Deck 18: Performance and Discharge in Traditional E-Contracts

Question 1

The most common way to discharge one's contractual duties is by breach of contract.

Answer 1

False

Question 2

A condition that must be fulfilled before a party's performance can be required is a condition subsequent.

Answer 2

False

Question 3

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

Answer 3

True

Question 4

Most contracts need to be performed only to the satisfaction of a reasonable person unless they expressly state otherwise.

Question 5

When an anticipatory repudiation occurs, it is treated as a material breach of a contract.

Question 6

Any breach allows the nonbreaching party to cancel the contract.

Question 7

An occurrence or event that makes performance temporarily impossible operates to discharge the parties' contractual duties.

Question 8

In most contracts, promises of performance are not expressly conditioned or qualified.

Question 9

Any breach discharges the nonbreaching party from the contract.

Question 10

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.

Question 11

Any breach entitles the nonbreaching party to sue for damages.

Question 12

A contract will be discharged if supervening circumstances make it impossible to attain the purpose both parties had in mind when they made the contract.

Question 13

A contractual obligation may not be discharged through novation.

Question 14

The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.

Question 15

After a contract is made, a supervening event may make performance impossible in an objective sense.

Question 16

Implied conditions are not understood to be part of an agreement but are found in the express language of the agreement.

Question 17

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

Question 18

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

Question 19

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

Question 20

Performance can be accomplished by tender.

Question 21

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

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

Question 22

Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1. Herb's offer, on the same date, to pay Idris is

A) a concurrent condition.
B) a novation.
C) tender.
D) mutual rescission.

Question 23

Fact Pattern 18-B2 (Questions B11-B12 apply)
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
Refer to Fact Pattern 18-B2. Business Computer's repudiation of its contract to employ Chandra is most likely

A) a material breach.
B) a minor breach.
C) a condition subsequent.
D) not a breach.

Question 24

Polly agrees to buy Quinn's Cycle World store business on the express condition that Ridgeline Credit Union approves the financing. This approval is

A) not a condition.
B) a condition precedent.
C) a concurrent condition.
D) a condition subsequent.

Question 25

Fact Pattern 18-B1 (Questions B9-B10 apply)
Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle.
Refer to Fact Pattern 18-B1. Noelle's refusal to make further payments is most likely

A) a material breach.
B) complete performance.
C) excused by Moses's failure to timely install the ventilation system.
D) substantial, but not complete, performance.

Question 26

On April 1, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Electro City. On April 10, Electro changes its zoning law to prohibit the construction of a commercial building at that location. Discount Retail files a suit against Construction Contractors. In this situation

A) Construction Contractors is in breach of contract.
B) Discount Retail is in breach of contract.
C) the contract is discharged.
D) the contract is suspended.

Question 27

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

A) damages.
B) nothing more.
C) to be excused from performance.
D) suspend performance.

Question 28

Fact Pattern 18-B1 (Questions B9-B10 apply)
Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle.
Refer to Fact Pattern 18-B1. Moses's late attempt to install the ventilation system is most likely

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

Question 29

Restoration, Inc., contracts to repair a crack in a supporting beam for Stagecraft Theater for $10,000. If Restoration does not per?form, Stagecraft must pay

A) $10,000.
B) $5,000.
C) $1,000.
D) $0.

Question 30

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

A) damages.
B) nothing more.
C) to be excused from performance.
D) suspend performance.

Question 31

OnTrack Rehabilitation Center signs an agreement with Platinum 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 per?cent. OnTrack's best argument for avoiding payment to Platinum Bank 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 32

Omar and Penn want to discharge their contract by executing a new agreement with performance different from what they originally promised. 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 original contract.

Question 33

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

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

Question 34

Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony

A) agree to sign a bill of sale.
B) exchange the car for the $3,000.
C) sign a receipt.
D) shake hands and go their separate ways.

Question 35

Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel Coffee agrees to support as long as Bernadette maintains her business license. Caramel Coffee's duty to perform is

A) not a condition.
B) a condition precedent.
C) a concurrent condition.
D) a condition subsequent.

Question 36

Nina contracts with Office Suites Corporation to buy a suite in its Prospect Point Tower at a premium for its view of Quay Harbor. Unforeseeably, the town of Quay Harbor changes its zoning law, and Resort Hotels, Inc., constructs Seaview Resort, blocking what would have been Nina's view. Nina's best argument for a change in the Office Suites contract or its price is

A) frustration of purpose.
B) objective impossibility of performance.
C) anticipatory repudiation.
D) commercial impracticability.

Question 37

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo?ration. Before either party has performed, rescission of this con?tract requires

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

Question 38

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subse?quently agree that High Riders Inc. should take Gliding Light's 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) a settlement agreement.

Question 39

Fact Pattern 18-B2 (Questions B11-B12 apply)
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
Refer to Fact Pattern 18-B2. Under the circumstances, with respect to damages, Chandra 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 40

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 un?fore?seen 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 de?fense 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 41

Able Builders, Inc., contracts with Beach Assets Company to build a Cool Juice stand near Divers' Beach. The work is to begin on April 1 and be done by June 1, so that the stand can open for the summer. Able Builders does not finish until June 14. The stand opens but Beach Assets loses two weeks' early summer sales due to the delay. Is Beach Assets's duty to pay for the construction of the stand discharged?

Question 42

Franz, the owner and manager of Green's Grocery Store, contracts to buy sixty crates of fresh peaches from Holly, the owner and manager of Ideal Farms. Suppose that Holly dies before she can harvest and deliver the peaches. How does Holly's death affect their contract? If Holly does not die, but does not deliver, and Franz suffers a loss, is there any limit to the time within which Franz can file a suit against Holly for breach of con?tract? If so, how might Franz extend this time?