Question 1

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

Accepted Answer

A) True 
 B)False

Question 2

Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver.Dondi buys the appliance else-where for $5,500.Dondi's measure of damages is

Accepted Answer

A) $1,000. 
B) $1,000 plus incidental damages. 
C) incidental damages only. 
D) $0

Question 3

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is

Accepted Answer

A) a delegation. 
B) an assignment. 
C) a third party beneficiary contract. 
D) prohibited.

Question 4

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell.Regarding this agreement, a court would likely

Accepted Answer

A) enforce it. 
B) not enforce it. 
C) reform it to reflect the true market value of the property. 
D) order the parties to renegotiate the price.

Question 5

Misrepresentation of a material fact can occur by words or action.

Accepted Answer

A) True 
 B)False

Question 6

River Vista Inc.enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

Accepted Answer

A) a limitation-of-liability clause. 
B) an exculpatory clause. 
C) a liquidated damages clause. 
D) a quasi contract

Question 7

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

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A) True 
 B)False

Question 10

Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign.Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign.As compensatory damages, Nogales can recover

Accepted Answer

A) $150,000. 
B) $15,000. 
C) $1,500. 
D) $0.

Question 11

Intended beneficiaries can sue to enforce a contract.

Accepted Answer

A) True 
 B)False

Question 12

Garth owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively.Helen agrees to buy "Garth's ATV" for $750.Garth believes, in good faith, that he is selling the $500 ATV.Helen believes, in good faith, that she is buying the $1,000 ATV.In this situation

Accepted Answer

A) Garth is entitled to $750 for the $500 ATV. 
B) Helen is entitled to the $1,000 ATV for $750. 
C) Helen must buy both ATVs for $1,500. 
D) there is no contract.

Exam 11: Contract Performance, Breach, and Remedies

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

Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver.Dondi buys the appliance else-where for $5,500.Dondi's measure of damages is

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell.Regarding this agreement, a court would likely

Misrepresentation of a material fact can occur by words or action.

River Vista Inc.enters into a contract with Stable Realty Management to manage and maintain River Vista's commercial real estate.Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach.This is

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

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

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

Nogales Ceramics pays Omar $15,000 to propose an online marketing campaign.Two days later, Omar tells Nogales that he has accepted a job in Silicon Valley and cannot plan the campaign.As compensatory damages, Nogales can recover

Intended beneficiaries can sue to enforce a contract.

Garth owns two all-terrain vehicles (ATVs) , worth $1,000 and $500, respectively.Helen agrees to buy "Garth's ATV" for $750.Garth believes, in good faith, that he is selling the $500 ATV.Helen believes, in good faith, that she is buying the $1,000 ATV.In this situation