Question 1

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates. Lake Port's offer to perform, when Lake Port is ready, willing, able to do so, is
A) complete.
B) substantial.
C) tender.
D) tough.

Accepted Answer

Lake Port's offer is a tender, which is an unconditional offer to perform. Once Max designates the cargo, Lake Port is ready, willing, and able to load the barges.

Question 2

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 subdivide and sell the housing lots is based on the condition that Dell City annexes the property within the next year. Therefore, her duty to perform is conditional. If the condition is not met, then she is not obligated to perform.

Question 3

Fact Pattern 17-A1 
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 17-A1. Neil's performance is most likely
A) a material breach.
B) a minor breach.
C) Mutual's breach.
D) no breach.

Accepted Answer

Neil's frequent absence without explanation and inadequate management of investments would likely constitute a material breach of his employment contract with Mutual Company. A material breach is a significant violation of a contract that goes to the heart of the agreement and affects the overall value of the contract for the non-breaching party. Neil's breach would deprive Mutual of the benefit of having a competent investment manager and could result in significant financial losses.

Question 4

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 pur?chase price on July 31. The delivery of the washing machine and the payment of $500 are ex?amples of
A) conditions precedent.
B) concurrent conditions.
C) conditions subsequent.
D) illegal conditions.

Accepted Answer

The delivery of the washing machine and payment of the purchase price are concurrent conditions, meaning they are to occur simultaneously. Neither party is required to perform until the other party is ready to perform as well.

Question 5

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be
A) absolute.
B) complete.
C) material.
D) substantial.

Accepted Answer

Substantial performance refers to a situation where a party has completed most of the work promised in a contract, but there may be some minor deviations from the contract's terms. In this scenario, if BRI completes most of the work promised, but there are some minor deviations, then it can be said that BRI has substantially performed its obligations under the contract.

Question 6

City Restoration Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to
A) damages.
B) nothing.
C) specific performance.
D) substitute performance.

Accepted Answer

As City Restoration Corporation substantially performed its contract with Downtown Apartments, Inc., Downtown may be entitled to damages for any losses or damages suffered as a result of any minor deviations from the contract or any breaches by City Restoration Corporation. Specific performance or substitute performance may not be necessary or achievable in this situation.

Question 7

Lon enters into a contract to mine limestone in Mica's quarry, sell it, and share the profits on its sale with Mica. If the duties under this contract are discharged like those under most contracts, the duties will be
A) assigned.
B) breached.
C) performed.
D) rescinded.

Accepted Answer

If the duties under the contract are discharged like most contracts, then they will be performed. This means that Lon will mine the limestone, sell it, and share the profits with Mica, as agreed upon in the contract.

Question 8

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been
A) absolute.
B) complete.
C) conditional.
D) substantial.

Accepted Answer

The answer of Safe-T Guard Services enters into a contract...

Question 9

Fact Pattern 17-A1 
Mutual Company enters into a contract to employ Neil as an investment manager for two years. During the first year, Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 17-A1. With respect to Mutual's duties, Neil's performance most likely
A) discharges Mutual from the contract.
B) has no effect on Mutual's performance.
C) increases Mutual's duties under the contract.
D) suspends Mutual's duty to perform.

Accepted Answer

The answer of Fact Pattern 17-A1 
Mutual Company enters into...

Question 10

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is
A) absolute.
B) conditional.
C) licentious.
D) operational.

Accepted Answer

Yummy's duty to perform is conditional upon Xavier maintaining his business license. If Xavier fails to maintain his license, Yummy is no longer obligated to support the franchise. Therefore, Yummy's duty to perform is not absolute.

Question 11

Candy enters into a contract to pay Dino for a business survey and review of Candy's competitors, which Dino agrees to deliver by July 1. Candy's offer, on the specified date, to pay Dino is
A) complete.
B) substantial.
C) tender.
D) tough.

Accepted Answer

Candy's offer to pay on the specified date shows that she is ready to pay the full amount of the contract, which makes her offer complete. However, the term "tender" is specifically used for an offer to pay in a contract, which makes option C the best choice. "Substantial" and "tough" do not accurately describe Candy's offer, as they do not reflect the act of offering to pay.

Question 12

Yvon enters into a contract to manage the operations of Zack's bank for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be
A) canceled.
B) delegated.
C) litigated.
D) performed.

Accepted Answer

The contract between Yvon and Zack's bank is a service contract where Yvon agreed to manage the operations for one year with the possibility of renewal. Since the contract is discharged like most contracts, it will be performed. This means that Yvon will fulfill his obligations as agreed upon in the contract during the agreed-upon time period, and if there are no breaches or issues, the contract will end as scheduled.

Question 13

Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a dif?ferent brand of discounted paint. This is most likely
A) a complete excuse for Quinn's refusal to pay.
B) a material breach.
C) complete performance.
D) substantial performance.

Accepted Answer

Substantial performance occurs when a party fulfills enough of its contract obligations to warrant payment, even if there are minor deviations from the terms, such as using a different brand of paint.

Question 14

Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is
A) a concurrent condition.
B) a condition precedent.
C) a condition subsequent.
D) a solvent condition.

Accepted Answer

A condition precedent is a condition that must be met before a contract can become binding. In this case, the approval of financing from First State Bank is a condition that must be met before Don can proceed with purchasing the bicycle store from Ed.

Question 15

Bob signs a five-year contract with CSB, a television station, to host a TV show. One year later, CSB re?places Bob with a younger host. Bob is paid, but does not appear on TV. Bob sues CSB for breach of contract. The court is most likely to rule in favor of
A) Bob, because he lost the opportunity to build and maintain his pro?fessional marketability.
B) Bob, only if he was at the top of the ratings when he was replaced.
C) CSB, because it continues to pay Bob.
D) CSB, because there is no breach of contract.

Accepted Answer

Bob can argue that the breach of contract caused him to lose the opportunity to build and maintain his professional marketability, which would have allowed him to continue receiving income in the future. This argument could lead the court to rule in favor of Bob and award him damages. The fact that CSB continues to pay Bob does not necessarily mean there is no breach of contract, as the terms of the contract may allow for such payments in certain circumstances. The top ratings are also not necessarily the only relevant factor in this case, as the contract may specify other criteria for evaluating Bob's performance.

Question 16

Quality Contractors contracts to build a warehouse for Retail Sales Company. Quality completely performs. Retail Storage is entitled to
A) damages.
B) rescission.
C) specific performance.
D) nothing more.

Accepted Answer

Retail Sales Company is not entitled to anything more because Quality Contractors has completely performed their contractual obligations.

Question 17

Fact Pattern 17-B1 
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
-Refer to Fact Pattern 17-B1. Kip's late attempt to fix the roof is most likely
A) a material breach.
B) complete performance.
C) excused by Lacy's refusal to make further payments.
D) substantial, but not complete, performance.

Accepted Answer

The answer of Fact Pattern 17-B1 
Kip sells an apartment...

Question 18

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

Accepted Answer

The lease agreement states that any change in the zoning law that affects the lease will cause its termination, which creates a condition subsequent. This means that the lease will continue unless a certain event (in this case, a change in zoning law affecting the lease) occurs, which would then terminate the lease. Therefore, the adoption of an affecting zoning classification by the zoning board satisfies the condition subsequent.

Question 19

Dina contracts to repair a computer for Earl for $100. If Dina does not per?form, Earl must pay
A) $100.
B) $50.
C) $10.
D) $0.

Accepted Answer

If Dina does not perform, she has breached the contract and Earl would not owe her any payment. Therefore, the answer is D.

Question 20

Jill contracts to sell Ken her MP3 player for $50. This contract will be fully discharged when Jill and Ken
A) agree to sign a bill of sale.
B) exchange the player for the $50.
C) sign a receipt.
D) shake hands and go their separate ways.

Accepted Answer

The contract states that Jill will sell her MP3 player to Ken for $50. The contract will be fully discharged once the exchange is made, meaning that Jill gives Ken the MP3 player and he gives her the $50. The other options (agreeing to sign a bill of sale, signing a receipt, or shaking hands) may be helpful in documenting the transaction, but they do not fully discharge the contract as the exchange of the MP3 player and $50 is the primary obligation of both parties.

Quiz 17: Performance and Discharge

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates. Lake Port's offer to perform, when Lake Port is ready, willing, able to do so, is

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

Eton and Fiona sign a contract by which Eton agrees to deliver a washing machine on July 31 in exchange for Fiona's promise to pay the $500 pur?chase price on July 31. The delivery of the washing machine and the payment of $500 are ex?amples of

Building Restoration, Inc. (BRI) , enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

City Restoration Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to

Lon enters into a contract to mine limestone in Mica's quarry, sell it, and share the profits on its sale with Mica. If the duties under this contract are discharged like those under most contracts, the duties will be

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6a.m. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is

Candy enters into a contract to pay Dino for a business survey and review of Candy's competitors, which Dino agrees to deliver by July 1. Candy's offer, on the specified date, to pay Dino is

Yvon enters into a contract to manage the operations of Zack's bank for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be

Protective Finishes, Inc. (PFI) , agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a dif?ferent brand of discounted paint. This is most likely

Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is

Bob signs a five-year contract with CSB, a television station, to host a TV show. One year later, CSB re?places Bob with a younger host. Bob is paid, but does not appear on TV. Bob sues CSB for breach of contract. The court is most likely to rule in favor of

Quality Contractors contracts to build a warehouse for Retail Sales Company. Quality completely performs. Retail Storage is entitled to

Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination. Union City's zoning board adopts an affecting zoning classification. This adoption satis?fies

Dina contracts to repair a computer for Earl for $100. If Dina does not per?form, Earl must pay

Jill contracts to sell Ken her MP3 player for $50. This contract will be fully discharged when Jill and Ken