Question 1

All contractual promises are absolute promises to perform.

Accepted Answer

A) True 
 B)False

Question 2

Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design.Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault.The chairs are available from other sources.In this case:

Accepted Answer

A) Russell must supply the chairs, even if he must buy them elsewhere. 
B) Russell's duty to deliver the chairs is discharged by the destruction of the factory. 
C) Russell has materially breached the contract if he fails to deliver the chairs. 
D) Two of the above, (a) and (c).

Question 3

Tender is an offer by a party, who is ready, willing, and able, to perform his obligations under the contract.

Accepted Answer

A) True 
 B)False

Question 4

A novation is an agreement between two parties to have one substitute for the other in a contract.

Accepted Answer

A) True 
 B)False

Question 5

The more conditions to which a promise is subject, the more content the promise has.

Accepted Answer

A) True 
 B)False

Question 6

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor.

Accepted Answer

A) True 
 B)False

Question 7

Ed promises Marty $1,500 if he will completely landscape Ed's yard.Which of the following would discharge Ed's obligation to pay under this contract?

Accepted Answer

A) Marty leaves a one-foot strip of land barren. 
B) Marty doesn't begin work on the landscaping until after he finishes two other jobs. 
C) Marty doesn't plant any flowers or grass. 
D) Ed isn't satisfied with Marty's design.

Question 8

Objective impossibility occurs if a particular contracting party is unable to perform because of financial inability or lack of competence.

Accepted Answer

A) True 
 B)False

Question 9

Discuss the contractual conditions of performance to the satisfaction of someone.

Accepted Answer

The answer of Discuss the contractual conditions of performance to...

Question 10

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Accepted Answer

A) True 
 B)False

Question 11

Anita, who is a seamstress, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it.Anita completes the suit, which fits Bryan perfectly.Nevertheless, he says that he is not satisfied and refuses to accept or pay for it.Bryan is honest in his dissatisfaction, but he is unreasonable.In this situation:

Accepted Answer

A) Bryan must pay for the suit even if he is dissatisfied. 
B) this is an illusory contract, because only Anita is bound. 
C) Bryan's approval is to be judged by an objective standard. 
D) Anita has no recourse against Bryan, because she agreed to the subjective standard.

Question 12

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.

Accepted Answer

A) True 
 B)False

Question 13

Implied-in-fact conditions must fully and literally occur, and they are understood by the parties to be part of the agreement.

Accepted Answer

A) True 
 B)False

Question 14

If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform.

Accepted Answer

A) True 
 B)False

Question 15

A and B enter into a contract on January 1 of this year.A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:

Accepted Answer

A) false. 
B) true because of statutes of limitations. 
C) true because of the law of repudiation. 
D) true because of covenants not to sue.

Question 16

By agreement, parties to a contract may discharge each other from performance under a contract.

Accepted Answer

A) True 
 B)False

Question 17

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Accepted Answer

A) True 
 B)False

Question 18

The definition of "discharge by breach" is:

Accepted Answer

A) performance that is incomplete but that does not defeat the purpose of the contract but entitles the injured party to damages. 
B) wrongful failure to perform the terms of a contract that gives rise to a right to damages by the injured party. 
C) a breach that prevents performance by either party. 
D) None of the above.

Question 19

If an obligee promises to accept a stated performance in satisfaction of the obligor's existing contractual duty, this creates an accord.

Accepted Answer

A) True 
 B)False

Question 20

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible in order to excuse a party from contractual duties.

Accepted Answer

A) True 
 B)False

Exam 17: Performance, Breach, and Discharge

All contractual promises are absolute promises to perform.

Russell and Joe make a contract for Russell to manufacture five leather chairs of a specified design.Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault.The chairs are available from other sources.In this case:

Tender is an offer by a party, who is ready, willing, and able, to perform his obligations under the contract.

A novation is an agreement between two parties to have one substitute for the other in a contract.

The more conditions to which a promise is subject, the more content the promise has.

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor.

Ed promises Marty $1,500 if he will completely landscape Ed's yard.Which of the following would discharge Ed's obligation to pay under this contract?

Objective impossibility occurs if a particular contracting party is unable to perform because of financial inability or lack of competence.

Discuss the contractual conditions of performance to the satisfaction of someone.

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.

Implied-in-fact conditions must fully and literally occur, and they are understood by the parties to be part of the agreement.

If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform.

A and B enter into a contract on January 1 of this year.A's friend C tells A, "The law generally restricts the time within which an action can be brought by either party to a contract." C's statement is:

By agreement, parties to a contract may discharge each other from performance under a contract.

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

The definition of "discharge by breach" is:

If an obligee promises to accept a stated performance in satisfaction of the obligor's existing contractual duty, this creates an accord.

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible in order to excuse a party from contractual duties.