Question 1

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

Accepted Answer

A) True 
 B)False

Question 2

Fact Pattern 14-3 
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
-Refer to Fact Pattern 14-3. Under the circumstances, with respect to damages, Chandra 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 3

Valley View Farms enters into a contract to sell Sarah's Corner Shop a truckload of eggs from free range chickens. Valley View then fails to deliver the eggs to Sarah's Corner Shop. Sarah

Accepted Answer

A)  must still pay for the eggs or she will be in breach of contract. 
B)  does not have to pay for the eggs because Valley View failed to perform. 
C)  must still pay for the eggs, but can file suit against Valley View for breach of contract. 
D)  does not have to pay for the eggs, but cannot file suit against Valley View for breach of contract.

Question 4

If one party's performance is substantial, the other party's duty to perform remains absolute.

Accepted Answer

A) True 
 B)False

Question 5

When a party's performance is perfect, it is said to be complete.

Accepted Answer

A) True 
 B)False

Question 6

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

Accepted Answer

A)  the existence of a previous, valid obligation. 
B)  consideration greater than $5,000. 
C)  performance of the original contract by all of the parties. 
D)  an accord and satisfaction.

Question 7

Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen

Accepted Answer

A)  must still buy the stallion. 
B)  does not have to buy the stallion. 
C)  must still buy the stallion, but may pay a lower price. 
D)  does not have to buy the stallion, but must buy another horse of similar value from Richard.

Question 8

Phil enters into a contract to hire Bob's Building Business to build a warehouse for Phil. The contract specifies that the warehouse should be built with HighQual Bricks. When construction starts, HighQual Bricks cannot provide enough bricks for the warehouse. Bob's Building Business substitutes Big Red Bricks, which are comparable in quality and price to HighQual Bricks. This deviation from the contract

Accepted Answer

A)  discharges Phil from the contract. 
B)  has no effect on the contract. 
C)  increases Bob's Building Business's duties under the contract. 
D)  suspends Bob's Building Business's duty to perform.

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

A contractual obligation may not be discharged through novation.

Accepted Answer

A) True 
 B)False

Question 11

Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200. The contract states that delivery is to be made at Ellen's residence "on or before May 1, to be used for daughter's wedding reception on May 2." On May 1, Grapes & Vines's delivery van is involved in an accident, no wine is delivered that day, and no one from Grapes & Vines tells Ellen. On the morning of May 2, Ellen buys the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes & Vines tenders delivery of the wine at Ellen's residence. She refuses tender. Grapes & Vines sues her for breach of contract. How is the court most likely to rule?

Accepted Answer

The answer of Ellen contracts to buy six cases of...

Question 12

When each party's performance is conditioned on the other party's performance, concurrent conditions are present.

Accepted Answer

A) True 
 B)False

Question 13

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates. CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is

Accepted Answer

A)  complete. 
B)  substantial. 
C)  tender. 
D)  absolute.

Question 14

Raphael agrees to lease an apart?ment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is can?celed three days before its scheduled date. The con?tract

Accepted Answer

A)  is discharged. 
B)  is not affected. 
C)  is postponed until another event is scheduled. 
D)  must be performed immediately.

Question 15

Hal contracts with Credit Services, Inc. (CSI), to pay $500 for its serv?ices. After CSI performs, they sign an accord, in which Hal promises to pay $400 within ten days instead of the $500. Hal does not pay. CSI can sue Hal 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 16

Ben and Andrew are parties to a contract. They agree on a novation. The novation does not require

Accepted Answer

A)  the existence of a previous, valid obligation. 
B)  agreement by all the parties to a new contract. 
C)  performance of the original contract by all of the parties. 
D)  a new, valid contract.

Question 17

A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.

Accepted Answer

A) True 
 B)False

Question 18

Objective impossibility discharges a contract.

Accepted Answer

A) True 
 B)False

Question 19

After a contract is made, a supervening event may make performance impossible in an objective sense.

Accepted Answer

A) True 
 B)False

Question 20

A discharge in bankruptcy will ordinarily prevent creditors from enforcing most of the debtor's contracts.

Accepted Answer

A) True 
 B)False

Exam 14: Performance and Discharge

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

Valley View Farms enters into a contract to sell Sarah's Corner Shop a truckload of eggs from free range chickens. Valley View then fails to deliver the eggs to Sarah's Corner Shop. Sarah

If one party's performance is substantial, the other party's duty to perform remains absolute.

When a party's performance is perfect, it is said to be complete.

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen

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

A contractual obligation may not be discharged through novation.

When each party's performance is conditioned on the other party's performance, concurrent conditions are present.

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates. CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is

Raphael agrees to lease an apart?ment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is can?celed three days before its scheduled date. The con?tract

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

Ben and Andrew are parties to a contract. They agree on a novation. The novation does not require

A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.

Objective impossibility discharges a contract.

After a contract is made, a supervening event may make performance impossible in an objective sense.

A discharge in bankruptcy will ordinarily prevent creditors from enforcing most of the debtor's contracts.