Question 1

Which of the following is a condition subsequent?
A)"I promise to do X if I succeed in getting a loan."
B)"I promise to do X on the condition that the Cubs win the World Series."
C)"I promise to do X unless Al Gore is elected President in 2000."
D)"I promise to do X assuming that inflation stays below 3% in 1997."

Accepted Answer

A condition subsequent is a future,uncertain event that discharges the duty to perform.When a duty is subject to a condition subsequent,the duty to perform arises but is discharged if the future,uncertain event occurs.

Question 2

Mr.Green contracts with Mr.Brown to repair his roof.Mr.Brown is about 75% done when the deadline of the contract occurs.Which legal standard would prevent Mr.Brown from being considered to be in breach of his agreement with Mr.Green?
A)Substantial performance standard
B)Strict performance standard
C)Reasonable person standard
D)Egg shell person standard

Accepted Answer

Substantial performance is where performance has occurred to a large degree but there are minor issues to completing full duty.

Question 3

What is the term for a condition that is specified in a contract?
A)Express condition
B)Implied condition
C)Corporate condition
D)Bilateral condition

Accepted Answer

An express condition is a condition that is specified in the language of the parties' contract.

Question 4

Nina breached a contract between Milo and her,but not so materially.This means that Milo can:
A)sue only for damages caused by the breach
B)sue for damages for a total breach of the contract
C)cancel the contract
D)withhold his performance,even if the breach is remedied

Accepted Answer

When the breach is not serious enough to be material,the nonbreaching party may sue for only those damages caused by the particular breach.

Question 5

When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition,the condition will be excused because of  ________.
A)waiver
B)estoppel
C)rescission
D)liability

Accepted Answer

When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition,the condition will be excused because of estoppel.Estoppel is a valid excuse for nonperformance of a condition.

Question 6

For which of the following contracts,is a party's subjective dissatisfaction sufficient to excuse his performance under a "personal satisfaction" clause in a contract?
A)A contract to construct an intercontinental ballistic missile
B)A contract to paint someone's portrait
C)A contract to build a steam boiler
D)A contract to rebuild an automobile engine

Accepted Answer

If personal taste and comfort are involved,a promisor who is honestly dissatisfied with the promisee's performance has the right to reject the performance without being liable to the promisee.

Question 7

Which of the following is subject to the "substantial performance" standard in the absence of an express condition?
A)A promise to pay money
B)A promise to deliver a deed
C)A promise to build a house
D)A promise to deliver some goods

Accepted Answer

A substantial performance standard is applied to duties that are difficult to perform without some deviation from perfection if performance of those duties is not an express condition.

Question 8

Which of the following is also known as an implied-in-law condition since they are imposed by law rather than by agreement of the parties?
A)Condition precedent
B)Express condition
C)Constructive condition
D)Subsequent condition

Accepted Answer

Constructive conditions (also known as implied-in-law conditions)are conditions that are imposed by law rather than by the agreement of the parties.

Question 9

Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform.
A)A promise to build a road
B)A promise to paint a house
C)A promise to destroy a building
D)A promise to deliver a deed

Accepted Answer

The strict performance standard is applied to contractual obligations that can be performed either exactly or to a high degree of perfection.Examples of this type of obligation include promises to pay money,deliver deeds,and,generally,promises to deliver goods.

Question 10

Performance under a contract must be within a reasonable time when:
A)the value of the contract is high.
B)one of the parties is a government agency.
C)a specific time is implied in the contract.
D)no time for performance is expressly stated in the contract.

Accepted Answer

When no time for performance is stated or implied,performance must be completed within a "reasonable time," as judged by the circumstances of each case.

Question 11

An uncertain future event,the occurrence of which is necessary for the existence of a contractual obligation is called:
A)a condition precedent
B)a condition subsequent
C)a concurrent condition
D)a constructive condition

Accepted Answer

A condition precedent is a future,uncertain event that creates the duty to perform.If the condition does not occur,performance does not become due.

Question 12

Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promisee?
A)Quasi-contract
B)Anticipatory repudiation
C)Specific performance
D)Accord and satisfaction

Accepted Answer

A party who has materially breached a contract might recover the reasonable value of any benefits he has conferred on the promisee by bringing an action under quasi-contract.

Question 13

Which of the following is a remedy for a party that is in material breach of a contract but has incurred economic harm by already performing substantially for the contract?
A)Liquidated damages
B)Quasi-contract
C)Bilateral contract
D)Incorporation

Accepted Answer

One remedy available to parties that commit material breach and still need to be compensated for their performance is a quasi-contract.

Question 14

What is the term for a condition that is not stated in the contract but is created by the nature of the transaction between parties?
A)Express condition
B)Implied-in-fact condition
C)Corporate condition
D)Bilateral condition

Accepted Answer

A condition that is not specified in the contract of the parties but is created by the nature of their transaction is called an implied-in-fact condition.

Question 15

What is the law's main purpose in imposing the implied covenant of good faith and fair dealing?
A)Providing adequate remedial measures to injured parties
B)Punishing the breaching parties in a contract
C)Encouraging litigation regarding breach of contracts
D)Encouraging ethical behavior in contracts

Accepted Answer

This obligation to carry out a contract in good faith is usually called the implied covenant of good faith and fair dealing.The law's purpose in imposing such a term in contracts is to prevent abuses of power and encourage ethical behavior.

Question 16

Which of the following is true of the materiality of breach?
A)Courts generally adopt strict standards to determine materiality.
B)The magnitude of the breach is of relatively less importance.
C)There is no concern about compensating the nonbreaching party.
D)The timing of the breach is generally taken into consideration.

Accepted Answer

The standard for determining materiality is a flexible one that takes into account the facts of each individual case.The timing of the breach can also be important.A breach that occurs early on in the parties' relationship is more likely to be viewed as material than one that occurs after an extended period of performance.

Question 17

A(n)________ is a future,uncertain event that creates or extinguishes a duty of performance.
A)condition
B)promise
C)assurance
D)warranty

Accepted Answer

A condition is a future,uncertain event that creates or extinguishes a duty of performance.

Question 18

Justin agrees to start a life-size portrait of Julia beginning November 2.On October 28 he writes to Julia that due to unforeseeable circumstances,he would not be able to perform his promise.Justin has used the doctrine of:
A)accord and satisfaction.
B)anticipatory repudiation.
C)specific performance.
D)quasi-contract.

Accepted Answer

Justin has informed Julia about his inability to perform an act in advance.This anticipatory breach generally constitutes a material breach of contract that discharges the promisee from all further obligations under the contract.

Question 19

Kyle promised to mow Heidi's lawn for $20 and clean her gutters for $50,but only mowed the lawn.Which of the following is true of Kyle?
A)He is the nonbreaching party and can,therefore,sue Heidi.
B)Heidi cannot sue him because he has performed one of the promises.
C)He can recover the contract price for the activity he performed.
D)He will be directed by the court to complete the entire contract for free.

Accepted Answer

When a promisor performs one part of the contract but materially breaches another part,he can recover at the contract price for the part that he did perform.

Question 20

Roe promises to build a house for Crown for which,Crown agrees to pay him $10,000 when the house is complete.This example is related to the concept of:
A)express condition.
B)constructive condition.
C)subsequent condition.
D)implied condition.

Accepted Answer

This is a case of constructive condition.In such contracts where one of the parties is expected to perform before the other,the law normally infers that performance is a constructive condition of the other party's duty to perform.

Quiz 18: Performance and Remedies

Which of the following is a condition subsequent?

Mr.Green contracts with Mr.Brown to repair his roof.Mr.Brown is about 75% done when the deadline of the contract occurs.Which legal standard would prevent Mr.Brown from being considered to be in breach of his agreement with Mr.Green?

What is the term for a condition that is specified in a contract?

Nina breached a contract between Milo and her,but not so materially.This means that Milo can:

When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition,the condition will be excused because of ________.

For which of the following contracts,is a party's subjective dissatisfaction sufficient to excuse his performance under a "personal satisfaction" clause in a contract?

Which of the following is subject to the "substantial performance" standard in the absence of an express condition?

Which of the following is also known as an implied-in-law condition since they are imposed by law rather than by agreement of the parties?

Which of the following promises is subject to the "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform.

Performance under a contract must be within a reasonable time when:

An uncertain future event,the occurrence of which is necessary for the existence of a contractual obligation is called:

Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promisee?

Which of the following is a remedy for a party that is in material breach of a contract but has incurred economic harm by already performing substantially for the contract?

What is the term for a condition that is not stated in the contract but is created by the nature of the transaction between parties?

What is the law's main purpose in imposing the implied covenant of good faith and fair dealing?

Which of the following is true of the materiality of breach?

A(n) ________ is a future,uncertain event that creates or extinguishes a duty of performance.

Justin agrees to start a life-size portrait of Julia beginning November 2.On October 28 he writes to Julia that due to unforeseeable circumstances,he would not be able to perform his promise.Justin has used the doctrine of:

Kyle promised to mow Heidi's lawn for $20 and clean her gutters for $50,but only mowed the lawn.Which of the following is true of Kyle?

Roe promises to build a house for Crown for which,Crown agrees to pay him $10,000 when the house is complete.This example is related to the concept of: