Exam 7: Contracts: Ending Contracts

Which of the following is not a clause that can limit a party's exposure to damage?

Gratuitous waiver is the release by one party of the other party from performing their contractual obligations.

If all your reasonable expectations under a contract have been met, then the contract has been performed.

If all your reasonable expectations under a contract have been met, then the contract has been ended by operation of law.

A duty of good faith is implied in contract performance.

Mario, a professional entertainer, entered into a one-year contract with Barnum to perform exclusively at Barnum's theatre and nowhere else during that period of time. A week after the agreement was signed, Mario entered into another agreement with a competitor of Barnum to perform at his opera house. Barnum may request the court to issue an injunction to prevent Mario from performing at the competitor's opera house.

Since contracts are formed by agreement between the parties, they can also be ended or modified by agreement.

In which of the following situations is it likely that the court will release a party from their contractual obligations?

Which of the following is not a way to end a contract?

A clause in a contract that specifies the amount of damages due from a breach is a limitation of liability clause.

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. Since this is a breach of a condition of the contract, Benny is released from any obligations he has under the contract, and the contract is at an end.

Only an innocent party to a breach of contract has legal rights for a remedy to repair the breach.

A legal remedy is an order that court is entitled to issue when an innocent party to a contract sues for breach.

Marnie fails to deliver any of the fruit pies she had contracted to make for Benny's Bakery. If Benny treated Marnie's failure to perform as a breach of warranty, the contract would not end but, to the extent that Marnie's breach had caused him injury, she would have to pay Benny damages.

Substantial performance occurs when the parties only have one condition left to complete on a contract.

The purpose for an award of punitive damages in a breach of contract is to punish the party who breached the contract.

Paul ordered a motor bike from Moto-Haus. He had reviewed all the specifications and told the salesperson of his final choice. When the bike arrived, Paul found that it did not live up to the fuel efficiency that he expected or that was claimed in the brochure. He took the bike back to Moto-Haus, and demanded the return of his money, which was refused. Paul would be best advised to treat the contract as:

Parties can agree to end their contract only by signing another separate contract stating the end date.

Tender of performance is when a party is ready, willing, and able to perform its obligations and attempts to do so.

Self-induced frustration will end a contract.