1. Jerry Seinfeld is signed to perform a New Year’s eve performance at the Paris

Question

1. Jerry Seinfeld is signed to perform a New Year’s eve performance at the Paris Hotel in Las Vegas. One month before the show, Seinfeld’s wife files for divorce. Seinfeld is depressed about the end of his marriage and decides not to “do the gig.” His manager notifies the hotel’s management, who are incensed. The hotel decides to sue Seinfeld for breach of contract. What will be the result of the litigation?
a) Seinfeld will win—he did not breach, as he had an excuse.
b) Seinfeld will win—he did not breach, as his non-performance was justified
c) Seinfeld will lose.
d) Seinfeld will lose—and he will be forced to perform.

2. Travelers Insurance Company (Travelers) issued a business liability policy to Ace Widget Company (Ace). The U.S. Environmental Protection Agency (EPA) discovered that Ace’s operations were responsible for groundwater contamination, and ordered Ace to clean up the pollution. Ace submited this claim to Travelers, but Travelers rejected it because the policy contained a “pollution exclusion” (eliminating insurance coverage for all pollution related claims against Ace). If Ace responds by suing Travelers for breach of contract, Travelers’ response will be:

            a)        No breach, excuse.
b)        No breach justification.
c)         No breach, terminated duty.
d)        No breach, compliance.

11. Joe and Bob are employee and employer. Under their contract, Bob is to pay Joe a “reasonable wage.” After one month, Joe and Bob argue about what constitutes a “reasonable wage.” Bob hands Joe a check that—in the memo line—states “Payment in Full.” Joe cashes the check, but then demands more money from Bob. Bob refuses. If Joe sues Bob for breach of contract (alleging that Bob breached by not paying him a reasonable wage), Bob would respond:

a)        No breach, compliance.
b)        No breach, excuse.
c)         No breach, justification.
d)        No breach, terminated duty.

Same facts as in #11 above. You are the judge. For whom do you rule for?
Joe / Bob (circle one)

13.       Same facts as in #11 and #12. Bob’s handing the check to Joe represents:

            a)        An offer for a satisfaction contract.
b)        An offer for an accord contract.
c)         An offer for a unilateral contract.
d)        None of the above.

14.       Same facts as in #11-13 above. Joe’s cashing of the check is:

            a)        Acceptance of the offer for an accord contract.
b)        Satisfaction of the accord contract.
c)         (b) and (c)
d)        None of the above.

Explanation / Answer

1) b) Seinfeld will win—he did not breach, as his non-performance was justified

2) d)        No breach, compliance.

11) a)        No breach, compliance.

13) b)        An offer for an accord contract

14) a)        Acceptance of the offer for an accord contract.

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