Question 1

In most contracts,promises of performance are not expressly conditioned.

Accepted Answer

A) True 
 B)False

Question 2

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

Accepted Answer

A) True 
 B)False

Question 3

Any breach discharges the nonbreaching party from the contract.

Accepted Answer

A) True 
 B)False

Question 4

On April 1,Ken's Construction,Inc.,enters into a contract to build a store for Lo-Price Retail,Inc.,at a specific location in Metro City. On April 10,Metro changes its zoning law to prohibit the construction of a commercial building at that location. Lo-Price files a suit against Ken's Construction. In this situation

Accepted Answer

A) Ken's Construction is in breach of contract. 
B) Lo-Price Retail is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended. 
A) Ken's Construction is in breach of contract. 
B) Lo-Price Retail is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended.

Question 5

Flora,who owns and operates Garden Fresh Organic Farms,agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 16-2. If Flora dies before the deliveries begin,her contract with Harvesters is

Accepted Answer

A) breached. 
B) discharged. 
C) not affected. 
D) suspended. 
A) breached. 
B) discharged. 
C) not affected. 
D) suspended.

Question 6

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

Accepted Answer

A) is discharged from any contractual liability. 
B) must find a competent assistant to fulfill the contract. 
C) must pay damages. 
D) must refund any money paid to Lana on the contract. 
A) is discharged from any contractual liability. 
B) must find a competent assistant to fulfill the contract. 
C) must pay damages. 
D) must refund any money paid to Lana on the contract.

Question 7

Raymundo contracts to provide Simone with twenty hours of levitation lessons. The state legislature subsequently passes a law making the teaching of levitation illegal. This law will

Accepted Answer

A) discharge the contract. 
B) fulfill the contract. 
C) not affect the contract. 
D) require immediate performance of the contract. 
A) discharge the contract. 
B) fulfill the contract. 
C) not affect the contract. 
D) require immediate performance of the contract.

Question 8

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Accepted Answer

A) True 
 B)False

Question 9

Only personal contracts can be discharged by agreement of the parties.

Accepted Answer

A) True 
 B)False

Question 10

Built-Rite Contractors,Inc. contracts to build a warehouse for Commercial Storage Company. Built-Rite completely performs. Commercial Storage 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 11

When an anticipatory repudiation occurs,it is treated as a material breach of a contract.

Accepted Answer

A) True 
 B)False

Question 12

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

Accepted Answer

A) absolute. 
B) conditional. 
C) substantial. 
D) commercially impracticable. 
A) absolute. 
B) conditional. 
C) substantial. 
D) commercially impracticable.

Question 13

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

Accepted Answer

A) agree to sign a bill of sale. 
B) exchange the car for the $3,000. 
C) sign a receipt. 
D) shake hands and go their separate ways. 
A) agree to sign a bill of sale. 
B) exchange the car for the $3,000. 
C) sign a receipt. 
D) shake hands and go their separate ways.

Question 14

When a party's performance is perfect,it is said to be complete.

Accepted Answer

A) True 
 B)False

Question 15

A contract is substantially performed when performance creates substan-tially the same benefits as those promised in the contract.

Accepted Answer

A) True 
 B)False

Question 16

Floors n' More,Inc.,hires Gordon to renovate Floors n' Mores showroom. Gordon sub-mits plans that Floors n' More approves. Gordon completes the major recon-struction,paints the interior,and buys the fixtures and furnishings. Floors n' More rejects some of these items because they do not match the plans,and subsequently refuses to allow Gordon to finish the work or to col-lect payment. Could Gordon sue successfully for payment for the entire contract?

Accepted Answer

No,Gordon could not sue successfully for

Question 17

Planners & Builders,Inc.,enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of local land use laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

Accepted Answer

A) breached. 
B) discharged. 
C) not affected. 
D) suspended. 
A) breached. 
B) discharged. 
C) not affected. 
D) suspended.

Question 18

Nin acontracts with Office Suites Corporation to buy a suite in its Prospect Point Tower at a premium for its view of Quay Harbor. Unforeseeably,the town of Quay Harbor changes its zoning law,and Resort Hotels,Inc.,constructs Seaview Resort,blocking what would have been Nina's view. Nina's best argument for a change in the Office Suites contract or its price is

Accepted Answer

A) frustration of purpose. 
B) objective impossibility of performance. 
C) anticipatory repudiation. 
D) commercial impracticability. 
A) frustration of purpose. 
B) objective impossibility of performance. 
C) anticipatory repudiation. 
D) commercial impracticability.

Question 19

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Accepted Answer

A) True 
 B)False

Question 20

Ben and Andrew are parties to a contract. They agree on a novation. The novation does NOT require

Accepted Answer

A) the existence of a previous,valid obligation. 
B) agreement by all the parties to a new contract. 
C) performance of the original contract by all of the parties. 
D) a new,valid contract. 
A) the existence of a previous,valid obligation. 
B) agreement by all the parties to a new contract. 
C) performance of the original contract by all of the parties. 
D) a new,valid contract.

Exam 16: Performance and Discharge

In most contracts,promises of performance are not expressly conditioned.

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

Any breach discharges the nonbreaching party from the contract.

Flora,who owns and operates Garden Fresh Organic Farms,agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 16-2. If Flora dies before the deliveries begin,her contract with Harvesters is

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

Raymundo contracts to provide Simone with twenty hours of levitation lessons. The state legislature subsequently passes a law making the teaching of levitation illegal. This law will

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Only personal contracts can be discharged by agreement of the parties.

Built-Rite Contractors,Inc. contracts to build a warehouse for Commercial Storage Company. Built-Rite completely performs. Commercial Storage is entitled to

When an anticipatory repudiation occurs,it is treated as a material breach of a contract.

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

When a party's performance is perfect,it is said to be complete.

A contract is substantially performed when performance creates substan-tially the same benefits as those promised in the contract.

Planners & Builders,Inc.,enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of local land use laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Ben and Andrew are parties to a contract. They agree on a novation. The novation does NOT require

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