18 Questions
What was the main reason the court decided that the contract had not been breached?
The difference in value between the two types of pipe was nominal or nothing
What is an example of an executory contract?
A contract that has been signed but not yet performed
Why did the contractor refuse to replace the pipe?
Because it would require considerable demolition
What is the term for a contract that has been fully performed by both parties?
Executed contract
What does it mean to 'execute a contract'?
To sign the contract
What is the term for a contract that is fully performed by only one party?
Unilateral contract
What type of contract is most common in construction, where both parties make promises?
Bilateral contract
Which type of contract is easier to cancel?
Executory contract on both parties
What is a characteristic of a unilateral contract?
One party makes a promise, and the other party exchanges something other than a promise
What would happen if a contractor has not received payment for the work done?
The contract is still executory
What is an example of a unilateral contract in construction?
A landscaper promising to sell 100 landscaping railroad ties for $6 each
What is the term for a contract where both parties have not performed their obligations?
Executory contract
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
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
What can an individual do if they satisfied the debt in a joint contract?
They can sue the other landowners for the prorated amount
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
What type of liability do parties have in a several contract?
Separate and distinct liability
What is the purpose of having a prorated amount in the contract?
To make the payment more manageable
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.
A contractor refused to replace a pipe due to high demolition costs. The court's decision was based on the cost of replacement versus the actual damage.
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