Deck 17: Performance and Discharge

Question 1

Conditions subsequent are more common than conditions precedent.

Answer 1

False

Question 2

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

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

When a condition operates to terminate a party's absolute promise to per?for?m, it is a condition precedent.

Question 6

Performance that provides a party with most of the benefits of a con?tract, in spite of a deviation from the terms, is substantial performance.

Question 7

A buyer's duty to pay becomes absolute once a contract is formed.

Question 8

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

Question 9

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

Question 10

A promise to perform under a contract is never absolute.

Question 11

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

Question 12

Concurrent conditions occur only when the parties to a contract are re?quired to per?form their respective duties simultaneously.

Question 13

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

Question 14

An intentional variation from a contract prevents substantial performance.

Question 15

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

Question 16

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

Question 17

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

Question 18

Despite deviations from the specifications in a construction con?tract, a builder can be considered to have substantially per?formed.

Question 19

A promise to perform under a contract may be absolute.

Question 20

Most contracts are discharged by rescission.

Question 21

Performance of an accord discharges an original contractual obligation.

Question 22

If a contract requires performance to the personal satisfaction of a party, the party to be satisfied must act honestly and in good faith.

Question 23

Any breach excuses the nonbreaching party's duty to perform.

Question 24

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

Question 25

Any breach allows the nonbreaching party to sue for damages.

Question 26

A party's refusal to perform an executory contract is a rescission.

Question 27

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

Question 28

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

Question 29

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

Question 30

A novation revokes and discharges a prior contract.

Question 31

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

Question 32

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

Question 33

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

Question 34

Any breach allows the nonbreaching party to cancel the contract.

Question 35

The formation of a contract whose performance will discharge a previous contract is a novation.

Question 36

Anticipatory repudiation discharges a contract.

Question 37

A contract that involves mechanical fitness is a contract in which per?formance must per?sonally satisfy the party to whom per?formance is owed.

Question 38

Any breach discharges the nonbreaching party from the contract.

Question 39

A settlement agreement that arises out of a dispute over the obligations under a contract may be substituted for the original contract.

Question 40

The formation of a substituted agreement that does not involve a third party is a novation.

Question 41

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

Question 42

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 43

Fact Pattern 17-A1
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
Refer to Fact Pattern 17-A1. Neil's performance is most likely

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

Question 44

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 pur?chase price on July 31. The delivery of the washing machine and the payment of $500 are ex?amples of

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

Question 45

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

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

Question 46

City Restoration Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to

A) damages.
B) nothing.
C) specific performance.
D) substitute performance.

Question 47

Lon enters into a contract to mine limestone in Mica's quarry, sell it, and share the profits on its sale with Mica. If the duties under this contract are discharged like those under most contracts, the duties will be

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

Question 48

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 49

Fact Pattern 17-A1
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
Refer to Fact Pattern 17-A1. 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 50

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 51

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

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

Question 52

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

A) canceled.
B) delegated.
C) litigated.
D) performed.

Question 53

Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a dif?ferent brand of discounted paint. This is most likely

A) a complete excuse for Quinn's refusal to pay.
B) a material breach.
C) complete performance.
D) substantial performance.

Question 54

Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is

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

Question 55

Bob signs a five-year contract with CSB, a television station, to host a TV show. One year later, CSB re?places Bob with a younger host. Bob is paid, but does not appear on TV. Bob sues CSB for breach of contract. The court is most likely to rule in favor of

A) Bob, because he lost the opportunity to build and maintain his pro?fessional marketability.
B) Bob, only if he was at the top of the ratings when he was replaced.
C) CSB, because it continues to pay Bob.
D) CSB, because there is no breach of contract.

Question 56

Quality Contractors contracts to build a warehouse for Retail Sales Company. Quality completely performs. Retail Storage is entitled to

A) damages.
B) rescission.
C) specific performance.
D) nothing more.

Question 57

Fact Pattern 17-B1
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 17-B1. 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 58

Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination. Union City's zoning board adopts an affecting zoning classification. This adoption satis?fies

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

Question 59

Dina contracts to repair a computer for Earl for $100. If Dina does not per?form, Earl must pay

A) $100.
B) $50.
C) $10.
D) $0.

Question 60

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 61

Roy and Sheila are parties to a contract. They subse?quently agree that Tony should take Roy's place and assume all of his rights and duties under the contract. This is

A) a novation.
B) an accord and satisfaction.
C) an assignment.
D) a modification.

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

Fact Pattern 17-A2
Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples.
Refer to Fact Pattern 17-A2. Eve dies before the apples are delivered to Fresh Produce. This circumstance

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

Question 64

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

A) accord and satisfaction.
B) novation.
C) reinvention.
D) specific performance.

Question 65

Diners Restaurant signs an agreement with Eagle Bank to borrow $10,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest from 15 per?cent. Diners' best argument for avoiding payment to Eagle is that

A) performance of the contract is commercially impossible.
B) the agreement violates the mirror image rule.
C) the law has rendered performance of the contract illegal.
D) the specific subject matter of the contract has been destroyed.

Question 66

Fact Pattern 17-B2
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
Refer to Fact Pattern 17-B2. 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 67

Fact Pattern 17-B2
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
Refer to Fact Pattern 17-B2. Bell's repudiation is most likely

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

Question 68

On April 1, KO Contractors, Inc., contracts to build a store for Lo-Cost Jewelry 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. Lo-Cost files a suit against KO. In this situation

A) KO is in breach of contract.
B) Lo-Cost is in breach of contract.
C) the contract is discharged.
D) the contract is suspended.

Question 69

Rod operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pablo in six months. An un?fore?seen shortage of scrap steel suddenly develops, making it impossible for Rod to fulfill his contract for less than $500 per ton. Rod's best de?fense against performing the contract would be

A) the mirror image rule.
B) impossibility of performance.
C) commercial impracticability.
D) none of the choices.

Question 70

Fact Pattern 17-A2
Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples.
Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. This circumstance

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

Question 71

Super Toolmakers, Inc., contracts to sell its business to True Hardware Corpo?ration. Before either party has performed, rescission of this con?tract requires

A) a mutual agreement to rescind.
B) consideration.
C) performance by all of the parties.
D) none of the choices.

Question 72

Hu contracts with Internet Service, Inc. (ISI), to pay $500 for its serv?ices. After ISI performs, they sign an accord, in which Hu promises to pay $400 within ten days instead of $500. Hu does not pay. ISI can sue Hu under

A) neither the accord nor the contract.
B) the accord only.
C) the accord or the contract.
D) the contract only.

Question 73

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching. The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal. This law will

A) discharge the contract.
B) fulfill the contract.
C) not affect the contract.
D) require immediate performance of the contract.

Question 74

Standard Construction, Inc. (SCI), contracts to build a store for Tasty Confection Company (TCC), with TCC's payment due on June 1. On June 1, TCC's bank is closed, and for this reason, TCC claims it cannot pay SCI on time. In this situation

A) SCI is in breach of contract.
B) TCC is in breach of contract.
C) the contract is discharged.
D) the contract is suspended.

Question 75

Fact Pattern 17-A2
Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples.
Refer to Fact Pattern 17-A2. Through no fault of Eve's Garden, a fire de?stroys the apples before they are delivered. This circumstance

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

Question 76

Fact Pattern 17-B1
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 17-B1. 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 77

Fact Pattern 17-A2
Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples.
Mona and Nero want to discharge their contract by executing and per?forming a new agreement. They can best accomplish this by

A) accord and satisfaction.
B) novation.
C) reinvention.
D) specific performance.

Question 78

Sam contracts to harvest Tina's crop on August 1. Due to bad weather, Sam cannot perform on the specified date. In this situation

A) Sam is in breach of contract.
B) the contract is discharged.
C) the contract is suspended.
D) Tina is in breach of contract.

Question 79

Frank agrees to lease an apart?ment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is can?celed ten days before its delivery date. The con?tract

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

Question 80

Luke is a farmer. When bad weather destroys his crop, his obliga?tion to deliver that crop un?der an existing contract with Macro Food Corporation is

A) discharged.
B) enforced completely.
C) enforced only to the extent of finding an alterna?tive supply.
D) enforced only to the extent of transferring to the next year's crop.