BUS311_chapter_06

This clause reads that the lease is for one year

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Unformatted text preview: Because Tanya’s employer has told her she may soon be transferred out of state, Tanya negotiates for there to be a condition subsequent in the lease. This clause reads that the lease is for one year, unless the tenant is transferred out of state, in which case she is only liable for 30 days’ notice. If Tanya never does get transferred, she will remain liable for the entire year because the condition subsequent was not fulfilled. Conditions of satisfaction are relatively rare, and need to be expressly agreed upon. If Peter contracts to paint Harry’s portrait to Harry’s personal satisfaction, and Harry in good faith really does not like the portrait, Harry is discharged—that is, he does not have to buy the portrait. The law uses a subjective test to judge satisfaction here, because the performance involves personal taste. If Peter contracted to paint Harry’s house white, to Harry’s personal satisfaction, the law would use an objective standard, and if a reasonable person would be satisfied with the paint job, Harry would not be discharged. Discharge by Performance If Peter contracts to paint Harry’s house for $3,000, completes the work, and is paid for it by Harry, obviously the contract is discharged. On the other hand, if Peter was supposed to paint the house beige and he paints it pink instead, Harry is discharged by Peter’s material breach, and does not have to pay for the pink house. rog80328_06_c06_111-133.indd 119 10/26/12 5:37 PM Section 6.2 Performance and Discharge of Contracts CHAPTER 6 But what if Peter paints almost all of the house the correct color, but doesn’t finish two window frames on the first floor? Could Harry successfully claim he is still discharged by Peter’s breach? Probably not. Luckily for Peter, the doctrine of substantial performance would likely apply here. This means that if Peter can show he substantially performed the contract in good faith, he should be able to collect the contract price minus the actual cost of damage from the breach. Looking a...
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This test prep was uploaded on 04/09/2014 for the course BUS 311 taught by Professor Parker during the Spring '10 term at Ashford University.

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