Question 1

The only way that a party can discharge a contract is by performance.

Accepted Answer

A) True 
 B)False

Question 2

If one party's performance is substantial,the other party's duty to perform remains absolute.

Accepted Answer

A) True 
 B)False

Question 3

Ed's Electric substantially performs its contract with Forest Hills Apartments,Inc.,to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

Accepted Answer

A) damages. 
B) nothing more. 
C) to be excused from performance. 
D) suspend performance. 
A) damages. 
B) nothing more. 
C) to be excused from performance. 
D) suspend performance.

Question 4

When each party's performance is conditioned on the other party's performance,concurrent conditions are present.

Accepted Answer

A) True 
 B)False

Question 5

In all contracts,absolute promises are expressly conditioned.

Accepted Answer

A) True 
 B)False

Question 6

Performance can be accomplished by tender.

Accepted Answer

A) True 
 B)False

Question 7

Any breach allows the nonbreaching party to cancel the contract.

Accepted Answer

A) True 
 B)False

Question 8

Anything less than complete performance is a material breach of contract.

Accepted Answer

A) True 
 B)False

Question 9

Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.

Accepted Answer

A) True 
 B)False

Question 10

After a contract is made,a supervening event may make performance impossible and discharge the contract.

Accepted Answer

A) True 
 B)False

Question 11

Drainage & Irrigation Equipment,Inc.,contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed,rescission of this contract requires

Accepted Answer

A) anagreement to rescind. 
B) an accord and satisfaction. 
C) a novation. 
D) a settlement agreement. 
A) anagreement to rescind. 
B) an accord and satisfaction. 
C) a novation. 
D) a settlement agreement.

Question 12

A contract for a work of art is a personal contract.

Accepted Answer

A) True 
 B)False

Question 13

Subjective impossibility of performance can discharge a contract.

Accepted Answer

A) True 
 B)False

Question 14

A novation occurs when there is a substitution,by agreement,of a new contract for an old one,with the rights under the old one being terminated.

Accepted Answer

A) True 
 B)False

Question 15

Gilly agrees to buy Howard's Bakery on the express condition that the bakery's suppliers extend the same credit terms to Gilly that the suppliers currently extend to Howard. This approval is

Accepted Answer

A) a concurrent condition. 
B) a condition precedent. 
C) a condition subsequent. 
D) an implied condition. 
A) a concurrent condition. 
B) a condition precedent. 
C) a condition subsequent. 
D) an implied condition.

Question 16

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

Accepted Answer

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

Question 17

Anticipatory repudiation discharges a contract.

Accepted Answer

A) True 
 B)False

Question 18

Range Free Farms enters into a contract to sell Sara's Market a truckload of eggs. Range Free fails to deliver. Sara's Market

Accepted Answer

A) must pay for the eggs to avoid a breach of contract. 
B) does not have to pay for the eggs because Range Free did not perform. 
C) must pay for the eggs,but can sue Range Free for breach of contract. 
D) does not have to pay for the eggs,but then cannot sue Range Free. 
A) must pay for the eggs to avoid a breach of contract. 
B) does not have to pay for the eggs because Range Free did not perform. 
C) must pay for the eggs,but can sue Range Free for breach of contract. 
D) does not have to pay for the eggs,but then cannot sue Range Free.

Question 19

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon'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 ex-amples 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.

Question 20

Tender is an unconditional offer to perform.

Accepted Answer

A) True 
 B)False

Exam 16: Performance and Discharge

The only way that a party can discharge a contract is by performance.

If one party's performance is substantial,the other party's duty to perform remains absolute.

Ed's Electric substantially performs its contract with Forest Hills Apartments,Inc.,to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

When each party's performance is conditioned on the other party's performance,concurrent conditions are present.

In all contracts,absolute promises are expressly conditioned.

Performance can be accomplished by tender.

Any breach allows the nonbreaching party to cancel the contract.

Anything less than complete performance is a material breach of contract.

Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.

After a contract is made,a supervening event may make performance impossible and discharge the contract.

Drainage & Irrigation Equipment,Inc.,contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed,rescission of this contract requires

A contract for a work of art is a personal contract.

Subjective impossibility of performance can discharge a contract.

A novation occurs when there is a substitution,by agreement,of a new contract for an old one,with the rights under the old one being terminated.

Gilly agrees to buy Howard's Bakery on the express condition that the bakery's suppliers extend the same credit terms to Gilly that the suppliers currently extend to Howard. This approval is

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

Anticipatory repudiation discharges a contract.

Range Free Farms enters into a contract to sell Sara's Market a truckload of eggs. Range Free fails to deliver. Sara's Market

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon'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 ex-amples of

Tender is an unconditional offer to perform.

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