Question 1

Melody is a recent graduate of State Law School.She lands an impressive employment contract with the firm of Dewey,Cheathem,and Howe,Attorneys at Law,on the stated provision that she pass the upcoming bar exam.This provision in the employment agreement is a(n):
A)condition precedent.
B)condition subsequent.
C)implied condition.
D)concurrent condition.

Accepted Answer

B

Question 2

Generally,neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

Accepted Answer

This statement is incorrect. Both "time is of the essence" clauses and "force majeure" clauses are recognized by the courts in certain circumstances, such as when they are included in a valid and enforceable contract. The courts will generally enforce these clauses according to their terms, unless they violate public policy or other legal principles.

Question 3

The statement,"You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

Accepted Answer

The statement includes a condition, which is implied but not explicitly stated. The condition is that the person must complete their degree in business administration in May. Therefore, the correct way to rephrase the statement to make the condition explicit would be: "You will have a job with Snelling & Snelling provided that you complete your degree in business administration this May."

Question 4

The UCC recognizes commercial impracticability as a ground for discharge of a contract.

Accepted Answer

The UCC recognizes commercial impracticability as a defense to performance, which can lead to discharge of a contract under certain circumstances.

Question 5

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee.The coffee was to be delivered on September 1.Since the contract included a date for performance,time is of the essence and the delivery date is strictly enforceable.

Accepted Answer

The answer of Ramon purchased 5,000 pounds of coffee from...

Question 6

A court may,at times,discharge a party who has not performed.

Accepted Answer

Yes, a court may discharge a party who has not performed if they find that the circumstances justify it. This is known as a discharge by frustration or impossibility.

Question 7

Sam,the seller,enters into a contract agreement to buy Betty Lou's house on the condition that he is able to secure financing at or below 6% per year.This is a:
A)condition precedent.
B)condition subsequent.
C)novation condition.
D)concurrent condition.

Accepted Answer

This is a condition precedent because the contract is contingent upon Sam securing financing at or below 6% per year before the sale can be completed. If he is unable to meet this condition, the contract would not be enforceable.

Question 8

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons.A shortage of paper makes paper cartons much more expensive,so Jessie uses styrofoam cartons and ships the eggs.Lester is entitled to cancel the contract based on this deviation of terms in the contract.

Accepted Answer

The answer of Assume that Jessie and Lester have formed...

Question 9

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by:
A)full performance.
B)agreement.
C)rescission.
D)accord and satisfaction.

Accepted Answer

The contract between M & E and Coda, Inc is discharged by full performance, as M & E fulfilled their obligation by shipping the 500 music stands and Coda paid for them as promised.

Question 10

Most contracts are discharged by mutual agreement of the parties.

Accepted Answer

Most contracts are discharged by performance, meaning that the parties fulfill their respective obligations as outlined in the contract.

Question 11

The legal right to sue for a breach of contract is subject to a statute of limitations.

Accepted Answer

A statute of limitations sets a specific time period within which a legal action must be taken. If the time period has expired, the right to sue for a breach of contract is lost.

Question 12

Irving is shopping at the local Computers R Us store and agrees to buy a computer for his home "on the condition of personal satisfaction." If Irving takes the computer back to the store stating that he doesn't like the computer,then the seller must accept the return of the computer and terminate the contract.

Accepted Answer

The condition of personal satisfaction is a subjective condition and is not legally binding. Therefore, the seller is not obligated to accept the return of the computer simply because Irving is not personally satisfied with the product.

Question 13

Abdulla hired Granite Construction to build an addition onto his home.Granite Construction dug the foundation but then abandoned the project.Granite Construction is entitled to receive the full contract price minus the value of the defects.

Accepted Answer

Since Granite Construction abandoned the project, they have breached the contract and are not entitled to the full contract price. Abdulla may be entitled to damages for any costs incurred from the abandonment and for the value of any work already completed.

Question 14

Jennifer substantially performs her service contract with Gretchen.Due to Jennifer's failure to render complete performance,Gretchen:
A)is discharged from any further contractual obligations.
B)is required to pay the full contract price,minus the value of Jennifer's defective performance.
C)is required to pay the full contract price.
D)may declare a material breach and pay only for the value received.

Accepted Answer

The answer of Jennifer substantially performs her service contract with...

Question 15

Monumental,Inc.contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased.Before construction begins,the local zoning board changes the zoning of the parcel and those adjoining it to residential use only.Monumental's contract with Champion is discharged.

Accepted Answer

The contract between Monumental, Inc. and Champion Builders is discharged due to frustration of purpose, as the unforeseen zoning change to residential use only prevents the construction of the intended office building, making the contract's original purpose impossible to fulfill.

Question 16

In negotiating the purchase of a vehicle,the sales representative told Karla,"I guarantee that you will be personally satisfied with this car." The guarantee was written on the contract when Karla purchased the car.If a controversy arises over Karla's satisfaction,the court will apply a subjective standard,which means Karla's judgment must be reasonable.

Accepted Answer

The subjective standard in this context means the court will consider Karla's personal satisfaction, not whether her judgment is considered reasonable by an objective standard.

Question 17

Al contracted to sell his house to Bev.Subsequently,they both changed their minds and agreed to cancel the contract.The contract between Al and Bev is discharged by:
A)full performance.
B)rescission.
C)accord and satisfaction.
D)novation.

Accepted Answer

The contract between Al and Bev is discharged by rescission, which means both parties have mutually agreed to terminate the contract.

Question 18

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

Accepted Answer

Concurrent conditions refer to situations where two or more parties are required to perform their obligations at the same time, not to the presence of both a condition precedent and a condition subsequent.

Question 19

Alice signs a contract with Bob to buy Bob's house for $150,000,with the clause,"if I am able to obtain a mortgage loan for $125,000,at no more than 7% interest,payable over 15 years." Assume that Alice tries but is unable to obtain the described loan,and therefore refuses to proceed with the purchase.Alice is in breach of the contract.

Accepted Answer

Alice's refusal to proceed with the purchase is based on a condition that is not met, which means that the contract is void. Therefore, Alice is not in breach of the contract.

Question 20

A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee.The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

Accepted Answer

The wholesaler has already notified the retailer of their inability to fulfill the contractual obligation, which constitutes a breach of the contract. Therefore, the retailer has the right to pursue legal action and sue for damages.

Quiz 16: Performance and Discharge

Melody is a recent graduate of State Law School.She lands an impressive employment contract with the firm of Dewey,Cheathem,and Howe,Attorneys at Law,on the stated provision that she pass the upcoming bar exam.This provision in the employment agreement is a(n) :

Generally,neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

The statement,"You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

The UCC recognizes commercial impracticability as a ground for discharge of a contract.

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee.The coffee was to be delivered on September 1.Since the contract included a date for performance,time is of the essence and the delivery date is strictly enforceable.

A court may,at times,discharge a party who has not performed.

Sam,the seller,enters into a contract agreement to buy Betty Lou's house on the condition that he is able to secure financing at or below 6% per year.This is a:

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by:

Most contracts are discharged by mutual agreement of the parties.

The legal right to sue for a breach of contract is subject to a statute of limitations.

Abdulla hired Granite Construction to build an addition onto his home.Granite Construction dug the foundation but then abandoned the project.Granite Construction is entitled to receive the full contract price minus the value of the defects.

Jennifer substantially performs her service contract with Gretchen.Due to Jennifer's failure to render complete performance,Gretchen:

Al contracted to sell his house to Bev.Subsequently,they both changed their minds and agreed to cancel the contract.The contract between Al and Bev is discharged by:

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.