Incorrect questions from Quiz

Question 1

Accepting performance that differs

Answer 1

Promise to send 100% wool, sent 90%, buyer sent a check for less bc of this, seller deposited the check, what is buyer’s best argument

existing contractual obligation can be discharged by an accord agreement. A contracting party agrees to accept performance that differs from what was in existing contract in satisfaction* of other party’s existing duty if:

• person against whom the claim is asserted tendered a negotiable instrument (eg a check)
• The instrument was accompanied by a conspicuous statement indicating that it was tendered as full satisfaction of the claim (eg “payment in full”) and
• The claimant obtained payment of the instrument

Question 2

Impracticability vs assumption of risk

Answer 2

Contractor contracted to build a treehouse. Contractor knew fungal infection in trees was fairly common. There was fungus, resulting in much higher cost. Contractor wanted buyer to pay for cost, buyer said no.

duty discharged when impracticability if:

• an unforeseeable event has occurred
• The contract was formed under the basic assumption that the event would not occur and
• the party seeking discharge of performance is not at fault

But if the party assumed the risk of an event happening that made the performance of the duty impracticable, then the duty not discharged

Bc the contractor knew that the fungus was fairly common, he assumed the risk here

Question 3

Third party beneficiary

Answer 3

Guitarist makes shop popular, owners orally agreed to pay G 10k each from sale proceeds. G put down payment on car bc he was so excited. After sale, one owner had financial difficulties, and could only pay 5k. The owners signed a contract saying that one would pay 10k and the other could pay 5k. Will G have a valid basis for action against 5k owner?

Rights vest in a third party beneficiary when:

• detrimentally relies on rights created
• manifests assent to the contract at one party’s request, or
• files a lawsuit to enforce the contract

any efforts to rescind or modify the contract after vesting are void unless the third party consents to the recission or modification

Question 4

When nonoccurrence of condition is excused

Answer 4

Magazine sent general offer, 1k to photographer who sends a photo of x within our technical specifications that is used on the cover in may received before April 1. Photographer sent photo in time that met all specifications, but due to unrelated events the photo was not used on May cover, but on June cover and did not pay. Can photographer sue for 1k?

Duty to perform can be delayed or discharged by a condition–ie an uncertain future event that must occur before performance becomes due or is discharged. 2 types:

• condition precedent - delays performance until a specified event occurs
• condition subsequent - excuses performance once a specified event occurs

Here, 3 conditions precedent, receipt, tech specs, and use in May.

Magazine failed to cooperate when it chose to use a different picture for the May cover. This wrongful interference with the occurrence of this condition excused that condition and triggered the magazine’s duty to pay the subscriber

Guess it does not take much for wrongful prevention or interference with a condition

Question 5

Not from a question, but stemming from a question re conditions

Answer 5

Make sure to understand exactly what the excusal of a condition will do re performance, and remember the photographer question.

Here, excusal meant they do have to perform. Condition was excused, but duty was not excused

Question 6

Damages for substantial performance v. material breach

Answer 6

aerialist signs contract for 500 per week with circus for 6 months. 2 weeks in, A gets hurt and has to miss 2 weeks. Circus had to hire another aeralist. Circus refused to bring back A after injury. What is A’s best theory to recover the highest amount of damages?

Substantial performance -> recover the contract minus the breach time

material breach -> recover benefit conferred minus breach

Best theory is to say breach was not material/A substantially performed

PE not applicable because there was a contract; Impracticability no good because that is a defense to enforcement, not ground for recovery; divisible contract would only recover for the weeks performed, not the rest of the contract

Question 7

Assignment of contractual rights re death of assignor

Answer 7

Inventor assigns his rights to receive payment, does not pay consideration, and then later dies before the contract is up. Who should receive the payments for the rest of the contract?

If assignment is not supported by consideration, then it is a gratuitous assignment, and is generally revocable, except for exceptions. Revocable is automatically revoked upon the death, incapacity, or bankrupcy of the assignor

right in theory, but got it wrong because the contract rights were property, and not part of the stock in the corporation

Question 7

UCC contract re price subsequently set

Answer 7

chest owner wanted to sell chest. Owner and buyer agreed to price set by dealer. Dealer said he would have to do research to determine price. But dealer died before doing so. Is there an enforceable contract?

Under UCC, when an agreement reflects an intent to be bound only if the price is subsequently set, no contract is formed until the price is set.

Intent was to be bound by price set by particular dealer. Without dealer, there is no price, there is no agreement.

UCC, when an agreement reflects an intent to be bound only if the price is subsequently set, no contract is formed until the price is set

Question 8

Unconscionability

Answer 8

Student needed to sell land because he needed to replace car, was desperate. Rancher knew the value of the land, but offered 80% less knowing the situation of the student. What is the student’s best argument to cancel the contract.

Substantive unconscionability - substance of contract itself is duly unfair:

• one sided terms
• gross disparity in value of consideration exchanged

bad faith is for performance, not during negotiations, duress requires a threat, equitable estoppel requires a misrepresentation

Question 9

Conditions precedent

Answer 9

Contract for M to pay Trucker if trucker brings shipment directly to farmer. Trucker brings shipment, but does with with a detour in between. M refuses to pay. Who breached?

Neither party.

Check this, but i think now that the trucker’s duty was to deliver, and the condition precedent was deliver without delay. He fulfilled his duty, delivering, but there was a delay, so the condition was not met, and the manufacturer’s performance was not due.

Question 10

Common law option contract

Answer 10

Option contract is not a binding contract for the contract, only a contract to keep the offer open

Think: brothers and tractor question

Question 11

Offer revocation

Answer 11

Yacht question

Question 12

UCC confirmation letter requirements and statute of fraud requirements

Question 13

Ex wife annuity question

Answer 13

assumption of the risk re mutual mistake

Question 14

conditions precedent and waiver of such conditions

Question 15

parole evidence rule, UCC v common law

Question 16

prospective inability to perform v anticipatory repudiation

Question 17

Requirements and effects of the implied warranty of merchantability

Question 18

Conditional acceptance re counteroffer

Question 19

Auction contracts

Question 20

Debt after the statute of limitations has passed