Contract Law: Replacement of Pipe

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Questions and Answers

What was the main reason the court decided that the contract had not been breached?

The court did not have jurisdiction over the case
The contractor had not signed the contract
The contractor had already replaced the pipe
The difference in value between the two types of pipe was nominal or nothing (correct)

What is an example of an executory contract?

A contract that has been fully performed by both parties
A contract that has been signed but not yet performed (correct)
A contract that has been terminated
A contract that has been amended

Why did the contractor refuse to replace the pipe?

Because it was not specified in the contract
Because the owner refused to pay
Because the installed pipe was of better quality
Because it would require considerable demolition (correct)

What is the term for a contract that has been fully performed by both parties?

Executed contract (D) Signup and view all the answers

What does it mean to 'execute a contract'?

To sign the contract (C) Signup and view all the answers

What is the term for a contract that is fully performed by only one party?

Unilateral contract (C) Signup and view all the answers

What type of contract is most common in construction, where both parties make promises?

Bilateral contract (C) Signup and view all the answers

Which type of contract is easier to cancel?

Executory contract on both parties (A) Signup and view all the answers

What is a characteristic of a unilateral contract?

One party makes a promise, and the other party exchanges something other than a promise (A) Signup and view all the answers

What would happen if a contractor has not received payment for the work done?

The contract is still executory (C) Signup and view all the answers

What is an example of a unilateral contract in construction?

A landscaper promising to sell 100 landscaping railroad ties for $6 each (A) Signup and view all the answers

What is the term for a contract where both parties have not performed their obligations?

Executory contract (A) Signup and view all the answers

What happens when one of the individuals is released from an obligation in a joint contract?

All the other persons are also released from the obligation (B) Signup and view all the answers

What is the benefit of having a joint contract for the landowners in the scenario?

They can combine their properties to create a more attractive piece (A) Signup and view all the answers

What can an individual do if they satisfied the debt in a joint contract?

They can sue the other landowners for the prorated amount (A) Signup and view all the answers

What is the effect of having separate contracts for each property owner in the O'Connor v. Hooper case?

Each property owner is liable for the prorated amount (B) Signup and view all the answers

What type of liability do parties have in a several contract?

Separate and distinct liability (C) Signup and view all the answers

What is the purpose of having a prorated amount in the contract?

To make the payment more manageable (A) Signup and view all the answers

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Study Notes

Contract Dispute Resolution

The contractor refused to replace a pipe, and the court determined that the failure to provide the specified pipe was trivial and innocent, with the omission being neither fraudulent nor willful.

Contract Types

A contract can be executed or executory.
An executed contract is one where both parties have fully performed their obligations.
An executory contract is one where some or all parties still have obligations to fulfill.

Bilateral and Unilateral Contracts

A bilateral contract involves mutual promises between two parties, where each party is both a promisor and a promisee.
Most construction contracts are bilateral, with the contractor promising to perform work and the owner promising to pay.
A unilateral contract involves a promise from one party, and performance from the other party.

Joint and Several Liability

In a joint obligation, if one party is released from an obligation, all parties are released.
In a several obligation, each party is responsible for their separate liability, and one party's payment does not release the others.