Performance Flashcards

A contractor completes a home renovation but installs a slightly different brand of equally priced, equally functional kitchen faucet than specified. Under the substantial performance doctrine, what is the homeowner's remedy?

Answer: Pay the contract price minus damages for the deviation

Substantial performance entitles the builder to the contract price offset by damages caused by the minor, non-willful deviation.

Under UCC Article 2, a buyer receives a delivery of goods that fails to conform to the contract in any respect. Under the perfect tender rule, the buyer may do which of the following?

Answer: Reject the whole, accept the whole, or accept any commercial units and reject the rest

UCC 2-601 gives the buyer three options when tender fails to conform in any respect: reject all, accept all, or accept any commercial units and reject the rest.

A seller delivers nonconforming goods before the contractual delivery deadline has passed. What right does the seller generally have under the UCC?

Answer: The right to cure by making a conforming delivery within the contract time

Under UCC 2-508, a seller who delivers early may cure a nonconforming tender by seasonably notifying the buyer and delivering conforming goods before the contract deadline.

A promisor's duty is subject to an express condition precedent that has not occurred. What is the effect on the promisor's performance obligation?

Answer: The duty to perform never arises

An express condition precedent must occur before the conditioned duty to perform ever becomes due.

A buyer contracts to purchase a painting 'on condition that my art appraiser approves it.' The appraiser honestly disapproves. What result?

Answer: The buyer's duty is discharged because a good-faith satisfaction condition failed

Satisfaction conditions involving personal taste or third-party judgment require only honest, good-faith dissatisfaction, which discharges the duty when it fails.

Owner promises to pay a builder upon the architect's certificate of completion. The architect unjustifiably and in bad faith withholds the certificate although the work is complete. What result?

Answer: The condition is excused and the owner must pay

A condition is excused when its nonoccurrence results from bad faith or wrongful prevention, so the owner's payment duty becomes due.

In a contract for the sale of land, the buyer's duty to pay and the seller's duty to convey are, absent contrary agreement, treated as what?

Answer: Concurrent conditions requiring simultaneous tender

Payment and conveyance in a land sale are concurrent conditions, so each party must tender performance to put the other in breach.