Question 1

Material breach represents a less-than-complete performance.

Accepted Answer

Material breach is a level of performance below what is reasonably acceptable.

Question 2

A contracting party has no duty to perform prior to a condition precedent being satisfied.

Accepted Answer

A contracting party has no duty to perform prior to a condition precedent being satisfied.

Question 3

Once the seller transfers the goods to the shipper, the burden of damages in transit also rests with him/her.

Accepted Answer

The UCC states the seller satisfies its obligation to ship goods once they are transferred to the shipper for transportation. If the goods are damaged in transit, the liability rests on the buyer, not the seller.

Question 4

Rescission is a court-awarded damage arising from unusual losses which the parties knew would result from breach of the contract.

Accepted Answer

Rescission requires each party to return the consideration given the other. It is often used in fraud or misrepresentation cases.
Refer To: Figure 9.2

Question 5

The parol evidence rule states that parties to a complete and final written contract can introduce oral evidence in court that changes the intended meaning of the written terms.

Accepted Answer

The parol evidence rule influences the form of contracts. This rule states that parties to a complete and final written contract cannot introduce oral evidence in court that changes the intended meaning of the written terms.

Question 6

An employment contract is an example of divisibility of performance.

Accepted Answer

One party (the employee) performs services for a period of time followed by the other party (the employer) paying the wages that are due. This pattern of recurring conditions precedent allows the employment contract to be divided into parts. This contract is considered to be divisible.

Question 7

A party to a contract is discharged when that party is relieved from all further responsibility of performance.

Accepted Answer

A party to a contract is discharged when that party is relieved from all further responsibility of performance.

Question 8

Complete performance discharges a party to a contract.

Accepted Answer

Complete Performance recognizes that a contracting party has fulfilled every duty required by the contract.

Question 9

When parties fail to provide details, the law states the buyer's payment is a condition that must be satisfied after the seller has performed his/her duty to deliver.

Accepted Answer

When the parties fail to provide this level of detail, the law states the buyer's payment is a condition that must be satisfied before the seller has the duty to deliver.

Question 10

Increased difficulty of performance or reduced profitability will constitute valid grounds for claiming impossibility of performance.

Accepted Answer

A party's nonperformance is excused because of impossibility of performance. This may occur because of the death of an essential party, the destruction of essential materials, or the subject matter of the contract becomes illegal. Mere increased difficulty or reduced profitability, however, does not constitute impossibility of performance.

Question 11

Under the UCC a party to a sale-of-goods contract receives discharge from performance because of commercial impracticability.

Accepted Answer

Under the UCC a party to a sale-of-goods contract receives discharge from performance because of commercial impracticability.

Question 12

Homer hired Bob Builders Pvt. Ltd to construct his house. They signed a contract, which stated that Bob Builders wouldill complete the work by April 4th 2012, and Homer wouldill pay them in full. Homer has the right to deny them payments if they miss the date.

Accepted Answer

Substantial performance is a middle ground between full performance and a breach due to nonperformance. A construction contractor who gets a home built but has not finished all the landscaping and finishing details by the due date is not denied a financial recovery. This builder can recover under the contract but remains liable for any damages to the homeowner for delays.

Question 13

Oral evidence that changes the meaning of written terms can be given if necessary to prevent fraud.

Accepted Answer

Oral evidence that changes the meaning of written terms can be given if necessary to prevent fraud.

Question 14

If a contract is silent as to delivery, there is a presumption that the buyer is responsible for picking up the goods at the seller's location.

Accepted Answer

The phrase tender of delivery means the seller must make the goods available to the buyer. If, as in our example, the contract makes no statement about delivery, the presumption is the buyer must make arrangements to pick up the goods at the location the seller designates.

Question 15

When only one of the parties drafts (writes) a contract, courts will interpret ambiguous or vague terms against the party that drafts them.

Accepted Answer

When only one of the parties drafts (writes) a contract, courts will interpret ambiguous or vague terms against the party that drafts them.

Question 16

If something must take place in future, before a party has a duty to perform, it is a condition subsequent.

Accepted Answer

If something must take place in future, before a party has a duty to perform, it is a condition precedent.

Question 17

Releases usually occur after a contracting party fails to perform.

Accepted Answer

Releases usually occur before a contracting party fails to perform.

Question 18

Sheena is a week late in paying her rent. She requests her landlord to not charge her the late payment fees, and the landlord agrees. This is an example of a waiver.

Accepted Answer

Waivers generally occur after a contracting party fails to perform. In this situation, nonperformance by one party may cause the other party to waiver its right to enforce the contract. The waiver typically is unilateral. The non breaching party grants the waiver. A landlord may waive the right to collect a late payment fee when the rent is only two days overdue.

Question 19

One party's tender of performance may satisfy a required condition leading to the other party's duty to perform.

Accepted Answer

To tender performance means to offer to perform.

Question 20

Paying for the items purchased at a store, as the store delivers the items is an example of implied concurrent conditions of performance.

Accepted Answer

Most of our everyday purchases involve implied concurrent conditions of performance. While shopping you take items to a cashier and expect to pay and take the items with you. Your contractual duty to pay and the store's contractual duty to deliver are exchanged simultaneously.

Quiz 9: Contractual Performance and Breach

Material breach represents a less-than-complete performance.

A contracting party has no duty to perform prior to a condition precedent being satisfied.

Once the seller transfers the goods to the shipper, the burden of damages in transit also rests with him/her.

Rescission is a court-awarded damage arising from unusual losses which the parties knew would result from breach of the contract.

The parol evidence rule states that parties to a complete and final written contract can introduce oral evidence in court that changes the intended meaning of the written terms.

An employment contract is an example of divisibility of performance.

A party to a contract is discharged when that party is relieved from all further responsibility of performance.

Complete performance discharges a party to a contract.

When parties fail to provide details, the law states the buyer's payment is a condition that must be satisfied after the seller has performed his/her duty to deliver.

Increased difficulty of performance or reduced profitability will constitute valid grounds for claiming impossibility of performance.

Under the UCC a party to a sale-of-goods contract receives discharge from performance because of commercial impracticability.

Homer hired Bob Builders Pvt. Ltd to construct his house. They signed a contract, which stated that Bob Builders wouldill complete the work by April 4th 2012, and Homer wouldill pay them in full. Homer has the right to deny them payments if they miss the date.

Oral evidence that changes the meaning of written terms can be given if necessary to prevent fraud.

If a contract is silent as to delivery, there is a presumption that the buyer is responsible for picking up the goods at the seller's location.

When only one of the parties drafts (writes) a contract, courts will interpret ambiguous or vague terms against the party that drafts them.

If something must take place in future, before a party has a duty to perform, it is a condition subsequent.

Releases usually occur after a contracting party fails to perform.

Sheena is a week late in paying her rent. She requests her landlord to not charge her the late payment fees, and the landlord agrees. This is an example of a waiver.

One party's tender of performance may satisfy a required condition leading to the other party's duty to perform.

Paying for the items purchased at a store, as the store delivers the items is an example of implied concurrent conditions of performance.