1.        Impossibility of Performance. John Agosta and his brother Salvatore had formed a corporation, but disagreements between the two brothers caused John to petition for voluntary dissolution of the corporation. According to the dissolution agreement, the total assets of the corporation, which included a warehouse and inventory, would be split between the brothers by Salvatore's selling his stock to John for $500,000. This agreement was approved, but shortly before the payment was made, a fire totally destroyed the warehouse and inventory, which were the major assets of the corporation. John refused to pay Salvatore the $500,000, and Salvatore brought suit for breach of contract. Discuss whether the destruction of the major assets of the corporation affects John's required performance.

2.        Liquidated Damages. Vrgora, a general contractor, entered into a contract with the Los Angeles Unified School District (LAUSD) to construct an "automotive service shed" and an enclosed room outfitted with an electronic vehicle performance tester. The contract specified a price of $167,195.09, a completion time of 250 days from commencement, and a liquidated damages clause of $100 per day for late completion. Vrgora began construction on January 31, 1977, with an expected completion date of July 29, 1977. Delays in the project arose when the manufacturer of the tester did not receive approval for the tester until September 23, 1977 (a delay of over six months). The tester arrived on November 15, 1977, but because of a conflict over payment, the manufacturer removed the tester. Upon payment, the manufacturer delivered the tester again on December 2, 1977, and Vrgora completed the project on May 2, 1978. LAUSD assessed $20,700 as liquidated damages and eventually brought an action against Vrgora to collect the assessed damages, which Vrgora refused to pay. Given the circumstances of this case, will the court require Vrgora to pay the liquidated damages demanded by LAUSD?

3.        Waiver of Breach. Roger and Lois Robinson bought a mobile home and lot ~ubject to a promissory note secured by a deed of trust in favor of Delores Dorn and Elizabeth Britt. The note provided for monthly payments. The deed of trust provided that "by accepting payment of any sum secured hereby after its due date" Dorn and Britt would "not waive [their] right either to require prompt. payment when due of all other sums so secured or to declare default for failure so to pay." For the first six months, none of the Robinsons' payments was more than a week late. Over the next seven months, their payments were consistently, on average, one or two weeks late. Ater they had missed two consecutive payments without explanation, Dorn and Britt initiated foreclosure proceedings. The Robinsons argued that since Dorn and Britt had accepted the previous late payments, they were required to give notice before filing to foreclose. Had Dorn and Britt, by their acceptance of late payments, waived their right to prompt payment, not withstanding the nonwaiver clause in the deed of trust? Explain.

4.        Impossibility of Performance. John Agosta and his brother Salvatore had formed a corporation, but disagreements between the two brothers caused John to petition for voluntary dissolution of the corporation. According to the dissolution agreement, the total assets of the corporation, which included a warehouse and inventory, would be split between the brothers by Salvatore's selling his stock to John for $500,000. This agreement was approved, but shortly before the payment was made, a fire totally destroyed the warehouse and inventory, which were the major assets of the corporation. John refused to pay Salvatore the $500,000, and Salvatore brought suit for breach of contract. Discuss whether the destruction of the major assets of the corporation affects John's required performance.