Question 1

The relinquishment of rights by a party in a contract is called a(n)________.

Accepted Answer

A) waiver 
B) rescission 
C) impossibility 
D) reliance interest 
A) waiver 
B) rescission 
C) impossibility 
D) reliance interest A

Question 2

Chris contracts to buy David's house on condition that Small Town Bank approves Chris's application for a mortgage loan by July 1.If Chris is not approved for the loan,then:

Accepted Answer

A) he still has a duty to buy the house. 
B) he is discharged from further obligation under the contract. 
C) his inability to get the loan constitutes a breach of contract. 
D) he must renegotiate with David. 
A) he still has a duty to buy the house. 
B) he is discharged from further obligation under the contract. 
C) his inability to get the loan constitutes a breach of contract. 
D) he must renegotiate with David. B

Question 3

Sherry and Gretchen orally agree that Sherry will begin paying Gretchen $500 per month,but if ABC Corp.dissolves,Sherry will no longer have to pay Gretchen.ABC Corp.dissolves and Sherry promptly stops making any future payments to Gretchen.Which of the following statements is true?

Accepted Answer

A) If Gretchen sues Sherry,Sherry will bear the burden of proving the occurrence of the condition. 
B) This is an example of a condition precedent. 
C) Gretchen cannot sue Sherry because the agreement was not in writing. 
D) Gretchen's only course of redress is to bring an action against ABC Corp. 
A) If Gretchen sues Sherry,Sherry will bear the burden of proving the occurrence of the condition. 
B) This is an example of a condition precedent. 
C) Gretchen cannot sue Sherry because the agreement was not in writing. 
D) Gretchen's only course of redress is to bring an action against ABC Corp. A

Question 4

Landlord has leased the property to the tenant.Tenant has to pay $5 as a late charge for the late payment of rent.Tenant pays his rent late for five months in a row,but landlord accepts it without objection.Can landlord afterward recover the late charges?

Accepted Answer

No,because landlord has waived

Question 5

Which of the following would not discharge a contract?

Accepted Answer

A) A party consents to an alteration of the contract 
B) A party voluntarily waives any right he has under the contract 
C) The time for bringing a lawsuit has exceeded the time prescribed in the statute of limitations 
D) A party's debts are discharged by a decree of bankruptcy 
A) A party consents to an alteration of the contract 
B) A party voluntarily waives any right he has under the contract 
C) The time for bringing a lawsuit has exceeded the time prescribed in the statute of limitations 
D) A party's debts are discharged by a decree of bankruptcy

Question 6

Someone who attempts to recover for breach of contract:

Accepted Answer

A) can recover only for those losses that he can prove with reasonable certainty. 
B) can recover for all consequences of the breach,whether foreseeable or not. 
C) can only do so for consequential damages. 
D) has no duty to mitigate (or minimize)damages. 
A) can recover only for those losses that he can prove with reasonable certainty. 
B) can recover for all consequences of the breach,whether foreseeable or not. 
C) can only do so for consequential damages. 
D) has no duty to mitigate (or minimize)damages.

Question 7

When an anticipatory repudiation occurs,what must the nonbreaching party show to recover damages right away for total breach of the contract?

Accepted Answer

A) He was ready,willing,and able to perform his part of the contract. 
B) The anticipatory repudiation was made in bad faith. 
C) The breaching party failed to notify him within a reasonable amount of time. 
D) The breaching party could have performed but arbitrarily decided not to regardless. 
A) He was ready,willing,and able to perform his part of the contract. 
B) The anticipatory repudiation was made in bad faith. 
C) The breaching party failed to notify him within a reasonable amount of time. 
D) The breaching party could have performed but arbitrarily decided not to regardless.

Question 8

Which of the following instances is a sufficient reason to cause commercial impracticability?

Accepted Answer

A) Increased cost 
B) War 
C) Collapse of market 
D) Shortage of good 
A) Increased cost 
B) War 
C) Collapse of market 
D) Shortage of good

Question 9

In general,an employee who has been fired and who wants to sue for breach of contract need not do anything to limit or mitigate his damages,such as looking for another job.This would unfairly benefit an employer who has wrongfully breached a contract.

Accepted Answer

A) True 
 B)False

Question 10

When is a person's duty to perform discharged on grounds of impossibility?

Accepted Answer

A) When a substitute is available 
B) When there is a delay in the delivery of goods 
C) In the presence of supervening illegality 
D) A promisee's dissatisfaction with the performance 
A) When a substitute is available 
B) When there is a delay in the delivery of goods 
C) In the presence of supervening illegality 
D) A promisee's dissatisfaction with the performance

Question 11

In the eyes of law, all breaches of contract are of equal seriousness.

Accepted Answer

A) True 
 B)False

Question 12

Which of the following circumstances is a valid reason for the delay of a lawsuit once the statutory period is over?

Accepted Answer

A) Illegality of the contract 
B) Change of mind of the nonbreaching party 
C) Minority of the nonbreaching party 
D) Addition of a third party 
A) Illegality of the contract 
B) Change of mind of the nonbreaching party 
C) Minority of the nonbreaching party 
D) Addition of a third party

Question 13

Which of the following is a condition subsequent?

Accepted Answer

A) "I promise to do X if I succeed in getting a loan." 
B) "I promise to do X on the condition that the Cubs win the World Series." 
C) "I promise to do X unless Al Gore is elected President in 2000." 
D) "I promise to do X assuming that inflation stays below 3% in 1997." 
A) "I promise to do X if I succeed in getting a loan." 
B) "I promise to do X on the condition that the Cubs win the World Series." 
C) "I promise to do X unless Al Gore is elected President in 2000." 
D) "I promise to do X assuming that inflation stays below 3% in 1997."

Question 14

Gayle agrees to pay Pat $1,000 for painting her house "on condition that" Pat finish the job no later than October 1,2016.Which of the following statements is false?

Accepted Answer

A) A standard of strict or complete performance would be applied to Pat's performance. 
B) If Pat does not finish the job by October 1,2016,he is not discharged from performing. 
C) If Pat does not finish the job by October 1,2016,he will have breached the contract. 
D) Gayle does not have a duty to pay the contract price. 
A) A standard of strict or complete performance would be applied to Pat's performance. 
B) If Pat does not finish the job by October 1,2016,he is not discharged from performing. 
C) If Pat does not finish the job by October 1,2016,he will have breached the contract. 
D) Gayle does not have a duty to pay the contract price.

Question 15

Specific performance is almost never awarded in contracts for the sale of land.

Accepted Answer

A) True 
 B)False

Question 16

Which form of damages involves a court ordering a party to a contract to perform his/her obligations under the contract?

Accepted Answer

A) Quasi-contract 
B) Specific performance 
C) Rescission 
D) Promissory estoppel 
A) Quasi-contract 
B) Specific performance 
C) Rescission 
D) Promissory estoppel

Question 17

In Killian v.Ricchetti,the case in the text,the agreement between the parties is an example of a:

Accepted Answer

A) concurrent condition. 
B) constructive condition. 
C) condition subsequent. 
D) condition precedent. 
A) concurrent condition. 
B) constructive condition. 
C) condition subsequent. 
D) condition precedent.

Question 18

Mike contracts with Bob to purchase Bob's boat.Mike promises to pay Bob $5,000 upon delivery of the boat to Mike's beach house.Bob arrives at Mike's beach house without the boat,and demands full payment before the boat is to be delivered.Is Mike obligated to pay Bob the money? Why or why not?

Accepted Answer

No.Mike's obligation to perfor

Question 19

Roe promises to build a house for Crown for which,Crown agrees to pay him $10,000 when the house is complete.This example is related to the concept of:

Accepted Answer

A) express condition. 
B) constructive condition. 
C) subsequent condition. 
D) implied condition. 
A) express condition. 
B) constructive condition. 
C) subsequent condition. 
D) implied condition.

Question 20

Adrienne contracted to convey real estate to Rich.However Adrienne died before the conveyance is completed.What is the status of the parties?

Accepted Answer

A) Adrienne is excused for nonperformance. 
B) Rich will be directed by the court to end the contract. 
C) Adrienne's performance was impossible. 
D) Rich can enforce the contract against Adrienne's estate. 
A) Adrienne is excused for nonperformance. 
B) Rich will be directed by the court to end the contract. 
C) Adrienne's performance was impossible. 
D) Rich can enforce the contract against Adrienne's estate.

Exam 18: Performance and Remedies

The relinquishment of rights by a party in a contract is called a(n)________.

Chris contracts to buy David's house on condition that Small Town Bank approves Chris's application for a mortgage loan by July 1.If Chris is not approved for the loan,then:

Sherry and Gretchen orally agree that Sherry will begin paying Gretchen $500 per month,but if ABC Corp.dissolves,Sherry will no longer have to pay Gretchen.ABC Corp.dissolves and Sherry promptly stops making any future payments to Gretchen.Which of the following statements is true?

Landlord has leased the property to the tenant.Tenant has to pay $5 as a late charge for the late payment of rent.Tenant pays his rent late for five months in a row,but landlord accepts it without objection.Can landlord afterward recover the late charges?

Which of the following would not discharge a contract?

Someone who attempts to recover for breach of contract:

When an anticipatory repudiation occurs,what must the nonbreaching party show to recover damages right away for total breach of the contract?

Which of the following instances is a sufficient reason to cause commercial impracticability?

In general,an employee who has been fired and who wants to sue for breach of contract need not do anything to limit or mitigate his damages,such as looking for another job.This would unfairly benefit an employer who has wrongfully breached a contract.

When is a person's duty to perform discharged on grounds of impossibility?

In the eyes of law, all breaches of contract are of equal seriousness.

Which of the following circumstances is a valid reason for the delay of a lawsuit once the statutory period is over?

Which of the following is a condition subsequent?

Gayle agrees to pay Pat $1,000 for painting her house "on condition that" Pat finish the job no later than October 1,2016.Which of the following statements is false?

Specific performance is almost never awarded in contracts for the sale of land.

Which form of damages involves a court ordering a party to a contract to perform his/her obligations under the contract?

In Killian v.Ricchetti,the case in the text,the agreement between the parties is an example of a:

Mike contracts with Bob to purchase Bob's boat.Mike promises to pay Bob $5,000 upon delivery of the boat to Mike's beach house.Bob arrives at Mike's beach house without the boat,and demands full payment before the boat is to be delivered.Is Mike obligated to pay Bob the money? Why or why not?

Roe promises to build a house for Crown for which,Crown agrees to pay him $10,000 when the house is complete.This example is related to the concept of:

Adrienne contracted to convey real estate to Rich.However Adrienne died before the conveyance is completed.What is the status of the parties?

The Nature of Law

The Resolution of Private Disputes

Business and the Constitution

Business Ethics, Corporate Social Responsibility, Corporate Governance, and Critical Thinking

Criminal Law and Procedure

Intentional Torts

Negligence and Strict Liability

Intellectual Property and Unfair Competition

Introduction to Contracts

The Agreement: Offer

The Agreement: Acceptance

Consideration

Reality of Consent

Capacity to Contract

Illegality

Writing

Rights of Third Parties

Formation and Terms of Sales Contracts

Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance Law

Introduction to Credit and Secured Transactions

Security Interests in Personal Property

Bankruptcy

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Transfers

The Agency Relationship

Third-Party Relations of the Principal and the Agent

Introduction to Forms of Business and Formation of Partnerships

Operation of Partnerships and Related Forms

Partners Dissociation and Partnerships Dissolution and Winding up

Limited Liability Companies, limited Partnerships, and Limited Liability Limited Partnerships

History and Nature of Corporations

Organization and Financial Structure of Corporations

Management of Corporations

Shareholders Rights and Liabilities

Securities Regulation

Legal and Professional Responsibilities of Auditors, Consultants, and Securities Professionals

Administrative Law

The Federal Trade Commission Act and Consumer Protection Laws

Antitrust: the Sherman Act

The Clayton Act, the Robinsonpatman Act, and Antitrust Exemptions and Immunities

Employment Law

Environmental Regulation

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