Question 1

Hal contracts with Credit Services, Inc. (CSI), to pay $500 for its serv?ices. After CSI performs, they sign an accord, in which Hal promises to pay $400 within ten days instead of the $500. Hal does not pay. CSI can sue Hal under

Accepted Answer

The accord is a new agreement that modifies the original contract, so CSI can sue Hal under either the accord or the original contract.

Question 2

Floors n' More, Inc., hires Gordon to renovate Floors n' Mores showroom. Gordon sub?mits plans that Floors n' More approves. Gordon completes the major recon?struction, paints the interior, and buys the fixtures and furnishings. Floors n' More rejects some of these items because they do not match the plans, and subsequently refuses to allow Gordon to finish the work or to col?lect payment. Could Gordon sue successfully for payment for the entire contract?

Accepted Answer

The answer of Floors n' More, Inc., hires Gordon to...

Question 3

Ben and Andrew are parties to a contract. They agree on a novation. The novation does not require

Accepted Answer

The answer of Ben and Andrew are parties to a...

Question 4

Fact Pattern 14-4 
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-4. If bad weather destroys Flora's crops, the obliga?tion to deliver produce to Harvesters is most likely

Accepted Answer

If bad weather destroys Flora's crops, the obligation to deliver produce is most likely discharged due to impossibility of performance, as the crops no longer exist to fulfill the contract.

Question 5

Fact Pattern 14-4 
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-4. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is most likely

Accepted Answer

Flora's failure to deliver the order when the market price for organic produce exceeds the contract price would likely constitute a breach of the contract. Breach occurs when one party fails to perform their obligations under the contract.

Question 6

Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer. Wilson has financial troubles and he and Shelby sign an accord, in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000. Wilson's delivery of the bike and $4,000 to Shelby is

Accepted Answer

The agreement between Wilson and Shelby is an accord, as it is a compromise and agreement to settle a debt. However, once Wilson delivers the $4,000 and his mountain bike to Shelby within the thirty-day time period, it becomes satisfaction, which is the performance of the accord. Satisfaction discharges the original debt and creates a new obligation.

Question 7

Rocko owes Sybil $1,000 for yard work Sybil performed for Rocko. The money is due on May 1. On April 30, Rocko goes to the bank to get the money and discovers that the bank will be closed until May 2. Rocko

Accepted Answer

The answer of Rocko owes Sybil $1,000 for yard work...

Question 8

Ruth contracts to provide Stan with fifty hours of telepathic personal coaching. The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal. This law will

Accepted Answer

The subsequent passing of a law making telepathic personal coaching illegal is an example of supervening illegality, which discharges the contract.

Question 9

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is

Accepted Answer

Mutual rescission occurs when both parties agree to cancel the contract before either party performs. This is the best option as it describes the situation described in the scenario. Substantial performance refers to a situation where one party has mostly performed the contract but may have a few minor breaches. Accord and satisfaction refers to a situation where parties agree to accept something different than what was originally agreed upon to settle a dispute. Novation refers to a situation where a new party replaces one of the original parties in the contract. None of these options fit the scenario as well as mutual rescission.

Question 10

Fact Pattern 14-4 
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 14-4. If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is most likely

Accepted Answer

If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is most likely suspended. This means that the performance under the contract is only temporarily delayed until the strike is resolved, and the parties are still bound by the terms of the agreement. Once the strike ends, Flora must resume deliveries and Harvesters must accept them.

Question 11

Raphael agrees to lease an apart?ment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is can?celed three days before its scheduled date. The con?tract

Accepted Answer

The contract was based on the specific purpose of seeing the president's speech, which did not occur. Therefore, the contract is discharged and the leasing agreement is no longer valid.

Question 12

Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200. The contract states that delivery is to be made at Ellen's residence "on or before May 1, to be used for daughter's wedding reception on May 2." On May 1, Grapes & Vines's delivery van is involved in an accident, no wine is delivered that day, and no one from Grapes & Vines tells Ellen. On the morning of May 2, Ellen buys the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes & Vines tenders delivery of the wine at Ellen's residence. She refuses tender. Grapes & Vines sues her for breach of contract. How is the court most likely to rule?

Accepted Answer

The answer of Ellen contracts to buy six cases of...

Quiz 14: Performance and Discharge

Hal contracts with Credit Services, Inc. (CSI) , to pay $500 for its serv?ices. After CSI performs, they sign an accord, in which Hal promises to pay $400 within ten days instead of the $500. Hal does not pay. CSI can sue Hal under