Question 1

Belle enters into a contract to subdivide and sell housing lots in Colin'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 conditioned upon the event of Dell City annexing the property within the next year. Therefore, her duty to perform is conditional.

Question 2

Fact Pattern 17-A2
Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples.
-Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is
A) breached.
B) discharged.
C) not affected.
D) suspended.

Accepted Answer

The strike has temporarily prevented delivery of the apples, but the contract has not been terminated or ended. Therefore, the contract is suspended until delivery can be made.

Question 3

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

The term "tender" refers to an offer to perform, when the offering party is ready, willing, and able to do so. Therefore, the best choice is C. The other answer choices are not applicable in this scenario.

Question 4

Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by
A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) an alteration of the contract.

Accepted Answer

A novation is a process of replacing one party to a contract with another party. It requires the mutual agreement of all three parties involved in the original contract. Therefore, a novation is the best choice to replace Kelly with Lucy as a party to the contract. Options A, B, and D do not involve replacing a party in the contract.

Question 5

Commercial Construction, Inc. (CCI), contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation
A) CCI is in breach of contract.
B) Rita's is in breach of contract.
C) the contract is discharged.
D) the contract is suspended.

Accepted Answer

Rita's is in breach of contract because the bank being closed is not a valid excuse for failing to pay on the due date. Unless there was a specific provision in the contract regarding bank closures, Rita's is responsible for finding another means of payment on time.

Question 6

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15. The delivery and installation of the sink and the payment of the price are examples of
A) conditions precedent.
B) concurrent conditions.
C) conditions subsequent.
D) implied conditions.

Accepted Answer

The delivery and installation of the sink and the payment of the price are concurrent conditions, meaning they are to be performed simultaneously. Elton must deliver and install the sink on May 15 and Florida must pay the $150 price on May 15. Neither party's obligation is conditional on the other's performance.

Question 7

Real Cheap Painters, Inc., agrees to paint Quint's house, using a particular brand of "discount" paint. Real Cheap completes the job but uses a different brand of discounted paint. This is most likely
A) an absolute excuse for Quint's refusal to pay.
B) a material breach.
C) complete performance.
D) substantial performance.

Accepted Answer

The answer of Real Cheap Painters, Inc., agrees to paint...

Question 8

Lark enters into a contract to mine limestone 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

The contract involves a clear agreement between Lark and Milena to mine limestone, sell it, and share the profits. These are enforceable obligations that can be performed, and the default expectation is that each party would fulfill their duties under the agreement. Therefore, the duties under this contract are expected to be performed.

Question 9

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Eden challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clyde's contract with Deephole is
A) breached.
B) discharged.
C) not affected.
D) suspended.

Accepted Answer

A court order halting the dig means that the contract can no longer be performed as agreed upon. This results in discharge of the contract, as both parties are released from their obligations due to an unforeseen circumstance outside of their control.

Question 10

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 a...

Question 11

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to
A) an accord.
B) rescission.
C) novation.
D) nothing more.

Accepted Answer

Even-Bilt Construction has performed completely, hence Discount E-Sales is not entitled to any remedy. The contract has been fully executed.

Question 12

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 absences and inadequate management of investments constitute a material breach of his employment contract with Mutual Company. A material breach is a substantial failure to perform a duty under a contract, which usually gives the non-breaching party the right to terminate the contract and seek damages.

Question 13

Fact Pattern 17-A2
Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples.
-Refer to Fact Pattern 17-A2. When bad weather destroys Eve's Garden's apple crop, the obligation to deliver apples to Hill & Dale is
A) breached.
B) discharged.
C) not affected.
D) suspended.

Accepted Answer

The obligation to deliver apples to Hill & Dale is discharged due to the destruction of the apple crop by bad weather, which is an occurrence beyond the control of Eve's Farm and Garden Company. This is an example of frustration of purpose, which discharges the party from performing their obligations under the contract.

Question 14

Fact Pattern 17-A2
Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples.
-Refer to Fact Pattern 17-A2. When the market price for apples exceeds the price in the contract with Hill & Dale, Evelyn decides not to deliver the apples. Evelyn's contract with Hill & Dale is
A) breached.
B) discharged.
C) not affected.
D) suspended.

Accepted Answer

When Evelyn decides not to deliver the apples despite the contract, it is a breach of contract. Hill & Dale can sue for damages caused by the breach.

Question 15

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6 a.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

Safe-T Guard Services' performance will be considered complete if they fulfill the terms of the contract by providing security services for the entire duration without any incidents of vandalism or theft.

Question 16

Fact Pattern 17-A2
Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples.
-Refer to Fact Pattern 17-A2. Evelyn dies before the apples are delivered to Hill & Dale. Evelyn's contract with Hill & Dale is
A) breached.
B) discharged.
C) not affected.
D) suspended.

Accepted Answer

The answer of Fact Pattern 17-A2
Evelyn, who owns and operates...

Question 17

Quito contracts with Rewind Graphix, Inc., to pay $5,000 for its work on the animated film "Song." After Rewind performs, they sign an accord, in which Quito promises to pay $4,000 within ten days instead of $5,000 later. But Quito does not pay. Rewind can sue Quito under
A) neither the accord nor the original obligation.
B) the accord only.
C) the accord or the original obligation.
D) the original obligation only.

Accepted Answer

Rewind can sue Quito under both the accord and the original obligation. The original obligation was the initial agreement to pay $5,000 for the work on the animated film. Although an accord was made to pay $4,000 instead of $5,000 within ten days, Quito did not fulfill this agreement. Therefore, Rewind has the option to sue for either the original amount or the amount agreed upon in the accord.

Question 18

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching. The state legislature subsequently passes a law making telepathic personal coaching illegal. This law will
A) discharge the contract.
B) fulfill the contract.
C) not affect the contract.
D) require immediate performance of the contract.

Accepted Answer

The contract will be discharged due to impossibility of performance caused by the new law. It is illegal for Ruth to fulfill the contract and therefore the contract is invalidated.

Question 19

Frisco agrees to lease an apartment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is canceled ten days before its scheduled date. The contract
A) is discharged.
B) is not affected.
C) is postponed until another event is scheduled.
D) must be performed immediately.

Accepted Answer

The contract is discharged because the purpose of the lease, which was to see the president's speech, can no longer be fulfilled due to the cancellation of the event.

Question 20

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is
A) a concurrent condition.
B) a condition precedent.
C) a condition subsequent.
D) an implied condition.

Accepted Answer

The condition of Valley Credit Union approving the financing is a condition precedent because it must be fulfilled before Jen is obligated to fulfill her promise to buy the Dirt Bike business.

Quiz 17: Performance and Discharge

Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is

Fact Pattern 17-A2 Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. -Refer to Fact Pattern 17-A2. A strike delays delivery of the apples by ten days. Evelyn's contract with Hill & Dale is

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

Jane and Kelly want Lucy to replace Kelly as a party to their contract. They can best accomplish this by

Commercial Construction, Inc. (CCI) , contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1. On June 1, Rita's bank is closed, and for this reason, Rita's claims it cannot pay on time. In this situation

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15. The delivery and installation of the sink and the payment of the price are examples of

Real Cheap Painters, Inc., agrees to paint Quint's house, using a particular brand of "discount" paint. Real Cheap completes the job but uses a different brand of discounted paint. This is most likely

Lark enters into a contract to mine limestone 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

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Eden challenges the dig as an illegal gravel pit. A court orders a halt to the dig. Clyde's contract with Deephole is

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to

Fact Pattern 17-A2 Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. -Refer to Fact Pattern 17-A2. When bad weather destroys Eve's Garden's apple crop, the obligation to deliver apples to Hill & Dale is

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m. and 6 a.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

Fact Pattern 17-A2 Evelyn, who owns and operates Eve’s Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. -Refer to Fact Pattern 17-A2. Evelyn dies before the apples are delivered to Hill & Dale. Evelyn's contract with Hill & Dale is

Quito contracts with Rewind Graphix, Inc., to pay $5,000 for its work on the animated film "Song." After Rewind performs, they sign an accord, in which Quito promises to pay $4,000 within ten days instead of $5,000 later. But Quito does not pay. Rewind can sue Quito under

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching. The state legislature subsequently passes a law making telepathic personal coaching illegal. This law will

Frisco agrees to lease an apartment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is canceled ten days before its scheduled date. The contract

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is