Question 1

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...

Question 2

Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract.Flo's estate
A)is discharged from any contractual liability.
B)must find a competent accountant to fulfill the contract.
C)must pay liquidated damages.
D)must refund any money paid to Flo on the contract.

Accepted Answer

Flo's death automatically terminates the contract and her estate is discharged from any contractual liability.

Question 3

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This
A)breaches the contract.
B)discharges the contract.
C)has no effect on the contract.
D)suspends the contract.

Accepted Answer

The answer of Sam contracts to harvest Tina's crop on...

Question 4

Frank agrees to lease an apartment from Gena for one day to see Harry,the president of the United States,deliver a speech in the street below.The speech is canceled ten days before its date.Frank's contract with Gena
A)is discharged.
B)is not affected.
C)is postponed until another event is scheduled.
D)must be performed immediately.

Accepted Answer

Frank's purpose for leasing the apartment was to see the President's speech, which has been canceled. Therefore, the purpose of the contract is discharged and Frank is no longer obligated to lease the apartment for that specific day.

Question 5

On April 1,OK Contractors,Inc.,contracts to build a store for Lo-Cost Jewelers at a specific location in Metro City.On May 1,Metro changes its zoning laws to prohibit the construction of a commercial building at that location.When the store is not built,Lo-Cost files a suit against OK.In this situation
A)OK is in breach of contract.
B)Metro is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Accepted Answer

The contract is discharged due to impossibility of performance, as the change in zoning laws makes it illegal to build the store at the specified location.

Question 6

Magnifico Properties,Inc.,hires Commercial Construction Company (CCC)to renovate the interior of Magnifico's office building.CCC submits plans that Magnifico approves.CCC completes the major reconstruction,paints the interior,and buys the fixtures and furnishings.Magnifico rejects some of the furnishings because they do not match the plans,and subsequently refuses to allow CCC to finish the work or to collect payment.Could CCC sue successfully for payment for the entire contract

Accepted Answer

The answer of Magnifico Properties,Inc.,hires Commercial Construction Company (CCC)to renovate...

Question 7

Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest.Later,the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent.Blueberry's best argument for avoiding payment to County Credit is that
A)performance of the contract is commercially impracticable.
B)payment of the loan would force the debtor into bankruptcy.
C)the law has rendered performance of the contract illegal.
D)the specific subject matter of the contract has been destroyed.

Accepted Answer

The state legislature passing a law lowering the maximum permissible rate of interest to 15 percent constitutes a change in the law that renders performance of the contract illegal. Therefore, Blueberry Café may argue that they are not obligated to repay the loan under the new legal restrictions.

Quiz 15: Performance and Discharge

Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract.Flo's estate

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This

Frank agrees to lease an apartment from Gena for one day to see Harry,the president of the United States,deliver a speech in the street below.The speech is canceled ten days before its date.Frank's contract with Gena

Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest.Later,the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent.Blueberry's best argument for avoiding payment to County Credit is that