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Chapter 18 - Performance and Remedies
V. ANSWERS TO PROBLEMS AND PROBLEM CASES
1. No. The Reservation Agreement was not a contract for a specific plane, but rather a contract to
maintain a place in line to buy a plane if and when it became available. In addition, the parties
2. No. The contract did not prohibit the Grondas from considering multiple offers or referring
those offers simultaneously to their attorney. And the contract language placed no limitation
3. Yes. The court engaged in a two-step analysis to determine if Ocean Atlantic’s breach should
allow the plaintiffs to terminate the contract: 1) whether the parties intended the time
provision to be material and 2) whether equitable factors make it unconscionable to enforce
4. Yes. When a contract becomes illegal because of a change in the law, performance is excused
5. No. The parties to a contract may provide for the time for performance. When a contract says
“time is of the essence,” that normally means that time of performance is a vital part of the
6. No. The court stated that while “failure to comply with a condition may result in forfeiture,”
the contract language here was plain and unambiguous and it was obligated to give it its plain
7. No. The person who is the victim of a breach of contract must be given
the benefit of his bargain. Replacement cost was the proper measure of
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 18 - Performance and Remedies
8. No. The court stated that “[w]here ‘means of performance’ have been nullified, making
performance objectively impossible, a party’s performance under a contract will be
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Chapter 18 - Performance and Remedies
9. Yes. It is generally held that the basic legal relationship between a student and a private
university or college is contractual in nature. The catalogs, bulletins, circulars, and
regulations of the institution made available to the matriculant become a part of the contract.
Although not all decisions made by the school are subject to review by courts, a student may
10. No. The condition precedent was Carter’s ability to obtain financing. The additional
handwritten condition that Carter also was required to submit the letter indicating his
financing within 10 days did not subsume the underlying financing condition. Thus, when he
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© 2016 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
