Deck 14: Performance and Discharge

Question 1

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

Answer 1

True

Question 2

If one party's performance is substantial, the other party's duty to perform remains absolute.

Answer 2

True

Question 3

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

Answer 3

False

Question 4

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

Question 5

In most contracts, promises of performance are expressly qualified.

Question 6

A material breach occurs when performance is substantial, but not complete.

Question 7

A party is entitled to cancel a contract based on the other party's material breach.

Question 8

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Question 9

The only way that a party can discharge a contract is by performance.

Question 10

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

Question 11

When each party's performance is conditioned on the other party's performance, concurrent conditions are present.

Question 12

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

Question 13

Performance can be accomplished by tender.

Question 14

Tender is a timely offer or expression of willingness to pay a debt or perform an obligation.

Question 15

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 16

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

Question 17

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

Question 18

In all contracts, absolute promises are expressly conditioned.

Question 19

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

Question 20

Any breach allows the nonbreaching party to sue for damages.

Question 21

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

Question 22

Anticipatory repudiation discharges a contract.

Question 23

A contractual obligation may not be discharged through novation.

Question 24

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

Question 25

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

Question 26

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

Question 27

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) breached.
B) rescinded.
C) altered.
D) performed.

Question 28

A discharge in bankruptcy will ordinarily prevent creditors from enforcing most of the debtor's contracts.

Question 29

Objective impossibility discharges a contract.

Question 30

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

Question 31

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

Question 32

A condition is a qualification in a contract based on a future event that is certain to occur.

Question 33

A contract is discharged when a change in the law renders the performance illegal.

Question 34

Only personal contracts can be discharged by agreement of the parties.

Question 35

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is

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

Question 36

A novation requires the existence of a previous, valid obligation.

Question 37

Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen

A) must still buy the stallion.
B) does not have to buy the stallion.
C) must still buy the stallion, but may pay a lower price.
D) does not have to buy the stallion, but must buy another horse of similar value from Richard.

Question 38

A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.

Question 39

Valley View Farms enters into a contract to sell Sarah's Corner Shop a truckload of eggs from free range chickens. Valley View then fails to deliver the eggs to Sarah's Corner Shop. Sarah

A) must still pay for the eggs or she will be in breach of contract.
B) does not have to pay for the eggs because Valley View failed to perform.
C) must still pay for the eggs, but can file suit against Valley View for breach of contract.
D) does not have to pay for the eggs, but cannot file suit against Valley View for breach of contract.

Question 40

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

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

Question 41

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

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

Question 42

Fact Pattern 14-1
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 14-1. 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 43

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 44

Fact Pattern 14-2
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
Refer to Fact Pattern 14-2. Natalie's performance most likely

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

Question 45

Barbara and Johann are parties to a contract. They agree on a novation. The 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 46

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates. CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is

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

Question 47

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) absolute.
B) complete.
C) conditional.
D) substantial.

Question 48

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 49

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 50

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 51

Fact Pattern 14-3
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 14-3. 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 52

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 53

Fact Pattern 14-2
Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job.
Refer to Fact Pattern 14-2. Natalie's performance is most likely

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

Question 54

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $250 price on May 15. The delivery and installation of the sink and the payment of the price are ex?amples of

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

Question 55

Fact Pattern 14-3
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 14-3. 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 56

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 57

Fact Pattern 14-1
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 14-1. 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 58

Phil enters into a contract to hire Bob's Building Business to build a warehouse for Phil. The contract specifies that the warehouse should be built with HighQual Bricks. When construction starts, HighQual Bricks cannot provide enough bricks for the warehouse. Bob's Building Business substitutes Big Red Bricks, which are comparable in quality and price to HighQual Bricks. This deviation from the contract

A) discharges Phil from the contract.
B) has no effect on the contract.
C) increases Bob's Building Business's duties under the contract.
D) suspends Bob's Building Business's duty to perform.

Question 59

Carpets n' Rugs, Inc., agrees to carpet Downtown Realty's offices, using a particular brand of durable carpet. Carpets n' Rugs completes the job but uses a dif?ferent brand of wear- and weather-resistant carpeting. This is most likely

A) a good-faith reason for Downtown Realty to rescind the contract.
B) a material breach.
C) complete performance.
D) substantial performance.

Question 60

Carol enters into a contract to hire Joanne to paint a portrait of Carol's favorite cat. Joanne agrees to do the portrait to Carol's satisfaction for $100. When Joanne finishes the portrait, Carol announces that she is not satisfied with the portrait because it does not look like her cat. Carol

A) must accept the portrait and pay Joanne $100.
B) must accept the portrait and pay Joanne $50.
C) must accept the portrait and pay Joanne $25.
D) does not have to accept the portrait or pay Joanne any money.

Question 61

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

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

Question 62

Floors n' More, Inc., hires Gordon to renovate Floors n' Mores showroom. Gordon sub?mits plans that Floors n' More approves. Gordon completes the major recon?struction, 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 Gordon to finish the work or to col?lect payment. Could Gordon sue successfully for payment for the entire contract?

Question 63

Ben and Andrew are parties to a contract. They agree on a novation. The novation 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 64

Fact Pattern 14-4
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 14-4. If bad weather destroys Flora's crops, the obliga?tion to deliver produce to Harvesters is most likely

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

Question 65

Fact Pattern 14-4
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 14-4. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is most likely

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

Question 66

Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer. Wilson has financial troubles and he and Shelby sign an accord, in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000. Wilson's delivery of the bike and $4,000 to Shelby is

A) an accord.
B) satisfaction.
C) substantial performance.
D) novation.

Question 67

Rocko owes Sybil $1,000 for yard work Sybil performed for Rocko. The money is due on May 1. On April 30, Rocko goes to the bank to get the money and discovers that the bank will be closed until May 2. Rocko

A) will be in breach of contract when he fails to pay Sybil on May 1.
B) will not be in breach of contract when he fails to pay Sybil on May 1 due to objective impossibility.
C) is discharged from any contractual liability to Sybil.
D) will not be in breach of contract when he fails to pay Sybil on May 1 as long as he pays the $1,000 plus ten percent interest on May 2.

Question 68

Ruth contracts to provide Stan 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 69

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is

A) substantial performance.
B) mutual rescission.
C) accord and satisfaction.
D) novation.

Question 70

Fact Pattern 14-4
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
Refer to Fact Pattern 14-4. If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is most likely

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

Question 71

Raphael agrees to lease an apart?ment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is can?celed three days before its scheduled 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 72

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?