Question 1

Under the common law, the death or serious illness of one of the parties to a contract

Accepted Answer

A)  has no effect on the contract. 
B)  discharges a personal services contract. 
C)  makes the contract impossible to perform. 
D)  none of these. 
A)  has no effect on the contract. 
B)  discharges a personal services contract. 
C)  makes the contract impossible to perform. 
D)  none of these. B

Question 2

A new agreement entered into before the original contract is breached is called a(n) ____________________.

Accepted Answer

substitute contract

Question 3

A refusal by a creditor to accept a debtor's offer to pay cash in settlement of his or her debt

Accepted Answer

A)  discharges the debt. 
B)  excuses the debtor from future interest payments. 
C)  renews the debt for six years. 
D)  bars legal action by the creditor on the debt. 
A)  discharges the debt. 
B)  excuses the debtor from future interest payments. 
C)  renews the debt for six years. 
D)  bars legal action by the creditor on the debt. B

Question 4

Substantial performance does not apply to contracts calling for payment of money.

Accepted Answer

A) True 
 B)False

Question 5

In a(n) ____________________, the original contract is terminated and a new contract formed between the remaining party to the original contract and the new party.

Accepted Answer

The answer of In a(n) ____________________, the original contract is...

Question 6

One party's offer to perform a contract is called an accord and satisfaction.

Accepted Answer

A) True 
 B)False

Question 7

Under the common law, an example of a contract that would terminate because of a person's death is

Accepted Answer

A)  a contract to sell an RV (recreational vehicle). 
B)  a contract by a well-known actor to perform at a major theater. 
C)  a contract to make a donation to the American Heart Association. 
D)  all of these. 
A)  a contract to sell an RV (recreational vehicle). 
B)  a contract by a well-known actor to perform at a major theater. 
C)  a contract to make a donation to the American Heart Association. 
D)  all of these.

Question 8

Substituting a new third party for one of the original parties is a novation.

Accepted Answer

A) True 
 B)False

Question 9

Beaty contracted to install vinyl siding on O'Grady's house for $7,500 during the first two weeks of August. When Beaty arrived on August 1 to install the siding, O'Grady informed him that the job would have to be postponed indefinitely. Beaty's obligation to perform the contract was discharged by

Accepted Answer

A)  tender of performance. 
B)  substantial performance. 
C)  agreement. 
D)  rescission. 
A)  tender of performance. 
B)  substantial performance. 
C)  agreement. 
D)  rescission.

Question 10

Because of the harshness of the common law rule regarding impossibility of performance, the Uniform Commercial Code (UCC) in certain cases allows a contract to be discharged under the doctrine of ____________________.

Accepted Answer

commercial

Question 11

Rescission of a contract means

Accepted Answer

A)  that the parties must make a new agreement discharging each other from rights and obligations under the original contract. 
B)  that the parties must enter into a novation. 
C)  that the parties must accept substantial performance. 
D)  all of these. 
A)  that the parties must make a new agreement discharging each other from rights and obligations under the original contract. 
B)  that the parties must enter into a novation. 
C)  that the parties must accept substantial performance. 
D)  all of these.

Question 12

Johnson owed Ginger $900. Johnson agreed to pay Ginger back by painting his house. Ginger accepted this change in the contractual agreement. Until Johnson actually paints Ginger's house, this new contract is a(n)

Accepted Answer

A)  satisfaction. 
B)  rescission. 
C)  accord and satisfaction. 
D)  accord. 
A)  satisfaction. 
B)  rescission. 
C)  accord and satisfaction. 
D)  accord.

Question 13

What conditions must be met in order for a person to be accused of a material alteration?

Accepted Answer

An alteration is mat

Question 14

A discharge by performance may not occur through

Accepted Answer

A)  substantial. 
B)  full performance. 
C)  tender of performance. 
D)  rescission. 
A)  substantial. 
B)  full performance. 
C)  tender of performance. 
D)  rescission.

Question 15

Cole owed Williams $150. When Cole couldn't pay the $150, Williams accepted $75 and a shaver worth $50 as full settlement. The contract was discharged by

Accepted Answer

A)  breach of contract. 
B)  waiver. 
C)  accord and satisfaction. 
D)  substantial performance. 
A)  breach of contract. 
B)  waiver. 
C)  accord and satisfaction. 
D)  substantial performance.

Question 16

Contrast objective impossibility with commercial impracticability.

Accepted Answer

Objective impossibility refers to those

Question 17

Bastian, who lived in a rural area, contracted to have her wedding reception at the Vantage party house about 10 miles from her home. It was the only party house located within 150 miles. Three weeks prior to the wedding, this party house burned to the ground. Under the common law, Bastian's contract with the party house was discharged.

Accepted Answer

A) True 
 B)False

Question 18

Under the common law, unforeseen hardships that occur after the contract is made and make performance more difficult will discharge the contract.

Accepted Answer

A) True 
 B)False

Question 19

If a contract is discharged by substantial performance, the party who performed may recover the full contract price.

Accepted Answer

A) True 
 B)False

Question 20

How would you protect yourself when you enter into a contract so that you would be the final judge on whether or not the conditions of the contract are met?

Accepted Answer

Enter into the contract with a

Exam 13: The Termination of Contracts: Discharge

Under the common law, the death or serious illness of one of the parties to a contract

A new agreement entered into before the original contract is breached is called a(n) ____________________.

A refusal by a creditor to accept a debtor's offer to pay cash in settlement of his or her debt

Substantial performance does not apply to contracts calling for payment of money.

In a(n) ____________________, the original contract is terminated and a new contract formed between the remaining party to the original contract and the new party.

One party's offer to perform a contract is called an accord and satisfaction.

Under the common law, an example of a contract that would terminate because of a person's death is

Substituting a new third party for one of the original parties is a novation.

Beaty contracted to install vinyl siding on O'Grady's house for $7,500 during the first two weeks of August. When Beaty arrived on August 1 to install the siding, O'Grady informed him that the job would have to be postponed indefinitely. Beaty's obligation to perform the contract was discharged by

Because of the harshness of the common law rule regarding impossibility of performance, the Uniform Commercial Code (UCC) in certain cases allows a contract to be discharged under the doctrine of ____________________.

Rescission of a contract means

Johnson owed Ginger $900. Johnson agreed to pay Ginger back by painting his house. Ginger accepted this change in the contractual agreement. Until Johnson actually paints Ginger's house, this new contract is a(n)

What conditions must be met in order for a person to be accused of a material alteration?

A discharge by performance may not occur through

Cole owed Williams $150. When Cole couldn't pay the $150, Williams accepted $75 and a shaver worth $50 as full settlement. The contract was discharged by

Contrast objective impossibility with commercial impracticability.

Under the common law, unforeseen hardships that occur after the contract is made and make performance more difficult will discharge the contract.

If a contract is discharged by substantial performance, the party who performed may recover the full contract price.

How would you protect yourself when you enter into a contract so that you would be the final judge on whether or not the conditions of the contract are met?

Foundations of Law and the Role of Ethics in Business

The Legal System in the United States and Its Constitutional Foundation

Personal, Business, and Cyber Crimes and the American Criminal Justice System

Tort Law: Traditional Torts and Cyber Torts

Litigation and Alternatives for Settling Civil Disputes

Contract Law: a Beginning

Agreement: Offer and Acceptance

Consideration

Capacity

Legality

Memorialize Contracts in Writingstatute of Frauds

Transfer of Contract Rights and Duties

The Termination of Contracts: Breach of Contract

Formation of Sales and Lease Contracts

The Sales Contract: Transfer of Title and Risk of Loss

The Sales Contract: Performance, Breach, and Remedies for Breach

Product Liability Law

Nature and Types of Negotiable Instruments

Issue, Transfer, Indorsement, and Discharge of Negotiable Instruments

Rights and Duties of Parties

Checks and the Banking System in the Twenty-First Century

Employer-Employee Relationship

Principal-Agent Relationship

Principal-Agent, Employer-Employee, and Third-Party Relationships

Sole Proprietorships, Partnerships, and Limited Liability Organizations

Corporations and Franchising

Government Regulation of Business

Basic Legal Concepts of Property

Renting Real Property

Buying and Selling Real Property

Nature and Types of Bailments

Wills, Intestacy, and Estate Planning

Protecting the Consumer and the Taxpayer

Protecting the Borrower

Protecting the Creditor

Property, Casualty and Automobile Insurance

Personal Insurance

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