Part C--Performance, Modifying, Excuses, Breach, etc.

Question 1

Impossibility

Answer 1

1) Performance objectively impossible AND
2) Impossibility not known to either party at time contract formed

3 main categories
1) Destruction of subject matter
2) Death/Incapacity (if existence of person necessary for perfomance)
3) Illegality

N/A if temporary (just suspends)
N/A if parties allocated risk in contract

Question 2

Impracticability

Answer 2

Unforeseen event made performance prohibitively $$/burdensome

1) Performance impracticable due to unforeseen contingency AND
2) Risk not assumed or allocated by parties AND
3) Increase in cost of performance would be far beyond what anticipated

NOT impracticable if bad but predictable (ex. foreseeable market conditions)

Question 3

Frustration of Purpose

Answer 3

1) Party’s principal purpose in entering contract is frustrated AND
2) Frustration substantial AND
3) Non-occurence of x event is basic assumption of contract

Question 4

Accord + Satisfaction

Answer 4

Process by which party accepts substituted performance in lieu of prior duty

Accord–contract promising to accept substitute
If accord–> satisfaction will discharge orig. duty
Original duty suspended until opp. to make replacement performance