OH Bar Performance 2 — Questions and Answers
Question 1: 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?
- Pay the contract price minus damages for the deviation (Correct answer)
- Refuse all payment because performance was not perfect
- Rescind the contract entirely
- Demand the contractor redo the entire kitchen
Correct 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.
Question 2: 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?
- Reject the whole, accept the whole, or accept any commercial units and reject the rest (Correct answer)
- Only reject the entire shipment
- Only accept the goods and sue for damages
- Only demand a price reduction
Correct 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.
Question 3: A seller delivers nonconforming goods before the contractual delivery deadline has passed. What right does the seller generally have under the UCC?
- The right to cure by making a conforming delivery within the contract time (Correct answer)
- No right to cure once goods are rejected
- The right to demand the buyer keep the goods at a discount
- The right to extend the delivery deadline unilaterally
Correct 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.
Question 4: 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?
- The duty to perform never arises (Correct answer)
- The duty arises but is excused after breach
- The duty is discharged by impossibility
- The duty converts to a duty of good faith negotiation
Correct answer: The duty to perform never arises
An express condition precedent must occur before the conditioned duty to perform ever becomes due.
Question 5: A buyer contracts to purchase a painting 'on condition that my art appraiser approves it.' The appraiser honestly disapproves. What result?
- The buyer's duty is discharged because a good-faith satisfaction condition failed (Correct answer)
- The buyer must still buy because a reasonable person would approve
- The condition is void as illusory
- The buyer must hire a second appraiser
Correct 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.
Question 6: 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?
- The condition is excused and the owner must pay (Correct answer)
- The builder cannot recover until a certificate issues
- The contract is void for failure of condition
- The builder may recover only in quantum meruit from the architect
Correct 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.
Question 7: 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?
- Concurrent conditions requiring simultaneous tender (Correct answer)
- Independent covenants
- Conditions subsequent
- Illusory promises
Correct 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.
OH Bar Performance 2
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?