Deck 9: Contractual Performance and Breach

Question 1

It is illegal for the parties to printed form contracts to type or handwrite additional terms.

Answer 1

False
Explanation: Many businesses today use printed form contracts. Sometimes the parties to one of these printed contracts type or handwrite additional terms.

Question 2

If printed form contracts have additional typed terms that contradict the printed terms,courts interpret printed terms to control typed terms.

Answer 2

False
Explanation: Many businesses today use printed form contracts. If a printed form contract has additional typed terms which contradict the printed terms, courts interpret handwritten terms to control typed terms and typed terms to control printed ones.

Question 3

A party to a contract is discharged when that party is relieved from all further responsibility of performance.

Answer 3

True
Explanation: A party to a contract is discharged when that party is relieved from all further responsibility of performance. When the parties perform, the obligations of the contract are discharged.

Question 4

Paying for the items purchased at a store and the store delivering the purchased items simultaneously is an example of implied concurrent conditions of performance.

Question 5

Mere increased difficulty or reduced profitability will constitute impossibility of performance.

Question 6

Complete performance recognizes that a contracting party has fulfilled every duty required by a contract.

Question 7

An employment contract is an example of a contract that is divisible.

Question 8

The Uniform Commercial Code states that if the goods are damaged in transit,the liability rests on the seller,not the buyer.

Question 9

If something must take place in the future,before a party to a contract has a duty to perform,it is a condition subsequent.

Question 10

If the contracting parties fail to write clear instructions on delivery of the equipment,the Uniform Commercial Code controls.

Question 11

For a party's nonperformance of contract to be excused because of impossibility of performance,the impossibility must be objective.

Question 12

The parol evidence rule applies to oral modifications made after the contracting parties have made the written contract.

Question 13

The meaning of a contract is a question of law,which means that a judge makes the final determination.

Question 14

A party that has materially breached a contract can sue the other party for performance.

Question 15

When the parties to a contract fail to provide the required order of performance,the law states the buyer's payment is a condition that must be satisfied after the seller has performed his or her duty to deliver.

Question 16

Faiza hired Bril Builders Inc.to construct her house.They signed a contract that stated Bril Builders would complete the work in 10 months,and Faiza would pay them in full.If Bril Builders completes the work but misses the date,Faiza has the right to deny the company any payment.

Question 17

In the context of levels of performance,substantial performance is lesser than significant performance.

Question 18

A contracting party has no duty to perform prior to a condition precedent being satisfied.

Question 19

Failure to satisfy a condition precedent excuses the performance of a contracting party even if the condition is a minor part of the transaction.

Question 20

Oral evidence that changes the meaning of written terms can be given if necessary to prevent fraud.

Question 21

Michael signs a contract with Bill to deliver handmade chairs to him.While making the chairs,Michael injures his hand which causes him to default on the delivery.Bill can now sue Michael for breach of contract due to nonperformance.

Question 22

Restitution requires a party to compensate for something that a contracting party is not willing to return.

Question 23

The commercial impracticability standard is more difficult to meet than the impossibility of performance standard.

Question 24

Jeff signs a contract agreeing to purchase a dishwasher.The printed terms in the contract state that there is no return policy,but the contract has additional typed terms that allow him to return the product within 15 days from the date of purchase.The contract also has handwritten terms that allow him to return the product within 30 days of purchase.Jeff would like to return the dishwasher 20 days after purchase.Which of the following statements is most likely to be true in this scenario?

A) Jeff cannot return the product after 15 days of purchase.
B) Jeff cannot return the dishwasher at all.
C) Jeff can return the dishwasher after 45 days of purchase.
D) Jeff can return the dishwasher after 20 days of purchase.
E) Jeff can return the product only after getting an obiter dictum from a court.

Question 25

Rescission,a remedy awarded by courts to a nonbreaching party of a contract,cannot be coupled with any other form of remedy.

Question 26

Morgan signs a contract with Shane agreeing to work with him for a movie.Halfway through the production of the movie,Shane decides to quit as he gets another job as a marketing executive.The printed terms in the contract state that when a breach of contract occurs,the breaching party has to pay $20,000 to the nonbreaching party.The contract also has additional handwritten terms that state that in the event of a party being unable to complete the performance required due to unforeseen,unnatural causes,the breaching party does not have to pay any money to the nonbreaching party.Which of the following statements is true in this situation?

A) Shane has to pay Morgan $20,000 as consequential damages.
B) Shane has to pay $20,000 to Morgan for breach of contract.
C) Shane does not have to pay any amount to Morgan because his breach was excused by the contractual terms.
D) Morgan cannot sue Shane for the breach as the liquidated damage is meant to penalize the nonbreaching party.
E) Shane can sue Morgan for compensatory damages.

Question 27

Releases only occur when a contracting party fails to perform.

Question 28

Meiko ordered a ferret from an online pet store,Pet101.Before Pet101 can deliver the ferret,the government bans the ownership of ferrets as pets.Now,Pet101's contractual obligation is excused due to impossibility of performance.

Question 29

Which of the following statements is true in cases where only one party drafts a contract that contains terms that appear vague and ambiguous to the other party?

A) The court will give the terms the meaning as per trade usage.
B) The court will reject the non-drafting party's attempt to reinterpret the terms after the contract has been signed.
C) The court will declare the drafting party's behavior as a tort due to intentional ambiguity of terms.
D) The court will interpret the terms as they mean in the common language.
E) The court will interpret the ambiguous and vague terms against the party that drafts them.

Question 30

Shelly is a week late in paying her rent.She requests her landlord,Craig,not charge her the late payment fees,and Craig agrees.This is an example of a waiver.

Question 31

When a contract involves unique subject matter,courts are most likely to award specific performance because there is no market equivalent.

Question 32

Liquidated damages can simplify disputes when a breach occurs.

Question 33

Rescission is an equitable remedy granted to a plaintiff as a nominal amount when the plaintiff does not incur any financial damage as a result of breach of contract.

Question 34

Which of the following states that parties to a complete and final written contract cannot introduce oral proof in court that changes the intended meaning of the written terms?

A) the statute of frauds
B) the exclusionary rule
C) the parol evidence rule
D) the statute of limitations
E) the assignor rule

Question 35

Under the Uniform Commercial Code,a party to a sale-of-goods contract receives discharge from performance because of commercial impracticability.

Question 36

Liquidated damages constitute a penalty for breach of contract.

Question 37

Liquidated damages must be a reasonable attempt to assess actual damages in the face of uncertainty when a contract is formed.

Question 38

If there is evidence that a word used in a contract has a particular trade usage,courts will

A) give it that meaning.
B) ask the contracting parties to remove that word from the contract.
C) ask the contracting parties to add it as a comment to the contract.
D) ask the contracting parties to add it to the nolo contendere section of the contract.
E) replace the word with its legal equivalent.

Question 39

Contracting parties have the ability to allocate known risks in a contract.

Question 40

When a printed form contract has additional handwritten terms,courts will

A) interpret handwritten terms to control printed ones.
B) replace the handwritten terms with typed terms.
C) disregard both printed terms and handwritten ones.
D) remove the handwritten terms.
E) remove the printed terms.

Question 41

Matthew wants to buy Brian's car for $3,000.He pays Brian the cash while Brian hands over the car.In this situation,there is a(n)

A) explicit condition on performance.
B) condition precedent of performance.
C) condition subsequent of performance.
D) concurrent condition of performance.
E) express condition on performance.

Question 42

According to the Uniform Commercial Code,which of the following statements is true of a destination contract?

A) A seller satisfies its obligation to ship goods once they are transferred to the shipper for transportation.
B) The risk of loss for damage to the goods remains with a seller until the goods safely arrive at a buyer's destination.
C) If the purchased goods are damaged in transit, then a buyer is held responsible only if the buyer has paid the full amount for the purchased goods.
D) The risk of loss for damage to the goods is transferred to a buyer when a seller packages the goods for shipment.
E) A buyer assumes the risk of loss for damage to the goods from the point of sale till the goods reach the destination.

Question 43

Kate contracts Ofc Depot Inc.to install air conditioning units for each office in her company.Kate wanted the work to be done in two days,but Ofc Depot took three days to complete the work.Which of the following statements is most likely to be true in this scenario?

A) Kate can sue Ofc Depot for material breach of contract.
B) Kate can refuse payment to Ofc Depot.
C) Ofc Depot is entitled to full recovery under the contract.
D) Ofc Depot is entitled to a partial recovery under the contract.
E) Both Kate and Ofc Depot must consult a neutral third party to resolve their contractual dispute.

Question 44

According to the Uniform Commercial Code,if a contract involving a buyer and a seller makes no statement about delivery,the presumption is

A) the seller will have to personally deliver the goods to the buyer.
B) the seller will have to ship the goods, assuming the risks of damages that take place in transit.
C) the buyer and the seller will have to enter into another contract stating the details of the delivery of the goods.
D) the buyer will have to make arrangements to pick up the goods at the location the seller designates.
E) the contract will be considered void by law, since it contains indefinite, unclear terms.

Question 45

______ is a level of performance below what is reasonably acceptable.

A) Substantial performance
B) Material breach
C) Complete substantial breach
D) Partial breach
E) Reasonable breach

Question 46

Most of our everyday purchases involve ______ of performance.

A) implied concurrent conditions
B) subsequent conditions
C) express conditions
D) implied conditions precedent
E) explicit conditions

Question 47

______ is a legal term referring to the transfer of possession from the seller to the buyer.

A) Performance
B) Condition
C) Delivery
D) Waiver
E) Release

Question 48

Saddler Inc.makes high quality leather seats for racing bicycles and sells them to many of the top bicycle manufacturers.There are eight available sources of the type of leather that Saddler uses,and all of them are located in the Republic of Anaerobia.Saddler has always dealt with only one company in the Republic of Anaerobia primarily due to its reasonable cost.Zappit Inc.has a contract with Saddler for 10,000 seats.Zappit has just received a letter from Saddler explaining that due to political turmoil in Anaerobia its supplier cannot export the product.Therefore,Saddler cannot complete the contract.Which of the following is most likely to be true in this scenario?

A) Saddler can be excused for nonperformance based on impossibility of performance.
B) Saddler can be excused for nonperformance based on substantial performance.
C) Zappit can sue for material breach, and Saddler cannot be excused for nonperformance.
D) Zappit can sue for specific performance if the seats are typical of all bicycle seats and not special or unique in any way.
E) Zappit can rightfully file a lawsuit, and Saddler will be liable to pay Zappit damages for nonperformance.

Question 49

If a contract contains a condition precedent it means that

A) something must take place in the future before a contracting party has a duty to perform.
B) courts will award the nonbreaching party with consequential damages for failure to perform by the breaching party.
C) performance must be completely achieved according to contract specifications or the contract is breached.
D) impossibility of performance will not be an acceptable excuse for nonperformance.
E) both the contracting parties have a simultaneous duty to perform.

Question 50

______ is a middle ground between full performance and a breach due to nonperformance.

A) Inadequate performance
B) Substantial performance
C) Release of performance
D) Waiver of performance
E) Divisibility of performance

Question 51

An exception to the parol evidence rule allows

A) evidence of oral agreement that merely explains the meaning of written terms without changing the terms.
B) evidence of oral agreements made on contracts that qualify for mandatory arbitration.
C) evidence of oral agreements made on contracts that qualify for court-annexed mediation.
D) evidence of oral agreements made at the time of or prior to a written contract that changes the meaning of written terms.
E) evidence of oral agreements that are designed to favor the party that drafts a contract.

Question 52

A condition subsequent in a contract

A) implies that performance must be completely done according to contract specifications or the contract is breached.
B) excuses performance upon the happening of some specified future event.
C) does not allow impossibility of performance as an acceptable excuse for nonperformance.
D) does not allow performance to be excused due to an unexpected event in the future.
E) involves implied concurrent conditions of performance.

Question 53

In the context of performance,the benefit of divisibility of a contract is

A) that it does not excuse a party's nonperformance because of impossibility of performance, which may reduce the amount of disputes.
B) to view the duty to perform as a series of smaller contracts, which may reduce the amount of disputes.
C) to view the duty to perform as optional.
D) that it mitigates the harmful effects of rescission.
E) that it completely eliminates the need for arbitration and other alternative dispute resolution techniques.

Question 54

Jessica hires ChromaLite Builders Corp.to construct a house.The contract specifies that grade A+ carpeting is to be installed on the entire second floor.ChromaLite Builders accidentally installs grade A carpeting instead.Few people,except for carpeting experts,can tell the difference.Jessica,however,refuses to pay for the construction citing that ChromaLite Builders has breached the contract.Which of the following statements is true in this scenario?

A) The courts are likely to consider ChromaLite Builders's performance as complete performance, and Jessica will have to pay the full amount to ChromaLite Builders.
B) Jessica can claim a breach of contract and refuse to pay ChromaLite Builders for the construction of the house.
C) The courts are likely to consider ChromaLite Builders's performance as a substantial performance, and Jessica would be entitled to monetary damages.
D) Jessica has materially breached the contract by refusing to pay ChromaLite Builders; hence, she cannot sue ChromaLite Builders for the use of low-grade carpeting.
E) The courts are likely to declare that ChromaLite Builders has materially breached the contract and will ask Jessica to pay exactly half the cost originally mentioned in the contract.

Question 55

According to the Uniform Commercial Code,a ______ requires a seller to get the goods to be shipped and delivered to a specific place of business designated by the buyer.

A) destination contract
B) tender of performance
C) seller's contract
D) shipment contract
E) tender of delivery

Question 56

An offer to perform an activity under a contract is called a ______.

A) conditional performance
B) qualified performance
C) substantial performance
D) tender of performance
E) caucus of performance

Question 57

ToughBuilders Corp.,a construction company,finishes the construction of a house two days after the contract called for its completion.The delay was caused solely due to low productivity.In this scenario,the level of performance of Tough Builders Corp.is recognized as ______.

A) significant performance
B) implied performance
C) breach due to nonperformance
D) substantial performance
E) material breach

Question 58

Which of the following is the key difference between conditions subsequent and conditions precedent?

A) timing of the duty to perform
B) number of parties involved in a contract
C) duration of performance
D) quality of performance
E) divisibility of contract

Question 59

Which of the following statements is true of a situation in which a party to a contract substantially performs its obligations to the contract?

A) The contract is said to be materially breached.
B) The party will be entitled to full recovery under the contract.
C) The contract immediately becomes void.
D) The party may be entitled to a partial recovery under the contract.
E) The party's performance is said to be as good as completed.

Question 60

An employment contract denies payment of a full month's salary if an employee does not clock in 160 hours of work.This is a(n)______.

A) condition subsequent
B) concurrent condition
C) voluntary arbitration
D) implied condition
E) mandatory arbitration

Question 61

Which of the following statements is true of a waiver?

A) It generally occurs when a contracting party announces the other party does not have to perform as promised.
B) It requires a condition subsequent to be present in a contract in order to be evoked by a nonperforming party.
C) It can be granted by the breaching party.
D) It is bargained for and is supported by consideration.
E) It generally occurs after a contracting party fails to perform.

Question 62

Rachel contracted with Steven to cater her wedding for $20,000.Steven failed to deliver on the day of the wedding,which forced Rachel to order food from a restaurant that cost her $30,000.What amount in compensatory damages does Steven owe Rachel?

A) $30,000
B) $20,000
C) $10,000
D) $50,000
E) No compensatory damages

Question 63

Ian owes Shirley $5,000,which is payable in five installments at an interest.However,after two installments,Ian offers to pay Shirley the entire debt to avoid paying the interest.In this scenario,which of the following will take place if Shirley announces that Ian does not have to pay the debt in further installments?

A) waiver
B) negotiation
C) release
D) arbitration
E) rescission

Question 64

A ______ exists when a party to a contract announces that the other party does not have to perform as promised.

A) release
B) waiver
C) surrender
D) breach
E) tender

Question 65

Which of the following statements is true of rescission?

A) It results in awarding monetary damages to a nonbreaching party that is intended to punish the breaching party of a contract.
B) It arises from unusual losses that were foreseeable.
C) If a party to a contract intentionally relinquishes a right to enforce the contract, a rescission occurs.
D) If a party to a contract choses rescission as a remedy, that party cannot also make a claim for damages.
E) If a party to a contract announces the other party does not have to perform as promised, a rescission exists.

Question 66

A similarity between a waiver and a release is that

A) there is a liability for a breach of contract in both cases.
B) both always occur before a contracting party fails to perform.
C) both require the payment of liquidation damages.
D) both always occur after a contracting party fails to perform.
E) nonperformance of contract is forgiven in both cases.

Question 67

When a party intentionally relinquishes a right to enforce a contract,it is called a(n)______.

A) agreement
B) waiver
C) breach
D) disclaimer
E) release

Question 68

Consequential damages are awarded

A) only when compensatory damages are not awarded.
B) whenever a contract is released.
C) whenever a contract is waived.
D) only if the consequence was foreseeable.
E) only when the cost of getting a substitute performance was higher.

Question 69

Which of the following statements is true of liquidated damages?

A) They are the damages awarded by a court to a plaintiff for a breach of contract that causes no financial injury to the plaintiff.
B) They are the damages awarded by a court arising from unusual losses, which the contracting parties knew would result from a breach of contract.
C) They are the damages awarded by a court to put a plaintiff in the same position as if a contract had been performed.
D) They are the damages specified in a contract when real damages for breach of contract are likely to be uncertain.
E) They are the damages enforced when a party to a contract incurs damages even after getting an injunction.

Question 70

Great Tires Inc.orders 50 tons of rubber from Bill,a distributor.Bill almost always chooses Ritchie's Rubber Farm over various other rubber plantations as he gets discounted rates.The delivery of the rubber to Great Tires is due on September 1.On August 1,a fire destroys Ritchie's Rubber Farm.Which of the following statements is true in this situation?

A) Bill's performance will be excused due to impossibility of performance.
B) Bill's performance will be excused due to material breach.
C) Bill's performance will not be excused if obtaining rubber from another plantation is reasonable and possible.
D) Bill's performance will not be excused unless he can get the same quantity of rubber at a lesser price from a different source.
E) Bill's performance will be excused even if Great Tires proves that rubber from other plantations is reasonably available.

Question 71

A massive crop infestation caused Northfront Corn Corp.to default on their corn delivery contract to Right Foods Corp.,a manufacturer of packaged chips.As the infestation spread across the country,Northfront was not able to source from other corn producers.In this case,Northfront is most likely to be excused from performance because of ______.

A) a condition precedent in the delivery contract
B) divisibility of performance
C) commercial impracticability
D) substantial performance
E) eminent domain

Question 72

Which of the following is a remedy that provides equitable relief in cases that involve an intellectual property dispute?

A) waiver
B) assignment
C) release
D) injunction
E) novation

Question 73

Which of the following remedies provided by a court to a nonbreaching party requires each party to a contract to return the consideration given to the other?

A) restitution
B) rescission
C) injunction
D) extradition
E) novation

Question 74

Daniel's failure to deliver ice-cream makers and waffle makers on time resulted in a two-week delay in the opening of Sheena's new ice-cream parlor.Sheena incurred a heavy loss since she had to pay the rent for those two weeks as well as salaries to the personnel hired.In this case,which of the following remedies is a court most likely to award Sheena?

A) liquidated damages
B) consequential damages
C) nominal damages
D) specific performance
E) differential damages

Question 75

Sheila contracted her friend Susan to paint her house for $3,000.Sheila did this as a favor to Susan as Susan was unemployed.Before she could finish the job,however,Susan got a job at a marketing company,which meant that she could not complete her contract.As Susan is her friend,Sheila decided not to enforce the contract,and she let Susan keep the $1,000.This scenario is an example of a(n)______.

A) arbitration
B) waiver
C) condition precedent
D) unjust enrichment
E) delegation of duties

Question 76

Kent signed a contract with Turner to exclusively work for Turner.Kent breached the contract by working part time for other people.Turner tried to reach a voluntary settlement with Kent as long as he pays a certain amount to Turner.As this attempt failed,they decided to allow Erika,a neutral third party,to make a decision.Turner and Kent agreed to abide by the decision taken by Erika.Which of the following is depicted in this scenario?

A) a negotiated settlement
B) obiter dicta
C) arbitration
D) stare decisis
E) a free exercise clause

Question 77

Stuart signs a contract that allows him to rent a snowplow from Homer's Plow Company.The contract stipulates that he has to pay $50 per week.Winter ends sooner than expected,so Stuart wants to return the plow ahead of the due date in order to avoid paying unnecessary rent.Homer's Plow Company agrees to let Stuart return the plow as long as he signs a contract that requires him to rent the plow again next year.This is an example of a(n)______.

A) waiver
B) arbitration
C) rescission
D) release
E) novation

Question 78

Salim has entered into a contract with Jenna to buy her land for $50,000.Salim has paid the amount in full.However,Jenna has not transferred the land to Salim.Salim decides to sue Jenna to request a court order to compel Jenna to transfer the land as per the contract.Which of the following remedies is the court most likely to enforce in this case?

A) rescission
B) consequential damages
C) substantial performance
D) liquidated damages
E) specific performance

Question 79

Frank is the fresh produce supplier to Green Valley,an upscale restaurant.He provides the restaurant with imported meat for which he is paid $1,500 per day.One day,Frank fails to deliver the meat due to personal reasons.This causes the restaurant to order from a neighboring city for $2,500.The delay in shipment results in a foreseeable loss of $1,500 in revenue for Green Valley.If Green Valley decides to sue Frank for damages,the court is most likely to award Green Valley with damages in the amount of ______.

A) $1,000
B) $4,000
C) $2,500
D) $8,000
E) $5,500

Question 80

______ are court-awarded damages to put a plaintiff in the same position as if a contract had been performed.

A) Nominal damages
B) Consequential damages
C) Liquidated damages
D) Compensatory damages
E) Specific damages