Question 1

If a contract condition is not satisfied, the obligations of the contracting parties are discharged.

Accepted Answer

A) True 
 B)False

Question 2

Fact Pattern 12-2 
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
-Refer to Fact Pattern 12-2. Under the circumstances, with respect to damages, Chris can

Accepted Answer

A)  bring an action immediately. 
B)  bring an action only after the contract's two-year term begins. 
C)  bring an action only after the contract's two-year term ends. 
D)  do nothing. 
A)  bring an action immediately. 
B)  bring an action only after the contract's two-year term begins. 
C)  bring an action only after the contract's two-year term ends. 
D)  do nothing.

Question 3

A contract will be discharged if foreseeable circumstances make it difficult or expensive to attain the contract's purpose.

Accepted Answer

A) True 
 B)False

Question 4

When a contract party materially alters a written contract, the other party must adapt his or her performance accordingly.

Accepted Answer

A) True 
 B)False

Question 5

Dora, an accountant, uses undue influence to induce her client Emily to invest in Fiery Stocks, Ltd., a business with little potential. When Emily learns the truth, she can

Accepted Answer

A)  do nothing. 
B)  enforce the contract but not cancel it. 
C)  enforce the contract or cancel it. 
D)  cancel the contract but not enforce it. 
A)  do nothing. 
B)  enforce the contract but not cancel it. 
C)  enforce the contract or cancel it. 
D)  cancel the contract but not enforce it.

Question 6

Fact Pattern 12-2 
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
-Refer to Fact Pattern 12-2. Bell's repudiation is

Accepted Answer

A)  a material breach. 
B)  a minor breach. 
C)  Chris's breach. 
D)  no breach. 
A)  a material breach. 
B)  a minor breach. 
C)  Chris's breach. 
D)  no breach.

Question 7

Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.

Accepted Answer

A) True 
 B)False

Question 8

A transfer of contract rights to a third party is an assignment.

Accepted Answer

A) True 
 B)False

Question 9

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

Accepted Answer

A)  avoid reletting the premises to recover damages from Ray. 
B)  make reasonable efforts to relet the premises to mitigate damages. 
C)  relet the premises to recover damages from Ray. 
D)  sell the premises to recover damages from Ray. 
A)  avoid reletting the premises to recover damages from Ray. 
B)  make reasonable efforts to relet the premises to mitigate damages. 
C)  relet the premises to recover damages from Ray. 
D)  sell the premises to recover damages from Ray.

Question 10

Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

Accepted Answer

A)  a limitation-of-liability clause. 
B)  an exculpatory clause. 
C)  an illegal clause. 
D)  a quasi contract. 
A)  a limitation-of-liability clause. 
B)  an exculpatory clause. 
C)  an illegal clause. 
D)  a quasi contract.

Question 11

The purpose of the doctrine of election of remedies is to permit a double recovery.

Accepted Answer

A) True 
 B)False

If a contract condition is not satisfied, the obligations of the contracting parties are discharged.

A contract will be discharged if foreseeable circumstances make it difficult or expensive to attain the contract's purpose.

When a contract party materially alters a written contract, the other party must adapt his or her performance accordingly.

Dora, an accountant, uses undue influence to induce her client Emily to invest in Fiery Stocks, Ltd., a business with little potential. When Emily learns the truth, she can

Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.

A transfer of contract rights to a third party is an assignment.

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

The purpose of the doctrine of election of remedies is to permit a double recovery.

Business and Its Legal Environment

The Courts and Alternative Dispute Resolution

Ethics and Business Decision Making

Constitutional Authority to Regulate Business

Administrative Law

Torts and Product Liability

Criminal Law and Cyber Crime

Intellectual Property and Internet Law

International Law in a Global Economy

Business Organizations

Contract Formation

Sales, Leases, and E-Contracts

Creditors Rights and Bankruptcy

Employment, Immigration, and Labor Law

Employment Discrimination

Environmental Law

Antitrust Law and Promoting Compeittion

Investor Protection and Corporate Governance

for Unit One

for Unit Two

for Unit Three

D for Unit Four

E for Unit Five

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Exam 12: Contract Performance, Breach, and Remedies

If a contract condition is not satisfied, the obligations of the contracting parties are discharged.

A contract will be discharged if foreseeable circumstances make it difficult or expensive to attain the contract's purpose.

When a contract party materially alters a written contract, the other party must adapt his or her performance accordingly.

Dora, an accountant, uses undue influence to induce her client Emily to invest in Fiery Stocks, Ltd., a business with little potential. When Emily learns the truth, she can

Expenses that are caused directly by a breach of contract-such as those incurred to obtain performance from another source-are incidental damages.

A transfer of contract rights to a third party is an assignment.

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

Creekside Property Corporation enters into a contract with Delta Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

The purpose of the doctrine of election of remedies is to permit a double recovery.

Business and Its Legal Environment

The Courts and Alternative Dispute Resolution

Ethics and Business Decision Making

Constitutional Authority to Regulate Business

Administrative Law

Torts and Product Liability

Criminal Law and Cyber Crime

Intellectual Property and Internet Law

International Law in a Global Economy

Business Organizations

Contract Formation

Sales, Leases, and E-Contracts

Creditors Rights and Bankruptcy

Employment, Immigration, and Labor Law

Employment Discrimination

Environmental Law

Antitrust Law and Promoting Compeittion

Investor Protection and Corporate Governance

for Unit One

for Unit Two

for Unit Three

D for Unit Four

E for Unit Five

Filters