Deck 20: Third Parties and Discharge of Contracts

Question 1

What term describes a party benefitting under a contract without being a party to that contract?

A) Extra beneficiary
B) Bonus beneficiary
C) Additional beneficiary
D) Third-party beneficiary

Answer 1

Third-party beneficiary

Question 2

What term describes a third-party whose benefit was the purpose of the contract?

A) Primary beneficiary
B) Intended beneficiary
C) Deliberate beneficiary
D) Intentional beneficiary

Answer 2

Intended beneficiary

Question 3

What term describes a person transferring his or her contractual right by assignment?

A) Assignor
B) Assignee
C) Promisor
D) Promisee

Answer 3

Assignor

Question 4

What is an example of duties that cannot be delegated without the consent of the person for whom the duty is to be performed?

A) Mechanic changes oil in a car
B) Plumber fixes a leaky faucet
C) Fashion designer makes a wedding dress
D) Housemaid sweeps floors

Question 5

What term describes an agreement where an original party to a contract is replaced by a new party?

A) Replacement
B) Novation
C) Innovation
D) Substitution

Question 6

What is a way to end contractual obligations?

A) Assignment
B) Breach of contract
C) Delegation
D) All of the above

Question 7

What is an example of ending of contractual obligations?

A) Parties agree to end the contract altogether
B) Parties do as they agreed to do under the terms of the contract
C) All of the above
D) None of the above

Question 8

What term describes the situation when an essential part of the contract has not been performed?

A) Material breach
B) Considerable breach
C) Substantial breach
D) Significant breach

Question 9

What term describes the offering to the other party of the money owed under the contract?

A) Tender of performance
B) Tender of payment
C) Substantial performance
D) Liquidated damages

Question 10

What term describes a situation when parties agree to perform in a different manner from the one agreed upon originally?

A) Accord
B) Assignment
C) Ad damnum
D) Acceptance

Question 11

What are possible actions of parties to a contract when there is a dispute about the contract?

A) Agree to end the contract
B) Agree to perform in a different manner
C) All of the above
D) None of the above

Question 12

Under what circumstance may some courts discharge a contract?

A) Difficulty
B) Extremely high cost
C) Impracticability
D) Parties changed their minds

Question 13

What contract may be discharged due to impossibility of performance?

A) Dancer, who made a contract to perform, broke his leg
B) Antic car, that had to be transported to a client, was destroyed in a fire
C) Architect, who made a contract to design the house, died
D) All of the above

Question 14

What does the word "toll" mean?

A) Bar
B) Take away
C) Defeat
D) All of the above

Question 15

Under what circumstance is the statute of limitations put on hold?

A) Plaintiff cannot afford to hire an attorney
B) Plaintiff does not know the law
C) Plaintiff is out of state
D) Plaintiff is trying to have an out-of-court settlement

Question 16

What term describes the situation when one of the parties fails to carry out the terms of the contract?

A) Nudum pactum
B) Promissory estoppel
C) Accord and satisfaction
D) Breach of contract

Question 17

Whenever a contract is breached, what is a duty of the injured party to the breaching party?

A) Mitigate the damages
B) Specific performance
C) Delegation
D) Assignment

Question 18

What term describes damages agreed upon by the parties at the time of the contract's creation?

A) Calculated
B) Liquidated
C) Pre-determined
D) Anticipated

Question 19

What term describes damages awarded to the plaintiff as a measure of punishment for the defendant's egregious acts related to breaching the contract?

A) Exemplary
B) Punitive
C) All of the above
D) None of the above

Question 20

What term describes damages that resulted from the consequences of the breach?

A) Consequential
B) Nominal
C) Actual
D) Compensatory

Question 21

To have standing to sue under a contract, the third-party beneficiary must be an incidental beneficiary.

Question 22

Receiving benefits by a contract performance gives all beneficiaries all legal rights under the contract.

Question 23

Parties entering into contracts receive rights and acquire duties.

Question 24

Persons delegating their duties under a contract are not liable under the contract for the performance.

Question 25

There are several ways to end contractual obligations.

Question 26

Performance of the contract ends parties' contractual obligations.

Question 27

At common law, to do absolutely everything that the parties agreed to do was known as complete performance.

Question 28

The time for performance of a contract is always important to the parties.

Question 29

When there is a dispute about a contract, the parties may agree to perform in a different manner from the one agreed upon originally.

Question 30

For accord and satisfaction to be legitimate, there must be a legitimate dispute about contractual terms.

Question 31

A contract is never discharged due to death or incapacity of a person who was obligated to perform personal services.

Question 32

Destruction of the exact subject matter of the contract cannot be used as a reason for discharge of performance due to impossibility.

Question 33

Bankruptcy is a legal process for discharging contractual obligations of debtors.

Question 34

Statutes of limitations run while a plaintiff is under a disability.

Question 35

Some states allow to bring a suit at the moment of an anticipatory breach.

Question 36

When the plaintiff's losses are a foreseeable result of the breach of contract, the plaintiff may win a suit for consequential damages.

Question 37

Someone who is benefited by a performance of the contract without being a party to a contract is called a(n) ________ beneficiary.

Question 38

The transfer of a contract duty is called a(n) ________.

Question 39

The person to whom the right of a contract is transferred is called the ________.

Question 40

One of the primary ways to end contractual obligation is ________ of law.

Question 41

To bring a suit against another for breach of contract, the party must make ________.

Question 42

When the agreed-upon performance is completed, a(n) ________ occurs.

Question 43

Contracts that are impossible to perform may be discharged by a defense called ________.

Question 44

Debtors may have their contractual obligations discharged by filing of ________.

Question 45

The injured party may bring lawsuit for ________ when a breach of contract occurs.

Question 46

Damages compensating the plaintiff for actual losses resulting from the breach of contract are called ________.

Question 47

Match the terms with their descriptions:

-Time is of the essence

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 48

Match the terms with their descriptions:

-Incidental beneficiary

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 49

Match the terms with their descriptions:

-Assignment

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 50

Match the terms with their descriptions:

-Impossibility

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 51

Match the terms with their descriptions:

-Tender of performance

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 52

Match the terms with their descriptions:

-Delegation

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 53

Match the terms with their descriptions:

-Performance

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 54

Match the terms with their descriptions:

-Privity of contract

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 55

Match the terms with their descriptions:

-Statute of limitations

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 56

Match the terms with their descriptions:

-Nominal damages

A) Method of discharging a contract which is impossible to perform
B) Method of discharging a contract by operation of law
C) Time is critical
D) Transfer of a contract right
E) Damages in name only
F) Legal relationship existing between contracting parties
G) Offering to do that which one has agreed to do under the terms of the contract
H) One of the principal ways of ending contractual obligations
I) Someone who is indirectly benefited by a contract
J) Transfer of a contract duty

Question 57

Define a third-party beneficiary. Compare and contrast assignment and delegation.

Question 58

Define performance. Discuss material breach, substantial performance, and the time for performance of a contract.

Question 59

Define damages. Compare and contrast punitive damages and consequential damages.

Question 60

Bill offered Diana to buy his bicycle for $500, and Diana agreed to pay for it. Bill owed $500 to Miranda, so he and Miranda agreed that Miranda will receive $500 from Diana. Diana also made a contract with Mr. White to dance at his wedding. After Diana broke her leg, she transferred her obligations under both contracts: she made an agreement with Romeo that he would buy Bill's bicycle and dance at Mr. White's wedding. Discuss what transfers of contractual rights and duties happened in this scenario.

Question 61

Steve made contracts with Allan, Bob, and Clara, to be performed within a month. Allan promised to plant 100 tulips in Steve's garden, Bob promised to deliver a specific antic table, and Clara promised to buy Steve's coin collection. In a month, Allan planted 100 tulips in Steve's garden. Bob did not deliver the table because it had been destroyed by the earthquake. Clara did not pay for Steve's coin collection because she filed for bankruptcy. Discuss what contracts can be discharged and for what reason.