Question 1

An implied-in-law condition need only be substantially performed.

Accepted Answer

A) True 
 B)False

Question 2

a. List and summarize the situations where a contract is discharged by agreement of the parties. 
b. List and summarize the situations where a contract is discharged by operation of law.

Accepted Answer

a. Discharge by agreement of the parties

Question 3

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Accepted Answer

A) True 
 B)False

Question 4

Rebecca sees a pair of beautiful silver shoes in a store window. She goes in and tells the shopkeeper, "If I am asked to the prom, I will buy those shoes. Please hold them for me." If the shopkeeper signs a note that says, "Will hold for Rebecca silver shoes, style 1028, size 8," will he have to honor that promise?

Accepted Answer

A)  Yes, and there is a condition precedent to the contract of sale. 
B)  Yes, there is a contract with a condition subsequent. 
C)  No, there is no contract but simply an illusory promise. 
D)  No, a contract is formed after Rebecca is asked to the prom. 
A)  Yes, and there is a condition precedent to the contract of sale. 
B)  Yes, there is a contract with a condition subsequent. 
C)  No, there is no contract but simply an illusory promise. 
D)  No, a contract is formed after Rebecca is asked to the prom.

Question 5

Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. In this case:

Accepted Answer

A)  the payment of the $20,000 and the delivery of the deed are independent of each other. 
B)  the delivery of the deed is a condition subsequent to the payment of the $20,000. 
C)  the payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions. 
D)  the payment of the $20,000 is a condition precedent to the delivery of the deed. 
A)  the payment of the $20,000 and the delivery of the deed are independent of each other. 
B)  the delivery of the deed is a condition subsequent to the payment of the $20,000. 
C)  the payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions. 
D)  the payment of the $20,000 is a condition precedent to the delivery of the deed.

Question 6

A breach of contract always gives rise to a cause of action for damages by the injured party.

Accepted Answer

A) True 
 B)False

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

A contract may condition the performance of a party upon the approval of a third party.

Accepted Answer

A) True 
 B)False

Question 9

Objective impossibility occurs if a particular contracting party is unable to perform because of financial inability or lack of competence.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following would be considered a material breach of a contract?

Accepted Answer

A)  Partial performance that omits some essential part of the contract. 
B)  Delivery of 50 chairs in a contract that calls for 100 chairs. 
C)  An intentional breach of the contract. 
D)  All of these would be material breaches. 
E)  Only (a) and (b) would be material breaches. 
A)  Partial performance that omits some essential part of the contract. 
B)  Delivery of 50 chairs in a contract that calls for 100 chairs. 
C)  An intentional breach of the contract. 
D)  All of these would be material breaches. 
E)  Only (a) and (b) would be material breaches.

Question 11

Paul promises Marty $1,500 if he will completely landscape Paul's yard. Which of the following would discharge Paul'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 or grass. 
D)  Paul 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 or grass. 
D)  Paul isn't satisfied with Marty's design.

Question 12

If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform.

Accepted Answer

A) True 
 B)False

Question 13

Explain what may constitute a material breach and list the several basic principles that must be applied to determine if a material breach exists in a given contract.

Accepted Answer

In general, a material breach is defined

Question 14

Marie owes Nathan $900 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 15

Carl, a contractor, has a contract with Ron, a realtor, to construct a new condominium complex. The contract provides that Carl must furnish a certificate of occupancy and conformity with the local fire code before Ron 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 16

By agreement, parties to a contract may discharge each other from performance under a contract.

Accepted Answer

A) True 
 B)False

Question 17

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 VCR but he may return the VCR within ten days and get all of his money back. 
C)  Both (a) and (b) are examples of a condition subsequent. 
D)  Neither (a) nor (b) 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 VCR but he may return the VCR within ten days and get all of his money back. 
C)  Both (a) and (b) are examples of a condition subsequent. 
D)  Neither (a) nor (b) is an example of a condition subsequent.

Question 18

Milt built a barn for the Lowreys, but unintentionally deviated from the agreed specifications. The contract price for Milt's work was $10,500. The barn is usable, but the damages for his deviation were $700. Identify the type of breach the courts would probably deem Milt's departure from the contract to be, and discuss the result of this type of breach.

Accepted Answer

The courts would probably hold that the

Question 19

A fundamental difference exists between the breach or nonperformance of a contractual promise and the failure or nonhappening of a condition.

Accepted Answer

A) True 
 B)False

Question 20

If the contract does not state otherwise, standard goods under a contract for sale to meet the satisfaction of the buyer must:

Accepted Answer

A)  meet the buyer's actual satisfaction, if honest and in good faith, even if unreasonable. 
B)  meet the buyer's actual satisfaction, only if reasonable. 
C)  meet a subjective standard. 
D)  satisfy a reasonable person. 
A)  meet the buyer's actual satisfaction, if honest and in good faith, even if unreasonable. 
B)  meet the buyer's actual satisfaction, only if reasonable. 
C)  meet a subjective standard. 
D)  satisfy a reasonable person.

Exam 17: Performance, Breach, and Discharge

An implied-in-law condition need only be substantially performed.

a. List and summarize the situations where a contract is discharged by agreement of the parties. b. List and summarize the situations where a contract is discharged by operation of law.

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Fred contracts to sell a certain tract of land to Mary for $20,000, but the contract is silent as to the time of delivery of the deed and payment of the price. In this case:

A breach of contract always gives rise to a cause of action for damages by the injured party.

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

A contract may condition the performance of a party upon the approval of a third party.

Objective impossibility occurs if a particular contracting party is unable to perform because of financial inability or lack of competence.

Which of the following would be considered a material breach of a contract?

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

If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform.

Explain what may constitute a material breach and list the several basic principles that must be applied to determine if a material breach exists in a given contract.

Marie owes Nathan $900 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.

By agreement, parties to a contract may discharge each other from performance under a contract.

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

A fundamental difference exists between the breach or nonperformance of a contractual promise and the failure or nonhappening of a condition.

If the contract does not state otherwise, standard goods under a contract for sale to meet the satisfaction of the buyer must:

Introduction to Law

Business Ethics

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

Introduction to Sales and Leases

Performance

Transfer of Title and Risk of Loss

Product Liability: Warranties and Strict Liability

Sales Remedies

Form and Content

Transfer and Holder in Due Course

Liability of Parties

Bank Deposits, Collections, and Funds Transfers

Relationship of Principal and Agent

Relationship With Third Parties

Formation and Internal Relations of General Partnerships

Operation and Dissolution of General Partnerships

Limited Partnerships and Limited Liability Companies

Nature and Formation of Corporations

Financial Structure of Corporations

Management Structure of Corporations

Fundamental Changes of Corporations

Secured Transactions and Suretyship

Bankruptcy

Securities Regulation

Intellectual Property

Employment Law

Antitrust

Accountants Legal Liability

Consumer Protection

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

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