Question 1

Most contracts need to be performed to personally satisfy the party to whom performance is owed.

Accepted Answer

A) True 
 B)False

Question 2

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15. The delivery and installation of the sink and the payment of the price are examples of

Accepted Answer

A)  conditions precedent. 
B)  concurrent conditions. 
C)  conditions subsequent. 
D)  implied conditions. 
A)  conditions precedent. 
B)  concurrent conditions. 
C)  conditions subsequent. 
D)  implied conditions.

Question 3

Tender is an unconditional offer to perform.

Accepted Answer

A) True 
 B)False

Question 4

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

Accepted Answer

A) True 
 B)False

Question 5

Fact Pattern 17-A2
Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples.
-Refer to Fact Pattern 17-A2. Evelyn dies before the apples are delivered to Hill & Dale. Evelyn's contract with Hill & Dale is

Accepted Answer

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

Question 6

A party's obligations under a contract may be excused if, due to an unforeseen circumstance, the party's benefit will be reduced.

Accepted Answer

A) True 
 B)False

Question 7

An event must be certain to occur to constitute a contractual condition.

Accepted Answer

A) True 
 B)False

Question 8

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is

Accepted Answer

A)  a concurrent condition. 
B)  a condition precedent. 
C)  a condition subsequent. 
D)  an implied condition. 
A)  a concurrent condition. 
B)  a condition precedent. 
C)  a condition subsequent. 
D)  an implied condition.

Question 9

Commercial Construction, Inc. (CCI), contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation

Accepted Answer

A)  CCI is in breach of contract. 
B)  Rita's is in breach of contract. 
C)  the contract is discharged. 
D)  the contract is suspended. 
A)  CCI is in breach of contract. 
B)  Rita's is in breach of contract. 
C)  the contract is discharged. 
D)  the contract is suspended.

Question 10

When a condition operates to terminate a party's promise to perform, it is a condition subsequent.

Accepted Answer

A) True 
 B)False

Question 11

Express conditions are provided for by the parties' agreement.

Accepted Answer

A) True 
 B)False

Question 12

If no time for performance is stated in a contract, any time is acceptable.

Accepted Answer

A) True 
 B)False

Question 13

A discharge in bankruptcy will ordinarily bar enforcement of most of a debtor's contracts by creditors.

Accepted Answer

A) True 
 B)False

Question 14

Fact Pattern 17-A1
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.
-Refer to Fact Pattern 17-A1. With respect to Mutual's duties, Neil's performance most likely

Accepted Answer

A)  discharges Mutual from the contract. 
B)  has no effect on Mutual's performance. 
C)  increases Mutual's duties under the contract. 
D)  suspends Mutual's duty to perform. 
A)  discharges Mutual from the contract. 
B)  has no effect on Mutual's performance. 
C)  increases Mutual's duties under the contract. 
D)  suspends Mutual's duty to perform.

Question 15

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

Accepted Answer

A) True 
 B)False

Question 16

Fact Pattern 17-A2
Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples.
-Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is

Accepted Answer

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

Question 17

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 18

Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be

Accepted Answer

A)  repudiated. 
B)  breached. 
C)  performed. 
D)  rescinded. 
A)  repudiated. 
B)  breached. 
C)  performed. 
D)  rescinded.

Question 19

Any breach excuses the nonbreaching party's duty to perform.

Accepted Answer

A) True 
 B)False

Question 20

Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by

Accepted Answer

A)  a mutual agreement to rescind. 
B)  an accord and satisfaction. 
C)  a novation. 
D)  an alteration of the contract. 
A)  a mutual agreement to rescind. 
B)  an accord and satisfaction. 
C)  a novation. 
D)  an alteration of the contract.

Exam 17: Performance and Discharge

Most contracts need to be performed to personally satisfy the party to whom performance is owed.

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15. The delivery and installation of the sink and the payment of the price are examples of

Tender is an unconditional offer to perform.

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

Fact Pattern 17-A2 Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. -Refer to Fact Pattern 17-A2. Evelyn dies before the apples are delivered to Hill & Dale. Evelyn's contract with Hill & Dale is

A party's obligations under a contract may be excused if, due to an unforeseen circumstance, the party's benefit will be reduced.

An event must be certain to occur to constitute a contractual condition.

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is

Commercial Construction, Inc. (CCI), contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation

When a condition operates to terminate a party's promise to perform, it is a condition subsequent.

Express conditions are provided for by the parties' agreement.

If no time for performance is stated in a contract, any time is acceptable.

A discharge in bankruptcy will ordinarily bar enforcement of most of a debtor's contracts by creditors.

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

Fact Pattern 17-A2 Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. -Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is

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

Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this contract are discharged like those under most contracts, the duties will be

Any breach excuses the nonbreaching party's duty to perform.

Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by

Introduction to Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Court Procedures

Constitutional Authority to Regulate Business

Ethics and Business Decision Making

Intentional Torts and Privacy

Negligence and Strict Liability

Intellectual Property and Internet Law

Criminal Law and Cyber Crime

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration

Capacity and Legality

Mistakes, Fraud, and Voluntary Consent

The Statute of Frauds

Third Party Rights

Breach of Contract and Remedies

The Formation of Sales and Lease Contracts

Title, Risk, and Insurable Interest

Performance Breach of Sales Lease Contracts

Warranties and Product Liability

International Law in a Global Economy

The Function Creation of Negotiable Instruments

Transferability and Holder in Due Course

Liability, Defenses, and Discharge

Checks and Banking in the Digital Age

Creditors Rights and Remedies

Secured Transactions

Bankruptcy Law

Mortgages Foreclosures After the Recession

Agency Formation and Duties

Agency Liability and Termination

Employment, Immigration, and Labor Law

Employment Discrimination

Sole Proprietorships and Franchises

Partnerships and Limited Liability Partnerships

Limited Liability Companies Special Business Forms

Corporate Formation and Financing

Corporate Directors, Officers, Shareholders

Corporate Merger, Consolidation, Termination

Securities Law Corporate Governance

Law for Small Business

Administrative Law

Consumer Law

Environmental Law

Antitrust Law

Professional Liaility and Accountability

Personal Property and Bailments

Real Property Landlord-Tenant Relationships

Insurance

Wills and Trusts

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