Question 1

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 2

Ellis agreed to paint Lee's house for $1500. A month before the performance was due, Lee called and told Ellis that she had changed her mind and was going to have her house stuccoed instead. Ellis insisted that they had a contract and that he was going to paint the house anyway. Lee repeated that she was not going to go through with it, but Ellis insisted the contract was still on. Before further steps could be taken by either party, Lee's house was destroyed by a freak airplane accident. Which one of the following statements describes the law applicable to these facts?

Accepted Answer

A)  Ellis's conduct amounted to repudiation, and Lee could have sued for breach of contract immediately after the phone call. 
B)  Lee could have accepted Ellis's conduct as an anticipatory breach. 
C)  The contract has been discharged by frustration. 
D)  Ellis will be able to successfully claim as damages the amount that he would have made if the contract had been performed. 
E)  Lee's conduct did not amount to a breach since she told him a month before performance was due that she didn't want the house painted. 
A)  Ellis's conduct amounted to repudiation, and Lee could have sued for breach of contract immediately after the phone call. 
B)  Lee could have accepted Ellis's conduct as an anticipatory breach. 
C)  The contract has been discharged by frustration. 
D)  Ellis will be able to successfully claim as damages the amount that he would have made if the contract had been performed. 
E)  Lee's conduct did not amount to a breach since she told him a month before performance was due that she didn't want the house painted.

Question 3

What is a force majeure clause?

Accepted Answer

A force majeure clause is a co

Question 4

Joe owed Sam $5000. After the money was due, he approached Sam and told him that he couldn't pay the money, but if Sam was willing to take $3000 that day in full satisfaction of the debt, he could come up with that money. Sam agreed to take the money and, in fact, took the money. Once he had it in his possession, he then turned around and sued Joe for the other $2000. Explain the likely outcome.

Accepted Answer

The outcome depends on the jurisdiction.

Question 5

In which of the following is the contract not ended by agreement?

Accepted Answer

A)  The event contained in the condition subsequent provision of the contract has happened. 
B)  Randy visited Terry two weeks after the contract was formed but one month before the performance date to say he wouldn't do it. Terry had already paid Randy for the work. After hearing Randy's story, Terry said, "Just forget it, good bye and good luck." 
C)  Sean hired two students to do a market survey for him for $3000. Before the students had begun the work, they both received offers for full-time jobs. They told Sean they wanted out of the contract. Sean said, "Ok, I'm short of cash anyway." 
D)  Goode contracted to sell his pony to Reston. Goode then changed his mind and told Reston he didn't want to sell the pony but would give him two lambs instead. Reston agreed to the substitutes. 
E)  After party A of the contract paid, party B said he couldn't perform. Party A agreed to waive B's obligation if B would return the money paid to him. B agreed. 
A)  The event contained in the condition subsequent provision of the contract has happened. 
B)  Randy visited Terry two weeks after the contract was formed but one month before the performance date to say he wouldn't do it. Terry had already paid Randy for the work. After hearing Randy's story, Terry said, "Just forget it, good bye and good luck." 
C)  Sean hired two students to do a market survey for him for $3000. Before the students had begun the work, they both received offers for full-time jobs. They told Sean they wanted out of the contract. Sean said, "Ok, I'm short of cash anyway." 
D)  Goode contracted to sell his pony to Reston. Goode then changed his mind and told Reston he didn't want to sell the pony but would give him two lambs instead. Reston agreed to the substitutes. 
E)  After party A of the contract paid, party B said he couldn't perform. Party A agreed to waive B's obligation if B would return the money paid to him. B agreed.

Question 6

In rare circumstances, the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

Accepted Answer

A) True 
 B)False

Question 7

Distinguish between a down payment and a deposit.

Accepted Answer

A down payment is merely the first payme

Question 8

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Accepted Answer

Yes. Substantial performance, where an i

Question 9

Rahilly entered into a contract with Khan, whereby Rahilly agreed to paint a portrait of Khan's wife to be completed by her 30th birthday, six months from the time of this agreement. Three months before the portrait was to be completed, Rahilly told Khan that he would not be doing the portrait because he had accepted a job in Boston and was leaving immediately. Which of the following is False with regard to the rights of the parties in this situation?

Accepted Answer

A)  The contract has not been frustrated because there was no unforeseen event beyond the control of either party making it impossible or meaningless to perform the contract. 
B)  The contract has been repudiated, and Khan can elect to acknowledge the breach and sue Rahilly right away. 
C)  Khan must wait to see if Rahilly really fails to perform the contract before Khan can sue. 
D)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by frustration. 
E)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by performance. 
A)  The contract has not been frustrated because there was no unforeseen event beyond the control of either party making it impossible or meaningless to perform the contract. 
B)  The contract has been repudiated, and Khan can elect to acknowledge the breach and sue Rahilly right away. 
C)  Khan must wait to see if Rahilly really fails to perform the contract before Khan can sue. 
D)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by frustration. 
E)  If Khan presses Rahilly to perform according to the contract, it is possible that the contract could be ended by performance.

Question 10

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

Accepted Answer

A)  If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic has to take them. 
B)  If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said he wouldn't take a cheque. 
C)  If Jed shows up with cash for the mechanic on the day and at the place designated in the contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him. 
D)  If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again. 
E)  If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor seeks her out for payment. 
A)  If Jed has to pay $500 to his mechanic, he can pay the whole debt in dimes and the mechanic has to take them. 
B)  If Jed owes the mechanic $500, a cheque is as good as cash in law even if the mechanic said he wouldn't take a cheque. 
C)  If Jed shows up with cash for the mechanic on the day and at the place designated in the contract, and the mechanic refuses to take it for some reason, Jed doesn't ever have to pay him. 
D)  If Roscoe tries to deliver lumber to Jed in accordance with their contract and Jed doesn't take delivery of it, Roscoe can sue Jed for breach of contract without ever trying to deliver it again. 
E)  If Joan owes a $500 debt due on a specific date, she doesn't have to pay until the creditor seeks her out for payment.

Question 11

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

Accepted Answer

A)  If no deposit had been paid, there could be no contract. 
B)  The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach. 
C)  If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference. 
D)  The deposit must be a fair reflection of the loss actually suffered. 
E)  A down-payment is an amount of money to be forfeited if either party is in breach of contract. 
A)  If no deposit had been paid, there could be no contract. 
B)  The deposit must be an honest attempt by the parties to pre-estimate damages in the event of a breach. 
C)  If the court feels that the damages exceed the deposit, they will order the breaching party to pay any difference. 
D)  The deposit must be a fair reflection of the loss actually suffered. 
E)  A down-payment is an amount of money to be forfeited if either party is in breach of contract.

Question 12

Which of the following is true with regard to tender of performance?

Accepted Answer

A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract but the buyer refuses delivery, the seller will have to make another attempt to deliver before he can sue for breach of contract. 
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
C)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
D)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
E)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline. 
A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract but the buyer refuses delivery, the seller will have to make another attempt to deliver before he can sue for breach of contract. 
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to, but Valley's manager tells him to come back later, Pete has no further obligations and can sue for breach of contract. 
C)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract, she will have to accept that cheque even though there was no mention of payment by cheque in the contract. 
D)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces, that attempt constitutes a lawful tender of Ivan's obligation. 
E)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m. Saturday, they cannot be refused as long as the delivery was before the specified July 10 deadline.

Question 13

Explain how the remedy of damages is applied in contract law and any limitation on the availability of damages.

Accepted Answer

The idea here is that students should un

Question 14

A breach of warranty allows a victim to sue for damages, but they must go through with their obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 15

In which of the following situations would the contract not be discharged by agreement?

Accepted Answer

A)  Both parties agree to let a new person be substituted into the contract in place of one of the old parties. 
B)  Both parties to the contract agree to call it off before either one has performed. 
C)  A condition subsequent that calls for termination of the contract has not been met. 
D)  The two parties have reached "accord and satisfaction" with regard to terminating the contract. 
E)  Both parties agree to call off the contract under which one paid the other $5000 for work that has not yet been performed, but the other now promises to return the $5000. 
A)  Both parties agree to let a new person be substituted into the contract in place of one of the old parties. 
B)  Both parties to the contract agree to call it off before either one has performed. 
C)  A condition subsequent that calls for termination of the contract has not been met. 
D)  The two parties have reached "accord and satisfaction" with regard to terminating the contract. 
E)  Both parties agree to call off the contract under which one paid the other $5000 for work that has not yet been performed, but the other now promises to return the $5000.

Question 16

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Accepted Answer

A)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
E)  The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract. 
A)  The store had posted at the entrance to the dressing rooms a large sign reading "Not responsible for stolen articles," and the customer lost articles in a fire that swept through the dressing rooms. 
B)  The purchaser of goods, after the sale, is sent an invoice on which the exemption clause is printed in boldface type at the top of the first page. 
C)  The clause says there will be no liability for breach of a condition and the breach that occurs is minor in nature. 
D)  There has been a breach of the fundamental obligation of the contract, and the court holds that, on its true construction, the parties did not mean it to cover a serious breach. 
E)  The exemption clause that covers the situation was posted in plain view and was brought to the buyer's attention at the place and time of contract.

Question 17

On the February 1, Smyth contracted to buy Dupont's van. They had agreed that Smyth would pay the price of $7000 on March 1 and take delivery and the risk on that date. Smyth then contracted to sell the van to Smithers on March 5 for $7600. On February 22, Dupont called Smyth and said he wasn't going to sell because he had decided to keep the van. On these facts, which of the following is False?

Accepted Answer

A)  Dupont's call is an express repudiation of the contract and is an anticipatory breach. 
B)  Smyth could agree to call off the contract; neither of them had yet performed. 
C)  Smyth could refuse to acknowledge a breach, but that would result in the possibility that the contract could be breached later. 
D)  Smyth could acknowledge that Dupont was in breach but has to wait until after the performance date to sue him for breach of contract. 
E)  Smyth could refuse to acknowledge a breach and press Dupont to complete the contact. 
A)  Dupont's call is an express repudiation of the contract and is an anticipatory breach. 
B)  Smyth could agree to call off the contract; neither of them had yet performed. 
C)  Smyth could refuse to acknowledge a breach, but that would result in the possibility that the contract could be breached later. 
D)  Smyth could acknowledge that Dupont was in breach but has to wait until after the performance date to sue him for breach of contract. 
E)  Smyth could refuse to acknowledge a breach and press Dupont to complete the contact.

Question 18

Which of the following is False with regard to remedies for breach of contract?

Accepted Answer

A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract. 
C)  A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach. 
D)  Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of a non-essential term (e.g., a warranty). 
E)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract. 
A)  The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss. 
B)  An exemption clause that a seller claims absolves him from liability may be of no effect if the seller has committed a fundamental breach of the contract. 
C)  A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach. 
D)  Damages are awarded by the court to a person who has suffered loss because of a breach of an essential term of the contract, but are not awarded for a breach of a non-essential term (e.g., a warranty). 
E)  Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.

Question 19

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

Accepted Answer

A) True 
 B)False

Question 20

Indicate three conditions under which a contract may come to an end on the basis of frustration.

Accepted Answer

1. Where the contract is rendered imposs

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

What is a force majeure clause?

In which of the following is the contract not ended by agreement?

In rare circumstances, the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

Distinguish between a down payment and a deposit.

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

Which of the following is true with regard to tender of performance?

Explain how the remedy of damages is applied in contract law and any limitation on the availability of damages.

A breach of warranty allows a victim to sue for damages, but they must go through with their obligations under the contract.

In which of the following situations would the contract not be discharged by agreement?

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Which of the following is False with regard to remedies for breach of contract?

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

Indicate three conditions under which a contract may come to an end on the basis of frustration.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 9: The End of the Contractual Relationship

When a condition is breached, the victim can only sue for damages but must continue to perform their obligations under the contract.

What is a force majeure clause?

In which of the following is the contract not ended by agreement?

In rare circumstances, the courts may issue a mandatory injunction when a person does something to violate a contractual term and thereby creates an ongoing problem.

Distinguish between a down payment and a deposit.

Will anything short of the complete performance of the contractual terms amount to performance of the contract and discharge the agreement?

Tufts and McDougal were having an argument about the law regarding performance of a contract. Which one of the following statements of theirs is correct?

Craig ordered a new car and was required to pay a $500 deposit. Which of the following is correct with respect to that deposit if it is to be non-refundable?

Which of the following is true with regard to tender of performance?

Explain how the remedy of damages is applied in contract law and any limitation on the availability of damages.

A breach of warranty allows a victim to sue for damages, but they must go through with their obligations under the contract.

In which of the following situations would the contract not be discharged by agreement?

In which one of the following instances would the seller most likely succeed in an attempt to escape liability by the use of an exemption clause?

Which of the following is False with regard to remedies for breach of contract?

If a contractor has agreed to build a house with payment due upon completion of the job and refuses to continue after completing half, he will not be successful in claiming compensation for what he has done.

Indicate three conditions under which a contract may come to an end on the basis of frustration.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

Factors Affecting the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters