Question 1

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

Accepted Answer

A)  discharges the original contract.
B)  has no effect on Juan's performance.
C)  changes Isidro's duties under the contract.
D)  suspends both parties duties to perform. A

Question 2

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

Accepted Answer

A)  a mutual agreement to rescind.
B)  an accord and satisfaction.
C)  a novation.
D)  specific performance.

Question 3

Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

Accepted Answer

A) True 
 B)False

Question 4

Any breach of contract allows the breaching party to negotiate to receive additional benefits in order to remedy the breach.

Accepted Answer

A) True 
 B)False

Question 5

Jamal and Keri enter into a contract for Jamal to renovate Keri's house by a certain date. Jamal never performs. After the applicable limitations period has passed, Keri decides to bring a suit against Jamal for breach. This suit

Accepted Answer

A)  must be filed within ten to twenty years, depending on state law.
B)  can no longer be brought.
C)  can be filed within four years of notice to Jamal that Keri decided to sue.
D)  must be filed between four and five years after Keri decides to sue.

Question 6

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Accepted Answer

A)  conditional.
B)  complete.
C)  material.
D)  substantial.

Question 7

Build-It Construction LLC agrees to build a warehouse for Corporate Storage Inc. According to the terms of the deal, Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

Accepted Answer

A)  conditioned on the occurrence of an event.
B)  conditioned on the nonoccurrence of an event.
C)  conditioned on Build-It's performance.
D)  not conditioned.

Question 8

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

Accepted Answer

A)  the bank is liable for breach.
B)  Damien is in breach.
C)  the contract is discharged.
D)  the contract is suspended.

Question 9

Discharging a contract by executing a new agreement with performance different from what was originally promised is

Accepted Answer

A)  a material breach.
B)  an accord and satisfaction.
C)  a novation.
D)  substantial performance.

Question 10

A contract promise that is absolute must be performed, or the party who made the promise will be in breach.

Accepted Answer

A) True 
 B)False

Question 11

In most contracts, promises of performance are conditioned.

Accepted Answer

A) True 
 B)False

Question 12

An accord and its satisfaction do not discharge an original contractual obligation.

Accepted Answer

A) True 
 B)False

Question 13

Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.

Accepted Answer

A) True 
 B)False

Question 14

There is no difference between complete and substantial performance.

Accepted Answer

A) True 
 B)False

Question 15

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require

Accepted Answer

A)  the existence of a previous, valid obligation.
B)  agreement by all the parties to a new contract.
C)  performance of the original contract by all of the parties.
D)  a new, valid contract.

Question 16

Any breach discharges the breaching party from the contract.

Accepted Answer

A) True 
 B)False  False

Question 17

A buyer who offers to pay for goods has tendered payment but cannot yet demand delivery.

Accepted Answer

A) True 
 B)False  False

Question 18

When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.

Accepted Answer

A) True 
 B)False

Question 19

Whether performance under a contract is substantial is decided on a case-by-case basis, examining all of the facts of the particular situation.

Accepted Answer

A) True 
 B)False

Question 20

Under the policy that a contract can be terminated if major difficulties arise, a material breach discharges the non-breaching party from a contract.

Accepted Answer

A) True 
 B)False

Exam 18: Performance and Dischapterarge

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

Correct AnswerverifiedA

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

Correct AnswerverifiedShow Answer

Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

Correct AnswerverifiedShow Answer

Any breach of contract allows the breaching party to negotiate to receive additional benefits in order to remedy the breach.

Correct AnswerverifiedShow Answer

Jamal and Keri enter into a contract for Jamal to renovate Keri's house by a certain date. Jamal never performs. After the applicable limitations period has passed, Keri decides to bring a suit against Jamal for breach. This suit

Correct AnswerverifiedShow Answer

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Correct AnswerverifiedShow Answer

Build-It Construction LLC agrees to build a warehouse for Corporate Storage Inc. According to the terms of the deal, Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

Correct AnswerverifiedShow Answer

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

Correct AnswerverifiedShow Answer

Discharging a contract by executing a new agreement with performance different from what was originally promised is

Correct AnswerverifiedShow Answer

A contract promise that is absolute must be performed, or the party who made the promise will be in breach.

Correct AnswerverifiedShow Answer

In most contracts, promises of performance are conditioned.

Correct AnswerverifiedShow Answer

An accord and its satisfaction do not discharge an original contractual obligation.

Correct AnswerverifiedShow Answer

Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.

Correct AnswerverifiedShow Answer

There is no difference between complete and substantial performance.

Correct AnswerverifiedShow Answer

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require

Correct AnswerverifiedShow Answer

Any breach discharges the breaching party from the contract.

Correct AnswerverifiedFalse

A buyer who offers to pay for goods has tendered payment but cannot yet demand delivery.

Correct AnswerverifiedFalse

When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.

Correct AnswerverifiedShow Answer

Whether performance under a contract is substantial is decided on a case-by-case basis, examining all of the facts of the particular situation.

Correct AnswerverifiedShow Answer

Under the policy that a contract can be terminated if major difficulties arise, a material breach discharges the non-breaching party from a contract.

Correct AnswerverifiedShow Answer

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