Question 1

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Accepted Answer

A) True 
 B)False

Question 2

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely

Accepted Answer

A) a material breach. 
B) a minor breach. 
C) a reasonable breach. 
D) no breach. 
A) a material breach. 
B) a minor breach. 
C) a reasonable breach. 
D) no breach.

Question 3

Only contracts that have been fully executed can be rescinded by agreement.

Accepted Answer

A) True 
 B)False

Question 4

A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.

Accepted Answer

A) True 
 B)False

Question 5

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is

Accepted Answer

A) a mutual agreement to rescind. 
B) an accord and satisfaction. 
C) a novation. 
D) specific performance. 
A) a mutual agreement to rescind. 
B) an accord and satisfaction. 
C) a novation. 
D) specific performance.

Question 6

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

Accepted Answer

A) must pay Josh the contract price. 
B) must pay Josh half of the contract price as a compromise. 
C) must pay Josh only the cost of his materials. 
D) does not have to pay Josh. 
A) must pay Josh the contract price. 
B) must pay Josh half of the contract price as a compromise. 
C) must pay Josh only the cost of his materials. 
D) does not have to pay Josh.

Question 7

Sage enters into a contract to sell her condo to Tel for a certain price on a specific day. On that day, Sage unconditionally offers to perform. Sage's offer

Accepted Answer

A) conditions Tel's promise to pay for the property. 
B) constitutes tender of performance. 
C) excuses the parties' performance under the contract. 
D) suspends the parties' contractual obligations. 
A) conditions Tel's promise to pay for the property. 
B) constitutes tender of performance. 
C) excuses the parties' performance under the contract. 
D) suspends the parties' contractual obligations.

Question 8

Dairy Farm enters into a contract with EZ Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach occurred when Dairy

Accepted Answer

A) entered into the contract. 
B) decided that it was not advantageous to fulfill the contract. 
C) failed to perform as promised. 
D) was sued by EZ. 
A) entered into the contract. 
B) decided that it was not advantageous to fulfill the contract. 
C) failed to perform as promised. 
D) was sued by EZ.

Question 9

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's death

Accepted Answer

A) discharges the contract. 
B) breaches the contract. 
C) requires Lana's estate to pay damages. 
D) suspends performance of the contract. 
A) discharges the contract. 
B) breaches the contract. 
C) requires Lana's estate to pay damages. 
D) suspends performance of the contract.

Question 10

The most common way to terminate contractual duties is by

Accepted Answer

A) agreement. 
B) repudiation. 
C) failure of a condition. 
D) performance. 
A) agreement. 
B) repudiation. 
C) failure of a condition. 
D) performance.

Question 11

Any breach of contract effectively excuses both parties from performing.

Accepted Answer

A) True 
 B)False

Question 12

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

Accepted Answer

A) conditional. 
B) complete. 
C) material. 
D) substantial. 
A) conditional. 
B) complete. 
C) material. 
D) substantial.

Question 13

There is only one way to discharge a contract-all parties must fulfill their contractual duties.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

A) True 
 B)False

Question 15

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

Accepted Answer

A) conditional. 
B) complete. 
C) material. 
D) substantial. 
A) conditional. 
B) complete. 
C) material. 
D) substantial.

Question 16

A novation requires

Accepted Answer

A) the existence of a previous, valid obligation. 
B) consideration greater than $5,000. 
C) performance of the original contract by all of the parties. 
D) an accord and satisfaction. 
A) the existence of a previous, valid obligation. 
B) consideration greater than $5,000. 
C) performance of the original contract by all of the parties. 
D) an accord and satisfaction.

Question 17

Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials Inc. in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best defense against performing the contract would be that

Accepted Answer

A) performance of the contract is commercially impracticable. 
B) procuring the steel would force the seller into bankruptcy. 
C) the law has rendered performance of the contract illegal. 
D) the specific subject matter of the contract has been destroyed. 
A) performance of the contract is commercially impracticable. 
B) procuring the steel would force the seller into bankruptcy. 
C) the law has rendered performance of the contract illegal. 
D) the specific subject matter of the contract has been destroyed.

Question 18

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are

Accepted Answer

A) avoided. 
B) breached. 
C) conditioned. 
D) performed. 
A) avoided. 
B) breached. 
C) conditioned. 
D) performed.

Question 19

Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.

Accepted Answer

A) True 
 B)False

Question 20

Iggy and Jen sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jen's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

Accepted Answer

A) conditions precedent. 
B) concurrent conditions. 
C) conditions subsequent. 
D) implied conditions. 
A) conditions precedent. 
B) concurrent conditions. 
C) conditions subsequent. 
D) implied conditions.

Exam 18: Performance and Dischapterarge

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely

Only contracts that have been fully executed can be rescinded by agreement.

A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

Sage enters into a contract to sell her condo to Tel for a certain price on a specific day. On that day, Sage unconditionally offers to perform. Sage's offer

Dairy Farm enters into a contract with EZ Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach occurred when Dairy

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's death

The most common way to terminate contractual duties is by

Any breach of contract effectively excuses both parties from performing.

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

There is only one way to discharge a contract-all parties must fulfill their contractual duties.

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

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

A novation requires

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are

Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.

Iggy and Jen sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jen's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

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