Question 8

Al owes Tracy $500, due June 1. Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes Al. Such an agreement is an example of:

Accepted Answer

A novation occurs when a new contract replaces an old contract, with the consent of all parties involved. In this case, Ted's agreement to pay Tracy instead of Al, with all parties' agreement, constitutes a novation, as it replaces the original obligation between Al and Tracy with a new one involving Ted.

Question 9

Milt built a barn for the Lowreys, but unintentionally deviated from the agreed specifications. The contract price for Milt's work was $10,500. The barn is usable, but the damages for his deviation were $700. Identify the type of breach the courts would probably deem Milt's departure from the contract to be, and discuss the result of this type of breach.

Accepted Answer

The answer of Milt built a barn for the Lowreys,...

Question 10

What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent.

Accepted Answer

The answer of What is a condition? Give an example...

Question 11

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $8 per bushel unless weather conditions require additional labor to be hired. The rate would then be $8.50 per bushel. A freeze warning required Louis to hire 10 additional overtime workers, raising the cost per bushel to $9.75. Louis wants to get out of his contract. Can he?

Accepted Answer

The contract explicitly accounted for the possibility of adverse weather conditions requiring additional labor, and adjusted the price accordingly. Louis's situation, although more severe than anticipated, falls within the scope of the contract's provisions for weather-related adjustments.

Question 12

Sid contracts to put new kitchen cabinets in Ned's house. Sid repeatedly tries to install the cabinets, but Ned does not grant him access to the house. In this case:

Accepted Answer

Sid is discharged from his duties under the contract because Ned's actions of not allowing Sid access to the house prevent Sid from fulfilling his contractual obligations, constituting a material breach by Ned.

Quiz 17: Performance Breach and Discharge