Question 1

The process by which the original parties to a contract agree to allow an outside party to perform the contract is called _______.

Accepted Answer

novation

Question 2

In some states,another name for a "statute of limitations" is a "statute of _______."

Accepted Answer

repose

Question 3

What is an anticipatory repudiation,and what must be shown for it to be enforced?

Accepted Answer

An anticipatory repudiation occurs when parties have entered into a contract and it becomes apparent that one of the parties will breach the contract.By claiming an anticipatory repudiation,the non-breaching party may seek recovery from the other party prior to the actual breach.Anticipatory repudiation also allows the non-breaching party to mitigate damages if the situation is appropriate.To claim an anticipatory repudiation,either the breaching party must inform the non-breaching party that it will in fact be breaching,something must occur that makes it clearly obvious that one party will breach,or it becomes common knowledge that one of the parties will breach the contract.

Question 4

Substantial performance will be enforced only if the deviation from complete performance is not material to the contract.

Accepted Answer

A) True 
 B)False

Question 5

Damages agreed to by the parties when the contract is written and prior to any actual breach are called _______ damages.

Accepted Answer

The answer of Damages agreed to by the parties when...

Question 6

Nominal damages are rarely awarded in contract cases.

Accepted Answer

A) True 
 B)False

Question 7

Larry has booked a hotel room for a conference at a rate of $100 per day for five days.When he arrives to check in,Larry is told that the hotel was overbooked and it cannot supply him with a room.Larry is forced to go to the only hotel in town with available rooms and pay $150 per night.If Larry sues the original hotel for damages and wins

Accepted Answer

A)  he will be entitled to compensatory damages in the amount of $250. 
B)  he will be entitled to consequential damages in the amount of $250. 
C)  he will not be entitled to any damages because the additional costs were not foreseeable. 
D)  he will be entitled to liquidated damages in the amount of $250. 
A)  he will be entitled to compensatory damages in the amount of $250. 
B)  he will be entitled to consequential damages in the amount of $250. 
C)  he will not be entitled to any damages because the additional costs were not foreseeable. 
D)  he will be entitled to liquidated damages in the amount of $250.

Question 8

Sally has just purchased a home and wants to have an in-ground pool installed.She calls Cool Pools,the company that put in her neighbors' pools.When the company rep comes to her property,he does some soil tests that are standard for the industry and gets the same results as he got when the other pools were put in,so the company gives her a price quote of $16,000.When Cool Pools begins excavating,it discovers solid rock four feet below ground level.The neighbors had no such rock.Cool Pools stops work and informs Sally that it will have to use explosives to remove the rock and the cost of the pool will now be $32,000.

Accepted Answer

A)  Sally is under contract and will have to pay the new price. 
B)  Sally can have the contract discharged based on impracticability. 
C)  Sally can have the contract discharged based on impossibility. 
D)  Sally can have the contract discharged based on frustration of purpose. 
A)  Sally is under contract and will have to pay the new price. 
B)  Sally can have the contract discharged based on impracticability. 
C)  Sally can have the contract discharged based on impossibility. 
D)  Sally can have the contract discharged based on frustration of purpose.

Question 9

Mel is under contract with a textbook publisher to write an instructor's manual to accompany a new textbook.The contract states that the instructor's manual is to be completed by August 1.On July 1,the publisher calls Mel and asks for an update.Mel states that he's working hard and making progress.He then states that the August 1 deadline is "doable but it's going to be tough." Based on Mel's statement,the textbook publisher may claim an anticipatory repudiation and find another author to complete the project.

Accepted Answer

A) True 
 B)False

Question 10

Toby is a licensed plumber and has a contract to install a replacement toilet for Claudia.When Toby realizes that he has booked two appointments simultaneously,he calls Sam,another licensed plumber,and asks him to install Claudia's toilet.In legal terms,Toby has assigned his duties to Sam.

Accepted Answer

A) True 
 B)False

Question 11

Fred's Flooring (FF)contracted with Harry homeowner to install wood flooring throughout Harry's home.Harry was to purchase the flooring,and the contract was solely for installation.Payment was to be 20 percent at the time that the work commenced and 80 percent once the flooring was installed.Harry purchased the flooring materials and paid the 20 percent,so FF began work.When FF's work was halfway completed,Harry realized that he didn't have the money to pay FF on completion,so he bolted the doors and refused access.If FF wants to rescind the contract and be paid for work completed,FF would sue for

Accepted Answer

A)  compensatory damages. 
B)  consequential damages. 
C)  restitution. 
D)  liquidated damages. 
A)  compensatory damages. 
B)  consequential damages. 
C)  restitution. 
D)  liquidated damages.

Question 12

Impossibility of performance is subjective,meaning that one of the parties may unilaterally decide that performance is impossible,thus discharging the contract.

Accepted Answer

A) True 
 B)False

Question 13

Incidental beneficiaries are identified during the formation of the contract and known to the parties.

Accepted Answer

A) True 
 B)False

Question 14

Pete has been fired from his job and believes that he has been wrongfully terminated.As he decides how to fight the perceived injustice,how can he best mitigate his damages?

Accepted Answer

A)  File his suit as soon as possible while the evidence is available and witnesses' recollections are fresh. 
B)  File for unemployment insurance as quickly as possible so that he doesn't sink too far into debt. 
C)  Call his former employer to determine the real reason he was fired. 
D)  Actively seek new employment as soon as possible. 
A)  File his suit as soon as possible while the evidence is available and witnesses' recollections are fresh. 
B)  File for unemployment insurance as quickly as possible so that he doesn't sink too far into debt. 
C)  Call his former employer to determine the real reason he was fired. 
D)  Actively seek new employment as soon as possible.

Question 15

Your state's bar association is planning its annual banquet and fund-raiser and has decided to feature a speaker who will attract a huge crowd.The association contracts with Robert Shapiro,a member of O.J.Simpson's so-called Dream Team of defense attorneys,to be the keynote speaker.However,a week before the event,Robert calls and says that he would like to give his law clerk,Susan,the opportunity to speak.Robert still plans to attend,but he plans to sit in the audience rather than speak.What legal options,if any,does the bar association have,regarding its previous agreement?

Accepted Answer

If we assume that negotiation of the sit

Question 16

Generally,courts do enforce a strict compliance standard for contract conditions.

Accepted Answer

A) True 
 B)False

Question 17

A court order to refrain from performing a particular act is known as _______.

Accepted Answer

The answer of A court order to refrain from performing...

Question 18

When examining and enforcing conditions precedent and conditions subsequent,courts generally will

Accepted Answer

A)  Give stricter enforcement to conditions precedent and find conditions subsequent rarely enforceable. 
B)  Give stricter enforcement to conditions subsequent and find conditions precedent rarely enforceable. 
C)  Not recognize any substantive difference between the two categories of conditions. 
D)  Hold that, under modern law, both conditions subsequent and conditions precedent should only rarely be enforced. 
A)  Give stricter enforcement to conditions precedent and find conditions subsequent rarely enforceable. 
B)  Give stricter enforcement to conditions subsequent and find conditions precedent rarely enforceable. 
C)  Not recognize any substantive difference between the two categories of conditions. 
D)  Hold that, under modern law, both conditions subsequent and conditions precedent should only rarely be enforced.

Question 19

Max and Lew have entered into a contract for Lew to paint Max's house.The contract specifically states that the job was to be completed by August 25.Lew completes the job on August 26.Max has suffered no loss due to the delay.The job was otherwise done exactly to all contract requirements and specifications.If Max sues Lew for breach of contract due to the missed completion date and if the courts were to award damages,what type of damages would most likely be awarded?

Accepted Answer

A)  punitive damages 
B)  consequential damages 
C)  restitution 
D)  nominal damages 
A)  punitive damages 
B)  consequential damages 
C)  restitution 
D)  nominal damages

Question 20

Appointing another person to perform one's duties under a contract is called a(n) _______.

Accepted Answer

The answer of Appointing another person to perform one's duties...

The process by which the original parties to a contract agree to allow an outside party to perform the contract is called _______.

In some states,another name for a "statute of limitations" is a "statute of _______."

What is an anticipatory repudiation,and what must be shown for it to be enforced?

Substantial performance will be enforced only if the deviation from complete performance is not material to the contract.

Damages agreed to by the parties when the contract is written and prior to any actual breach are called _______ damages.

Nominal damages are rarely awarded in contract cases.

Toby is a licensed plumber and has a contract to install a replacement toilet for Claudia.When Toby realizes that he has booked two appointments simultaneously,he calls Sam,another licensed plumber,and asks him to install Claudia's toilet.In legal terms,Toby has assigned his duties to Sam.

Impossibility of performance is subjective,meaning that one of the parties may unilaterally decide that performance is impossible,thus discharging the contract.

Incidental beneficiaries are identified during the formation of the contract and known to the parties.

Pete has been fired from his job and believes that he has been wrongfully terminated.As he decides how to fight the perceived injustice,how can he best mitigate his damages?

Generally,courts do enforce a strict compliance standard for contract conditions.

A court order to refrain from performing a particular act is known as _______.

When examining and enforcing conditions precedent and conditions subsequent,courts generally will

Appointing another person to perform one's duties under a contract is called a(n) _______.

Legal Foundations

Business and the Constitution

The American Judicial System, Jurisdiction and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution

Business, Societal, and Ethical Contexts of Law

Overview and Language of Contracts

Contracts for the Sale of Goods

Torts and Products Liability

Agency

Employment Relationships and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Companies and Limited Liability Partnerships

Corporations

Regulation of Securities, Corporate Governance, and Financial Markets

Administrative Law

Environmental Law

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Warranties and Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

Intellectual Property

International Law and Global Commerce

Filters

Exam 7: Contract Enforceability and Performance

The process by which the original parties to a contract agree to allow an outside party to perform the contract is called _______.

In some states,another name for a "statute of limitations" is a "statute of _______."

What is an anticipatory repudiation,and what must be shown for it to be enforced?

Substantial performance will be enforced only if the deviation from complete performance is not material to the contract.

Damages agreed to by the parties when the contract is written and prior to any actual breach are called _______ damages.

Nominal damages are rarely awarded in contract cases.

Toby is a licensed plumber and has a contract to install a replacement toilet for Claudia.When Toby realizes that he has booked two appointments simultaneously,he calls Sam,another licensed plumber,and asks him to install Claudia's toilet.In legal terms,Toby has assigned his duties to Sam.

Impossibility of performance is subjective,meaning that one of the parties may unilaterally decide that performance is impossible,thus discharging the contract.

Incidental beneficiaries are identified during the formation of the contract and known to the parties.

Pete has been fired from his job and believes that he has been wrongfully terminated.As he decides how to fight the perceived injustice,how can he best mitigate his damages?

Generally,courts do enforce a strict compliance standard for contract conditions.

A court order to refrain from performing a particular act is known as _______.

When examining and enforcing conditions precedent and conditions subsequent,courts generally will

Appointing another person to perform one's duties under a contract is called a(n) _______.

Legal Foundations

Business and the Constitution

The American Judicial System, Jurisdiction and Venue

Resolving Disputes: Litigation and Alternative Dispute Resolution

Business, Societal, and Ethical Contexts of Law

Overview and Language of Contracts

Contracts for the Sale of Goods

Torts and Products Liability

Agency

Employment Relationships and Labor Law

Employment Discrimination

Choice of Business Entity, Sole Proprietorships, and Partnerships

Limited Liability Companies and Limited Liability Partnerships

Corporations

Regulation of Securities, Corporate Governance, and Financial Markets

Administrative Law

Environmental Law

Antitrust and Regulation of Competition

Creditors Rights and Bankruptcy

Warranties and Consumer Protection Law

Criminal Law and Procedure in Business

Personal Property, Real Property, and Land Use Law

Intellectual Property

International Law and Global Commerce

Filters