Question 1

Anticipatory repudiation discharges a contract.

Accepted Answer

A) True 
 B)False  False

Question 2

City Restoration Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to

Accepted Answer

A)   damages.
B)   nothing.
C)   specific performance.
D)   substitute performance. A

Question 3

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is

Accepted Answer

A)   absolute.
B)   conditional.
C)   licentious.
D)   operational. B

Question 4

The formation of a contract whose performance will discharge a previous contract is a novation.

Accepted Answer

A) True 
 B)False

Question 5

Rod operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pablo in six months. An un?fore?seen shortage of scrap steel suddenly develops, making it impossible for Rod to fulfill his contract for less than $500 per ton. Rod's best de?fense against performing the contract would be

Accepted Answer

A)   the mirror image rule.
B)   impossibility of performance.
C)   commercial impracticability.
D)   none of the choices.

Question 6

Sam contracts to harvest Tina's crop on August 1. Due to bad weather, Sam cannot perform on the specified date. In this situation

Accepted Answer

A)   Sam is in breach of contract.
B)   the contract is discharged.
C)   the contract is suspended.
D)   Tina is in breach of contract.

Question 7

Performance of an accord discharges an original contractual obligation.

Accepted Answer

A) True 
 B)False

Question 8

Able Builders, Inc., contracts with Beach Investment Company to build a Cool Juice 'n Fruit stand near Delta Beach. The work is to begin on April 1 and be done by June 1, so that the stand can open for the summer. Able does not finish until June 14. The stand opens but Beach Investment loses two weeks' early summer sales due to the delay. Is Beach Investment's duty to pay for the construction of the stand discharged?

Accepted Answer

The answer of Able Builders, Inc., contracts with Beach Investment...

Question 9

If a contract requires performance to the personal satisfaction of a party, the party to be satisfied must act honestly and in good faith.

Accepted Answer

A) True 
 B)False

Question 10

Luke is a farmer. When bad weather destroys his crop, his obliga?tion to deliver that crop un?der an existing contract with Macro Food Corporation is

Accepted Answer

A)   discharged.
B)   enforced completely.
C)   enforced only to the extent of finding an alterna?tive supply.
D)   enforced only to the extent of transferring to the next year's crop.

Question 11

Any breach excuses the nonbreaching party's duty to perform.

Accepted Answer

A) True 
 B)False

Question 12

Complete performance occurs when conditions in a contract are fully satisfied.

Accepted Answer

A) True 
 B)False

Question 13

An intentional variation from a contract prevents substantial performance.

Accepted Answer

A) True 
 B)False

Question 14

Fact Pattern 17-B1 
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
-Refer to Fact Pattern 17-B1. Kip's late attempt to fix the roof is most likely

Accepted Answer

A)   a material breach.
B)   complete performance.
C)   excused by Lacy's refusal to make further payments.
D)   substantial, but not complete, performance.

Question 15

Bob signs a five-year contract with CSB, a television station, to host a TV show. One year later, CSB re?places Bob with a younger host. Bob is paid, but does not appear on TV. Bob sues CSB for breach of contract. The court is most likely to rule in favor of

Accepted Answer

A)   Bob, because he lost the opportunity to build and maintain his pro?fessional marketability.
B)   Bob, only if he was at the top of the ratings when he was replaced.
C)   CSB, because it continues to pay Bob.
D)   CSB, because there is no breach of contract.

Question 16

Fact Pattern 17-B2 
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
-Refer to Fact Pattern 17-B2. Under the circumstances, with respect to damages, Chris can

Accepted Answer

A)   bring an action immediately.
B)   bring an action only after the contract's two-year term begins.
C)   bring an action only after the contract's two-year term ends.
D)   do nothing.

Question 17

A condition precedent must be met before a party's performance can be required.

Accepted Answer

A) True 
 B)False

Question 18

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 pur?chase price on July 31. The delivery of the washing machine and the payment of $500 are ex?amples of

Accepted Answer

A)   conditions precedent.
B)   concurrent conditions.
C)   conditions subsequent.
D)   illegal conditions.

Question 19

Hu contracts with Internet Service, Inc. (ISI), to pay $500 for its serv?ices. After ISI performs, they sign an accord, in which Hu promises to pay $400 within ten days instead of $500. Hu does not pay. ISI can sue Hu under

Accepted Answer

A)   neither the accord nor the contract.
B)   the accord only.
C)   the accord or the contract.
D)   the contract only.

Question 20

Fact Pattern 17-A2 
Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples.
-Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. This circumstance

Accepted Answer

A)   breaches the contract.
B)   discharges the contract.
C)   has no effect on the contract.
D)   suspends the contract.

Exam 17: Performance and Discharge

Anticipatory repudiation discharges a contract.

City Restoration Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is

The formation of a contract whose performance will discharge a previous contract is a novation.

Sam contracts to harvest Tina's crop on August 1. Due to bad weather, Sam cannot perform on the specified date. In this situation

Performance of an accord discharges an original contractual obligation.

If a contract requires performance to the personal satisfaction of a party, the party to be satisfied must act honestly and in good faith.

Luke is a farmer. When bad weather destroys his crop, his obliga?tion to deliver that crop un?der an existing contract with Macro Food Corporation is

Any breach excuses the nonbreaching party's duty to perform.

Complete performance occurs when conditions in a contract are fully satisfied.

An intentional variation from a contract prevents substantial performance.

Bob signs a five-year contract with CSB, a television station, to host a TV show. One year later, CSB re?places Bob with a younger host. Bob is paid, but does not appear on TV. Bob sues CSB for breach of contract. The court is most likely to rule in favor of

A condition precedent must be met before a party's performance can be required.

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 pur?chase price on July 31. The delivery of the washing machine and the payment of $500 are ex?amples of

Hu contracts with Internet Service, Inc. (ISI) , to pay $500 for its serv?ices. After ISI performs, they sign an accord, in which Hu promises to pay $400 within ten days instead of $500. Hu does not pay. ISI can sue Hu under

Fact Pattern 17-A2 Eve, who owns and operates Eve's Garden, agrees to sell Fresh Produce Company ten bush?els of apples. -Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. This circumstance