Baldwin/Whiteside: Introduction to Contracts - Pearson

Chapter Six
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DISCHARGE OF
THE CONTRACT
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At this point, your students may be wondering if any contract is ever executed. So remind them that the
good faith element of the UCC is based on the concept that each party wants the contract to succeed and
that each party enters into the contract with the goal of its being carried out as planned.
Then you can segue into the most common discharge: performance. Each party performs as expected,
and all is well. We like to teach complete and substantial performance with the examples of goods
packaged differently. While complete performance may be delivery of five 10-pound bags, delivery of
ten 5-pound bags may be accepted, if the buyer agrees, as substantial performance. You should explain
that buyer may also treat this substitution as a breach.
As we mentioned earlier, news of the day is a good source of examples of impossibility and commercial
frustration. Ask the students to bring an example to the next class.
Breach of the contract is a term with which most students will be familiar. You will have to explain the
terms “complete breach” and “anticipatory breach.”
Suggested Test Questions for Chapter Six
1. What are four ways in which a contract may be discharged? [Performance, nonperformance,
agreement, and operation of law.]
2. List and discuss three examples of nonperformance. [Impossibility, commercial frustration,
and breach.]
3. True or false: A release should be in writing and supported by consideration. [True.]
4. Explain the difference between a release and a rescission. [One party may unilaterally release.
All parties must consent to a rescission. A release should be in writing, whereas a rescission
might be verbal, depending on Statute of Frauds and UCC requirements.]
5. True or false: All parties involved must agree to a release. [False.]
6. True or false: All parties involved must agree to a rescission. [True.]
7. True or false: All parties involved must agree to an accord and satisfaction. [True.]
8. True or false: All parties involved must agree to a novation. [False.]
9. Which of the following may be made unilaterally by one party?
(a) Accord and satisfaction
(b) Rescission
[c] Release
10. A novation requires all of the elements listed below except
(a) consent of the obligee
(b) consent of the new obligor
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