Question 1

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

Accepted Answer

A)  ​neither the accord nor the original obligation. 
B)  ​the accord only. 
C)  ​the accord or the original obligation. 
D)  ​the original obligation only.

Question 2

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

Accepted Answer

A)  ​must pay Josh the contract price. 
B)  ​must pay Josh half of the contract price as a compromise. 
C)  ​must pay Josh only the cost of his materials. 
D)  ​does not have to pay Josh.

Question 3

Fact Pattern 18-1
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 18-1. Natalie's performance is most likely​

Accepted Answer

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

Question 4

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

Accepted Answer

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

Question 5

Khan offers to buy Lonnie's 1967 Mustang only if an appraiser estimates that it can be restored for less than a certain price. This requirement is

Accepted Answer

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

Question 6

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

Accepted Answer

A) True 
 B)False

Question 7

Fact Pattern 18-2
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 18-2. If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is

Accepted Answer

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

Question 8

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation

Accepted Answer

A)  ​Dierdre's bank is liable to Contractors Service. 
B)  ​Dierdre is in breach of contract. 
C)  ​the contract is discharged. 
D)  ​the contract is suspended.

Question 9

Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform

Accepted Answer

A)  ​remains absolute. 
B)  ​is discharged. 
C)  ​is excused. 
D)  ​is suspended.

Question 10

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit

Accepted Answer

A)  ​must be filed within ten to twenty years, depending on state law. 
B)  ​can no longer be brought. 
C)  ​can be filed within four years after Kelly decides to sue. 
D)  ​must be filed between four and five years after Kelly decides to sue.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

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

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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 15

Anticipatory repudiation discharges the repudiating party's obligations under a contract.

Accepted Answer

A) True 
 B)False

Question 16

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

Accepted Answer

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 17

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

Accepted Answer

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

Question 18

Ralph agrees to lease an apartment from Susan for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract is

Accepted Answer

A)  ​discharged. 
B)  ​not affected in terms of Ralph's obligation to pay Susan. 
C)  ​postponed until another event is scheduled. 
D)  ​breached.

Question 19

Quest Resources, Inc., contracts with Ring Communications Corporation (RCC) for RCC to design and build an all-weather communications system for Quest's field operations. RCC builds the system, but it functions effectively only in good weather. Is this a breach of the contract? If so, what remedies does Quest have?

Accepted Answer

The answer of Quest Resources, Inc., contracts with Ring Communications...

Question 20

Performance can be accomplished by tender.

Accepted Answer

A) True 
 B)False

Exam 18: Performance and Discharge

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

Khan offers to buy Lonnie's 1967 Mustang only if an appraiser estimates that it can be restored for less than a certain price. This requirement is

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

Contractors Service, Inc., enters into a contract to build a restaurant for Dierdre's Soup Spoons Bistro with Dierdre's payment due on August 1. On August 1, her bank is closed, and for this reason, she claims that she cannot pay on time. In this situation

Lew's Landscaping Service substantially performs its contract with Metro Office Park. Metro's duty to perform

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit

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

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

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

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

Anticipatory repudiation discharges the repudiating party's obligations under a contract.

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

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

Ralph agrees to lease an apartment from Susan for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract is

Performance can be accomplished by tender.

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on