Source
Loading...
The field below filters the flashcards in this list as you type. The number of matching flashcards is announced as you type.
All flashcards
120 cards
1What is a condition?
What is a condition?2What is an express condition?
What is an express condition?3What is a constructive condition?
What is a constructive condition?4What is a condition precedent in a contract?
What is a condition precedent in a contract?5Must a condition always occur before a party is obligated to perform?
Must a condition always occur before a party is obligated to perform?6A five-year lease of premises gave the lessee the option of renewing the lease for a further period of five years “on condition that the lessee del...
A five-year lease of premises gave the lessee the option of renewing the lease for a further period of five years “on condition that the lessee delivers written, signed notice of its intent to exercise this option by not later than 6:00 p.m. on January 31 . . . .” The lessee intended to exercise the option and informed the lessor of this intent by telephone on January 29. The lessee then mailed a written, signed notice of intent to exercise the option on January 30. The lessor received the written notice on February 1. The lessor claimed that the lessee did not effectively exercise the renewal option because the notice was received too late. Did the lessee effectively exercise the renewal option?7What is the difference between a pure condition and a promissory condition?
What is the difference between a pure condition and a promissory condition?8On Friday, a buyer and a seller entered into a written contract for the sale of the seller’s used truck to the buyer for $30,000. The contract stat...
On Friday, a buyer and a seller entered into a written contract for the sale of the seller’s used truck to the buyer for $30,000. The contract stated that the parties were to meet at the seller’s place of business at 11:00 a.m. on the following Monday, at which time the seller was to deliver the truck to the buyer in exchange for a check in the seller’s favor for $30,000. The writing contained no other terms. Does this contract contain any conditions?9If a contract does not state expressly that the performance of one party’s promise is a condition precedent to the other party’s performance, when ...
If a contract does not state expressly that the performance of one party’s promise is a condition precedent to the other party’s performance, when will a court construe a performance as a condition precedent?10Under what circumstance will a court imply a promise to take action to facilitate the fulfillment of a pure condition?
Under what circumstance will a court imply a promise to take action to facilitate the fulfillment of a pure condition?11What is a satisfaction clause?
What is a satisfaction clause?12An architect and a hotel entered into a contract under which the architect agreed to produce a plan for the redesign and modernization of the hotel...
An architect and a hotel entered into a contract under which the architect agreed to produce a plan for the redesign and modernization of the hotel’s lobby. The contract provided that the hotel would not be obliged to pay the architect for the work if the hotel rejected the plan as unsatisfactory. The contract did not specify any standard by which the hotel’s satisfaction would be determined. The architect produced a plan that met the specifications and budget set out in the contract and that was a feasible and practical blueprint for the lobby’s redesign. Nevertheless, the hotel rejected and refused to pay for the plan, claiming that the design was not aesthetically pleasing. Judged by industry standards, there was nothing wrong with the plan.Does the satisfaction clause entitle the hotel to refuse to pay for the plan on the ground that it is not aesthetically pleasing?13What is the difference between a contract term that sets forth a condition of payment and a contract term that identifies an event as fixing the ti...
What is the difference between a contract term that sets forth a condition of payment and a contract term that identifies an event as fixing the time for payment?14What is the duty of good faith and fair dealing?
What is the duty of good faith and fair dealing?15What does it mean for a party to excuse the nonoccurrence of a condition?
What does it mean for a party to excuse the nonoccurrence of a condition?16Under what circumstances will waiver excuse the nonoccurrence of a condition?
Under what circumstances will waiver excuse the nonoccurrence of a condition?17An insurance policy provided that the insurer would compensate for loss only on the condition that the insured give the company notice of loss with...
An insurance policy provided that the insurer would compensate for loss only on the condition that the insured give the company notice of loss within one week of when the loss occurred. The insured suffered a loss, but the insured did not notify the insurer until two weeks after the loss occurred. The insurer proceeded to investigate the merits of the claim.Has the insurer waived the one-week-notice condition?18A contract for the sale of farmland was subject to the condition that the buyer would be able to have the property rezoned for residential subdivis...
A contract for the sale of farmland was subject to the condition that the buyer would be able to have the property rezoned for residential subdivision. The buyer made conscientious efforts to have the property rezoned but was unsuccessful. The buyer decided to buy the property anyway, notwithstanding the failure of the rezoning application. The buyer therefore gave the seller notice that it waived the condition. The seller refused to proceed with the sale, claiming that the condition had not been satisfied and that the buyer could not unilaterally waive it.Could the buyer waive the condition unilaterally?19Under what circumstances will estoppel excuse the nonoccurrence of a condition?
Under what circumstances will estoppel excuse the nonoccurrence of a condition?20If a party waives a condition that does not concern a material right under a contract, does the waiver need to be supported by consideration from t...
If a party waives a condition that does not concern a material right under a contract, does the waiver need to be supported by consideration from the other party?21A buyer bought a car on credit from a dealer. The parties entered into a credit contract under which the buyer agreed to pay for the car in monthly...
A buyer bought a car on credit from a dealer. The parties entered into a credit contract under which the buyer agreed to pay for the car in monthly installments. The credit agreement stated that the buyer’s monthly payments were due by the first of each month. It also stated, “Until the price of the car is fully paid, the buyer’s right to keep the car is conditional on the buyer making monthly payments exactly on time.” The buyer made each of the first six payments about a week late. The dealer accepted the late payments without comment. When the buyer’s seventh payment was late, the dealer lost patience and repossessed the car on the second day of the month. The buyer argued that the dealer was estopped from enforcing the timely payment condition.Is the buyer correct that the dealer was estopped from enforcing the timely payment condition?22May a party who has waived the nonoccurrence of a condition change his mind, and make his performance of a contractual obligation conditional on th...
May a party who has waived the nonoccurrence of a condition change his mind, and make his performance of a contractual obligation conditional on the occurrence of the condition?23May a party reinstate a condition when its nonoccurrence has been excused by estoppel?
May a party reinstate a condition when its nonoccurrence has been excused by estoppel?24What is the disproportionate forfeiture doctrine?
What is the disproportionate forfeiture doctrine?25May a court excuse the nonoccurrence of a condition, when requiring the contractual condition to occur would result in a disproportionate forfeiture?
May a court excuse the nonoccurrence of a condition, when requiring the contractual condition to occur would result in a disproportionate forfeiture?26What factors does a court consider in evaluating whether a relying party would be disproportionately harmed if a court required a condition to occu...
What factors does a court consider in evaluating whether a relying party would be disproportionately harmed if a court required a condition to occur before a non-relying party must perform?27A homeowner contracted with a painter to paint the interior of her home. The contract called for a four-week job, in which the homeowner would pay ...
A homeowner contracted with a painter to paint the interior of her home. The contract called for a four-week job, in which the homeowner would pay the painter 25% of the total up front, 25% at the midpoint, and the remaining 50% at the end of the job. The contract required the painter to use a certain brand of paint. After receiving the midpoint payment, the painter ran out of the required brand of paint and finished the job with a different brand instead. When the homeowner learned of this, she refused to pay the painter the remaining 50%.May a court excuse the painter’s use of a different brand of paint and require the homeowner to pay?28Does a court have equitable discretion to excuse an express condition in a contract?
Does a court have equitable discretion to excuse an express condition in a contract?29May a party’s breach of his duty of good faith and fair dealing excuse the nonoccurrence of a condition?
May a party’s breach of his duty of good faith and fair dealing excuse the nonoccurrence of a condition?30The sale of a house was conditional on the buyer being able to obtain a mortgage. The buyer promised to make reasonable, good faith efforts to obta...
The sale of a house was conditional on the buyer being able to obtain a mortgage. The buyer promised to make reasonable, good faith efforts to obtain a mortgage. However, the buyer completely failed to apply to any lenders for a mortgage.What effect does the buyer’s failure to apply for the mortgage have on the sale contract?31A contract for the remodeling of a bathroom provided that the owner’s payment for the work was conditional on the owner’s architect certifying that...
A contract for the remodeling of a bathroom provided that the owner’s payment for the work was conditional on the owner’s architect certifying that the work was done properly.Can the owner avoid paying for the completed remodeling work by firing the architect before the architect had a chance to inspect the work?32A homeowner entered into a contract with a builder for the remodeling of the homeowner’s kitchen. The contract provided that the homeowner would pa...
A homeowner entered into a contract with a builder for the remodeling of the homeowner’s kitchen. The contract provided that the homeowner would pay the builder a bonus on the condition that the builder completed the work by a specified date. Two days before the specified date, it was apparent that the builder would complete the work on time and would be entitled to the bonus. To save money by avoiding payment of the bonus, the homeowner left the house and locked it up for the two days. The builder did not have a key to the house and could not enter the house to complete the work by the specified completion date. The builder finished the job two days later. Is the builder nevertheless entitled to the bonus?33Under what circumstances will impracticability excuse the nonoccurrence of a condition?
Under what circumstances will impracticability excuse the nonoccurrence of a condition?34What happens to a contractual duty when it is fully performed?
What happens to a contractual duty when it is fully performed?35What is a total breach of contract?
What is a total breach of contract?36May a party to a contract sue for a remedy when the other party has rendered part performance and not committed a total breach?
May a party to a contract sue for a remedy when the other party has rendered part performance and not committed a total breach?37What is a material breach of contract?
What is a material breach of contract?38What are the five main criteria for determining whether a breach of contract is material?
What are the five main criteria for determining whether a breach of contract is material?39If one party to a contract has materially breached the agreement, are the outstanding performance obligations of the nonbreaching party excused?
If one party to a contract has materially breached the agreement, are the outstanding performance obligations of the nonbreaching party excused?40Is mere substantial performance of a contract (as opposed to complete performance) a breach of the contract?
Is mere substantial performance of a contract (as opposed to complete performance) a breach of the contract?41A builder built a concrete driveway leading to the owner’s house. The driveway was well constructed, but because the builder had made incorrect mea...
A builder built a concrete driveway leading to the owner’s house. The driveway was well constructed, but because the builder had made incorrect measurements, the driveway was one inch narrower than the width specified in the contract. This reduced width did not impede the function of the driveway and had no impact on the market value of the house. However, the owner demanded that the builder redo the driveway to comply with the contract specification. The builder refused, pointing out that it would be an expensive waste of labor and materials to tear up and rebuild a perfectly good driveway. The owner sued the builder for the cost of having the driveway replaced. Should the owner be awarded damages for replacement of the driveway?42What is an anticipatory repudiation?
What is an anticipatory repudiation?43What is the difference between a breach of contract and a repudiation of a contract?
What is the difference between a breach of contract and a repudiation of a contract?44May a party retract her anticipatory repudiation of a contract?
May a party retract her anticipatory repudiation of a contract?45When must a party retract her anticipatory repudiation of a contract for her retraction to be effective?
When must a party retract her anticipatory repudiation of a contract for her retraction to be effective?46On October 20, a buyer and a seller entered into a contract for the sale of a used car for $15,000. The contract required the seller to deliver the...
On October 20, a buyer and a seller entered into a contract for the sale of a used car for $15,000. The contract required the seller to deliver the car to the buyer on November 1 and required the buyer to pay the seller on that date. On October 25, the seller sent an email to the buyer canceling the sale. The seller had no right under the contract to cancel the sale. Nevertheless, the buyer decided not to challenge the seller’s cancellation and began looking for another used car. On October 27, the buyer was excited to find a better car for a lower price. However, just before the buyer was about to buy the better car, a second email arrived from the seller telling the buyer to disregard the earlier email because the sale was back on, and the car was ready for delivery on November 1.Is the buyer now obliged to buy the seller’s car?47A builder entered into a contract with an owner for the construction of a patio at the back of the owner’s house. The owner needed to have the pati...
A builder entered into a contract with an owner for the construction of a patio at the back of the owner’s house. The owner needed to have the patio complete before a large party in July. The contract obliged the builder to begin work on the patio on April 1 and to complete it by April 7. On March 29, the builder told the owner that the builder was behind schedule on other jobs, would not be able to start the patio until April 5, and would complete the patio by April 12. The owner refused to accept this delay and terminated the contract on March 30, claiming that the builder had breached the contract.Was the owner legally justified in terminating the contract on this ground?48Under what circumstances may a party to a contract request adequate assurance?
Under what circumstances may a party to a contract request adequate assurance?49In a sale of goods, what is the perfect tender rule?
In a sale of goods, what is the perfect tender rule?50Must a contract state that the parties have the obligation to perform fairly and in good faith in order to create an obligation of good faith and f...
Must a contract state that the parties have the obligation to perform fairly and in good faith in order to create an obligation of good faith and fair dealing?51Under the Uniform Commercial Code (UCC), can the parties to a contract for the sale of goods agree to disclaim or waive the implied obligation of g...
Under the Uniform Commercial Code (UCC), can the parties to a contract for the sale of goods agree to disclaim or waive the implied obligation of good faith by including a term in the contract that expressly excludes the obligation?52In a contract for the sale of goods governed by the Uniform Commercial Code (UCC), what is the definition of good faith?
In a contract for the sale of goods governed by the Uniform Commercial Code (UCC), what is the definition of good faith?53In a contract not covered by the Uniform Commercial Code (UCC), what is the definition of good faith?
In a contract not covered by the Uniform Commercial Code (UCC), what is the definition of good faith?54The owner of a shopping mall contracted with a security firm to provide security guards at the mall. The contract was for a two-year term at a stat...
The owner of a shopping mall contracted with a security firm to provide security guards at the mall. The contract was for a two-year term at a stated monthly fee, but it gave the security firm the discretion to increase the price of the service “in good faith” during the contract period, on one month’s notice. Six months after the contract was executed, the security firm conducted a survey of its competitors and discovered that it was charging its customers 10 percent less than the market rate. The security firm then gave notice to the mall owner of a 10 percent increase in the security firm’s monthly price.Was the security firm’s price increase made in good faith?55Does a party to a contract violate the duty of good faith and fair dealing by asserting a right expressly granted under the contract, if enforcemen...
Does a party to a contract violate the duty of good faith and fair dealing by asserting a right expressly granted under the contract, if enforcement of that right leads to an unfair outcome for the other party?56An airline entered into a contract with a cleaner to clean the interior of the airline’s planes between flights at an airport. The contract was for...
An airline entered into a contract with a cleaner to clean the interior of the airline’s planes between flights at an airport. The contract was for a three-year term, but it allowed either party to terminate the contract during that term by giving 90 days of notice. To perform under the contract, the cleaner had to invest significantly to expand its operations. The cleaner was relying on the earnings over the three-year term to recoup this investment, and the airline knew this. One year after the contract was executed, the airline gave the cleaner 90 days’ notice that it was terminating the contract because the airline was able to get the services more cheaply from another cleaning company. Did the airline violate its implied obligation of good faith and fair dealing when it terminated the contract with the cleaner?57An employer fired a satisfactory at-will employee simply because the employee supported the rival of the employer’s favorite basketball team.Did th...
An employer fired a satisfactory at-will employee simply because the employee supported the rival of the employer’s favorite basketball team.Did the employer violate the implied duty of good faith and fair dealing by firing the employee without good cause?58If a contract for the sale of goods does not expressly state that the seller owns and has the legal right to sell the goods, does the seller still ...
If a contract for the sale of goods does not expressly state that the seller owns and has the legal right to sell the goods, does the seller still impliedly make that representation?59In a contract for the sale of goods, what is an express warranty?
In a contract for the sale of goods, what is an express warranty?60If a seller of goods describes the goods being sold, and the description is part of the basis for the buyer’s decision to buy the goods, is the sel...
If a seller of goods describes the goods being sold, and the description is part of the basis for the buyer’s decision to buy the goods, is the seller’s description of the goods a warranty?61A seller bought a used car three years ago and decided to resell it. The seller advertised the car for sale as a 2010 Toyota. The seller believed t...
A seller bought a used car three years ago and decided to resell it. The seller advertised the car for sale as a 2010 Toyota. The seller believed that the car was a 2010 model because that is how it was described in the title papers. A buyer wanted a 2010 Toyota and bought the car in response to the advertisement. The written sales contract also described the car as a 2010 Toyota. A short while after the sale, the buyer discovered that the model year shown on the car’s title was wrong and that the car was in fact a 2008 model. The error predated the seller’s ownership of the car, and the seller never knew that the car was not a 2010 model. Did the seller breach any warranties?62What is the meaning and legal effect of the term “as is” in a contract for the sale of goods?
What is the meaning and legal effect of the term “as is” in a contract for the sale of goods?63In a contract for the sale of goods, what is an implied warranty of merchantability?
In a contract for the sale of goods, what is an implied warranty of merchantability?64A homeowner sold a used television at a garage sale without saying anything about its quality.Did the homeowner impliedly warrant that the televisi...
A homeowner sold a used television at a garage sale without saying anything about its quality.Did the homeowner impliedly warrant that the television would function adequately?65A buyer bought a toy castle from a seller of toy castles. The castle was designed for toddlers, and the buyer bought it for his three-year-old chil...
A buyer bought a toy castle from a seller of toy castles. The castle was designed for toddlers, and the buyer bought it for his three-year-old child. The castle was about five feet high at its highest point, and it was made of sturdy plastic. One day, the buyer’s 11-year-old son and his friends were climbing to the top of the castle and jumping off of it. When the 11-year-old and two friends stood on the top of the castle, it overturned, injuring the boys. The buyer claimed that the castle was unmerchantable and not fit for the castle’s ordinary purpose because it was not properly designed with a safety feature to prevent overturning in these circumstances.Did the castle conform to the implied warranty of merchantability even though it lacked this safety feature?66How may a merchant’s contract for the sale of goods disclaim the implied warranty of merchantability?
How may a merchant’s contract for the sale of goods disclaim the implied warranty of merchantability?67A contract for the sale of goods between a merchant and a buyer contained a conspicuous provision, written in large boldface letters, stating: “The...
A contract for the sale of goods between a merchant and a buyer contained a conspicuous provision, written in large boldface letters, stating: “The seller gives no warranties for these goods.”Has the contract effectively disclaimed the implied warranty of merchantability?68May a merchant disclaim the implied warranty of merchantability by permitting the buyer to inspect the goods?
May a merchant disclaim the implied warranty of merchantability by permitting the buyer to inspect the goods?69In a contract for the sale of goods, what is an implied warranty of fitness for a particular purpose?
In a contract for the sale of goods, what is an implied warranty of fitness for a particular purpose?70A buyer went shopping for a camera. The buyer told the camera seller that she was about to go on trip to Antarctica and needed a camera that would ...
A buyer went shopping for a camera. The buyer told the camera seller that she was about to go on trip to Antarctica and needed a camera that would perform well in extreme cold. The camera seller recommended a camera, and the buyer purchased it. The contract of sale contained no warranty provisions. Although the camera was a good camera and performed well under normal temperatures, it seized up in the frigid Antarctic conditions.Has the camera seller breached any warranties?71How may a contract for the sale of goods disclaim the implied warranty of fitness for a particular purpose?
How may a contract for the sale of goods disclaim the implied warranty of fitness for a particular purpose?72May a seller disclaim the implied warranty of fitness for a particular purpose by permitting the buyer to inspect the goods?
May a seller disclaim the implied warranty of fitness for a particular purpose by permitting the buyer to inspect the goods?73In a contract for the sale of goods, how does a buyer show his acceptance?
In a contract for the sale of goods, how does a buyer show his acceptance?74What options does a buyer have upon a seller’s delivery of goods that do not conform to the contract’s terms?
What options does a buyer have upon a seller’s delivery of goods that do not conform to the contract’s terms?75Under a contract for the sale of goods, what two things must a buyer do to effectively reject a delivery of nonconforming goods?
Under a contract for the sale of goods, what two things must a buyer do to effectively reject a delivery of nonconforming goods?76What duty does a buyer have with respect to nonconforming goods he has rejected?
What duty does a buyer have with respect to nonconforming goods he has rejected?77In a sale of goods, may a seller cure a delivery of nonconforming goods by delivering the correct goods to the buyer before the contract’s delivery...
In a sale of goods, may a seller cure a delivery of nonconforming goods by delivering the correct goods to the buyer before the contract’s delivery deadline?78A gallery sold a painting to an art collector. Soon after hanging the painting, the collector noticed blemishes on its surface. The collector retur...
A gallery sold a painting to an art collector. Soon after hanging the painting, the collector noticed blemishes on its surface. The collector returned the painting to the gallery. The gallery agreed that there was something wrong with the painting and took it back. The gallery offered to allow the collector to select another equally priced painting from the gallery’s collection. The collector refused and demanded a refund of the price. The gallery argued that it did not have to refund the price to the collector because its tender of another unblemished painting is an effective cure of the nonconformity in the original painting.Is the gallery correct that tendering another painting is an effective cure of the nonconformity?79May a buyer of goods revoke his acceptance?
May a buyer of goods revoke his acceptance?80In a contract for the sale of goods, what is identification?
In a contract for the sale of goods, what is identification?81Two parties entered into a contract to sell corn before the corn was planted.Assuming the contract is silent about identification, when does the co...
Two parties entered into a contract to sell corn before the corn was planted.Assuming the contract is silent about identification, when does the corn become identified to the contract?82In a contract for the sale of goods delivered by carrier, when does the risk of loss pass to the buyer if no destination is specified?
In a contract for the sale of goods delivered by carrier, when does the risk of loss pass to the buyer if no destination is specified?83A contract for the sale of goods provided that the seller must deliver the goods to an independent carrier for delivery to the buyer. The seller de...
A contract for the sale of goods provided that the seller must deliver the goods to an independent carrier for delivery to the buyer. The seller delivered the goods to the carrier, but the goods were destroyed when the independent carrier’s delivery truck had an accident on the way to the buyer’s location.Assuming the UCC applies, did the seller bear the risk of this loss?84In a contract for the sale of goods held by a bailee and delivered to a buyer without being moved, when does the risk of loss pass to a buyer?
In a contract for the sale of goods held by a bailee and delivered to a buyer without being moved, when does the risk of loss pass to a buyer?85In a contract for the sale of goods not delivered via carrier or held by a bailee, when does the risk of loss pass to a buyer when the seller is a ...
In a contract for the sale of goods not delivered via carrier or held by a bailee, when does the risk of loss pass to a buyer when the seller is a merchant?86A buyer purchased a bike from a bike shop in the morning to pick up in the evening. The bike was stolen from the bike shop that afternoon, before t...
A buyer purchased a bike from a bike shop in the morning to pick up in the evening. The bike was stolen from the bike shop that afternoon, before the buyer returned to pick up the bike.Did the buyer or the bike shop bear the risk of the bike’s loss?87In a contract for the sale of goods, which party bears the risk of loss of goods in the event of any breach?
In a contract for the sale of goods, which party bears the risk of loss of goods in the event of any breach?88A seller delivered a large gas barbecue grill to a buyer. The buyer noticed that some crucial parts were missing. The buyer immediately notified th...
A seller delivered a large gas barbecue grill to a buyer. The buyer noticed that some crucial parts were missing. The buyer immediately notified the seller of the nonconformity and rejected the grill. The seller offered to send the missing parts to the buyer to cure the nonconformity. The buyer agreed to allow the cure. A few nights later, before the missing parts had arrived, a violent storm caused a tree to fall on the grill and destroy it. The destruction was beyond the buyer’s control and not attributable to the buyer’s fault.Does the buyer bear the risk of the grill’s destruction?89What is an installment contract?
What is an installment contract?90May a buyer always cancel an installment contract after delivery of a single nonconforming installment?
May a buyer always cancel an installment contract after delivery of a single nonconforming installment?91Under what circumstances is performance of a contract impossible?
Under what circumstances is performance of a contract impossible?92Under what circumstances is performance of a contract impracticable?
Under what circumstances is performance of a contract impracticable?93To successfully establish the defense of impracticability, must a party show that its contractual duties have become objectively impossible to perf...
To successfully establish the defense of impracticability, must a party show that its contractual duties have become objectively impossible to perform?94May a buyer of goods excuse its obligation to buy the goods on grounds of impracticability?
May a buyer of goods excuse its obligation to buy the goods on grounds of impracticability?95An actor contracted with a studio to make a movie. When the filming of the movie was nearly complete, the actor drove his car at excessive speed an...
An actor contracted with a studio to make a movie. When the filming of the movie was nearly complete, the actor drove his car at excessive speed and smashed into a tree, killing himself. The studio had to abandon the footage that had been shot and remake the movie with another actor. The studio sued the actor’s estate for breach of contract because the actor failed to complete the movie. The estate raised the defense that the actor’s death rendered the actor’s performance impracticable.Does the studio have any arguments that might prevent application of the defense of impracticability here?96In January, a farmer contracted to sell 5,000 bushels of corn to a buyer. Although the farmer had planted corn on her land, the contract did not sp...
In January, a farmer contracted to sell 5,000 bushels of corn to a buyer. Although the farmer had planted corn on her land, the contract did not specify that the corn had to come from the farmer’s land. The crop was new at the time of the contract and would not be harvested until summer. In February, a severe freeze in the area badly damaged all the cornfields. As a result, at harvest, the farmer’s land yielded only 3,000 bushels. The lack of corn in the area caused the price to rise so high that buying the other 2,000 bushels would wipe out all of the farmer’s profits on the sale. However, if the farmer did not supply the full 5,000 bushels, the buyer would buy the shortfall on the market and claim the cost as damages from the farmer.If the farmer argues that she should be excused from providing 5,000 bushels of corn because the freeze made this impracticable, will the defense succeed?97If a court finds that performance under a contract has become impracticable, is that performance excused?
If a court finds that performance under a contract has become impracticable, is that performance excused?98A buyer and a seller entered into a contract for the sale of goods. Under the contract, the seller was to deliver the goods to the buyer by truck n...
A buyer and a seller entered into a contract for the sale of goods. Under the contract, the seller was to deliver the goods to the buyer by truck no later than May 1. However, due to a freak storm, all the roads leading to the buyer’s town flooded and became temporarily impassable. This flooding delayed the delivery until May 5. Did the seller breach the contract?99What is frustration of purpose?
What is frustration of purpose?100What is the difference between the contractual defenses of impracticability and frustration of purpose?
What is the difference between the contractual defenses of impracticability and frustration of purpose?101A company booked a large number of meeting facilities at a resort for a conference. The resort knew that the booking was for a conference, but it d...
A company booked a large number of meeting facilities at a resort for a conference. The resort knew that the booking was for a conference, but it did not know the nature of the conference. In fact, the company’s purpose in arranging the conference was to gather all of its international employees for an annual retreat. Just before the conference was to take place, there was an international airline strike that grounded all flights to the United States. As a result, none of the international employees could attend the retreat. The company sought to cancel its booking because its purpose in making the booking had been frustrated by the airline strike.Does the company have a legal right to cancel its booking on this basis?102What is an accord and satisfaction?
What is an accord and satisfaction?103What is a substituted contract?
What is a substituted contract?104How does a substituted contract differ from an accord and satisfaction?
How does a substituted contract differ from an accord and satisfaction?105A debtor owed $15,000 to a creditor but was having trouble paying the money. The debtor talked to the creditor, and the creditor agreed to accept t...
A debtor owed $15,000 to a creditor but was having trouble paying the money. The debtor talked to the creditor, and the creditor agreed to accept the debtor’s car in satisfaction of the $15,000 debt. The parties executed a new contract setting out this arrangement. The parties’ new agreement stated that the original debt would be discharged once the debtor delivered the car to the creditor. Ultimately, the debtor failed to deliver the car to the creditor. The creditor would rather seek the original $15,000 than seek the debtor’s car. Does the creditor still have a legal right to recover the original $15,000 debt from the debtor?106A debtor owed a creditor $500, due on Friday. On Wednesday, the debtor went to the creditor’s office and put $450 in cash on the creditor’s desk. T...
A debtor owed a creditor $500, due on Friday. On Wednesday, the debtor went to the creditor’s office and put $450 in cash on the creditor’s desk. The debtor told the creditor that he was offering to repay the debt two days early on the condition that the creditor give him a 10 percent discount. The debtor said that if the creditor accepted the money, it was in full settlement of the debt. The creditor accepted the $450 payment. However, later, the creditor had second thoughts about giving the debtor the $50 discount and wanted to seek the remaining $50 from the debtor. Has the debtor’s duty to pay the $50 balance of the original debt been discharged by accord and satisfaction?107What is a novation?
What is a novation?108A debtor owed $5,000 to a creditor and was having trouble paying the debt. The debtor’s cousin told the creditor that if the creditor released the ...
A debtor owed $5,000 to a creditor and was having trouble paying the debt. The debtor’s cousin told the creditor that if the creditor released the debtor from the $5,000 debt, the cousin would pay the creditor $4,500 by the end of the month. The creditor accepted the cousin’s offer, and the parties signed a new contract. In the new contract, the creditor released the debtor from the $5,000 debt in exchange for the cousin’s promise to pay $4,500 by the end of the month. However, the cousin did not pay the creditor and filed for bankruptcy. The bankruptcy filing made it more complicated for the creditor to go after the cousin for the $4,500.Can the creditor seek to recover the original $5,000 debt from the debtor?109What is a rescission?
What is a rescission?110May parties to an unperformed contract validly agree to rescind the contract without either party giving anything new to the other?
May parties to an unperformed contract validly agree to rescind the contract without either party giving anything new to the other?111What is a release?
What is a release?112Is a creditor bound by an agreement to reduce a debtor’s undisputed debt?
Is a creditor bound by an agreement to reduce a debtor’s undisputed debt?113Can a party who has been injured by a breach of contract effectively renounce a claim for damages without receiving consideration?
Can a party who has been injured by a breach of contract effectively renounce a claim for damages without receiving consideration?114If a party’s contractual performance is subject to a condition, the performance is not due unless _________.
If a party’s contractual performance is subject to a condition, the performance is not due unless _________.115Under the common law, a contractual breach is any failure to _________.
Under the common law, a contractual breach is any failure to _________.116A party’s contractual breach is considered a material breach if it either:(1) thwarts ________ or(2) deprives ________.
A party’s contractual breach is considered a material breach if it either:(1) thwarts ________ or(2) deprives ________.117What is the Uniform Commercial Code’s (UCC’s) perfect-tender rule?
What is the Uniform Commercial Code’s (UCC’s) perfect-tender rule?118Which two implied warranties potentially apply to a contract for the sale of goods?
Which two implied warranties potentially apply to a contract for the sale of goods?119Under the Uniform Commercial Code (UCC), if a seller delivers nonconforming goods, what are the buyer’s three options for responding to the delivery?
Under the Uniform Commercial Code (UCC), if a seller delivers nonconforming goods, what are the buyer’s three options for responding to the delivery?120If an event makes a contract impossible or impracticable to perform or frustrates the contract’s purpose, a party is not excused from performing it...
If an event makes a contract impossible or impracticable to perform or frustrates the contract’s purpose, a party is not excused from performing its remaining contractual obligations if it:(1) caused the event or(2) ________.