Deck 15: Performance and Discharge

Question 1

Complete performance occurs when conditions in a contract are fully satisfied.

Answer 1

True

Question 2

Performance that provides a party with most of the benefits of a contract,in spite of a deviation from the terms,is complete performance.

Answer 2

True

Question 3

A party normally satisfies its duties under a contract by novation.

Answer 3

False

Question 4

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

Question 5

If a contract requires performance to the personal satisfaction of a party,the party must in all cases be personally satisfied.

Question 6

Most contracts are discharged by rescission.

Question 7

A condition subsequent terminates a party's promise to perform.

Question 8

Tender is an unconditional offer to perform.

Question 9

A seller's duty to deliver always becomes absolute once a contract is formed.

Question 10

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

Question 11

A promise to perform under a contract is never absolute.

Question 12

A promise to perform under a contract may be absolute.

Question 13

Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously.

Question 14

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.

Question 15

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

Question 16

An intentional variation from a contract prevents substantial performance.

Question 17

Despite deviations from the specifications in a construction contract,a builder can be considered to have substantially performed.

Question 18

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

Question 19

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

Question 20

A condition precedent must be met before a party's performance can be required.

Question 21

Daphne agrees to buy Eduardo's Chef's Table restaurant on the condition that Financial Credit Company approves the financing.This approval is

A)a concurrent condition.
B)a condition precedent.
C)a condition subsequent.
D)a condition conjectural.

Question 22

A contract that involves mechanical fitness is a contract in which performance must personally satisfy the party to whom performance is owed.

Question 23

To rescind a contract,the parties must make a second agreement that includes consideration.

Question 24

A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.

Question 25

Performance of an accord discharges an original contractual obligation.

Question 26

A novation revokes and discharges a prior contract.

Question 27

Tia signs a lease that states that any change in the zoning law that affects the lease will cause its termination.Union City's zoning board adopts a new zoning classification that affects the lease.This adoption satisfies

A)no condition.
B)the condition precedent.
C)the concurrent condition.
D)the condition subsequent.

Question 28

Any breach of contract discharges the breaching party.

Question 29

After a contract is made,a supervening event may make performance impossible and discharge the contract.

Question 30

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

Question 31

Dylan enters into a contract to manage the operations of Cash's accounting office for one year,renewable for subsequent one-year terms.If this contract is discharged like most contracts,it will be

A)canceled.
B)compromised.
C)altered.
D)performed.

Question 32

Contracts that are executory on both sides can be rescinded by agreement.

Question 33

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

Question 34

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

Question 35

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year.Belle's duty to perform is

A)absolute.
B)conditional.
C)illusional.
D)irresolute.

Question 36

Anticipatory repudiation discharges a contract.

Question 37

Any breach allows the nonbreaching party to cancel the contract.

Question 38

Lark enters into a contract to mine gravel 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

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

Question 39

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

Question 40

A party's refusal to perform his or her contractual obligations is a rescission.

Question 41

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-3.Under the circumstances,with respect to damages,Chris can

A)bring an action immediately.
B)bring an action only after the contract's two-year term begins.
C)bring an action only after the contract's two-year term ends.
D)do nothing.

Question 42

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-3.Bell's repudiation is most likely

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

Question 43

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 purchase price on July 31.The delivery of the washing machine and the payment of $500 are examples of

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

Question 44

Quito contracts with Rewind Graphix,Inc.,to pay $5,000 for its work on the animated film "Song." After Rewind performs,they sign an accord,in which Quito promises to pay $4,000 within ten days instead of $5,000 later.But Quito does not pay.Rewind can sue Quito

A)under no circumstances.
B)on the accord only.
C)on the accord or the original obligation.
D)on the original obligation only.

Question 45

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

A)damages.
B)nothing more.
C)repudiation.
D)alteration.

Question 46

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-2.With respect to Mutual's duties,Neil's performance most likely

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 47

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

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

Question 48

Solid Toolmakers,Inc.,contracts to sell its business to Titan Hardware Corporation.Before either party has performed,rescission of this contract requires

A)a mutual agreement to rescind.
B)consideration.
C)performance by all of the parties.
D)an accord and satisfaction.

Question 49

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

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

Question 50

Jill contracts to sell Ken her MP3 player for $50.This contract will be fully discharged when Jill and Ken

A)agree to sign a bill of sale.
B)exchange the player for the $50.
C)sign a receipt.
D)shake hands and go their separate ways.

Question 51

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

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

Question 52

Candy enters into a contract under which she agrees to pay Dino for a business survey and review of her competitors.Dino agrees to deliver the survey by July 1.Candy's offer,on July 1,to pay Dino is

A)complete.
B)substantial.
C)tender.
D)tough.

Question 53

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6
A)absolute.

A)m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been
B)complete.
C)conditional.
D)substantial.

Question 54

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-2.Neil's performance is most likely

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

Question 55

Building Restoration,Inc.(BRI),enters into a contract to refurbish an old train depot for Casual Dining,Inc.,which plans to open Eat Up Restaurant in that location.If BRI completes most of the work promised in the contract,its performance will be

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

Question 56

Xavier enters into a contract to operate a Yummy Yogurt franchise,which Yummy agrees to support as long as Xavier maintains his business license.Yummy's duty to perform is

A)absolute.
B)conditional.
C)licentious.
D)operational.

Question 57

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-1.Lacy's refusal to make further payments is most likely

A)a material breach.
B)complete performance.
C)excused by Kip's failure to fix the roof.
D)substantial,but not complete,performance.

Question 58

Even-Bilt Construction contracts to build a warehouse for Discount Sales Mart.Even-Bilt completely performs.Discount Sales is entitled to

A)an accord.
B)rescission.
C)damages.
D)nothing more.

Question 59

Clyde contracts with Deephole Excavation,Inc.,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Earl challenges the dig as an illegal gravel pit.A court orders the digging to stop.Clyde's contract with Deephole is

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

Question 60

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
Refer to Fact Pattern 15-1.Kip's late attempt to fix the roof is most likely

A)a material breach.
B)complete performance.
C)excused by Lacy's refusal to make further payments.
D)substantial,but not complete,performance.

Question 61

Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200.The contract states that delivery is to be made at Ellen's residence "on or before May 1,to be used for daughter's wedding reception on May 2." On May 1,Grapes & Vines's delivery van is involved in an accident,no wine is delivered that day,and no one from Grapes & Vines tells Ellen.On the morning of May 2,Ellen buys the wine from Happy Hill Winery.That afternoon,just before the reception,Grapes & Vines tenders delivery of the wine at Ellen's residence.She refuses tender.Grapes & Vines sues her for breach of contract.How is the court most likely to rule

Question 62

Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract.Flo's estate

A)is discharged from any contractual liability.
B)must find a competent accountant to fulfill the contract.
C)must pay liquidated damages.
D)must refund any money paid to Flo on the contract.

Question 63

Sam contracts to harvest Tina's crop on August 1.Due to an unexpected regional fuel shortage,Sam cannot perform on the specified date.This

A)breaches the contract.
B)discharges the contract.
C)has no effect on the contract.
D)suspends the contract.

Question 64

Frank agrees to lease an apartment from Gena for one day to see Harry,the president of the United States,deliver a speech in the street below.The speech is canceled ten days before its date.Frank's contract with Gena

A)is discharged.
B)is not affected.
C)is postponed until another event is scheduled.
D)must be performed immediately.

Question 65

On April 1,OK Contractors,Inc.,contracts to build a store for Lo-Cost Jewelers at a specific location in Metro City.On May 1,Metro changes its zoning laws to prohibit the construction of a commercial building at that location.When the store is not built,Lo-Cost files a suit against OK.In this situation

A)OK is in breach of contract.
B)Metro is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Question 66

Magnifico Properties,Inc.,hires Commercial Construction Company (CCC)to renovate the interior of Magnifico's office building.CCC submits plans that Magnifico approves.CCC completes the major reconstruction,paints the interior,and buys the fixtures and furnishings.Magnifico rejects some of the furnishings because they do not match the plans,and subsequently refuses to allow CCC to finish the work or to collect payment.Could CCC sue successfully for payment for the entire contract

Question 67

Blueberry Café signs an agreement with County Credit Bank 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.Blueberry's best argument for avoiding payment to County Credit 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.