Question 1

A buyer's duty to pay becomes absolute once a contract is formed.

Accepted Answer

A) True 
 B)False  False

Question 2

Punitive damages are almost never available in contract disputes.

Accepted Answer

A) True 
 B)False  True

Question 3

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors,which Parker delivers on June 1.Candace's offer,on the same date,to pay Parker is

Accepted Answer

A) tandem. 
B) tonnage. 
C) tender. 
D) tinder. 
A) tandem. 
B) tonnage. 
C) tender. 
D) tinder. C

Question 4

A contract between E-Debits,Inc. ,and First Credit Corporation includes a provision excluding liability as a result of fraud.This provision is

Accepted Answer

A) enforceable because the parties are protected from liability. 
B) enforceable because the parties consented to it. 
C) enforceable if the parties have equal bargaining power. 
D) not enforceable. 
A) enforceable because the parties are protected from liability. 
B) enforceable because the parties consented to it. 
C) enforceable if the parties have equal bargaining power. 
D) not enforceable.

Question 5

If a party breaches a contract,the other party can choose one or more of several remedies.

Accepted Answer

A) True 
 B)False

Question 6

Anticipatory repudiation is a material breach of a contract.

Accepted Answer

A) True 
 B)False

Question 7

Nominal damages normally establish that the defendant acted wrongly.

Accepted Answer

A) True 
 B)False

Question 8

Reformation allows a court to rewrite a contract to reflect the parties' true intentions.

Accepted Answer

A) True 
 B)False

Question 9

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.When Handy cancels the contract,Ilsa spends $100 to obtain a similar job that pays $450 per week for a year.Ilsa is entitled to recover

Accepted Answer

A) the amount of the wages that Handy promised only. 
B) the difference between the wages at the two jobs only. 
C) the difference between the wages at the two jobs plus $100. 
D) $100 only. 
A) the amount of the wages that Handy promised only. 
B) the difference between the wages at the two jobs only. 
C) the difference between the wages at the two jobs plus $100. 
D) $100 only.

Question 10

General Equity Corporation enters into a contract with Honi,who agrees to create artwork for General's main office building.Honi delays and eventually refuses to perform.Meanwhile,General contracts to sell the building to Ideal Investments,Inc. ,but before the transaction is complete,Jewel Funds Company offers to pay a higher price.General refuses to transfer the building to Ideal.In separate suits by General against Honi and by Ideal against General,each plaintiff seeks specific performance.How might the court rule in each case,and why?

Accepted Answer

Generally,the equitable remedy of specif

Question 11

Rescission advances the contracting parties to the position they would have been in if the contract had been fully executed.

Accepted Answer

A) True 
 B)False

Question 12

Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio

Accepted Answer

A) agree to sign a bill of sale. 
B) exchange the player for the $30. 
C) sign a receipt. 
D) shake hands and go their separate ways. 
A) agree to sign a bill of sale. 
B) exchange the player for the $30. 
C) sign a receipt. 
D) shake hands and go their separate ways.

Question 13

A contract is discharged when its specific subject matter is destroyed.

Accepted Answer

A) True 
 B)False

Question 14

A contractual obligation may not be discharged through novation.

Accepted Answer

A) True 
 B)False

Question 15

GroundSwell Pools,Inc. ,agrees to build a swimming pool for Francis,but fails to complete the job.Francis hires EquiAqua,Inc. ,to finish the project.Francis may recover from GroundSwell

Accepted Answer

A) the contract price less costs of materials and labor. 
B) the contract price. 
C) the costs needed to complete construction. 
D) profits plus the costs incurred up to the time of the breach. 
A) the contract price less costs of materials and labor. 
B) the contract price. 
C) the costs needed to complete construction. 
D) profits plus the costs incurred up to the time of the breach.

Question 16

Performance of an accord discharges an original contractual obligation.

Accepted Answer

A) True 
 B)False

Question 17

On April 1,KO Contractors,Inc. ,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation

Accepted Answer

A) KO is in breach of contract. 
B) Lo-Cost is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended. 
A) KO is in breach of contract. 
B) Lo-Cost is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended.

Question 18

The most common way to discharge a contract is by breach.

Accepted Answer

A) True 
 B)False

Question 19

Fact Pattern 
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
-Refer to Fact Pattern 10-B2.Bell's repudiation is most likely

Accepted Answer

A) a material breach. 
B) a minor breach. 
C) Chris's breach. 
D) no breach. 
A) a material breach. 
B) a minor breach. 
C) Chris's breach. 
D) no breach.

Question 20

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

Accepted Answer

A) True 
 B)False

Exam 10: Contract Performance,breach,and Remedies

A buyer's duty to pay becomes absolute once a contract is formed.

Punitive damages are almost never available in contract disputes.

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors,which Parker delivers on June 1.Candace's offer,on the same date,to pay Parker is

A contract between E-Debits,Inc. ,and First Credit Corporation includes a provision excluding liability as a result of fraud.This provision is

If a party breaches a contract,the other party can choose one or more of several remedies.

Anticipatory repudiation is a material breach of a contract.

Nominal damages normally establish that the defendant acted wrongly.

Reformation allows a court to rewrite a contract to reflect the parties' true intentions.

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week.When Handy cancels the contract,Ilsa spends $100 to obtain a similar job that pays $450 per week for a year.Ilsa is entitled to recover

Rescission advances the contracting parties to the position they would have been in if the contract had been fully executed.

Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio

A contract is discharged when its specific subject matter is destroyed.

A contractual obligation may not be discharged through novation.

GroundSwell Pools,Inc. ,agrees to build a swimming pool for Francis,but fails to complete the job.Francis hires EquiAqua,Inc. ,to finish the project.Francis may recover from GroundSwell

Performance of an accord discharges an original contractual obligation.

On April 1,KO Contractors,Inc. ,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation

The most common way to discharge a contract is by breach.

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

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