Question 1

Commercial frustration:

Accepted Answer

A)  is very similar to impracticability. 
B)  occurs when the event is foreseeable. 
C)  excuses performance when events occur before the formation of the contract. 
D)  occurs when the promisor expressly assumes the risk that the event has occurred. 
A)  is very similar to impracticability. 
B)  occurs when the event is foreseeable. 
C)  excuses performance when events occur before the formation of the contract. 
D)  occurs when the promisor expressly assumes the risk that the event has occurred.

Question 2

Conditions in contracts:

Accepted Answer

A)  should not be created orally. 
B)  can be created only by using special words. 
C)  can be impliedly created. 
D)  should always occur concurrently. 
A)  should not be created orally. 
B)  can be created only by using special words. 
C)  can be impliedly created. 
D)  should always occur concurrently.

Question 3

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 cannot treat the contract as breached. 
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 cannot treat the contract as breached.

Question 4

If the legal remedies for breach of contract are not adequate to fully remedy a party's injuries, a court has the discretionary right to grant an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 5

What is substantial performance?

Accepted Answer

Some kinds of contractual duties are ver

Question 6

Martha entered into a contract with Terry, an art dealer. According to the contract, Terry was to supply 18 th century artifacts to Martha for the play she was directing, and Martha was ready to pay $50,000 for this. Another director needed the same artifacts and was ready to pay $60,000. Terry decided not to sell the artifacts to Martha. In this case, the court may order Terry to:

Accepted Answer

A)  specifically perform the contract. 
B)  repudiate the contract. 
C)  pay nominal damages. 
D)  substantially perform the contract. 
A)  specifically perform the contract. 
B)  repudiate the contract. 
C)  pay nominal damages. 
D)  substantially perform the contract.

Question 7

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

Accepted Answer

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

Question 8

If a statute or government regulation enacted after a contract's creation makes performance of a party's contractual duties illegal, the promisor is excused from performing.

Accepted Answer

A) True 
 B)False

Question 9

Injunctions are:

Accepted Answer

A)  mandatory if the court orders a party to refrain from doing certain acts. 
B)  not a form of equitable remedy, which is granted depending on the equities of a case. 
C)  used to compel personal service. 
D)  available when a breach of contract threatens to produce an irreparable injury. 
A)  mandatory if the court orders a party to refrain from doing certain acts. 
B)  not a form of equitable remedy, which is granted depending on the equities of a case. 
C)  used to compel personal service. 
D)  available when a breach of contract threatens to produce an irreparable injury.

Question 10

The duty to mitigate damages:

Accepted Answer

A)  is not applicable unless the defendant had reason to foresee them at the time the contract was created. 
B)  requires the plaintiff to recover damages only in case of physical injuries. 
C)  allows the non-breaching party to waive his or her right to insist on complete performance. 
D)  requires the plaintiff to do so without undue risk, expense, or humiliation. 
A)  is not applicable unless the defendant had reason to foresee them at the time the contract was created. 
B)  requires the plaintiff to recover damages only in case of physical injuries. 
C)  allows the non-breaching party to waive his or her right to insist on complete performance. 
D)  requires the plaintiff to do so without undue risk, expense, or humiliation.

Exam 18: Performance and Remedies

Commercial frustration:

Conditions in contracts:

Which of the following is true of anticipatory repudiation?

If the legal remedies for breach of contract are not adequate to fully remedy a party's injuries, a court has the discretionary right to grant an equitable remedy.

What is substantial performance?

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

If a statute or government regulation enacted after a contract's creation makes performance of a party's contractual duties illegal, the promisor is excused from performing.

Injunctions are:

The duty to mitigate damages:

Law, Legal Reasoning, and the Legal Profession

Dispute Settlement

Business Ethics and Corporate Social Responsibility

Business and the Constitution

Crimes

Intentional Torts

Negligence and Strict Liability

Licensing and Intellectual Property

The Nature and Origins of Contracts

Creating a Contract: Offers

Creating a Contract: Acceptances

Consideration

Capacity to Contract

Voluntary Consent

Illegality

The Form and Meaning of Contracts

Third Parties Contract Rights

Formation and Terms of Sales Contracts

Warranties and Product Liability

Performance of Sales Contracts

Remedies for Breach of Sales Contracts

The Agency Relationship-Creation, Duties, and Termination

Liability of Principals and Agents to Third Parties

Employment Laws

Which Form of Business Organization

Partnerships

Formation and Termination of Corporations

Management of the Corporate Business

Financing the Corporation and the Role of the Shareholders

Securities Regulation

Legal Liability of Accountants

Personal Property and Bailments

Real Property

Landlord and Tenant

Estates and Trusts

Insurance

Negotiable Instruments

Negotiation and Holder in Due Course

Liability of Parties

Checks and Electronic Fund Transfers

Introduction to Security

Security Interests in Personal Property

Bankruptcy

The Antitrust Laws

Consumer Protection Laws

Environmental Regulation

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