PERFORMANCE AND NON-PERFORMANCE

Question 1

Common Law Rule for Performance

Answer 1

Substantial performance

Question 2

Excuses for Non-Performance

Answer 2

1) Improper performance by other guy (material breach)
2) Non-occurrence of condition (mutually agreed promise requiring strict compliance)
3) Anticipatory Repudiation
4) Insecurity

Question 3

Excuses for Non-Performance:

Anticipatory Repudiation

Answer 3

Several options for relying party:
1) Excuse relying party from performance and immediately sue for damages (not avail if relying party fully performed);
2) Suspend performance and wait until performance date to sue;
3) Treat repudiation as offer to rescind and treat K
as discharged. Retraction ok if other party hasn’t
materially changed position.

Question 4

Excuses for Non-Performance:

Insecurity

Answer 4

If reasonable grounds, relying party can demand adequate assurance and may suspend performance.