1. Use Chapter 13, part 2 - Third Party Rights to consider this problem

- Landlord owns several leased buildings in the same block near downtown. Landlord leases an entire building to TC, for his restaurant "TC's Caf".Among the standard terms negotiated in the lease are the following provisions:

Tenant's Duties:Tenant agrees to maintain a policy of hazard insurance sufficient to repair or replace the Property in event of damage resulting from flood, weather events, fire, or tenant use.

Landlord's Duties: Landlord agrees to keep the Property in good repair for Tenant's use in.

- Landlord hires her son-in-law Dunn to perform her maintenance duties on her leased buildings. Dunn is aware that several tin ceiling tiles need to be replaced in the restaurant, but doesn't do it.

- TC tells his restaurant manager to obtain hazard insurance, but the manager forgets to do it.

- Fleming is enjoying chicken fried steak at TC's Caf when a ceiling tile falls on his head and he sustains a fracture and requires ten stitches.

a. Who can be held liable for breach of the contract duty to keep the building in good repair?

Landlord ?Dunn ? Why?

b. Does Fleming have any rights to recover as a third party beneficiary of the lease agreement:

(1) For failure to maintain good repair?

Why or why not?

(2) For failure to obtain hazard insurance?

Why or why not?

2. Use Chapter 14 about discharge, breach, or remedies

- Sun Farms is a small organic herb grower specializing in basil.

- Val's Foods makes pesto and has contracts to sell its pesto to a number of restaurant chains.

- Val's negotiates with Sun Farms and other small growers in several difference regions to purchase the basil it needs to make its pesto and fulfill these contracts. Val's and Sun Farms enter into a contract for Val's to purchase 1500 lbs of chemical-free basil from Sun Farms at the current market price of $16/lb.

- At harvest time for basil, a freak unseasonal hailstorm destroys a significant portion of the regional basil crop. Sun Farms loses over half of its crop and there is a regional shortage of basil.

- The growing season is over, the market price for remaining basil has doubled due to the general shortage, and with 2 weeks to the contract deadline, Sun Farms realizes it is unable to meet half

of its commitment.Sun Farms cannot afford to buy 750 pounds of substitute crops but Val's can.

a. SUPPOSE THAT Sun Farms immediately notifies Val's that it will only deliver 750 lbs.

(1) Does Val's have a breach of contract claim against Sun Farms? Yes? No? Maybe? Why?

(2)Must Val's DO anything in order to recover, or can it do nothing and still recover?

b. Which legal theory or theories might Sun Farms advance to claim that its contractual obligation

has been discharged ?

c.CHANGE THE FACTS.

SUPPOSE THAT, instead of sending the notice described above, Sun Farms buys as much chemical-free basil from other growers as it can (450 lbs), and then tenders 1200 lbs out of the 1500 lbs to Val's Foods.Might this change the outcome? WHY or WHY NOT?

3.Use information from Chapter 14 on performance and discharge

William is an engineer. Over 30 years he worked on various long or short term projects for Bechtel.

In October 2017, Bechtel's Vice-President for Southwest Asian Operations telephoned William and offered him work on Bechtel's project in Saudi Arabia with a salary of $100,000 per year for two years. Based on this conversation, William accepted the job and traveled to Saudi Arabia one week later to start the job.

One month after starting the job, William was terminated from the Saudi project.

At the time he was terminated from the Saudi project, Bechtel offered William work on several projects that were suitable for his abilities and his salary expectations, but he turned them all down and did not look for other work.Instead, William went home. In November 2019 William filed suit against Bechtel, alleging breach of contract and seeking to recover the salary he would have earned during two years on the Saudi project, plus consequential damages.

a.What is Bechtel's best defense?

b.Who do you think will win?Why?