Question 1

Which of the following is/are correct with regard to conditions subsequent?

Accepted Answer

A) Conditions subsequent are quite common in contracts. 
B) A "sale or return" contract is an example of a contract with a condition subsequent. 
C) A condition subsequent must occur before performance is due under a contract. 
D) All of these are correct. 
A) Conditions subsequent are quite common in contracts. 
B) A "sale or return" contract is an example of a contract with a condition subsequent. 
C) A condition subsequent must occur before performance is due under a contract. 
D) All of these are correct. B

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. C

Question 3

Substituted contracts discharge the original duties immediately.

Accepted Answer

A) True 
 B)False  True

Question 4

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 5

An accord and satisfaction discharges an existing debt.

Accepted Answer

A) True 
 B)False

Question 6

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 7

An intentional breach of contract is generally held to be material.

Accepted Answer

A) True 
 B)False

Question 8

An express condition is usually preceded by such words as:

Accepted Answer

A) if. 
B) because. 
C) how. 
D) All of these. 
A) if. 
B) because. 
C) how. 
D) All of these.

Question 9

An implied-in-fact condition and constructive condition are the same.

Accepted Answer

A) True 
 B)False

Question 10

What is the difference between implied-in-fact and express conditions?

Accepted Answer

Express conditions are explicitly set fo

Question 11

Lynn, a tailor, agrees to sew a pair of drapes for Zach's living room.Zach promises to pay Lynn $300.Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them.In this case:

Accepted Answer

A) whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied. 
B) the standard applied here is a subjective standard of satisfaction. 
C) the doctrine of frustration of purpose applies. 
D) the condition of satisfaction is an express condition. 
A) whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied. 
B) the standard applied here is a subjective standard of satisfaction. 
C) the doctrine of frustration of purpose applies. 
D) the condition of satisfaction is an express condition.

Question 12

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 13

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

Accepted Answer

A) True 
 B)False

Question 14

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather conditions require additional labor to be hired.The rate would then be $3.50 per bushel.A freeze warning required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75.Louis wants to get out of his contract.Can he?

Accepted Answer

A) No, the parties expected the hardship and provided for it in their contract 
B) No, there is no hardship 
C) Yes, the contract is impracticable 
D) Yes, the freeze is a supervening event 
A) No, the parties expected the hardship and provided for it in their contract 
B) No, there is no hardship 
C) Yes, the contract is impracticable 
D) Yes, the freeze is a supervening event

Question 15

Janice contracts to sell a certain tract of land to Anthony for $5,000, but the contract does not state a time for delivery of the deed and payment of the price.In this situation:

Accepted Answer

A) the contract will be considered void for lack of essential terms. 
B) the law will imply that the respective performances are independent of each other and may occur whenever "reasonable under the circumstances." 
C) courts will treat the promises to deliver the deed and to pay the $5,000 as mutually dependent.Anthony's duty to pay is conditioned upon Janice's delivery of the deed and Janice's duty to deliver the deed is conditioned upon Anthony's payment or tender of $5,000 to Janice. 
D) Janice's duty to deliver the deed and Anthony's duty to pay the $5,000 are "implied­in­fact" conditions. 
A) the contract will be considered void for lack of essential terms. 
B) the law will imply that the respective performances are independent of each other and may occur whenever "reasonable under the circumstances." 
C) courts will treat the promises to deliver the deed and to pay the $5,000 as mutually dependent.Anthony's duty to pay is conditioned upon Janice's delivery of the deed and Janice's duty to deliver the deed is conditioned upon Anthony's payment or tender of $5,000 to Janice. 
D) Janice's duty to deliver the deed and Anthony's duty to pay the $5,000 are "implied­in­fact" conditions.

Question 16

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 17

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

Accepted Answer

A) True 
 B)False

Question 18

An obligee's promise to accept a stated performance in satisfaction of the obligor's existing contractual duty creates an accord.

Accepted Answer

A) True 
 B)False

Question 19

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Accepted Answer

A) True 
 B)False

Question 20

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

Exam 17: Performance, Breach, and Discharge

Which of the following is/are correct with regard to conditions 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?

Substituted contracts discharge the original duties immediately.

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

An accord and satisfaction discharges an existing debt.

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

An intentional breach of contract is generally held to be material.

An express condition is usually preceded by such words as:

An implied-in-fact condition and constructive condition are the same.

What is the difference between implied-in-fact and express conditions?

Lynn, a tailor, agrees to sew a pair of drapes for Zach's living room.Zach promises to pay Lynn $300.Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them.In this case:

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):

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

Janice contracts to sell a certain tract of land to Anthony for $5,000, but the contract does not state a time for delivery of the deed and payment of the price.In this situation:

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.

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

An obligee's promise to accept a stated performance in satisfaction of the obligor's existing contractual duty creates an accord.

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

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.

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

51: The Legal Environment Of Business

52: Contracts.

53: Agency.

54: Sales

55: Negotiable Instruments

56: Unincorporated Business Association

57: Corporations

58: Debtor and Creditor Relation

59: Regulation of Business

60: Property.

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