Xavier Excavations, Inc., was hired by NoName, LLC, to perform excavating and grading work on Terra Firma, a residential construction project in West Knox County, Maryland. City Bank financed the project with a loan to NoName, LLC. As the work progressed, Xavier Excavations, Inc. received payments totaling 90 percent of the price on its contract. NoName then defaulted on the loan from City Bank and the Bank foreclosed and took possession of the property. Xavier Excavations filed a suit in a Maryland state court against the bank to recover the final payment on its contract. The bank responded that Xavier Excavations had not received its payment because it had failed to obtain an engineer's certificate of final completion, a condition under its contract with NoName. Xavier Excavations responded that it had completed all the work it had contracted to do. If you were a judge in this case, how should you rule?

a.

The Bank is correct because No Name substantially performed the contract and Xavier was paid 90% of the contract.

b.

Xavier is correct because they completed all of the work.

c.

The Bank is correct because Xavier failed to satisfy a condition of the contract.

d.

Xavier is correct because the contract was with No Name and not the Bank.

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Dr. Gregory House signed an employment agreement with Docs-4-U to to provide cardiothoracic surgery services at Princeton Plainsboro Hospital in Princeton, New Jersey. Complaints about House's behavior arose almost immediately. He was evaluated by a team of doctors and psychologists, who diagnosed him as suffering from obsessive- compulsive personality disorder and concluded that he was unfit to practice medicine. Based on this conclusion, the hospital suspended his staff privileges. Citing the suspension, Docs-4-U claimed that House had breached his employment contract. What is House's best defense to this claim?

a.

Breach of contract by the hospital.

b.

Failure of a condition.

c.

The doctrine of impossibility.Detroit Public Schools hired Argo Contracting to renovate a middle school. Argo sub-contracted the tile work in the school's kitchen to Tilly's Tile, Inc. (TTI). The project had already fallen behind schedule. As a result, Argo allowed other workers to walk over and damage the newly installed tile before it had cured, forcing TTI to constantly redo its work. Despite TTI's requests for payment, Argo remitted only half the amount due under their contract. When the school district refused to accept the kitchen, including the tile work, Argo told TTI to quickly make repairs. A week later, Argo terminated their contract. Did Argo breach the contract with TTI?

a.

Yes because Argo's employees damaged TTI's work and Argo to pay TTI the full contract price.

b.

No because Argo only had an obligation to pay TTI after the work was complete.

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Val's Foods signs a contract to buy 1,500 pounds of basil from Sun Farms.While Sun Farms is preparing to harvest the basil, an unexpected hailstorm destroys half the crop. Sun Farms attempts to purchase additional basil from other farms, but it is late in the season, and the price is twice the normal market price. Sun Farms is too small to absorb this cost and immediately notifies Val's that it will not fulfill the contract. Which of the following is true?

a.

Sun Farms is discharged from the contract due to unforeseen circumstances.

b.

Sun Farm must purchase the available basil for Val's Foods, and absorb the financial loss.

c.

Sun Farms materially breached the contract.

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Val's Foods signs a contract to buy 1,500 pounds of basil from Sun Farms.S uppose that Sun Farms sells its operations to Happy Valley Farms. As a part of the sale, all three parties agree that Happy Valley will provide the basil as stated under the original contract. This is called a

a.

Novation.

b.

Rescission.

c.

Accord and Satisfaction.

d.

Delegation.

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