Question 1

Anita, who is a seamstress, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. If Bryan is honest in his dissatisfaction, but he is unreasonable:

Accepted Answer

A)   Bryan must pay for the suit even if he is dissatisfied.
B)   this is an illusory contract, because only Anita is bound.
C)   Bryan's approval is to be judged by an objective standard.
D)   Anita has no recourse against Bryan, because she agreed to the subjective standard.E) B) and C)
F) All of the above

Question 2

An implied-in-law condition and constructive condition are the same.

Accepted Answer

A) True 
 B)False

Question 3

After the coronation of Edward VII was postponed and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose evolved.

Accepted Answer

A) True 
 B)False

Question 4

The majority of courts hold that the running of the statute of limitations operates to discharge a contract.

Accepted Answer

A) True 
 B)False

Question 5

A breach of contract always discharges the injured party from performance under the contract.

Accepted Answer

A) True 
 B)False

Question 6

If there is a novation, the original promisor's liability to the original promisee is relieved, even if the new promisor fails to perform.

Accepted Answer

A) True 
 B)False

Question 7

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:

Accepted Answer

A)   a material alteration.
B)   anticipatory repudiation.
C)   a nonmaterial breach since the statement is made before December 31.
D)   an accord.E) A) and B)
F) A) and C)

Question 8

What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent.

Accepted Answer

A condition is an uncertain event that affects the duty of performance. Condition precedent-If William is to buy Anna's land for $50,000, provided William can obtain financing in the amount of $40,000 at no more than 7% interest, the obtaining of financing at no more than 7% interest is a condition precedent. Condition concurrent-If Arnold has contracted to sell Brian a watch for $10, with delivery and payment to take place at the same time, the obligation to pay for the watch is a condition concurrent with the obligation to turn over the watch to Brian. Condition subsequent-Where goods are sold under terms of "sale or return," the buyer has the right to return the goods to the seller within a stated period, but is under an immediate duty to pay the price unless credit has been agreed upon. The duty to pay the price is terminated by a return of the goods, which operates as a condition subsequent.

Question 9

The definition of "discharge by breach" is:

Accepted Answer

A)   performance that is incomplete but that does not defeat the purpose of the contract but entitles the injured party to damages.
B)   wrongful failure to perform the terms of a contract that gives rise to a right to damages by the injured party.
C)   a breach that prevents performance by either party.
D)   uncorrected  material  failure to perform by one party that operates as an excuse for nonperformance by the other party .E) All of the above
F) C) and D)

Question 10

Tender is the full performance of an obligation by one party of a contract.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is a contract with a condition subsequent?

Accepted Answer

A)   Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank.
B)   Roger bought a smartphone but he may return the phone within ten days and get all of his money back.
C)   Susanne and Ethan sign a contract to buy a new home, on the condition that their current home sale is finalized in the next 30 days.
D)   All of these are examples of condition subsequent.E) C) and D)
F) B) and C)

Question 12

A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability.

Accepted Answer

A) True 
 B)False

Question 13

In the case of Michael Silvestri v. Optus Software, Inc., the court held:

Accepted Answer

A)   an objective standard is typically applied to satisfaction clauses in employment contracts.
B)   an objective standard must be used in determining what is satisfactory performance in any "satisfaction" contracts.
C)   idiosyncratic judgments as to what constitutes satisfactory employee performance are inherently unfair and should not be allowed.
D)   in judging a high-level manager's satisfactory performance, a subjective test is appropriate.E) A) and B)
F) A) and D)

Question 14

An implied-in-law condition need only be substantially performed.

Accepted Answer

A) True 
 B)False

Question 15

If a party's principal reason for a contract is substantially impaired without his fault by the occurrence of an unexpected event, that party's remaining duties to render performance are discharged due to the doctrine of:

Accepted Answer

A)   frustration of purpose
B)   subjective impossibility
C)   objective impossibility
D)   commercial impracticabilityE) A) and D)
F) C) and D) A

Question 16

Milt built a barn for the Lowreys, but unintentionally deviated from the agreed specifications. The contract price for Milt's work was $10,500. The barn is usable, but the damages for his deviation were $700. Identify the type of breach the courts would probably deem Milt's departure from the contract to be, and discuss the result of this type of breach.

Accepted Answer

The courts would probably hold that the ...

Question 17

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Accepted Answer

A) True 
 B)False

Question 18

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Accepted Answer

A) True 
 B)False

Question 19

An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract.

Accepted Answer

A) True 
 B)False  True

Question 20

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $8 per bushel unless weather conditions require additional labor to be hired. The rate would then be $8.50 per bushel. A freeze warning required Louis to hire 10 additional overtime workers, raising the cost per bushel to $9.75. Louis wants to get out of his contract. Can he?

Accepted Answer

A)   No, the parties expected the hardship and provided for it in their contract.
B)   No, there is no hardship.
C)   Yes, the contract is commercially impracticable.
D)   Yes, the freeze is a supervening event.E) All of the above
F) None of the above

Exam 17: Performance Breach and Discharge

Correct Answer
verified

An implied-in-law condition and constructive condition are the same.

Correct Answer
verified

After the coronation of Edward VII was postponed and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose evolved.

Correct Answer
verified

The majority of courts hold that the running of the statute of limitations operates to discharge a contract.

Correct Answer
verified

A breach of contract always discharges the injured party from performance under the contract.

Correct Answer
verified

If there is a novation, the original promisor's liability to the original promisee is relieved, even if the new promisor fails to perform.

Correct Answer
verified

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:

Correct Answer
verified

What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent.

The definition of "discharge by breach" is:

Correct Answer
verified

Tender is the full performance of an obligation by one party of a contract.

Correct Answer
verified

Which of the following is a contract with a condition subsequent?

Correct Answer
verified

A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability.

Correct Answer
verified

In the case of Michael Silvestri v. Optus Software, Inc., the court held:

Correct Answer
verified

An implied-in-law condition need only be substantially performed.

Correct Answer
verified

If a party's principal reason for a contract is substantially impaired without his fault by the occurrence of an unexpected event, that party's remaining duties to render performance are discharged due to the doctrine of:

Correct Answer
verified
A

Correct Answer
verified
The courts would probably hold that the ...
View Answer

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Correct Answer
verified

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Correct Answer
verified

An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract.

Correct Answer
verified
True

Correct Answer
verified

Exam 17: Performance Breach and Discharge

Correct AnswerverifiedShow Answer

An implied-in-law condition and constructive condition are the same.

Correct AnswerverifiedShow Answer

After the coronation of Edward VII was postponed and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose evolved.

Correct AnswerverifiedShow Answer

The majority of courts hold that the running of the statute of limitations operates to discharge a contract.

Correct AnswerverifiedShow Answer

A breach of contract always discharges the injured party from performance under the contract.

Correct AnswerverifiedShow Answer

If there is a novation, the original promisor's liability to the original promisee is relieved, even if the new promisor fails to perform.

Correct AnswerverifiedShow Answer

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract." This statement is:

Correct AnswerverifiedShow Answer

What is a condition? Give an example of each of the following types of conditions: condition precedent, condition concurrent, conditions subsequent.

The definition of "discharge by breach" is:

Correct AnswerverifiedShow Answer

Tender is the full performance of an obligation by one party of a contract.

Correct AnswerverifiedShow Answer

Which of the following is a contract with a condition subsequent?

Correct AnswerverifiedShow Answer

A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability.

Correct AnswerverifiedShow Answer

In the case of Michael Silvestri v. Optus Software, Inc., the court held:

Correct AnswerverifiedShow Answer

An implied-in-law condition need only be substantially performed.

Correct AnswerverifiedShow Answer

If a party's principal reason for a contract is substantially impaired without his fault by the occurrence of an unexpected event, that party's remaining duties to render performance are discharged due to the doctrine of:

Correct AnswerverifiedA

Correct AnswerverifiedThe courts would probably hold that the ...View AnswerShow Answer

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Correct AnswerverifiedShow Answer

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Correct AnswerverifiedShow Answer

An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract.

Correct AnswerverifiedTrue

Correct AnswerverifiedShow Answer

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A

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The courts would probably hold that the ...
View Answer

Correct Answer
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True

Correct Answer
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