Question 1

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

Accepted Answer

The statute of limitations sets a specific time limit in which a party can file a lawsuit for a breach of contract. After the specified time limit has passed, the right to sue is no longer valid.

Question 2

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

False

Question 3

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 breached the contract by notifying the retailer that it cannot fulfill its obligation, which gives the retailer the right to sue for damages. The fact that the performance was not due until next month does not affect the retailer's right to pursue legal action.

Question 4

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

The answer of Melody is a recent graduate of State...

Question 5

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 6

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

Accepted Answer

The UCC does recognize commercial impracticability as a ground for discharge of a contract. This is found in section 2-615 of the UCC, which allows for discharge of a contract if performance has been made impracticable by an unforeseen event, such as a natural disaster or government regulation.

Question 7

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 it is deemed appropriate based on the circumstances of the case. This is known as a discharge of contract.

Question 8

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 is an agreement by both parties to cancel the contract. This is a mutual agreement to release each other from the obligation created by the contract.

Question 9

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 does create a condition because it implies that completing the degree in business administration is a requirement for getting the job with Snelling & Snelling.

Question 10

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 11

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 did not complete the work according to the terms of the contract. As a result, they would not be entitled to receive the full contract price. Additionally, since they did not complete the project, there would not be any value of defects to subtract from the contract price.

Question 12

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 is discharged by full performance because M & E shipped the stands and Coda paid for them as promised, fulfilling all obligations under the contract.

Question 13

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

Both "time is of the essence" and "force majeure" clauses are recognized and enforced by courts in certain situations. However, the enforceability of these clauses can depend on the specific terms of the contract and the circumstances surrounding the situation.

Question 14

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 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

If the zoning changes and the land can only be used residentially, the construction of the office building is no longer possible and Monumental's contract with Champion would be discharged.

Question 16

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

A condition precedent is a condition that must be met before a contract can be enforced. In this case, Sam's ability to secure financing at or below 6% per year is a condition that must be met before he is obligated to purchase Betty Lou's house.

Question 17

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 statement describes a condition of personal satisfaction, which is subjective and not specified in the contract. Therefore, the seller is not obligated to accept the return of the computer and terminate the contract. It would depend on the specific terms of the contract and the store's return policy.

Question 18

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 19

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 20

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 ability to obtain the described loan is a condition precedent to the contract, meaning that the contract is only enforceable if she is able to meet this condition. As she was unable to obtain the loan, the contract is not enforceable and Alice is not in breach.

Quiz 17: Performance And Discharge

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

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) :

Most contracts are discharged by mutual agreement of the parties.

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

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

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:

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."

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.

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.

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:

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.

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:

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

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