Deck 15: Discharge of Obligations

Question 1

What is substantial performance?

A) If one side has performed, but not completely, so that the other side has received a benefit, the nonbreaching party owes something for the value received.
B) If one side has made efforts to perform, so that the other side has received a detrimental service, the nonbreaching party owes something for the effort made.
C) If the goods delivered according to the contract are the exact things ordered, and the party receives a detrimental performance, the nonbreaching party owes something for the damages done.
D) If one side has performed according to the contract and the other side is not satisfied, the latter owes something for the effort made.
E) When zero performance was executed, none of the parties owe anything to each other.

Answer 1

A

Question 2

When a promisor announces before the time his performance is due that he will not perform, he is said to have committed an anticipatory breach.

Answer 2

True

Question 3

If an obligee makes a demand of reasonable assurance and no adequate assurances are forthcoming, the obligee may assume that the obligor will commit an anticipatory breach.

Answer 3

True

Question 4

A condition precedent is a term in a contract express or implied) that requires performance only in the event something else happens first.

Question 5

"The thing cannot be done" refers to that which is subjectively impracticable.

Question 6

The Uniform Commercial Code does not recognize any such thing as a substantial performance. In its place, it requires for there to be an):

A) demand of reasonable assurance.
B) anticipatory breach.
C) perfect tender.
D) implied condition.
E) condition subsequent.

Question 7

In discharge by substituted agreement, the parties to a contract agree to substitute some performance different from what was originally agreed, and once this new agreement is executed, the original contract is satisfied.

Question 8

Under UCC Section 2-720, the use of a word like "cancellation" or "rescission" does, by itself, amount to a renunciation of the right to sue for breach of a provision that may have occurred before a rescission.

Question 9

The promise of a landowner to transfer title to the purchaser and the purchaser to tender payment to the seller is a condition subsequent.

Question 10

A waiver is whereby a party voluntarily gives up a right she has under a contract but doesn't give up the entire right to performance by the other side.

Question 11

Under the Uniform Commercial Code, there is no such thing as substantial performance.

Question 12

Under the Uniform Commercial Code, which of the following is said to have occurred when either of the two parties exercises a lawful right to end the contract other than for breach?

A) Cancellation
B) Termination
C) A perfect tender
D) Anticipatory breach
E) Mutual rescission

Question 13

When a promisor announces before the time for his performance is due that he will not perform, he is said to have committed an) _____.

A) substituted agreement
B) novation
C) waiver
D) condition subsequent
E) anticipatory breach

Question 14

When performance cannot be undertaken except with extreme difficulty or at highly unreasonable expense, it might be excused on the theory of commercial impracticability.

Question 15

Implied conditions are stated in words in the contract, orally or written.

Question 16

If, as often occurs, a contract is not performed exactly on time, failure to do so is a material breach.

Question 17

Which of the following represents an express condition?

A) Nora will babysit her sister's children only until the original nanny returns from vacation.
B) Beth can buy a car only when she has gathered enough funds.
C) Ruth promises to drop the mail at her mother's place provided there is no traffic.
D) If Anna gets support from her family, she will pursue further studies.
E) It is implied that when Jack promises to mow the front yard, he will mow the back yard as well.

Question 18

Parties are free to agree to almost any contract they want, and they are free to agree to end the contract whenever they want.

Question 19

A substituted agreement may simply replace the original one between the original parties.

Question 20

Under Uniform Commercial Code Section 2-1064), a party that ends a contract breached by the other party is said to have effected a termination.

Question 21

_____ comes into play when circumstances make the value of one party's performance virtually worthless to the other.

A) Impossibility
B) Impracticability
C) Frustration of purpose
D) Termination
E) Cancellation

Question 22

Nathan agrees to maintain the Jones' garden for as long as the original gardener, Deb, is away on vacation. This is an example of _____.

A) termination of Deb's services
B) a condition subsequent
C) cancellation of Nathan's services
D) a concurrent condition
E) an implied condition

Question 23

Mary is obligated to deliver a parcel to Tony. But it is agreed between the two that Sheila will deliver the parcel to Tony instead of Mary. This is an example of discharge by _____.

A) material breach
B) waiver
C) substituted agreement
D) release
E) accord and satisfaction

Question 24

_____ is said to exist when there is a radical departure from the circumstances that the parties reasonably contemplated would exist at the time they entered into the contract.

A) Cancellation
B) Impossibility
C) Termination
D) Impracticability
E) Frustration of purpose

Question 25

A concurrent condition arises when:

A) it terminates an already existing duty of performance.
B) it makes a difference to the promisee when the promisor acts on time.
C) it is unexpressed but understood to be part of the contract.
D) the duty to perform the contract is simultaneous.
E) the condition is stated in words in the contract, orally or written.

Question 26

A condition that terminates an already existing duty of performance is known as an) _____.

A) concurrent condition
B) condition subsequent
C) implied condition
D) express condition
E) mutual rescission

Question 27

What is impracticability?

Question 28

It is said that 'time is of essence' when:

A) the promisor refuses to fulfill the promised act in time.
B) the delay in time taken to fulfill the act results in financial loss to the promisor.
C) the promisee refuses to owe the promisor the value of the assignment.
D) an event terminates an existing duty of performance.
E) the promisee is affected by whether the promisor acts on time or not.

Question 29

_____ conditions are understood to be part of the contract.

A) Implied
B) Expressed
C) Concurrent
D) Mutual
E) Negotiable

Question 30

If a landlady accepts late payment by a tenant without objection, what means of discharge is she implementing?

A) Novation
B) Accord and satisfaction
C) Substituted agreement
D) Waiver
E) Release

Question 31

What is a condition?

Question 32

When an obligor is discharged upon delivery of the writing or upon occurrence of a condition, _____ is said to have taken place.

A) a substituted agreement
B) a release
C) accord and satisfaction
D) novation
E) an implied condition