COMM 393 Final Questions with
complete solution
Discharge of a contract - correct answer ✔When a contract comes to an end
Ways to discharge - correct answer ✔1. performance
2. agreement
3. frustration
4. operation of law
discharge by performance - correct answer ✔- both sets of obligations are
performed
OR
- reasonable attempt to pay was made, but the other party refuses to accept
(ready, willing and able)
discharge by agreement: forebearance - correct answer ✔All parties agree to
discharge.
-needs to have adequate consideration (can use a waiver of obligation to not
enforce it
discharge by agreement: accord and satisfaction - correct answer ✔- could
have a substituting contact, but it needs to have all the elements of a contract
discharge by agreement: novation - correct answer ✔a company stepping
into the shoes of the previous party
,can terminate and:
- substitute new agreement OR
- swap parties
condition precedent - correct answer ✔discharge by agreement, provides for
automatic dissolution
- starting gun that never shoots (real estate, inspection, financing)
- if it's for your benefit, you can remove every-time to make contract move
faster
- before obligations start to run (either fulfilled or removed)
condition subsequent - correct answer ✔discharge by agreement, provides
for automatic dissolution
- finish line that ends race
ex: Seahawks game code of conduct, not allowed to fight or else you will get
kicked out)
option to terminate by a party - correct answer ✔tenant has right with 1
month's notice
discharge by frustration - correct answer ✔when the circumstances beyond
the control of parties have made performance impossible, pointless or
radically different from what was contemplated at the time the agreement was
made
,Frustration Elements - correct answer ✔1. There was a completely
unforeseeable event that happened, that was beyond the
control of either party and without fault of either party
2. This event happened AFTER the contract was made and before
performance of the
contract (the event was 'supervening/happened pre-contract')
3. The event must make the contract impossible to perform or radically
different than the
parties intended. (can't be replaceable)
4. The event must be directly related to the contract and must not be an
extraneous event
(Saturley v. Lund, must go to the foundation of the contract)
Frustration and Statute - correct answer ✔Fibrosa v Fairborn:
-if a deposit is paid and no benefit is yet received, return of the deposit is
required
- if any benefit is obtained, seller/manufacturer keeps the deposit
-SGA: if it meets 3 conditions, parties walk away from the agreement
Frustration Flow Chart - correct answer ✔If frustration happens before
performance/benefit = walk away.
OTHERWISE:
, - SGA trumps Frustrated Contracts Ac. If all 3 elements are met, both parties
walk away
- If Frustrated Contracts Act applies, = dicretion of the courts
- Common law = fibrosa???
Discharge by Operation of Law - correct answer ✔- need certificate of
bankruptcy
- can't be caused by misconduct on part of debtor
- there is a limitation period that bars collection on debts or obligations
Jedfro Investments v Jacyk: Facts - correct answer ✔1. Jason was the only
one out of the three brothers to pay back the promissory note, so he bought it
outright
2. Jason's company now held the security interest, and foreclosed.
3. Other brother wants his capital contribution back.
Jedfro Investments v Jacyk: Law - correct answer ✔Contract can only be
discharged by agreement, frustration, repudiation or operation of law.
Jedfro Investments v Jacyk: Application - correct answer ✔Discharge by
agreement:
- abandonment discharges a contract only if it amounts to a new contract in
which parties agree to abandon the old one
complete solution
Discharge of a contract - correct answer ✔When a contract comes to an end
Ways to discharge - correct answer ✔1. performance
2. agreement
3. frustration
4. operation of law
discharge by performance - correct answer ✔- both sets of obligations are
performed
OR
- reasonable attempt to pay was made, but the other party refuses to accept
(ready, willing and able)
discharge by agreement: forebearance - correct answer ✔All parties agree to
discharge.
-needs to have adequate consideration (can use a waiver of obligation to not
enforce it
discharge by agreement: accord and satisfaction - correct answer ✔- could
have a substituting contact, but it needs to have all the elements of a contract
discharge by agreement: novation - correct answer ✔a company stepping
into the shoes of the previous party
,can terminate and:
- substitute new agreement OR
- swap parties
condition precedent - correct answer ✔discharge by agreement, provides for
automatic dissolution
- starting gun that never shoots (real estate, inspection, financing)
- if it's for your benefit, you can remove every-time to make contract move
faster
- before obligations start to run (either fulfilled or removed)
condition subsequent - correct answer ✔discharge by agreement, provides
for automatic dissolution
- finish line that ends race
ex: Seahawks game code of conduct, not allowed to fight or else you will get
kicked out)
option to terminate by a party - correct answer ✔tenant has right with 1
month's notice
discharge by frustration - correct answer ✔when the circumstances beyond
the control of parties have made performance impossible, pointless or
radically different from what was contemplated at the time the agreement was
made
,Frustration Elements - correct answer ✔1. There was a completely
unforeseeable event that happened, that was beyond the
control of either party and without fault of either party
2. This event happened AFTER the contract was made and before
performance of the
contract (the event was 'supervening/happened pre-contract')
3. The event must make the contract impossible to perform or radically
different than the
parties intended. (can't be replaceable)
4. The event must be directly related to the contract and must not be an
extraneous event
(Saturley v. Lund, must go to the foundation of the contract)
Frustration and Statute - correct answer ✔Fibrosa v Fairborn:
-if a deposit is paid and no benefit is yet received, return of the deposit is
required
- if any benefit is obtained, seller/manufacturer keeps the deposit
-SGA: if it meets 3 conditions, parties walk away from the agreement
Frustration Flow Chart - correct answer ✔If frustration happens before
performance/benefit = walk away.
OTHERWISE:
, - SGA trumps Frustrated Contracts Ac. If all 3 elements are met, both parties
walk away
- If Frustrated Contracts Act applies, = dicretion of the courts
- Common law = fibrosa???
Discharge by Operation of Law - correct answer ✔- need certificate of
bankruptcy
- can't be caused by misconduct on part of debtor
- there is a limitation period that bars collection on debts or obligations
Jedfro Investments v Jacyk: Facts - correct answer ✔1. Jason was the only
one out of the three brothers to pay back the promissory note, so he bought it
outright
2. Jason's company now held the security interest, and foreclosed.
3. Other brother wants his capital contribution back.
Jedfro Investments v Jacyk: Law - correct answer ✔Contract can only be
discharged by agreement, frustration, repudiation or operation of law.
Jedfro Investments v Jacyk: Application - correct answer ✔Discharge by
agreement:
- abandonment discharges a contract only if it amounts to a new contract in
which parties agree to abandon the old one
