Question 1

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors, which Parker delivers on June 1.Candace's unconditional offer, on the same date, to pay Parker is

Accepted Answer

A) novation. 
B) specific performance. 
C) tender. 
D) restitution.

Question 2

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 3

Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a contract.To be enforceable, the contract must be in writing if it involves

Accepted Answer

A) an interest in land. 
B) an air filter that costs less than $500. 
C) collateral for a loan. 
D) a service that can be performed within less than a year.

Question 4

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair, Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages, Carousel can recover

Accepted Answer

A) the cost of new turf. 
B) the difference between Damon's price and the actual cost of repair. 
C) the loss of profit from the canceled game. 
D) nothing.

Question 5

Contracts for the sale of goods usually qualify for specific performance.

Accepted Answer

A) True 
 B)False

Question 6

Ralph contracts to sell his Double-R Ranch to Samantha on May 1.On April 20, Ralph tells Samantha that he will not go through with the deal.Samantha can recover

Accepted Answer

A) the cost of any property that Samantha would find suitable. 
B) the cost of a similar, nearby ranch. 
C) the Double-R Ranch. 
D) nothing.

Question 7

Dondi contracts to buy a custom espresso maker from Caffee Specialties, Inc., for $4,500, but Caffee fails to deliver.Dondi buys the appliance elsewhere 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 8

Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena.If the duties under this contract are discharged like those under most contracts, the duties will be

Accepted Answer

A) repudiated. 
B) breached. 
C) performed. 
D) rescinded.

Question 9

The most common way to discharge one's contractual duties is by novation.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) canceled. 
B) compromised. 
C) altered. 
D) performed.

Question 11

The measurement of compensatory damages for breach of contract is the same for all types of contracts.

Accepted Answer

A) True 
 B)False

Question 12

Fact Pattern 12-1 
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual’s investments.

-Refer to Fact Pattern 12-1.Neil's performance is most likely

Accepted Answer

A) a material breach. 
B) a minor breach. 
C) Mutual's breach. 
D) no breach.

Question 13

A contractual obligation may not be discharged through novation.

Accepted Answer

A) True 
 B)False

Question 14

Liquidated damages provisions are usually not enforceable.

Accepted Answer

A) True 
 B)False

Question 15

Quicksilver Delivery Service contracts to deliver Pete's Pizza Parlor's products to its customers for $5,000, payable in advance.Pete's pays the money, but Quicksilver fails to perform.Can Pete's rescind the contract Can Pete's also obtain restitution What does it mean to "rescind" a contract How is a contract rescinded What is restitution How is restitution accomplished Explain.

Accepted Answer

The answer of Quicksilver Delivery Service contracts to deliver Pete's...

Question 16

Intentionally failing to comply with the terms of a contract is a breach.

Accepted Answer

A) True 
 B)False

Question 17

Sonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Jana and sends $1,500 as a down payment.When Sonny sends Jana the rest of the price, she refuses to ship the collection.Sonny should seek

Accepted Answer

A) a penalty. 
B) liquidated damages. 
C) restitution. 
D) specific performance.

Question 18

An innocent party is discharged when the other party has materially altered a written contract without consent.

Accepted Answer

A) True 
 B)False

Question 19

The standard measure of compensatory damages is the value of the breaching party's performance under a contract.

Accepted Answer

A) True 
 B)False

Question 20

Any breach-material or minor-discharges the nonbreaching party from the contract.

Accepted Answer

A) True 
 B)False

Exam 15: Contract Performance, Breach, and Remedies

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors, which Parker delivers on June 1.Candace's unconditional offer, on the same date, to pay Parker 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

Fresh Air Filter & Purification Company and Big Box Commercial Storage Company enter into a contract.To be enforceable, the contract must be in writing if it involves

Damon contracts to repair the turf on a soccer field for Carousel Sports Park.Damon knows that without the repair, Carousel will have to cancel an upcoming game.Damon does not perform as promised.As consequential damages, Carousel can recover

Contracts for the sale of goods usually qualify for specific performance.

Ralph contracts to sell his Double-R Ranch to Samantha on May 1.On April 20, Ralph tells Samantha that he will not go through with the deal.Samantha can recover

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

Lark enters into a contract to mine limestone in Milena's quarry, sell it, and share the profits on its sale with Milena.If the duties under this contract are discharged like those under most contracts, the duties will be

The most common way to discharge one's contractual duties is by novation.

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

The measurement of compensatory damages for breach of contract is the same for all types of contracts.

A contractual obligation may not be discharged through novation.

Liquidated damages provisions are usually not enforceable.

Intentionally failing to comply with the terms of a contract is a breach.

Sonny agrees to buy a unique collection of Olympics memorabilia for $7,000 from Jana and sends $1,500 as a down payment.When Sonny sends Jana the rest of the price, she refuses to ship the collection.Sonny should seek

An innocent party is discharged when the other party has materially altered a written contract without consent.

The standard measure of compensatory damages is the value of the breaching party's performance under a contract.

Any breach-material or minor-discharges the nonbreaching party from the contract.