1. Marian contracted to sell her restaurant to Billings for $400,000. The contract provided that Billings would pay $100,000 and sign a note for the remainder. Billings sold the restaurant to Alice, who agreed to assume responsibility for the balance due on the note held by Marian. But Alice had difficulties and declared bankruptcy. Is Billings still liable on the note to Marian? Explain.
2. Theresa hired Jeff (a Contractor) to construct a large office building. Theresa's duty to pay Jeff was conditional on receipt of a statement from her architect that the building complied with the terms of the contract. Jeff completed the building but used the wrong color fixtures in the bathrooms. The architect refused to approve the work. Is Jeff entitled to payment? Explain and if yes, how much?