Question 1

The destruction of items that the promisor intended to use in performing would not excuse nonperformance if it just made performance more difficult for the promisor.

Accepted Answer

A) True 
 B)False  True

Question 2

A liquidated damages provision will be enforced only when:

Accepted Answer

A) the subject matter of the contract has a value which cannot be put in monetary terms. 
B) the amount specified is reasonable and actual damages would be difficult to determine. 
C) the nature of the contract is such that damages would not be difficult to determine. 
D) the amount agreed on is not the injured party's only remedy. 
A) the subject matter of the contract has a value which cannot be put in monetary terms. 
B) the amount specified is reasonable and actual damages would be difficult to determine. 
C) the nature of the contract is such that damages would not be difficult to determine. 
D) the amount agreed on is not the injured party's only remedy. B

Question 3

Promisors in complete performance contracts who do not completely perform can always recover the contract price.

Accepted Answer

A) True 
 B)False  False

Question 4

Explain the meaning of discharge in legal terms.Mention the different situations in which a party's duty to perform could be discharged.

Accepted Answer

Parties who have been released from thei

Question 5

Which of the following may require specific performance?

Accepted Answer

A) Sale of a real estate (a house or tract of land). 
B) Sale of a very expensive personal property (a car or big-screen TV). 
C) Personal service. 
D) Anything that may cause irreparable injury. 
A) Sale of a real estate (a house or tract of land). 
B) Sale of a very expensive personal property (a car or big-screen TV). 
C) Personal service. 
D) Anything that may cause irreparable injury.

Question 6

If time is not of the essence of a contract,the promisee must accept late performance rendered within a reasonable time of when performance was due.

Accepted Answer

A) True 
 B)False

Question 7

"Frustration of venture":

Accepted Answer

A) is the same as "commercial frustration." 
B) is the same the same as "commercial impracticability." 
C) occurs when the return performance becomes worthless for the promisee. 
D) occurs when the promisor expressly assumes the risk that the event occurred. 
A) is the same as "commercial frustration." 
B) is the same the same as "commercial impracticability." 
C) occurs when the return performance becomes worthless for the promisee. 
D) occurs when the promisor expressly assumes the risk that the event occurred.

Question 8

Normally,both parties to a contract are discharged when they have completely performed their contractual duties.

Accepted Answer

A) True 
 B)False

Question 9

Emma had contracted with Queen Arts to perform a ballet.A day before the program there was a fire and the dance floor was burnt and Emma could not perform.Since Emma cannot perform her contractual duties,she is liable for material breach.

Accepted Answer

A) True 
 B)False

Question 10

Rob's construction firm did not give Casey a certificate issued by Timothy Engineering Firm indicating that the work has been done to satisfaction.Casey has no duty to pay Rob's firm.

Accepted Answer

A) True 
 B)False

Question 11

Fully explain the concept of substantial performance.

Accepted Answer

Substantial performance is performance t

Question 12

Punitive damages:

Accepted Answer

A) are usually unavailable.They are sometimes awarded for bad faith breach. 
B) are so called because they are small in amount,not more than $10.00. 
C) usually punish and are frequently available as a performance remedy. 
D) are so called because they are small in amount and are usually specified in the contract. 
A) are usually unavailable.They are sometimes awarded for bad faith breach. 
B) are so called because they are small in amount,not more than $10.00. 
C) usually punish and are frequently available as a performance remedy. 
D) are so called because they are small in amount and are usually specified in the contract.

Question 13

A promisor who is guilty of material breach has no right of action under the contract.

Accepted Answer

A) True 
 B)False

Question 14

Tony contracted to buy wheat from farmer Brown.It was contracted that Tony would pay farmer Brown,three days after the delivery of the wheat.Brown's delivery would be a _____ of Tony's duty to pay.

Accepted Answer

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

Question 15

Which of the following is true of "anticipatory repudiation"?

Accepted Answer

A) It occurs if promisors,prior to the time for performance,indicate an intent not to perform their duties under the contract. 
B) Its indication can arise only from implicit actions and the other party can sue after two weeks for breach of contract. 
C) It occurs when the promisee's performance fails to reach the degree of perfection the other party is justified in expecting under the circumstances. 
D) Its indication can arise only in the form of an express statement by the promisor and the other party can sue for the breach immediately. 
A) It occurs if promisors,prior to the time for performance,indicate an intent not to perform their duties under the contract. 
B) Its indication can arise only from implicit actions and the other party can sue after two weeks for breach of contract. 
C) It occurs when the promisee's performance fails to reach the degree of perfection the other party is justified in expecting under the circumstances. 
D) Its indication can arise only in the form of an express statement by the promisor and the other party can sue for the breach immediately.

Question 16

Kids Corner ordered for a supply of stuffed toys looking like Santa Claus from Toyland Inc.The toys were to be supplied by 1st of December but were sent to Kids Corner on 25th of December.There has been a _____ of contract.

Accepted Answer

A) compensatory breach 
B) anticipatory breach 
C) material breach 
D) non-occurrence of concurrent condition 
A) compensatory breach 
B) anticipatory breach 
C) material breach 
D) non-occurrence of concurrent condition

Question 17

Contracts can be created by mutual agreement,but cannot be discharged by mutual agreement.

Accepted Answer

A) True 
 B)False

Question 18

Tim and Sam entered into a bilateral contract that does not state a time for performance.In this case the law infers that each party's performance is a:

Accepted Answer

A) condition subsequent. 
B) constructive concurrent condition of the other party's duty to perform. 
C) constructive condition precedent of the other party's duty to perform. 
D) condition concurrent. 
A) condition subsequent. 
B) constructive concurrent condition of the other party's duty to perform. 
C) constructive condition precedent of the other party's duty to perform. 
D) condition concurrent.

Question 19

The word "Mitigate" denotes:

Accepted Answer

A) a legal scandal in the early 1970's which established remedies for breaches made in bad faith. 
B) a legal term which means to reduce,avoid,or minimize. 
C) a legal term which means to sue or take to trial. 
D) a legal term which means to recover damages for injuries that could have been avoided. 
A) a legal scandal in the early 1970's which established remedies for breaches made in bad faith. 
B) a legal term which means to reduce,avoid,or minimize. 
C) a legal term which means to sue or take to trial. 
D) a legal term which means to recover damages for injuries that could have been avoided.

Question 20

A mandatory injunction:

Accepted Answer

A) occurs when a court orders a party to refrain from doing a certain act. 
B) occurs when a court orders a party to do a certain act. 
C) is ordered to induce irreparable injury. 
D) is used to compel personal service. 
A) occurs when a court orders a party to refrain from doing a certain act. 
B) occurs when a court orders a party to do a certain act. 
C) is ordered to induce irreparable injury. 
D) is used to compel personal service.

Exam 18: Performance and Remedies

The destruction of items that the promisor intended to use in performing would not excuse nonperformance if it just made performance more difficult for the promisor.

A liquidated damages provision will be enforced only when:

Promisors in complete performance contracts who do not completely perform can always recover the contract price.

Explain the meaning of discharge in legal terms.Mention the different situations in which a party's duty to perform could be discharged.

Which of the following may require specific performance?

If time is not of the essence of a contract,the promisee must accept late performance rendered within a reasonable time of when performance was due.

"Frustration of venture":

Normally,both parties to a contract are discharged when they have completely performed their contractual duties.

Emma had contracted with Queen Arts to perform a ballet.A day before the program there was a fire and the dance floor was burnt and Emma could not perform.Since Emma cannot perform her contractual duties,she is liable for material breach.

Rob's construction firm did not give Casey a certificate issued by Timothy Engineering Firm indicating that the work has been done to satisfaction.Casey has no duty to pay Rob's firm.

Fully explain the concept of substantial performance.

Punitive damages:

A promisor who is guilty of material breach has no right of action under the contract.

Tony contracted to buy wheat from farmer Brown.It was contracted that Tony would pay farmer Brown,three days after the delivery of the wheat.Brown's delivery would be a _____ of Tony's duty to pay.

Which of the following is true of "anticipatory repudiation"?

Kids Corner ordered for a supply of stuffed toys looking like Santa Claus from Toyland Inc.The toys were to be supplied by 1st of December but were sent to Kids Corner on 25th of December.There has been a _____ of contract.

Contracts can be created by mutual agreement,but cannot be discharged by mutual agreement.

Tim and Sam entered into a bilateral contract that does not state a time for performance.In this case the law infers that each party's performance is a:

The word "Mitigate" denotes:

A mandatory injunction:

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Kids Corner ordered for a supply of stuffed toys looking like Santa Claus from Toyland Inc.The toys were to be supplied by 1^st of December but were sent to Kids Corner on 25^th of December.There has been a _____ of contract.