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McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
True/False Questions
1) Alpha Corp breached its contract with Beta Inc. If Beta discharges the contract on the
basis of that breach, the contract no longer will be at all relevant to the relationship between
the parties.
a. True
b. False
2) It is possible for a contract to be discharged by performance even though one party
breached the contract if the breach was waived.
a. True
b. False
3) Jasper owed $5000 to Miranda under the terms of a contract. He brought that amount of
cash to her office during regular business hours. Because she was in a bad mood at the
time, however, Miranda slammed the door in his face. As a result, Jasper no longer has to
make payment under the contract.
a. True
b. False
4) Hector agreed to apply three coats of paint to the exterior of Ruth's house. Although he
only applied two, the evidence indicates that a third coat was really unnecessary. Hector
nevertheless has breached the contract.
a. True
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
b. False
5) Halle was required to pay $100 to Barry under the terms of a contract. She arrived at his
door and gave him fifty $2 coins. Barry was entitled to reject that money.
a. True
b. False
6) Casey purchased a 12-month cable television package from CanVid Inc. Under the terms
of that contract, Casey received an option to terminate the agreement immediately if he
found another cable provider who offered a better price. Three months later, Casey
discovered that Videotech Ltd offered the same cable package at a price that was 10 percent
less than CanVid's. Casey's contract with CanVid therefore is automatically terminated.
a. True
b. False
7) The difference between a condition precedent and a true condition precedent is that a
condition precedent is really a condition subsequent.
a. True
b. False
8) ABC Corp and XYZ Inc entered into a contract that is subject to a condition subsequent.
In order to determine whether or not the parties' agreement will come to an end as a result
of that condition, it is necessary to determine whether or not either party has been
substantially deprived of the expected benefit of the contract.
a. True
b. False
9) A contract existed between David and Tawny. Although the agreement was fully
executed from his perspective, it was still partially executory from her perspective. The
parties nevertheless agreed that the agreement should be brought to an end. That new
agreement is enforceable as long as David puts his seal on it, even if Tawny does not do
likewise.
a. True
b. False
10) An accord and satisfaction is effective only if both parties provide fresh consideration.
a. True
b. False
11) Because consideration is not received in return, a waiver of contractual rights is
effective only if it is placed under seal.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
12) Chan was contractually obliged to pay $10 000 to Olivia, but failed to do so. For the
next eight years, she pestered him for payment on a monthly basis, and he consistently and
silently ignored her. Olivia is not barred by the statute of limitations because she has
continually pressed her claim on Chan.
a. True
b. False
13) It is necessary to consider all of the circumstances of a case before determining whether
or not an innocent party is entitled to discharge a contract on the basis of a breach of
warranty.
a. True
b. False
14) Birinder contractually promised to sell 10 000 tons of steel to Maria. Because he
honestly believed that he had a total of 25 000 tons of steel in stock, he sold 15 000 tons of
steel to Boris under a separate contract. After doing so, however, he discovered that he
originally had only 20 000 tons of steel in stock. Because he has only 5000 tons of steel
remaining, and because he had acted honestly throughout, his contract with Maria is
discharged on the basis of frustration.
a. True
b. False
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
15) In some circumstances, the innocent party will not be able to discharge a contract,
regardless of whether the other party breached a condition, a warranty, or an intermediate
term.
a. True
b. False
Multiple Choice Questions
1) Which of the following statements defines in part the effect of "discharge of contract"?
a. The parties describe their contract into a written document.
b. Each party provides a promise in order to create an enforceable agreement.
c. A contract is entered into by a minor.
d. Neither party is held responsible for past actions, but both must perform the contract in
the future.
e. A contract that is discharged for breach continues to exist for some purposes.
2) Which of the following statements is TRUE with respect to a contractual obligation that
is discharged through payment by a debit card?
a. Debit cards use the same rules and procedures as credit cards.
b. Unlike payment by cash, payment by debit card is conditional rather than final.
c. A debit card operates by allowing the card holder to purchase an item by promising to
pay the vendor later.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
d. Because of the need for commercial certainty, the holder of a debit card is liable for all
purchases, even if, for example, a criminal uses a gun to force the card holder to use the
card.
e. Payment by debit card is final and irrevocable, unlike a credit card transaction.
3) Kitten Inc was contractually obliged to pay $5000 to Mavitten Ltd on June 1, but failed
to do so. It is now June 3. Assuming that general contractual rules apply, which of the
following statements is TRUE?
a. Kitten has committed a serious breach of contract because time is of the essence.
b. Mavitten is entitled to discharge the contract for breach.
c. Kitten has breached a condition subsequent by failing to pay even after the scheduled
date for payment has passed.
d. As a result of Kitten's behaviour, the terms of the contract have been varied.
e. Mavitten cannot discharge the contract unless it notified Kitten that the time of payment
is a contractual condition and time is of the essence.
4) Miguel filled his shopping cart with groceries and proceeded to the cashier. The total bill
came to $40. Which of the following forms of payment must the cashier accept?
a. 20 two-dollar coins
b. 40 one-dollar coins
c. a cheque
d. a debit card
e. a credit card
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
5) Sasha owed $350 to Nicole. Under the terms of their contract, he was required to pay
that amount to her at her office on March 31. Which of the following statements is TRUE?
a. If it is inconvenient and unreasonable for Sasha to travel to Nicole's office on March 31
because he is sick, he is entitled to pay on April 1 without breaching the contract.
b. If Nicole unjustifiably rejects a payment that satisfies the terms of the contract, Sasha no
longer has to pay anything at all.
c. If Sasha provides four $100 bills to Nicole at her office on March 31, she must accept
that payment as long as a reasonable person in her circumstances would be willing to make
change.
d. If Nicole rejects a proper tender, she can no longer insist upon receiving payment at her
office.
e. If Nicole rejects a proper tender, she is still entitled to receive payment with interest
calculated from March 31, but she must compensate Sasha for his inconvenience.
6) Which of the following rules applies with respect to a tender of payment?
a. The creditor must tender payment even if the debtor has not asked for it.
b. A creditor that rejects a proper tender cannot later demand payment of the same debt.
c. If a debtor pays more than is actually due, the creditor generally must provide "change"
for the difference, as long as the "change" does not exceed the limits set by the Currency
Act.
d. A creditor generally must accept any reasonable form of payment, such as cash, credit
card, or cheque.
e. A creditor that rejects a proper tender may be unable to claim interest on the unpaid
amount.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
7) Pavel agreed to build a yacht for Dixie. The yacht was to be delivered to Dixie on July
15 and Pavel was to be paid the total price of $100 000 on the same day. Which of the
following statements is TRUE?
a. If Pavel delivers the yacht, and Dixie pays the price, on July 15, she will be required to
provide him with a signed document called a "novation" that signifies his proper
completion of the agreement.
b. If Pavel delivers the yacht on July 15, but has not stenciled the name Sea Bird on the
back of the boat as he had promised to do, Dixie is certainly entitled to refuse delivery and
withhold the purchase price.
c. If Pavel completes construction of a yacht on July 1, only to see it destroyed by a
hurricane the next day, the contract will be certainly discharged on the basis of self-induced
impossibility if Pavel does not have enough time to build another yacht for Dixie by July
15.
d. If Pavel delivers the frame of the yacht, together with the materials that will be required
to actually complete construction of the boat, he is entitled to have the contract discharged
on the basis of "substantial performance" as long as he compensates Dixie for the price that
she will have to pay to have another person finish the project.
e. If the parties created an entire contract, then, unless and until he completes the project,
Pavel will not be entitled to any payment, even if spent $75 000 trying to perform his
obligations.
8) Corrie contractually agreed to build a house for Ed in exchange for $250 000. After
completing about 75 percent of the project, Corrie ran out of resources and informed Ed
that she could not continue. She therefore abandoned the job, as well as a substantial
amount of materials at the work site. After Corrie left, Ed used the abandoned materials to
finish the job himself. Which of the following statements most likely is TRUE?
a. Corrie is entitled to partial payment on the basis of the doctrine of substantial
performance.
b. Although she is not entitled to be paid for her services, Corrie is entitled to sue on the
contract in order to be paid for the materials that Ed used to complete the project.
c. Because Ed completed the job, Corrie is entitled to have the contract discharged on the
basis of performance.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
d. If the court classifies the parties' agreement as an entire contract, then Ed is liable for the
materials that he used in completing the project, but he is not liable for the work that Corrie
performed.
e. Because Corrie did not complete the project, the parties never actually had a contract.
9) As part of a larger business plan, Ronald and Margaret devised an arrangement that
would involve the shipment of widgets to the island of Abuc in the Caribbean. They are
concerned, however, that their plan might violate the Trading with Enemy Islands Act,
which prohibits the export of goods to certain Caribbean nations. Ronald and Margaret
nevertheless want to immediately draft a document that sets up a structure for the shipment
of widgets to Abuc, but that will not expose them to liability if, after seeking government
approval for their plan, they learn that widgets cannot legally be sent to Abuc. As a matter
of risk management, which of the following statements provides the best advice? Ronald
and Margaret should insert
a. a condition precedent to performance into their agreement.
b. a true condition precedent into their agreement.
c. a condition subsequent into their agreement.
d. an option to terminate into their agreement.
e. an exclusion clause into their agreement.
10) Wilf agreed to purchase a business from Celine. The parties' contract stated that the
deal was to close on June 1, when Wilf would pay $250 000 to Celine and she would
transfer the appropriate documents to him. The parties' contract also said: "This sale is
conditional upon Wilf's ability to arrange suitable financing from a lending institution." On
June 1, Celine called for payment of the purchase price, but Wilf explained that he had not
been able to receive financing. Which of the following statements is most likely TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
a. Because the contract was "conditional," the parties never had an enforceable agreement.
Consequently, Wilf cannot be held liable even if he did not make any effort to secure
financing
b. Wilf is liable for breach of the quoted condition if he did not make any attempt to secure
financing.
c. Wilf is liable for breach of a subsidiary obligation if he did not make any attempt to
secure financing.
d. Although the parties' agreement referred to a "condition," a court will find that that
agreement was really subject to an option to terminate.
e. The result in this case will depend upon whether or not the "condition" that the parties
referred to was really a warranty.
11) Which of the following techniques for discharging a contract does not require fresh
consideration?
a. performance in full by both parties
b. novation
c. variation
d. accord and satisfaction
e. waiver
12) Acme Corp entered into a complex agreement with Coyote Inc for the design and
delivery of various types of widgets. After several months, however, Acme received an
offer to perform a similar service for the government under a more lucrative contract. Acme
could not possibly perform both agreements. It therefore conducted some research and
discovered that another company, Geococcyx Ltd, was able and eager to complete the deal
with Coyote. Which of the following statements is TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
a. Because of the circumstances, Acme likely has the right to use the process of waiver to
escape its contract with Coyote.
b. The parties could use the process of novation to allow Geococcyx to assume Acme's role
under the original agreement with Coyote.
c. Because of the circumstances, the contract between Acme and Coyote is frustrated.
d. Geococcyx can use the legal process of repudiation in order to discharge the contract
between Acme and Coyote.
e. The contract between Acme and Coyote can be described as "fully executed."
13) Tippi and Alfred entered into a contract for the sale of birds. Under the terms of that
agreement, she was to provide him on a weekly basis with 10 lovebirds for his pet store,
and he was to pay her $50 on a weekly basis. The agreement also stated that the contract
would be in force for one year. For six weeks, each party performed as promised. At the
beginning of the seventh week, however, Tippi telephoned Alfred and said that she wanted
to bring their agreement to an immediate end. Which of the following statements is TRUE?
a. The parties cannot use the process of rescission to discharge the contract because they
have already performed part of the agreement.
b. The parties can use the process of rescission to discharge the contract, but only if Alfred
seals his agreement to Tippi's proposal.
c. If the parties agree to immediately discharge their contract, their new agreement will be
supported by consideration.
d. The parties' contract will automatically be discharged through the process of novation if
neither Tippi nor Alfred ever try to enforce it.
e. The contract can be brought to an end through the process of release only if Tipi provides
fresh consideration or the release is made by Tippi affixing her seal.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
14) Kate and Ben entered into a contract. She promised to transfer 1000 shares in XYZ
Corp to him and he promised to personally draft architectural plans to certain specifications
for her. Kate transferred the shares to Ben as promised, but he later discovered that he
simply lacked the ability to uphold his end of the bargain. Which of the following
statements is TRUE?
a. If Kate promises to release Ben from his obligation to perform the original contract, that
promise can be enforced against her through the process of accord and satisfaction if Ben
gives some form of fresh consideration, such as a promise to design a web site, instead of
draft architectural plans.
b. Since neither party promised to pay money, the original contract is unenforceable
because it is not supported by legal tender.
c. A seal is necessary for the purposes of an accord and satisfaction.
d. The contract would be unenforceable under the statute of limitations if the parties had
originally agreed that Ben would have more than six years to complete the architectural
plans.
e. Rescission provides the simplest way in which the parties can bring their contract to an
end.
15) Which of the following statements is TRUE?
a. A contract will be discharged on the basis of substantial performance only if the recipient
of the incomplete performance agrees to accept monetary damages for the shortfall.
b. A contract will be discharged on the basis of anticipatory breach only if the innocent
party chooses to relieve the party in breach of the need to perform the contract and release
the defaulting party from claims for damages.
c. An option to terminate can only be exercised by one party if the other party has breached
the contract.
d. A true condition subsequent will prevent a contract from being created unless a certain
event occurs.
e. A contractual obligation is executory if it has been performed.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
16) Ranjit and Samantha, who are both business students, entered into a contract. He
promised to tutor her in the law of negotiable instruments, and she promised to type his
handwritten notes for him after each class. The contract was to start on September 1 and
was to last for one academic year. Before the beginning of September, however, Samantha
learned that she was enrolled in a course on mortgages, rather than a course on negotiable
instruments. Furthermore, Ranjit received a laptop computer as a present from his parents.
Ranjit and Samantha therefore have agreed that the original terms of their contract no
longer make much sense. They also agree that it would be preferable if he tutored her in the
law of mortgages and she designed a database that will allow him to most effectively use
the lectures notes that he types for himself in class. Which of the following processes would
best suit the parties' needs?
a. rescission
b. variation
c. accord and satisfaction
d. release
e. waiver
17) Which of the following situations best demonstrates the concept of self-induced
impossibility?
a. Seven years ago, Alpha became contractually indebted to pay Beta $10 000. Since Beta
has not yet taken any action against Alpha, Beta probably can no longer collect upon the
debt.
b. Alpha agreed to transfer a particular vehicle to Beta. The transfer was to occur on June 1.
On May 15, however, Alpha transferred the same car to Gamma, who was entirely unaware
of the contract between Alpha and Beta.
c. On May 15, Alpha agreed to transfer a certain painting to Beta. The transfer was to occur
on June 1. In fact, although neither party realized it when they created their agreement that
painting had been destroyed by fire on May 1.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
d. On May 1, Alpha agreed to transfer a motorcycle to Beta. The transfer was to occur on
June 1. On May 15, Alpha informed Beta that it intended to break the contract and keep the
motorcycle for itself.
e. Alpha was contractually obliged to pay $1000 to Beta, at Beta's place of business, on
June 1. On June 1, Alpha went to Beta's place of business and tried to discharge the debt by
giving ten $100 bills to Beta. Beta refused to take the money. Because Beta refused a
proper tender, Alpha no longer is required to actively repeat its tender.
18) Boris purchased confidential information from Natasha for a price of $100 000. Under
the terms of that contract, he was required to pay $5000 on the first day of each month for
twenty consecutive months. He was also required, on the first day of each month, to pay 7.5
percent interest on the total amount of the debt that was outstanding. After paying $5000
plus interest for the first month, Boris explained to Natasha that he had suffered a financial
setback in his other business ventures. He therefore asked if she would be willing to relieve
him of the need to pay interest in the future. Which of the following statements is TRUE?
a. If Natasha says that she will not insist upon the payment of interest in the future, but that
promise is not supported by fresh consideration, there is no way that Boris can hold
Natasha to her promise.
b. If Boris fails to pay interest in the future, the contract will be frustrated unless Natasha
agreed to relieve Boris of the need to pay interest.
c. If Natasha says that she will not insist upon the payment of interest in the future, the
doctrine of waiver may later prevent her from changing her mind.
d. The doctrine of waiver would apply in this case only if Natasha promised under seal that
she would relieve Boris of the need to pay interest in the future.
e. Since waiver is an equitable doctrine, it would apply to the facts only if a court found that
Natasha had acted inequitably or unfairly.
19) Which of the following statements is TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
a. Bankruptcy always relieves a contractual party from the need to satisfy any obligation
that arose under a contract.
b. The doctrine of frustration applies in favour of the innocent party if the other party to a
contract intentionally makes it impossible to perform the contract.
c. The lapse of time under a statute of limitation causes a contract to be wiped out
altogether.
d. The breach of an intermediate term sometimes allows the innocent party to discharge the
contract.
e. In contrast to the doctrine of promissory estoppel, there is no possibility of retraction and
resumption of rights under the doctrine of waiver.
20) Which of the following statements is TRUE?
a. The doctrine of frustration applies only if the circumstances have changed so that
performance, as originally intended, has become impossible.
b. Because of its effect upon the parties, bankruptcy always leads to frustration of a
contract.
c. The doctrine of waiver may apply in connection with a condition, but not a warranty or
an innominate term.
d. Bankruptcy always discharges a person from performing a contractual obligation.
e. Limitation periods exist, in part, because it is undesirable for courts to rely upon evidence
that is old and perhaps unreliable.
21) Zinedine entered into a contract with Sporting Press Inc to write an instructional book
about soccer. Under the terms of that agreement, he was required to deliver the manuscript
of the book to the company by December 31. On October 1, however, Zinedine telephoned
Sporting Press and explained to the editor that, due to other commitments, he would not be
able to perform his obligations on schedule. Which of the following statements is TRUE?
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
a. Sporting Press must discharge the contract now or never, since it is not entitled to wait
until December 31 before it makes its decision.
b. Unless the parties agreed otherwise, the time of Zinedine's performance was of the
essence.
c. Sporting Press is entitled to demand performance, but it cannot force Zinedine to pay
damages.
d. If Sporting Press does not respond to Zinedine's statement, a court will assume that the
contract has been discharged.
e. Zinedine has committed an anticipatory breach.
22) Jonah entered into a contract with Sporting Videos Inc to appear in an instructional
video about rugby. Under the terms of that agreement, he was required to participate in a
filming session on March 1. Two weeks before that date, however, he telephoned Sporting
Videos and explained to the company's president that he no longer was interested in the
project. Which of the following statements is TRUE?
a. Jonah has committed an anticipatory breach of a warranty.
b. The contract has been frustrated.
c. If Sporting Video does not respond to Jonah's statement within six weeks, the contract
will be discharged under the statute of limitations.
d. Jonah has rescinded the contract.
e. Sporting Videos ultimately will be held liable if it immediately insists upon performance,
but finds, on March 1, that it cannot perform even though Jonah has changed his mind and
is ready to perform.
23) Evan owns a business that produces various forms of marketing and promotional
materials. Andrea entered into a contract with him. He was required to design a website for
her business by June 1 and she was required to pay $100 000 on July 1. Because of an
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
administrative error, however, Evan confused Andrea's order with the order of another
customer. Consequently, by June 1, he had printed 10 000 copies of a glossy magazine for
another customer, but he had not even started work on Andrea's website. Although it is not
yet July 1, Andrea has changed her mind and she no longer wants to pay $100 000 to Evan
in exchange for a website. Which of the following statements is TRUE?
a. Evan is entitled to discharge the contract because Andrea committed a breach of a
contractual warranty that substantially deprived him of the expected benefit of the contract.
b. Andrea is entitled to discharge the contract because Evan committed a breach of a
contractual warranty that substantially deprived her of the expected benefit of the contract.
c. Evan is entitled to discharge the contract because Andrea committed a breach of a
contractual condition that substantially deprived him of the expected benefit of the contract.
d. Andrea is entitled to discharge the contract because Evan committed a breach of a
contractual condition that substantially deprived her of the expected benefit of the contract.
e. Because Evan has not performed and because Andrea no longer wants his performance,
the contract was been discharged by frustration.
24) Which of the following statements is TRUE with respect to the contractual concept of
deviation that applies when goods are shipped?
a. Deviation usually allows a contract to be discharged on the basis of substantial
performance.
b. Deviation is a type of anticipatory breach.
c. Although the concept of deviation applies when goods are placed on board a ship, a
different set of rules applies when goods are transported by rail or by road.
d. The practical consequences of deviation are usually small because the party in breach is
protected by insurance.
e. Deviation is a form of contractual breach.
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
25) AJ contractually agreed to repair Shirley's car within one week. Three days later,
however, he informed her that he would not be able to complete the job because he had lost
all of his tools in a poker game. The facts most clearly demonstrate the concept of
a. deviation.
b. breach of a warranty.
c. novation.
d. bankruptcy.
e. self-induced impossibility.
26) Pym had an idea for an invention. Campbell agreed to purchase a share of that
invention, but only if it was approved within one week by two specific engineers, who were
independent of the parties. One of the engineers gave his approval, but the other, who was
on vacation, did not. Pym nevertheless claimed that Campbell was required to proceed with
the anticipated purchase. Which of the following statements is most likely TRUE?
a. Pym's argument will succeed on the basis of the concept of self-induced impossibility.
b. Pym's argument will fail because the contract was subject to a condition precedent that
was not satisfied.
c. Pym's argument will succeed because Campbell has breached a term of the contract.
d. Pym's argument will fail because the parties' agreement was subject to a true condition
subsequent.
e. Pym's argument will fail because the parties' agreement was frustrated.
27) Svetlana, a carpenter, agreed to make 100 maple bats for Dexter, a professional
baseball player. The total price of $10 000 was to be paid one week after delivery of the
bats. When Svetlana delivered the bats to Dexter, he noticed that they were made out of
wood from pine trees rather than maple trees. Despite being disappointed, he reluctantly
agreed to accept the shipment and promised to pay as required by the contract. After using
McInnes/Kerr/VanDuzer: Managing the Law: The Legal Aspects of Doing Business, Fourth Edition
Chapter 11: Discharge and Breach
the bats for two days, however, he found that they considerably reduced his ability to hit
home runs. He also learned that Jorge, another carpenter, was willing to produce 100 maple
bats at a price of $5000. There is a common belief among baseball players that maple bats
are far superior to pine bats. Which of the following statements is most likely TRUE?
a. Since Svetlana breached a warranty, Dexter never enjoyed the option of discharging the
contract.
b. Although Dexter was entitled to discharge the contract and reject Svetlana's bats on the
basis of her breach of a warranty, he lost that right when he accepted the delivery and used
some of the bats.
c. Svetlana committed an anticipatory breach of contract.
d. Even if Dexter exercises a right of discharge, the contract will continue to exist for some
purposes.
e. Since the bats can still be used, the facts illustrate the doctrine of substantial
performance.
28) Depp Designs Inc is a landscaping company. Roger owns a house that is surrounded by
various types of shrubbery. He entered into a contract with Depp under which the company
was required to sculpt the various shrubs into the shapes of dogs. Because of an error,
however, Depp actually sculpted the shrubs into the shapes of cats. Which of the following
statements is TRUE?
a. Because of the circumstances, Roger cannot discharge the contract even though there has
been a breach of condition, but Roger may sue for damages.
b. Because of its error, Depp has rescinded the contract
c. Because of its error, Depp has frustrated the contract
d. Roger's performance is clearly defective.
e. Because the parties already had a contract that was in existence and that required them to
perform, it is impossible to classify Depp's actions as a breach of a "condition."
