Question 1

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15.The delivery and installation of the sink and the payment of the price are ex?amples of

Accepted Answer

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

Question 2

Fact Pattern 17-A2 (
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc. ,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.When the market price for apples exceeds the price in the contract with Hill & Dale,Evelyn decides not to deliver the apples.Evelyn's contract with Hill & Dale is

Accepted Answer

A) breached. 
B) discharged. 
C) not affected. 
D) suspended.

Question 3

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Accepted Answer

A) True 
 B)False

Question 4

Commercial Construction,Inc.(CCI),contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1.On June 1,Rita's bank is closed,and for this reason,Rita's claims it cannot pay on time.In this situation

Accepted Answer

A) CCI is in breach of contract. 
B) Rita's is in breach of contract. 
C) the contract is discharged. 
D) the contract is suspended.

Question 5

Fact Pattern 17-A2 (
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc. ,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.Evelyn dies before the apples are delivered to Hill & Dale.Evelyn's contract with Hill & Dale is

Accepted Answer

A) breached. 
B) discharged. 
C) not affected. 
D) suspended.

Question 6

Most contracts need to be performed to per?sonally satisfy the party to whom per?formance is owed.

Accepted Answer

A) True 
 B)False

Question 7

Anticipatory repudiation discharges a contract.

Accepted Answer

A) True 
 B)False

Question 8

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 9

A discharge in bankruptcy will ordinarily bar enforcement of most of a debtor's contracts by creditors.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A) True 
 B)False

Question 11

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 12

Jane and Kelly want Lucy to replace Kelly as a party to their con?tract.They can best accomplish this by

Accepted Answer

A) a mutual agreement to rescind. 
B) an accord and satisfaction. 
C) a novation. 
D) an alteration of the contract.

Question 13

A party's obligations under a contract may be excused if,due to an unforeseen circumstance,the party's benefit will be reduced.

Accepted Answer

A) True 
 B)False

Question 14

Clyde contracts with Deephole Excavation,Inc. ,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is

Accepted Answer

A) breached. 
B) discharged. 
C) not affected. 
D) suspended.

Question 15

Real Cheap Painters,Inc. ,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely

Accepted Answer

A) an absolute excuse for Quint's refusal to pay. 
B) a material breach. 
C) complete performance. 
D) substantial performance.

Question 16

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

Accepted Answer

A) True 
 B)False

Question 17

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

Accepted Answer

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

Question 18

Tender is an unconditional offer to perform.

Accepted Answer

A) True 
 B)False

Question 19

A contract is discharged when a change in the law renders the performance illegal.

Accepted Answer

A) True 
 B)False

Question 20

Fact Pattern 17-A1 
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 17-A1.Neil's performance is most likely

Accepted Answer

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

Exam 17: B: Performance and Discharge

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15.The delivery and installation of the sink and the payment of the price are ex?amples of

A contract comes to an end when both parties fulfill their respective duties by performing the acts they have promised.

Commercial Construction,Inc.(CCI) ,contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1.On June 1,Rita's bank is closed,and for this reason,Rita's claims it cannot pay on time.In this situation

Fact Pattern 17-A2 ( Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc. ,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.Evelyn dies before the apples are delivered to Hill & Dale.Evelyn's contract with Hill & Dale is

Most contracts need to be performed to per?sonally satisfy the party to whom per?formance is owed.

Anticipatory repudiation discharges a contract.

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

A discharge in bankruptcy will ordinarily bar enforcement of most of a debtor's contracts by creditors.

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

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

Jane and Kelly want Lucy to replace Kelly as a party to their con?tract.They can best accomplish this by

A party's obligations under a contract may be excused if,due to an unforeseen circumstance,the party's benefit will be reduced.

Clyde contracts with Deephole Excavation,Inc. ,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is

Real Cheap Painters,Inc. ,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

Tender is an unconditional offer to perform.

A contract is discharged when a change in the law renders the performance illegal.