Deck 18: Performance and Dischapterarge

Question 1

If one party's performance on a contract is substantial, the other party's duty to perform need only comport with the level of the rendered performance.

Answer 1

False

Question 2

There is no difference between complete and substantial performance.

Answer 2

False

Question 3

A contract promise that is absolute must be performed, or the party who made the promise will be in breach.

Answer 3

True

Question 4

A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.

Question 5

Any breach discharges the breaching party from the contract.

Question 6

In most contracts, promises of performance are conditioned.

Question 7

If a condition to a lease for university housing that the tenant must be a student is not satisfied, the landlord's obligations under the lease are discharged.

Question 8

Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.

Question 9

Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

Question 10

Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.

Question 11

A buyer who offers to pay for goods has tendered payment but cannot yet demand delivery.

Question 12

A seller who places goods at the disposal of a buyer has tendered delivery but cannot yet demand payment.

Question 13

A contract is substantially performed when one party receives most of the benefits promised in the deal.

Question 14

Whether performance under a contract is substantial is decided on a case-by-case basis, examining all of the facts of the particular situation.

Question 15

The most common way to terminate contractual duties is by repudiation.

Question 16

When a party's performance is perfect, it is complete.

Question 17

If a contract condition is not satisfied, the obligations of the parties are not discharged.

Question 18

There is only one way to discharge a contract-all parties must fulfill their contractual duties.

Question 19

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

Question 20

To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.

Question 21

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Question 22

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Question 23

For mutual rescission of a contract to take place, both parties must provide additional consideration.

Question 24

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

A)discharged.
B)breached.
C)altered.
D)performed.

Question 25

When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.

Question 26

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

A)absolute.
B)conditional.
C)substantial.
D)commercially impracticable.

Question 27

Most contracts need to be performed to the personal satisfaction of each contracting party.

Question 28

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Question 29

Build-It Construction LLC agrees to build a warehouse for Corporate Storage Inc. According to the terms of the deal, Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

A)conditioned on the occurrence of an event.
B)conditioned on the nonoccurrence of an event.
C)conditioned on Build-It's performance.
D)not conditioned.

Question 30

Only contracts that have been fully executed can be rescinded by agreement.

Question 31

Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

Question 32

Any breach of contract effectively excuses both parties from performing.

Question 33

Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.

Question 34

Any contract can be discharged by agreement of the parties.

Question 35

Under the policy that a contract can be terminated if major difficulties arise, a material breach discharges the non-breaching party from a contract.

Question 36

Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.

Question 37

Range Free Farms enters into a contract to deliver to Sara's Market a truckload of eggs for a certain payment. Range Free fails to deliver. Sara's Market

A)must pay in anticipation of the delivery to avoid a breach of contract.
B)does not have to pay because Range Free did not perform.
C)must pay under the contract, but can sue Range Free for breach.
D)does not have to pay, but then cannot sue Range Free.

Question 38

An accord and its satisfaction do not discharge an original contractual obligation.

Question 39

Any breach of contract allows the breaching party to negotiate to receive additional benefits in order to remedy the breach.

Question 40

The most common way to terminate contractual duties is by

A)agreement.
B)repudiation.
C)failure of a condition.
D)performance.

Question 41

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely

A)a material breach.
B)a minor breach.
C)a reasonable breach.
D)no breach.

Question 42

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are

A)avoided.
B)breached.
C)conditioned.
D)performed.

Question 43

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Question 44

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

A)a condition.
B)a novation.
C)a breach of contract.
D)an operation of law.

Question 45

Trucking LLC enters into a contract to deliver a certain quantity of potatoes to United Foods's refrigerated warehouse in exchange for a specified payment. Trucking delivers substantially all of the spuds to the location. United's duty to pay is

A)discharged.
B)breached.
C)absolute.
D)performed.

Question 46

Dairy Farm enters into a contract with EZ Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach occurred when Dairy

A)entered into the contract.
B)decided that it was not advantageous to fulfill the contract.
C)failed to perform as promised.
D)was sued by EZ.

Question 47

Ghee agrees to buy Hole's Donut Shop on the express condition that the shop's suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is

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

Question 48

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is

A)breached.
B)discharged.
C)rescinded.
D)suspended.

Question 49

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

A)execute a bill of sale.
B)exchange the horse for the money.
C)sign a receipt.
D)agree that the deal is fair.

Question 50

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

A)conditional.
B)complete.
C)material.
D)substantial.

Question 51

Sage enters into a contract to sell her condo to Tel for a certain price on a specific day. On that day, Sage unconditionally offers to perform. Sage's offer

A)conditions Tel's promise to pay for the property.
B)constitutes tender of performance.
C)excuses the parties' performance under the contract.
D)suspends the parties' contractual obligations.

Question 52

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

A)discharges the original contract.
B)has no effect on Juan's performance.
C)changes Isidro's duties under the contract.
D)suspends both parties duties to perform.

Question 53

Iggy and Jen sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jen's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

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

Question 54

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

A)conditional.
B)complete.
C)material.
D)substantial.

Question 55

Security Company enters into a contract with Tower Apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract is

A)conditioned.
B)terminated.
C)excused.
D)suspended.

Question 56

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This

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

Question 57

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

A)conditional.
B)complete.
C)material.
D)substantial.

Question 58

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Question 59

A novation requires

A)the existence of a previous, valid obligation.
B)consideration greater than $5,000.
C)performance of the original contract by all of the parties.
D)an accord and satisfaction.

Question 60

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

A)must pay Josh the contract price.
B)must pay Josh half of the contract price as a compromise.
C)must pay Josh only the cost of his materials.
D)does not have to pay Josh.

Question 61

Discharging a contract by executing a new agreement with performance different from what was originally promised is

A)a material breach.
B)an accord and satisfaction.
C)a novation.
D)substantial performance.

Question 62

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

A)the bank is liable for breach.
B)Damien is in breach.
C)the contract is discharged.
D)the contract is suspended.

Question 63

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's death

A)discharges the contract.
B)breaches the contract.
C)requires Lana's estate to pay damages.
D)suspends performance of the contract.

Question 64

Fig, who owns and operates Garden Farm, agrees to sell Harvest Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Fig's crops, the obligation to deliver produce to Harvest is

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

Question 65

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require

A)the existence of a previous, valid obligation.
B)agreement by all the parties to a new contract.
C)performance of the original contract by all of the parties.
D)a new, valid contract.

Question 66

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is

A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Question 67

New Builders Inc. enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Pete challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with New Builders is

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

Question 68

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that

A)performance of the contract is commercially impracticable.
B)payment of the loan would force the debtor into bankruptcy.
C)the law has rendered performance of the contract illegal.
D)the specific subject matter of the contract has been destroyed.

Question 69

Floors n' More Inc. hires Gordo to renovate Floors n' Mores showroom. Gordo submits plans that Floors n' More approves. Gordo completes the major reconstruction, paints the interior, and buys the fixtures and furnishings. Floors n' More rejects some of these items because they do not match the plans, and subsequently refuses to allow Gordo to finish the work or to collect payment. Could Gordo sue successfully for payment for the entire contract?

Question 70

Jamal and Keri enter into a contract for Jamal to renovate Keri's house by a certain date. Jamal never performs. After the applicable limitations period has passed, Keri decides to bring a suit against Jamal for breach. This suit

A)must be filed within ten to twenty years, depending on state law.
B)can no longer be brought.
C)can be filed within four years of notice to Jamal that Keri decided to sue.
D)must be filed between four and five years after Keri decides to sue.

Question 71

Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials Inc. in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best defense against performing the contract would be that

A)performance of the contract is commercially impracticable.
B)procuring the steel would force the seller into bankruptcy.
C)the law has rendered performance of the contract illegal.
D)the specific subject matter of the contract has been destroyed.

Question 72

Q Media Inc. contracts with Rural Broadband LLC to design and build an all-weather communications system for Q's operations. Rural builds the system, but it repeatedly, predictably fails in bad weather conditions. Is this a breach of the contract? If so, what remedies does Q have?