Question 1

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

Accepted Answer

A condition is an event whose happening

Question 2

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract?

Accepted Answer

A)  Marty leaves a one-foot strip of land barren. 
B)  Marty doesn't begin work on the landscaping until after he finishes two other jobs. 
C)  Marty doesn't plant any flowers, shrubs, or grasses. 
D)  Russell isn't satisfied with Marty's design. 
A)  Marty leaves a one-foot strip of land barren. 
B)  Marty doesn't begin work on the landscaping until after he finishes two other jobs. 
C)  Marty doesn't plant any flowers, shrubs, or grasses. 
D)  Russell isn't satisfied with Marty's design.

Question 3

Refusal of a tender of performance by one party to a bilateral contract will:

Accepted Answer

A)  be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. 
B)  not discharge either party from further duty of performance under the contract. 
C)  be considered a condition subsequent. 
D)  None of these. 
A)  be treated as a repudiation, excusing the tendering party from further duty of performance under the contract. 
B)  not discharge either party from further duty of performance under the contract. 
C)  be considered a condition subsequent. 
D)  None of these.

Question 4

Breach of a contractual promise and failure of a condition have fundamentally the same effect.

Accepted Answer

A) True 
 B)False

Question 5

Mark agrees to a three-year employment contract with State University as long as they become accredited after one year. This contract contains a "condition subsequent."

Accepted Answer

A) True 
 B)False

Question 6

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n):

Accepted Answer

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

Question 7

Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and has become infested with insects. Miller is:

Accepted Answer

A)  discharged from performance because of impossibility if he doesn't have other wheat to substitute. 
B)  discharged because of frustration. 
C)  not discharged, but must substitute wheat or pay damages to the bakery for breach of contract. 
D)  discharged if he can prove that he did not cause the damages to his wheat. 
A)  discharged from performance because of impossibility if he doesn't have other wheat to substitute. 
B)  discharged because of frustration. 
C)  not discharged, but must substitute wheat or pay damages to the bakery for breach of contract. 
D)  discharged if he can prove that he did not cause the damages to his wheat.

Question 8

Forrest has a contract with Denzel to construct a new condominium complex. The contract provides that Forrest must furnish a certificate of occupancy and conformity with the local fire code before Denzel has an obligation to pay. The furnishing of the certificate is an implied in fact condition subsequent to the construction of the building.

Accepted Answer

A) True 
 B)False

Question 9

"The law generally restricts the time within which an action can be brought by either party to a contract." This statement is:

Accepted Answer

A)  false. 
B)  true, because of statutes of limitation. 
C)  true, because of the law of repudiation. 
D)  true, because of covenants not to sue. 
A)  false. 
B)  true, because of statutes of limitation. 
C)  true, because of the law of repudiation. 
D)  true, because of covenants not to sue.

Question 10

One party's unauthorized alteration of any of the material terms in a written contract discharges the entire 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 DVD player, but he may return it within ten days and get all of his money back. 
C)  Both of these are examples of a condition subsequent. 
D)  Neither of these is an example of a condition subsequent. 
A)  Rhonda enters into a contract to buy a new car conditional upon her getting a loan from her bank. 
B)  Roger bought a DVD player, but he may return it within ten days and get all of his money back. 
C)  Both of these are examples of a condition subsequent. 
D)  Neither of these is an example of a condition subsequent.

Question 12

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation. In this case:

Accepted Answer

A)  because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation. 
B)  Kevin has anticipatorily repudiated the contract and is liable to Jim for damages. 
C)  Jim is discharged from his duty to serve as guide, but he must wait until after June 1 to bring suit against Kevin. 
D)  All of these. 
A)  because the contract is executory, Jim has suffered no damages, and Kevin has no obligation to pay any compensation. 
B)  Kevin has anticipatorily repudiated the contract and is liable to Jim for damages. 
C)  Jim is discharged from his duty to serve as guide, but he must wait until after June 1 to bring suit against Kevin. 
D)  All of these.

Question 13

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party.

Accepted Answer

A) True 
 B)False

Question 14

A condition may be inserted into a contract to terminate the duty to perform.

Accepted Answer

A) True 
 B)False

Question 15

Conditions may be classified:

Accepted Answer

A)  by how they are imposed. 
B)  by when they affect a duty of performance. 
C)  Both of these; they are not mutually exclusive. 
D)  Neither of these. 
A)  by how they are imposed. 
B)  by when they affect a duty of performance. 
C)  Both of these; they are not mutually exclusive. 
D)  Neither of these.

Question 16

Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house.

Accepted Answer

A) True 
 B)False

Question 17

In rescinding an executory, bilateral contract, no consideration is furnished.

Accepted Answer

A) True 
 B)False

Question 18

The Code greatly alters the common law doctrine of material breach by adopting what is known as the:

Accepted Answer

A)  perfect tender rule. 
B)  anticipatory repudiation rule. 
C)  prevention of performance rule. 
D)  discharge by operation of rule law. 
A)  perfect tender rule. 
B)  anticipatory repudiation rule. 
C)  prevention of performance rule. 
D)  discharge by operation of rule law.

Question 19

Unless one of the parties contractually assumes the risk, the discharges a contract if supervening
Circumstances make fulfillment of the purpose which both parties had in mind impossible.

Accepted Answer

A)  bankruptcy law 
B)  frustration of purpose doctrine 
C)  perfect tender rule 
D)  subjective impossibility doctrine 
A)  bankruptcy law 
B)  frustration of purpose doctrine 
C)  perfect tender rule 
D)  subjective impossibility doctrine

Question 20

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

Exam 17: Performance, Breach, and Discharge

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

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following would discharge Russell's obligations to pay under this contract?

Refusal of a tender of performance by one party to a bilateral contract will:

Breach of a contractual promise and failure of a condition have fundamentally the same effect.

Mark agrees to a three-year employment contract with State University as long as they become accredited after one year. This contract contains a "condition subsequent."

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n):

Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and has become infested with insects. Miller is:

"The law generally restricts the time within which an action can be brought by either party to a contract." This statement is:

One party's unauthorized alteration of any of the material terms in a written contract discharges the entire contract.

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

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party.

A condition may be inserted into a contract to terminate the duty to perform.

Conditions may be classified:

Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house.

In rescinding an executory, bilateral contract, no consideration is furnished.

The Code greatly alters the common law doctrine of material breach by adopting what is known as the:

Unless one of the parties contractually assumes the risk, the discharges a contract if supervening Circumstances make fulfillment of the purpose which both parties had in mind impossible.

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

Introduction to Law

Business Ethics and the Social Responsibility of Business

Civil Dispute Resolution

Constitutional Law

Administrative Law

Criminal Law

Intentional Torts

Negligence and Strict Liability

Introduction to Contracts

Mutual Assent

Conduct Invalidating Assent

Consideration

Illegal Bargains

Contractual Capacity

Contracts in Writing

Third Parties to Contracts

Contract Remedies

Relationship of Principal and Agent

Relationship With Third Parties

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Products Liability: Warranties and Strict Liability in Tort

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature, Formation, and Powers

Financial Structure

Management Structure

Fundamental Changes

Secured Transactions and Suretyship

Bankruptcy

Protection of Intellectual Property

Antitrust

Consumer Protection

Employment Law

Securities Regulation

Accountants Legal Liability

Environmental Law

International Business Law

Introduction to Property, Property Insurance, Bailments, and Documents of Title

Interests in Real Property

Transfer and Control of Real Property

Trusts and Decedents Estates

the Legal Environment of Business

Contracts

Agency

Sales

Negotiable Instruments

Unincorporated Business Associations

Corporations

Debtor and Creditor Relations

Regulation of Business

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