Fred, the owner and manager of Green Grocer Store, contracts to buy sixty crates of fresh peaches from Holly, the owner and manager of Ideal Farms. Suppose that Holly dies before she can harvest and deliver the peaches. How does Holly's death affect their contract? If Holly does not die, but does not deliver, and Fred suffers a loss, is there any limit to the time within which Fred can file a suit against Holly for breach of contract? If so, how might Fred extend this time?
What will be an ideal response?
Holly's death, before fulfilling the contract, discharge both the contract and Holly's estate's liability for her nonperformance. If Holly does not die, but does not deliver, there is a limit on how long Fred has to file a suit for breach of contract. Statutes of limitations limit the period during which a party can sue on a cause of action. The running of a limitations statute does not extinguish the contractual obligation, however¾the obligor can revive it by making a new promise to perform. Thus, if the time has run out, the breaching party can make a new promise to perform, for which it can be held liable.
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