Deck 16: Performance and Discharge

Question 1

Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.

Answer 1

True

Question 2

Performance can be accomplished by tender.

Answer 2

True

Question 3

If a contract condition is not satisfied, the obligations of the parties are not discharged.

Answer 3

False

Question 4

A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.

Question 5

A buyer who offers to pay for goods has tendered payment but cannot yet demand delivery.

Question 6

The most common way to terminate contractual duties is by repudiation.

Question 7

There is no difference between complete and substantial performance.

Question 8

Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

Question 9

A party who in good faith performs substantially all of the terms of a contract can enforce the contract against the other party.

Question 10

In most contracts, promises of performance are conditioned.

Question 11

Concurrent conditions exist in a contract when each party's performance is conditioned on the other's performance.

Question 12

Any breach discharges the breaching party from the contract.

Question 13

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

Question 14

A contract promise that is absolute must be performed, or the party who made the promise will be in breach.

Question 15

A contract is substantially performed when one party receives most of the benefits promised in the deal.

Question 16

If a condition to a lease for university housing that the tenant must be a student is not satisfied, the landlord's obligations under the lease are discharged.

Question 17

There is only one way to discharge a contract-all parties must fulfill their contractual duties.

Question 18

When a party's performance is perfect, it is complete.

Question 19

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

Question 20

A seller who places goods at the disposal of a buyer has tendered delivery but cannot yet demand payment.

Question 21

Don enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation that the structure's condition is not substandard. If the appraiser deems the condition to be substandard, the parties' obligations will be

A) discharged.
B) breached.
C) altered.
D) performed.

Question 22

Any breach of contract allows the breaching party to negotiate to receive additional benefits in order to remedy the breach.

Question 23

Most contracts need to be performed to the personal satisfaction of each contracting party.

Question 24

Only contracts that have been fully executed can be rescinded by agreement.

Question 25

Range Free Farms enters into a contract to sell Sara's Market a truckload of eggs. Range Free fails to deliver. Sara's Market

A) must pay for the eggs to avoid a breach of contract.
B) does not have to pay for the eggs because Range Free did not perform.
C) must pay for the eggs, but can sue Range Free for breach of contract.
D) does not have to pay for the eggs, but then cannot sue Range Free.

Question 26

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Question 27

An accord and its satisfaction do not discharge an original contractual obligation.

Question 28

The most common way to terminate contractual duties is by

A) agreement.
B) repudiation.
C) failure of a condition.
D) performance.

Question 29

Any breach of contract effectively excuses both parties from performing.

Question 30

Any contract can be discharged by agreement of the parties.

Question 31

Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.

Question 32

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Question 33

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Question 34

Anticipatory repudiation discharges a contract.

Question 35

Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.

Question 36

Contractual obligations will be discharged if unforeseeable circumstances make it impossible to attain the deal's purpose.

Question 37

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

A) absolute.
B) conditional.
C) substantial.
D) commercially impracticable.

Question 38

Build-It Construction LLC contracts to build a warehouse for Corporate Storage Inc. Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

A) conditioned on the occurrence of an event.
B) conditioned on the nonoccurrence of an event.
C) conditioned on Build-It's performance.
D) not conditioned.

Question 39

For mutual rescission of a contract to take place, both parties must provide additional consideration.

Question 40

When an anticipatory repudiation occurs, it is treated as a material breach of a contract.

Question 41

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are

A) avoided.
B) breached.
C) conditioned.
D) performed.

Question 42

Sara enters into a contract to sell her condo to Ted for a certain price on a specific day. On that day, Sara unconditionally offers to perform. Sara's offer

A) conditions Ted's promise to pay for the property.
B) constitutes tender of performance.
C) excuses the parties' performance under the contract.
D) suspends the parties' contractual obligations.

Question 43

Gliders, LLC, and Hang Time, Inc., are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) specific performance.

Question 44

Gil agrees to buy Howe's Bakery on the express condition that the bakery's suppliers extend the same credit terms to Gil that the suppliers currently extend to Howe. This approval is

A) a concurrent condition.
B) a condition precedent.
C) a condition subsequent.
D) an implied condition.

Question 45

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

A) execute a bill of sale.
B) exchange the horse for the money.
C) sign a receipt.
D) agree that the deal is fair.

Question 46

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

A) conditional.
B) complete.
C) material.
D) substantial.

Question 47

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

A) conditional.
B) complete.
C) material.
D) substantial.

Question 48

A novation requires

A) the existence of a previous, valid obligation.
B) consideration greater than $5,000.
C) performance of the original contract by all of the parties.
D) an accord and satisfaction.

Question 49

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

A) a condition.
B) a novation.
C) a breach of contract.
D) an operation of law.

Question 50

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) specific performance.

Question 51

Iggy and Jon sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jon's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

A) conditions precedent.
B) concurrent conditions.
C) conditions subsequent.
D) implied conditions.

Question 52

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Café LLC. If Restoration completes most of the work promised in the contract, its performance will be

A) conditional.
B) complete.
C) material.
D) substantial.

Question 53

Gina enters into a contract to buy a commercial building from Hope for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

A) breached.
B) discharged.
C) altered.
D) unaffected.

Question 54

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez

A) must pay Josh the contract price.
B) must pay Josh half of the contract price as a compromise.
C) must pay Josh only the cost of his materials.
D) does not have to pay Josh.

Question 55

Security Company enters into a contract with Tower Apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract is

A) conditioned.
B) terminated.
C) excused.
D) suspended.

Question 56

Architects LLC enters into a contract with Barns & Silos Inc. to provide designs for a certain number of farm buildings. Architects provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architects' performance is most likely

A) a material breach.
B) a minor breach.
C) a reasonable breach.
D) no breach.

Question 57

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This

A) discharges the employer from the contract.
B) has no effect on the employer's performance.
C) changes the employer's duties under the contract.
D) suspends the employer's duty to perform.

Question 58

Dairy Farm enters into a contract with Edible Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. Edible files a suit against Dairy. A breach occurred when Dairy

A) entered into the contract.
B) decided that it was not advantageous to fulfill the contract.
C) failed to perform as promised.
D) was sued by Edible.

Question 59

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

A) discharges the original contract.
B) has no effect on Juan's performance.
C) changes Isidro's duties under the contract.
D) suspends both parties duties to perform.

Question 60

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is

A) breached.
B) discharged.
C) rescinded.
D) suspended.

Question 61

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This does not require

A) the existence of a previous, valid obligation.
B) agreement by all the parties to a new contract.
C) performance of the original contract by all of the parties.
D) a new, valid contract.

Question 62

Discharging a contract by executing a new agreement with performance different from what was originally promised is

A) a material breach.
B) an accord and satisfaction.
C) a novation.
D) substantial performance.

Question 63

Fern, who owns and operates Garden Farm, agrees to sell Harvest Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Fern's crops, the obligation to deliver produce to Harvest is

A) breached.
B) discharged.
C) not affected.
D) suspended.

Question 64

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that

A) performance of the contract is commercially impracticable.
B) payment of the loan would force the debtor into bankruptcy.
C) the law has rendered performance of the contract illegal.
D) the specific subject matter of the contract has been destroyed.

Question 65

Floors n' More, Inc., hires Gordon to renovate Floors n' Mores showroom. Gordon submits plans that Floors n' More approves. Gordon completes the major reconstruction, paints the interior, and buys the fixtures and furnishings. Floors n' More rejects some of these items because they do not match the plans, and subsequently refuses to allow Gordon to finish the work or to collect payment. Could Gordon sue successfully for payment for the entire contract?

Question 66

Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit

A) must be filed within ten to twenty years, depending on state law.
B) can no longer be brought.
C) can be filed within four years after Kelly decides to sue.
D) must be filed between four and five years after Kelly decides to sue.

Question 67

City Delivery, Inc., enters into a contract to deliver furniture to Damien's house with payment due on July 4. On July 4, Damien's bank is closed, and for this reason, he claims that he cannot pay on time. In this situation

A) the bank is liable for breach.
B) Damien is in breach.
C) the contract is discharged.
D) the contract is suspended.

Question 68

Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc., in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian's best defense against performing the contract would be that

A) performance of the contract is commercially impracticable.
B) procuring the steel would force the seller into bankruptcy.
C) the law has rendered performance of the contract illegal.
D) the specific subject matter of the contract has been destroyed.

Question 69

New Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Pete challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with New Builders is

A) breached.
B) discharged.
C) not affected.
D) suspended.

Question 70

Rene contracts with Scot to pay him $5,000 for repairs to Rene's lake cabin. After Scot performs, Rene tells him that she cannot pay him in full immediately. They sign an agreement in which Rene promises to pay $2,500 now instead of $5,000 later. This is

A) a mutual agreement to rescind.
B) an accord and satisfaction.
C) a novation.
D) specific performance.

Question 71

Lana agrees to work as Michelle's personal assistant for one year but dies in the ninth month of the contract. Lana's death

A) discharges the contract.
B) breaches the contract.
C) requires Lana's estate to pay damages.
D) suspends performance of the contract.

Question 72

Quest Resources, Inc., contracts with Ring Communications Corporation (RCC) for RCC to design and build an all-weather communications system for Quest's field operations. RCC builds the system, but it functions effectively only in good weather. Is this a breach of the contract? If so, what remedies does Quest have?