Question 1

A court:

Accepted Answer

A) will enforce any express conditions intended by the parties. 
B) may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public. 
C) requires strict performance if a clause of the contract expressly demands it. 
D) applies an objective standard whenever ruling on a personal satisfaction contract. 
A) will enforce any express conditions intended by the parties. 
B) may refuse to enforce an express condition intended by the parties if the court determines it is unfair and harmful to the general public. 
C) requires strict performance if a clause of the contract expressly demands it. 
D) applies an objective standard whenever ruling on a personal satisfaction contract.

Question 2

Concurrent conditions arise when each partie's performance is the condition for the other partie's performance.

Accepted Answer

A) True 
 B)False

Question 3

On March 14,Greg orders $2500 of wine from Cork It,Inc.to be delivered on April 28 for a party scheduled on May 1.On April 15,Cork It notifies Greg that it will not be able to perform the contract as agreed.How will the law characterize Cork It's actions? Does Greg have to wait until April 28 before buying wine from another supplier?

Accepted Answer

Cork It's actions amount to an anticipat

Question 4

A contract between a company in the U.S.and one in China,contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike,act of God,fire,accident,or transportation difficulties,then the affected party shall be relieved of its obligations under the contract." This type of clause is:

Accepted Answer

A) an objective impossibility clause. 
B) a force majeure clause. 
C) a concurrent condition clause. 
D) a condition precedent clause. 
A) an objective impossibility clause. 
B) a force majeure clause. 
C) a concurrent condition clause. 
D) a condition precedent clause.

Question 5

A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee.The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

Accepted Answer

A) True 
 B)False

Question 6

A court may never discharge a party who has not performed.

Accepted Answer

A) True 
 B)False

Question 7

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities.The festivities were unexpectedly canceled because of concern over a terrorist attack.Harry is:

Accepted Answer

A) obligated to pay the $100. 
B) not obligated to pay under the commercial impracticability doctrine. 
C) not obligated to pay under the force majeure doctrine. 
D) not obligated to pay under the frustration of purpose doctrine. 
A) obligated to pay the $100. 
B) not obligated to pay under the commercial impracticability doctrine. 
C) not obligated to pay under the force majeure doctrine. 
D) not obligated to pay under the frustration of purpose doctrine.

Question 8

Buddy was hired to play drums for a rock group scheduled to tour the Midwest.Part way through the tour,Buddy was tragically killed in a plane crash.The tour had to be discontinued until a new drummer could be found.The band lost money on the tour.Is Buddy's estate or agent responsible for the loss to the band?

Accepted Answer

true impossibility of performa

Question 9

Mario,a chef,has been working for over a year to remodel an old building he purchased to start his own restaurant.The grand opening is scheduled on April 1st.A lot of guests and critics have been invited to the event.He ordered a top of the art stove from Bella Cucina,Inc.The contract states that the stove has to be delivered on or before march 20,and that "time is of the essence" because of the opening-night deadline.Bella Cucina has some logistics difficulties and doesn't deliver the stove until March 27.Mario refuses to accept it,and Bella Cucina sues.Who wins?

Accepted Answer

A) Mario wins; the contract date was strictly enforceable. 
B) Bella Cucina wins; the contract was substantially performed before the opening night. 
C) Mario wins because of the frustration of purpose doctrine. 
D) Bella Cucina wins if it can prove that delivering the stove before March 27 was unreasonable. 
A) Mario wins; the contract date was strictly enforceable. 
B) Bella Cucina wins; the contract was substantially performed before the opening night. 
C) Mario wins because of the frustration of purpose doctrine. 
D) Bella Cucina wins if it can prove that delivering the stove before March 27 was unreasonable.

Question 10

Alice signs a contract with Bob to buy Bob's house for $150,000 "if I am able to obtain a mortgage loan for $125,000,at no more than 7% interest,payable over 15 years." Assume that Alice tries but is unable to obtain the described loan,and therefore refuses to proceed with the purchase.Alice is in breach of the contract.

Accepted Answer

A) True 
 B)False

Question 11

A time of the essence clause simply means that the parties included in their contract a date for performance.

Accepted Answer

A) True 
 B)False

Question 12

Abdulla hired Granite Construction to build an addition onto his home.Granite Construction dug the foundation but then abandoned the project.Granite Construction is entitled to receive the full contract price minus the value of the defects.

Accepted Answer

A) True 
 B)False

Question 13

Jackie hires Charles to lay new carpet in her bedroom.Charles does such a bad job,that the only way to fix the carpet is to start over and relay the carpet.Which of the following best describes this situation?

Accepted Answer

A) This is substantial performance.Jackie must still pay something to Charles. 
B) This is a material breach.Jackie must still pay something to Charles. 
C) This is substantial performance.Jackie owes nothing to Charles. 
D) This is a material breach.Jackie owes nothing to Charles. 
A) This is substantial performance.Jackie must still pay something to Charles. 
B) This is a material breach.Jackie must still pay something to Charles. 
C) This is substantial performance.Jackie owes nothing to Charles. 
D) This is a material breach.Jackie owes nothing to Charles.

Question 14

Dana hires Paris to paint a portrait of her poodle,"Mack." The painting is to be done to Dana's personal satisfaction.Upon completion of the painting,which of the following will be true?

Accepted Answer

A) Dana may refuse to accept the painting if she really does not like it. 
B) Dana may refuse to accept the painting only if a reasonable person would not like it. 
C) Dana may refuse to accept the painting if she cannot afford to pay for it. 
D) Dana may not refuse to accept the painting. 
A) Dana may refuse to accept the painting if she really does not like it. 
B) Dana may refuse to accept the painting only if a reasonable person would not like it. 
C) Dana may refuse to accept the painting if she cannot afford to pay for it. 
D) Dana may not refuse to accept the painting.

Question 15

The UCC recognizes commercial impracticability as a ground for discharge of a contract.

Accepted Answer

A) True 
 B)False

Question 16

The distinction between a condition precedent and a condition subsequent:

Accepted Answer

A) is important because it determines whether the condition has to occur before or after the contract is made. 
B) determines who has the burden of proof. 
C) is important as it determines whether the conditions are concurrent. 
D) is important because it determines whether the condition must be express or whether it can be implied. 
A) is important because it determines whether the condition has to occur before or after the contract is made. 
B) determines who has the burden of proof. 
C) is important as it determines whether the conditions are concurrent. 
D) is important because it determines whether the condition must be express or whether it can be implied.

Question 17

Martha owns a gutter cleaning business.Under a service contract with John Miller,she substantially performed her obligations.She is entitled to receive:

Accepted Answer

A) the full contract price. 
B) nothing until she fully performs. 
C) the full contract price minus the value of the defects. 
D) nothing as she has breached the contract. 
A) the full contract price. 
B) nothing until she fully performs. 
C) the full contract price minus the value of the defects. 
D) nothing as she has breached the contract.

Question 18

Most contracts are discharged by mutual agreement.

Accepted Answer

A) True 
 B)False

Question 19

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by:

Accepted Answer

A) full performance. 
B) agreement. 
C) rescission. 
D) accord and satisfaction. 
A) full performance. 
B) agreement. 
C) rescission. 
D) accord and satisfaction.

Question 20

A condition:

Accepted Answer

A) is created only when the phrase "provided that" or a similar phrase introduces it. 
B) is an event that must occur before a party becomes obligated under a contract. 
C) must be expressly stated, although it can be created by informal language. 
D) will not be enforced by the courts unless formal language is used, regardless of the intent of the parties to create a condition. 
A) is created only when the phrase "provided that" or a similar phrase introduces it. 
B) is an event that must occur before a party becomes obligated under a contract. 
C) must be expressly stated, although it can be created by informal language. 
D) will not be enforced by the courts unless formal language is used, regardless of the intent of the parties to create a condition.

Exam 16: Performance and Discharge

A court:

Concurrent conditions arise when each partie's performance is the condition for the other partie's performance.

A court may never discharge a party who has not performed.

Harry agreed to pay $100 to rent a rooftop spot in downtown Seattle to watch the New Year's Eve festivities.The festivities were unexpectedly canceled because of concern over a terrorist attack.Harry is:

A time of the essence clause simply means that the parties included in their contract a date for performance.

Abdulla hired Granite Construction to build an addition onto his home.Granite Construction dug the foundation but then abandoned the project.Granite Construction is entitled to receive the full contract price minus the value of the defects.

Jackie hires Charles to lay new carpet in her bedroom.Charles does such a bad job,that the only way to fix the carpet is to start over and relay the carpet.Which of the following best describes this situation?

Dana hires Paris to paint a portrait of her poodle,"Mack." The painting is to be done to Dana's personal satisfaction.Upon completion of the painting,which of the following will be true?

The UCC recognizes commercial impracticability as a ground for discharge of a contract.

The distinction between a condition precedent and a condition subsequent:

Martha owns a gutter cleaning business.Under a service contract with John Miller,she substantially performed her obligations.She is entitled to receive:

Most contracts are discharged by mutual agreement.

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by:

A condition:

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