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Question 1

What is the UCC version of impossibility for a condition?

Answer 1

Casualty to identified goods before the risk of loss has passed

Question 2

What is the UCC casualty to identified goods before the risk of loss has passed?

Answer 2

Discharges a duty if a supervening unforeseen event happens that makes it impossible for a reasonable person to perform the contract, and neither party assumed the risk

Question 3

Under the UCC, if the price isn’t fixed, what happens?

Answer 3

Reasonable price is paid on delivery, but if the price was meant to be fixed in a manner agreed on, and the appraiser can’t set a price, even if goods are delivered, the contract is discharged and buyer must return them

Question 4

Is it permissible under the UCC casualty to identified goods to have subjective impossibility?

Answer 4

No, it must be objective: no one could perform no matter what their situation, instead of that the actual promisor couldn’t perform but someone else could have

Question 5

If you promise to dig a hole for your neighbor’s pool, but your backhoe breaks, is that subjective or objective impossibility?

Answer 5

Subjective because anyone with a working backhoe can do the job, so the duty is not discharged

Question 6

What are examples of impracticability?

Answer 6

• death/disability of a performer
• illegality of performance
• destruction of subject matter
• unexpected events
• carrier transaction
• source of supply no longer available

Question 7

If death of a party happens after formation of a contract, does that discharge the contract?

Answer 7

It depends:

• if contract calls for performance of an individual, and they can’t perform, then the duty is discharged.
• If performance is delegable, it isn’t excused

Question 8

If you were apprehensive of impracticability or danger, when can that excuse nonperformance?

Answer 8

If there was danger to health or life

Question 9

If you think you have AIDS and you don’t perform because of it, but you go to the doctor and find out you don’t, is the obligation still excused?

Answer 9

Yeah

Question 10

If the subject matter of the contract is destroyed, deteriorates materially, or is unavailable, what happens?

Answer 10

Discharges the duty if it wasn’t the fault of the promisor

Question 11

If you contract to rent a theater, but it burns down, what happens?

Answer 11

Defendant is excused and it isn’t a breach

Question 12

What happens if there is a destruction of real property before a sale is complete?

Answer 12

• majority: buyer is the equitable owner so destruction doesn’t discharge his obligation to pay
• minority: uniform vendor and purchaser risk act: risk of loss is on the seller until buyer takes title or possession

Question 13

If a builder who constructs a new building has his building destroyed before it is completed, what is his duty?

Answer 13

He must rebuild or be in breach, but late performance is excused if the destruction wasn’t his fault (because he contracted to give a building, not a specific building)

Question 14

If someone is repairing a building or working on a portion of it, and it is destroyed without his fault, what does that do to his obligation?

Answer 14

Discharges it

Question 15

Who has the risk of loss under UCC goods being shipped via carrier?

Answer 15

Seller

Question 16

Who has the risk of loss under UCC goods held by a bailee?

Answer 16

The seller until the buyer gets title or possession

Question 17

Who has the risk of loss under UCC identified goods in a contract where goods get destroyed/damaged before passing to buyer?

Answer 17

If loss is not total: buyer can avoid contract or accept what is left and offset the price

Question 18

Who has the risk of loss when goods are shipped from one location to another involving an intermediary under the UCC?

Answer 18

Risk of loss passes to buyer when seller tenders delivery to carrier

Question 19

When is a carrier of goods liable for damages to them?

Answer 19

If they are on notice of the purpose of the cargo and there is no substitute if it is lost, delayed, or injured in transit

Question 20

If there is a partial casualty of goods during delivery, what happens?

Answer 20

• the buyer can choose to treat the contract as terminated, or
• accept the remaining available goods with a price adjustment

Question 21

If the only or agreed source of supply is no longer available, what does that do to the seller’s duty to furnish the goods?

Answer 21

It excuses it

Question 22

If a contract calls for wine from a specific vineyard that gets burned down, what happens to the contract?

Answer 22

It is discharged

Question 23

If the seller is a middleman, and his source of supply fails, is that a defense?

Answer 23

Not if the source wasn’t contemplated by both parties, plus the middleman must take all due measures to make sure his supply doesn’t fail

Question 24

If a company employs a middleman to buy molasses for them, and the middleman doesn’t make a contract with the refinery to buy the molasses, and then suddenly isn’t able to get enough, can he claim discharge because of impossibility?

Answer 24

No, because he didn’t take all due measures to assure himself the supply wouldn’t fail