Question

Denise agrees to buy a large armchair from Diego’s store. Diego offers free delivery, but Denise fails to tell him when to deliver. For three months Diego asks when he can deliver, but receives no response. Diego finally leaves the armchair on Denise’s front porch. Unbeknownst to Diego, Denise is away on vacation, and a rainstorm ruins the armchair. Diego is:(A) not liable, because Denise breached the good faith duty of cooperation.(B) not liable, because Denise created an adhesion contract.(C) liable, because he had a duty of assurance.(D) liable, because the tender was nonconforming

Answer 1

Answer:

Diego is: (A) not liable, because Denise breached the good faith duty of cooperation.

Explanation:

"This is because every contract contains an implied duty of good faith and fair dealing in the performance and enforcement of the contract. Most executives and companies—and even attorneys—however, do not realize that this duty may require that parties not interfere with or fail to cooperate in the other party’s performance. This is important because even if your contract does not explicitly require you to cooperate or if your contract does not explicitly state that you must not interfere, the duty of good faith and fair dealing may require you to do so or else you risk breaching the agreement."

Reference: Pastrikos, Catherine. “What You Should Know about the Implied Duty of Good Faith and Fair Dealing.” American Bar Association, 2016