Deck 20: Discharge and Remedies

Question 1

Restitution is the return of any property given up under the contract.

Answer 1

True

Question 2

Parties can discharge their duty under a contract by tendering performance.

Answer 2

True

Question 3

The court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring when one party thought there was an enforceable contract,but an enforceable contract does not actually exist.

Answer 3

True

Question 4

There are two primary kinds of performance.

Question 5

Liquidated damages will be enforced based upon the free-will concept of contracts,even if the liquidated damages amount is unreasonable.

Question 6

Contracts containing conditions affecting the performance obligations of the parties are called ________ contracts.

A)Conditional
B)Voidable
C)Unreasonable
D)Void
E)Uncertain

Question 7

Completion of all of the terms of a contract is required for substantial performance.

Question 8

A material breach does not discharge the non-breaching party from his obligations under the contract.

Question 9

The court may award the plaintiff nominal damages in a case where no actual damages result from the breach of a contract.

Question 10

How may a party's contractual obligations be discharged?

A)Performance or the failure of a condition to occur are the only ways a party's contractual obligations may be discharged.
B)Performance is the only way a party's contractual obligations may be discharged.
C)Discharge may occur through material breach by one or both parties.
D)Operation of law is the only way a party's contractual obligations may be discharged.
E)Discharge may not occur through the failure of a condition to occur.

Question 11

Which of the following is true regarding types of contractual conditions?

A)There is only one type of condition: precedent.
B)There are two types of conditions: precedent and subsequent.
C)There are three types of conditions: precedent,subsequent,and concurrent.
D)There are at least ten types of conditions,and their identification varies based upon the subject matter.
E)There are four types of conditions: precedent,subsequent,concurrent,and timeliness.

Question 12

Hector's house was damaged by fire.He obtained three independent appraisals to repair the damage,and submitted the appraisals to his insurer,informing the insurer that he was willing to accept use of the lowest appraisal as a basis for his insurance reimbursement.The adjuster for the insurance company asked Hector to submit to an oral examination under oath concerning the fire,but Hector refused.The insurance company denied reimbursement based on Hector's refusal to provide the examination under oath.If the court follows the case in the text Hamilton v.State Farm Fire & Casualty Insurance Company,will Hector recover under the policy?

A)No,the insurer will prevail based on Hector's refusal to provide an examination under oath regardless of whether or not it can establish actual prejudice.
B)No,the insurer will prevail if it can establish actual prejudice based on Hector's refusal to provide an examination under oath.
C)Yes,Hector will prevail only if he is able to establish that the insurer was not prejudiced by his refusal to provide an examination under oath;and,assuming he is able to do so,he will be allowed to recover penalties and attorney fees.
D)Yes,Hector will prevail without any obligation to establish that the insurer was not prejudiced by his refusal to provide an examination under oath,and he will also be allowed to recover penalties and attorney fees.
E)Yes,Hector will prevail even if he refuses to provide an examination under oath,but he will not be allowed to recover penalties or attorney fees.

Question 13

There are two types of conditions that can be placed on contracts and affect a party's duty to perform the promise agreed to in the contract.

Question 14

Rewriting a contract to reflect what the parties had agreed on is referred to as rescission.

Question 15

Under ordinary circumstances,a party's duty to perform a promise agreed to in a contract is absolute.

Question 16

When there is a substitution of a party to a contract,it is called rescission.

Question 17

Contractual conditions may be expressly inserted into the contract by the parties but may not be implied by law.

Question 18

Compensatory damages are frequently awarded damages.

Question 19

An order requiring that the breaching party fulfill the terms of the agreement is called specific performance.

Question 20

When a party's obligations under a contract are terminated,the party is said to be ________.

A)Discharged
B)Recoursed
C)Terminated
D)Completed
E)Finished

Question 21

Carrie and Peter enter into a contract in which Carrie agrees to wash Peter's car as long as Peter tutors Carrie's son in math during the entire time Carrie is washing the car.This is an example of which type of conditional contract?

A)Implied condition
B)Condition precedent
C)Condition subsequent
D)Condition concurrent
E)The contract is not conditional.

Question 22

How do parties generally discharge their obligations in most situations where there is a contract?

A)Discharge by performance
B)Discharge by absolution
C)Discharge by finishing
D)Discharge by reason
E)Discharge by tender.

Question 23

Juan and Carlos enter into a contract which states: "Carlos will paint Juan's bedroom in Juan's house white and Juan promises to pay Carlos $100 upon completion." Which is an example of an implied condition?

A)That Carlos will use white paint when painting Juan's bedroom.
B)That Juan will pay Carlos upon completion of the painting.
C)That Juan will allow Carlos access to his bedroom
D)That Carlos will paint Juan's bedroom.
E)That Juan will pay Carlos $100.

Question 24

A condition is a particular event that must occur in order for a party's duty to arise.

A)Subsequent
B)Certain
C)At large
D)Concurrent
E)Precedent

Question 25

Yolef and Stacia enter into a contract for Stacia to cook a meal for Yolef and Yolef to pay Stacia $50.Yolef shows up at Stacia's house with $100.Yolef's actions are an example of:

A)Implied performance
B)Tender.
C)Incomplete performance.
D)Performance.
E)Complete performance.

Question 26

When all aspects of the parties' duties under the contract are executed perfectly,which of the following occurs?

A)Approved performance
B)Significant performance
C)Absolute performance
D)Complete performance
E)Substantial performance

Question 27

Conditions that are not explicitly stated,but are inferred from the nature and language of the contract are known as ________ conditions.

A)Concurrent
B)At large
C)Conditional
D)Implied
E)Express

Question 28

________ occurs when the parties' discharge their obligations by doing what they respectively agreed to do under the contract terms.

A)Discharge by absolution
B)Discharge by finishing
C)Discharge by performance
D)Discharge by reason
E)Discharge by tender

Question 29

Yolef and Stacia enter into a contract for Stacia to cook a meal for Yolef and Yolef to pay Stacia $50.Yolef shows up at Stacia's house with $100 and hands it to Stacia.Stacia refuses to accept the money.Yolef has:

A)Breached the contract
B)Performed subject to satisfaction of a contracting party
C)Not yet performed his duties under the contract
D)Substantially performed his duties.
E)Discharged his duties under the contract.

Question 30

Alexandra and Tomas enter into a contract in which Tomas agrees to install a new door for Alexandra and to install a new silver doorknob.Tomas installs the door,but silver doorknobs are out of stock so he finds a chrome knob that he believes looks silver and he installs it.Which of the following describes Tomas' performance of his duties?

A)Approved performance
B)Complete performance
C)Significant performance
D)Absolute performance
E)Substantial performance

Question 31

When each party's performance is conditioned on the performance of the other,which of the following conditions occur?

A)Precedent
B)Certain
C)Concurrent
D)Subsequent
E)At large

Question 32

What is the key difference between an express and an implied condition?

A)Implied conditions are clearly stated while express conditions are inferred.
B)Only express conditions are enforceable.
C)Only implied conditions are enforceable.
D)There are no differences;express and implied conditions are the same.
E)Express conditions are clearly stated while implied conditions are inferred.

Question 33

Which of the following describes conditions explicitly stated in the contract?

A)Concurrent
B)Implied
C)Express
D)Certain
E)Conditional

Question 34

Carrie and Peter enter into a contract in which Carrie agrees to wash Peter's car if Peter tutors her son in math and her son gets at least a B+.This is an example of which type of conditional contract?

A)Implied condition
B)Condition Concurrent
C)Condition Subsequent
D)Condition Precedent
E)The contract is not conditional.

Question 35

Carrie and Peter enter into a contract in which Carrie agrees to wash Peter's car once a week as long as Peter tutors Carrie's son in math and Peter never comes home with a grade below B+.This is an example of which type of conditional contract?

A)Condition Subsequent
B)Implied condition
C)Condition Concurrent
D)Condition Precedent
E)The contract is not conditional.

Question 36

An offer for the sale of a vehicle contained the condition that the buyer must return the signed offer with a $1,000 deposit upon acceptance.The requirement to send $1,000 is an example of what type of condition?

A)At large
B)Implied
C)Concurrent
D)Conditional
E)Express

Question 37

What is the difference between performance and tender?

A)Tender is substantial performance,while performance refers only to complete performance.
B)There is no difference.
C)Performance involves fulfilling contractual obligations,while tender involves offering performance.
D)Performance is required when there is a conditional contract,while tender is required for all other contracts.
E)Tender is required when there is a conditional contract,while performance is required for all other contracts.

Question 38

An offer of performance is known as when parties offer to perform and are ready,willing,and able to perform.

A)Implied acceptance
B)Showing
C)Completer
D)Tender
E)Offering

Question 39

A condition ________ is a future event that terminates the obligations of the parties when it occurs.

A)Concurrent
B)Certain
C)Precedent
D)Subsequent
E)At large

Question 40

Which of the following are the two primary kinds of performance?

A)Complete and significant
B)Complete and substantial
C)Partial and significant
D)Partial and complete
E)Partial and substantial

Question 41

Whenever a party fails to perform his or her obligations under the contract,a ________ occurs.

A)Breach
B)Misdeed
C)Break
D)Mistake
E)Split

Question 42

Damages that are designed to put the plaintiff in the position he or she would have been in had the contract been fully performed are known as which of the following?

A)Public
B)Legal
C)Punitive
D)Compensatory
E)Equitable

Question 43

In England,parties who had contracted for rooms along a parade route for a king's coronation were refunded their money when the coronation was canceled because the king became ill.Which of the following doctrines arose from this decision?

A)Alteration of the contract
B)Frustration of purpose
C)Anticipatory repudiation
D)Anticipatory renunciation
E)Commercial impracticability

Question 44

Which of the following is used as a basis for discharge by operation of law when performance is still objectively possible but would be extraordinarily injurious or expensive to one party?

A)Commercial impracticability
B)Frustration of purpose
C)Alteration of the contract
D)Anticipatory renunciation
E)Anticipatory repudiation

Question 45

If a woman is having a dress custom made for her,the ________ standard applies.

A)Objective satisfaction
B)Express satisfaction
C)Absolute satisfaction
D)Unbiased satisfaction
E)Subjective satisfaction

Question 46

Which of the following occurs when a contracting party refuses to complete the contract before the actual time of performance?

A)Delineated breach
B)Material breach
C)Substantial breach
D)Crossed breach
E)Immaterial breach

Question 47

Kelly contracts with Raphael for Raphael to bring a pony to her daughter's birthday party in exchange for $100.Kelly later learns her daughter is frightened of ponies.She contacts Raphael and Raphael agrees to bring a donkey to the party for $50 instead.Which of the following is true of the original agreement involving the pony and the $100?

A)It was discharged by novation
B)It was discharged by accord and satisfaction
C)It was breached
D)It was discharged by mutual rescission
E)It was discharged by substituted contract

Question 48

Which of the following is used when,by agreement,one of the parties substitutes a different performance for his or her original duty under the contract?

A)Novation
B)Substituted contract
C)Alteration
D)Mutual rescission
E)Accord and satisfaction

Question 49

Penelope agrees to sell 100 pounds of sugar to Vito in June.In May,Penelope discovers there is a major sugar shortage and she would have to pay her supplier 1000 times more than expected.She alerts Vito in May that she does not intend to sell him the sugar.This is an example of:

A)Advance repudiation
B)Preparatory refusal
C)Anticipatory repudiation
D)Tendered repudiation
E)Advance refusal

Question 50

Which of the following occurs when the parties to the agreement wish to replace one of the parties with a third party?

A)Mutual rescission
B)Accord and satisfaction
C)Novation
D)Substituted contract
E)Alteration

Question 51

Monetary damages are also referred to as damages.

A)Equitable
B)Legal
C)Public
D)Fair
E)Injunctiv e

Question 52

A contractual condition of satisfaction may be judged by either a[n] ________ or ________ standard.

A)Objective;absolute
B)Objective;subjective
C)Subjective;express
D)Objective;express
E)Absolute;express

Question 53

Which of the following is NOT a way to discharge contractual obligations by mutual agreement?

A)Accord and satisfaction
B)Anticipatory repudiation
C)Mutual rescission
D)Substituted contract
E)Novation

Question 54

A contractual condition of satisfaction is considered a[n] ________ condition that must be met before the other party's obligation to pay for the performance arises.

A)Conditional
B)Implied
C)Express
D)Partial
E)Concurrent

Question 55

Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and therefore rescind or cancel the contract?

A)Mutual rescission
B)Novation
C)Accord and satisfaction
D)Alteration
E)Substituted contract

Question 56

If a contract does not clearly specify that the satisfaction is to be personal,the standard applies.

A)Unbiased
B)Express
C)Subjectiv e
D)?Absolute
E)Objective

Question 57

Which term describes when a party unjustifiably fails to substantially perform his or her obligations under the contract?

A)Crossed breach
B)Immaterial breach
C)Material breach
D)Delineated breach
E)Substantial breach

Question 58

When the parties substitute a new agreement in place of the original,instead of canceling a contract,the parties have a[n] ________.

A)Alteration
B)Accord and satisfaction
C)Substituted contract
D)Novation
E)Mutual rescission

Question 59

Which of the following is NOT a way in which a contract may be discharged by operation of law?

A)Bankruptcy
B)Impossibility of performance
C)Commercial impracticability
D)Accord and satisfaction
E)Alteration of the contract

Question 60

A[n] ________ discharges the non-breaching party from his or her obligations under the contract.

A)Immaterial breach
B)Crossed breach
C)Material breach
D)Substantial breach
E)Delineated breach

Question 61

[Dream Home] Jacob finds a dream home on the lake.He wants to buy it but is unsure whether he can get a loan.He signs a contract with the seller that he will buy the home provided that he can obtain a loan.Jacob also includes a clause in the contract with the seller stating that if he loses his job before the date the purchase contract is signed,the seller will release him from any obligation.After obtaining a loan and buying the home,Jacob decides he wants to have new windows installed.He enters into a contract with a window contractor.The window contractor visits the home,but never finds Jacob there.The contractor makes several attempts to reach Jacob,but Jacob does not return phone calls and makes no attempt to assist the contractor in arranging the window installation.
The provision that the seller will release Jacob unless he is able to obtain a loan is a ________.

A)An exculpatory condition
B)A condition subsequent
C)A condition concurrent
D)A condition precedent
E)A bona fide condition

Question 62

College president Robert contracted with Denise to teach business law.Alice did a good job teaching,but became upset with Robert and refused to turn in her grades.What type of order should Robert seek to compel Denise to abide by her contract?

A)A consequential order
B)A demand order
C)An order of specific performance
D)A nominal order
E)A compensatory order

Question 63

The obligation to use reasonable efforts to minimize damage resulting from a breach is referred as the duty to ________ one's damages.

A)Mitigate
B)Reduce
C)Migrate
D)Remit
E)Reform

Question 64

________ is the termination of the contract,and ________ is the return of any property given up under the contract.

A)Rescission;compensation
B)Reformation;restitution
C)Rescission;restitution
D)Reformation;rescission
E)Rescission;reformation

Question 65

Caroline goes to work for a soft drink company who own a proprietary recipe.She signs a non-disclosure agreement.When she is fired,she threatens to go public with the company's recipe.The company wants to stop her.They should seek an)________.

A)Order for specific performance
B)Demand
C)Directive
D)Instructional edict
E)Injunction

Question 66

Which of the following requires that the breaching party fulfill the terms of the agreement?

A)Identified obligation
B)Specific performance
C)Absolute performance
D)Absolute obligation
E)Specific obligation

Question 67

The responsibility of Jacob to make arrangements to give the window installer access to the home is a[n] ________.

A)A condition precedent
B)An express condition
C)A condition subsequent
D)An acknowledged condition
E)An implied condition

Question 68

The damages parties specify in advance in a contract,in contemplation of a particular kind of breach,are known as ________ damages.

A)Punitive
B)Nominal
C)Liquidated
D)Repugnant
E)Consequential

Question 69

Which type of damages are foreseeable damages that result from special facts and circumstances arising outside the contract itself,and are within the contemplation of the parties at the time the contract was made?

A)Liquidated
B)Repugnant
C)Nominal
D)Punitive
E)Consequential

Question 70

Why did equitable remedies come into being?

A)To fashion remedies when the existing laws did not provide any adequate ones.
B)To provide a way to award certain parties liquidated damages.
C)To provide a way to award nominal damages.
D)To supplement compensatory damages with punitive damages.
E)To provide a way to award consequential damages.

Question 71

The provision that the seller will release Jacob from any obligation if he loses his job is a ________.

A)A condition concurrent
B)A condition subsequent
C)An exculpatory condition
D)A condition precedent
E)A bona fide condition

Question 72

[Bathroom Mess] For $300,000,Michael agreed to build a new home for Ashton,who is very picky.Michael built the home to Ashton's specifications with one exception: the faucets and flooring in the upstairs bathroom were not exactly what Ashton specified.That was a mistake on Michael's part,but he did not intentionally fail to follow the specifications.When Ashton saw the bathroom,she went ballistic and told Michael that she would not pay Michael anything for the house.It will take $300 to put in the correct faucets and flooring.Michael responded that he is willing to pay $300 to put Ashton in the position she would have been in had the correct faucets and flooring been used,but that is all he is willing to pay
Which statement is true regarding the breach,if any,that occurred between Michael and Ashton?

A)Michael substantially breached the contract.
B)Michael breached the contract.
C)Michael materially breached the contract.
D)Michael did not breach the contract.
E)Michael committed an anticipatory breach of the contract.

Question 73

Under the UCC,how are compensatory damages calculated when a seller breaches a contract for the sale of goods?

A)By calculating the value of the buyer's actual losses and adding punitive damages.
B)By the price the seller had agreed to sell the goods for,multiplied by 1.5 to account for the buyer's inconvenience.
C)By the liquidated damage clause,which the Uniform Commercial Code requires buyers and sellers must include in all contracts for the sale of goods.
D)By calculating the degree of inconvenience the buyer incurred as a result of the seller's breach of contract.
E)By finding the difference between what the buyer would have paid for goods under the contract and the amount the buyer will have to pay to obtain the goods from another seller.

Question 74

Which of the following types of damages are designed to punish the defendant and deter him and others from engaging in similar behavior in the future?

A)Consequential
B)Punitive
C)Repugnant
D)Nominal
E)Liquidated

Question 75

Which of the following is an order either forcing a person to do something or prohibiting a person from doing something?

A)Instructional edict
B)Injunction
C)Directive
D)Demand
E)Specification

Question 76

Equitable remedies,as applied in the U.S. ,developed from the court's authority in which country?

A)England
B)Portugal
C)Spain
D)France
E)Italy

Question 77

The court may award the plaintiff ________ damages when no actual damages result from the breach of a contract.

A)Punitive
B)Liquidated
C)Repugnant
D)Nominal
E)Consequential

Question 78

Which is an example of a situation in which the court would likely award punitive damages after a breach of contract?

A)When fraud occurred.
B)When only nominal damages occurred.
C)When anticipatory breach occurred
D)When substantial performance occurred.
E)When anticipatory repudiation occurred

Question 79

In the text case Thrifty Rent-A-Car System v.South Florida Transport,the plaintiffs sued the defendant,the operator of a Thrifty franchise,for amounts owed,but the defendant resisted payment on the basis that several hurricanes rendered the business operations commercially impractical.How did the court rule in the case?

A)The court ruled that the parties had to jointly bear the burden of bad weather and that 50% of what the defendant owed would be excused.
B)The court ruled that the plaintiffs were entitled to recover because the defendant failed to anticipatorily repudiate the contract.
C)The court ruled that the bad weather completely excused the defendant's performance.
D)The court ruled that the defendant was legally entitled to additional time in which to pay,but that the defendant would be required to pay all amounts owed.
E)The court ruled that the plaintiffs were entitled to recover for reasons including that the nonoccurrence of hurricanes was not a basic assumption of the agreement.

Question 80

Which is NOT an example of a common equitable remedy used today?

A)Injunction.
B)Rescission.
C)Orders for specific performance.
D)Restitution.
E)Anticipatory breach.