Question 1

Daphne agrees to buy Eduardo's Chef's Table restaurant on the condition that Financial Credit Company approves the financing.This approval is
A)a concurrent condition.
B)a condition precedent.
C)a condition subsequent.
D)a condition conjectural.

Accepted Answer

A condition precedent is a condition that must be met before a contract can be executed. In this case, the approval of financing by Financial Credit Company is a condition that must be met before the purchase of the restaurant can proceed.

Question 2

A contract that involves mechanical fitness is a contract in which performance must personally satisfy the party to whom performance is owed.

Accepted Answer

The answer of A contract that involves mechanical fitness is...

Question 3

To rescind a contract,the parties must make a second agreement that includes consideration.

Accepted Answer

Rescinding a contract requires a new agreement that includes consideration or something of value exchanged between the parties, which is a requirement for creating a legally binding contract.

Question 4

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

Accepted Answer

A breach of contract can occur when a party fails to perform any of their duties or obligations under a contract, not just all of them.

Question 5

Performance of an accord discharges an original contractual obligation.

Accepted Answer

Performance of an accord means fulfilling a new promise (made under the accord) which discharges the original contractual obligation.

Question 6

A novation revokes and discharges a prior contract.

Accepted Answer

A novation replaces or substitutes a new contract in place of a prior contract, thereby revoking and discharging the previous agreement.

Question 7

Tia signs a lease that states that any change in the zoning law that affects the lease will cause its termination.Union City's zoning board adopts a new zoning classification that affects the lease.This adoption satisfies
A)no condition.
B)the condition precedent.
C)the concurrent condition.
D)the condition subsequent.

Accepted Answer

The lease contains a condition subsequent, which means that if a specific event occurs (in this case, a change in the zoning law that affects the lease), the lease is terminated. The adoption of the new zoning classification satisfies this condition, triggering the termination of the lease.

Question 8

Any breach of contract discharges the breaching party.

Accepted Answer

A breach of contract does not automatically discharge the breaching party. The innocent party may choose to terminate the contract and seek damages, but they are not obligated to do so. The breaching party remains bound by the terms of the contract unless and until it is properly terminated or rescinded by the innocent party.

Question 9

After a contract is made,a supervening event may make performance impossible and discharge the contract.

Accepted Answer

This is known as the doctrine of impossibility or impracticability, which excuses performance of the contract if an unforeseen event makes performance impossible or commercially impracticable.

Question 10

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

Accepted Answer

The answer of A contract will be discharged if foreseeable...

Question 11

Dylan enters into a contract to manage the operations of Cash's accounting office for one year,renewable for subsequent one-year terms.If this contract is discharged like most contracts,it will be
A)canceled.
B)compromised.
C)altered.
D)performed.

Accepted Answer

Since it is a contract for services, the most likely way for it to be discharged is by performance, meaning that Dylan would complete their duties for one year and then possibly renew the contract for subsequent years. The other options (cancel, compromise, alter) are less likely because they would require agreement and negotiation by both parties.

Question 12

Contracts that are executory on both sides can be rescinded by agreement.

Accepted Answer

Both parties can agree to rescind an executory contract.

Question 13

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

Accepted Answer

A discharge in bankruptcy generally releases the debtor from personal liability for most of their debts, including contracts. Creditors are typically unable to pursue collection efforts against the debtor for discharged debts.

Question 14

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

Accepted Answer

If one party alters a written contract without the other party's agreement, it is considered a breach of contract and the other party is not obliged to adapt their performance accordingly. The non-breaching party may choose to terminate the contract or demand that the contract be enforced as originally written.

Question 15

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year.Belle's duty to perform is
A)absolute.
B)conditional.
C)illusional.
D)irresolute.

Accepted Answer

Belle's duty to perform is conditional upon the annexation of the property by Dell City within the next year. If the annexation does not occur, Belle is not obligated to subdivide and sell housing lots in Cole's hillside field.

Question 16

Anticipatory repudiation discharges a contract.

Accepted Answer

The answer of Anticipatory repudiation discharges a contract....

Question 17

Any breach allows the nonbreaching party to cancel the contract.

Accepted Answer

Not every breach allows the nonbreaching party to cancel the contract. The severity and materiality of the breach are important factors to consider. Minor breaches may not justify a cancellation of the entire contract.

Question 18

Lark enters into a contract to mine gravel 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
A)repudiated.
B)breached.
C)performed.
D)rescinded.

Accepted Answer

If the parties perform their duties as outlined in the contract, it will be discharged. Therefore, the duties must be performed according to the terms of the contract.

Question 19

Anything less than substantial performance is a material breach of contract.

Accepted Answer

Substantial performance refers to fulfilling the major requirements of the contract, and anything less than that would be considered a material breach. Therefore, the statement is true.

Question 20

A party's refusal to perform his or her contractual obligations is a rescission.

Accepted Answer

A rescission occurs when both parties agree to cancel a contract, not when one party unilaterally refuses to perform their obligations. A party's refusal to perform is a breach of contract.

Quiz 15: Performance and Discharge

Daphne agrees to buy Eduardo's Chef's Table restaurant on the condition that Financial Credit Company approves the financing.This approval is