3. Arsenio, an artist, agrees to paint a portrait of Jenny for $1,000. After entering into the contract but before either party has performed, Jenny is dismissed from her job and would like to cancel a contract that is now for her an unaffordable luxury.

A. If Arsenio refuses to cancel the contract, can Jenny claim her impossibility to pay as circumstances that will discharge the contract?

B. If Arsenio agrees to let Jenny off the hook, how should the parties go about discharging the contract?

C. If both parties verbally agree not to sue one an-other, is there any real reason for executing a formal release?