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Exam 16: Performance and Discharge

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Question 31

Multiple Choice

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Planners & Builders,Inc.,enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of local land use laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

A) breached.
B) discharged.
C) not affected.
D) suspended.

E) B) and C)
F) A) and D)

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Question 32

Multiple Choice

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Nin acontracts with Office Suites Corporation to buy a suite in its Prospect Point Tower at a premium for its view of Quay Harbor. Unforeseeably,the town of Quay Harbor changes its zoning law,and Resort Hotels,Inc.,constructs Seaview Resort,blocking what would have been Nina's view. Nina's best argument for a change in the Office Suites contract or its price is

A) frustration of purpose.
B) objective impossibility of performance.
C) anticipatory repudiation.
D) commercial impracticability.

E) A) and B)
F) None of the above

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Question 33

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Any breach discharges the nonbreaching party from the contract.

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Flora,who owns and operates Garden Fresh Organic Farms,agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 16-2. If Flora dies before the deliveries begin,her contract with Harvesters is

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

Built-Rite Contractors,Inc. contracts to build a warehouse for Commercial Storage Company. Built-Rite completely performs. Commercial Storage is entitled to

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's estate

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

A contract is substantially performed when performance creates substan-tially the same benefits as those promised in the contract.

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

When an anticipatory repudiation occurs,it is treated as a material breach of a contract.

When a party's performance is perfect,it is said to be complete.

If a contract condition is not satisfied,the obligations of the parties are suspended.

In most contracts,promises of performance are not expressly conditioned.

Only personal contracts can be discharged by agreement of the parties.

On April 1,Ken's Construction,Inc.,enters into a contract to build a store for Lo-Price Retail,Inc.,at a specific location in Metro City. On April 10,Metro changes its zoning law to prohibit the construction of a commercial building at that location. Lo-Price files a suit against Ken's Construction. In this situation

Floors n' More,Inc.,hires Gordon to renovate Floors n' Mores showroom. Gordon sub-mits plans that Floors n' More approves. Gordon completes the major recon-struction,paints the interior,and buys the fixtures and furnishings. Floors n' More rejects some of these items because they do not match the plans,and subsequently refuses to allow Gordon to finish the work or to col-lect payment. Could Gordon sue successfully for payment for the entire contract?

Raymundo contracts to provide Simone with twenty hours of levitation lessons. The state legislature subsequently passes a law making the teaching of levitation illegal. This law will

Ben and Andrew are parties to a contract. They agree on a novation. The novation does NOT require