Deck 17: A: Performance and Discharge

Question 1

If a contract requires performance to the personal satisfaction of a party,the party to be satisfied must act honestly and in good faith.

Answer 1

True

Question 2

A contract is discharged when its specific subject matter is destroyed.

Answer 2

True

Question 3

Intentional failure to comply with the terms of a contract is a breach.

Answer 3

False

Question 4

Any breach allows the nonbreaching party to cancel the contract.

Question 5

Implied conditions are found in the express language of an agreement.

Question 6

After a contract is made,a supervening event may make performance impossible and discharge the contract.

Question 7

Performance that provides a party with most of the benefits of a con?tract,in spite of a deviation from the terms,is substantial performance.

Question 8

A contractual obligation may not be discharged through novation.

Question 9

Performance can be accomplished by tender.

Question 10

A condition that must be fulfilled before a party's performance can be required is a concurrent condition.

Question 11

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

Question 12

Anticipatory repudiation is a material breach of a contract.

Question 13

A contract is not discharged by a foreseeable circumstance no matter how difficult or costly the performance may become.

Question 14

Performance of an accord discharges an original contractual obligation.

Question 15

Any breach discharges the nonbreaching party from the contract.

Question 16

To rescind a contract,the parties must make a second agreement that satisfies the legal requirements for a contract.

Question 17

Complete performance occurs when conditions in a contract are fully satisfied.

Question 18

In most contracts,promises of performance are expressly qualified.

Question 19

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

Question 20

The most common way to discharge a contract is by performance.

Question 21

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.

Question 22

Dinah contracts to repair a rip in a ventilation duct for Ernie's Café for $100.If Dinah does not per?form,Ernie must pay

A)$100.
B)$50.
C)$10.
D)$0.

Question 23

Mona and Nero want to discharge their contract by executing a new agreement with performance different from what they originally promised.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 original contract.

Question 24

Straitedge Toolmakers,Inc. ,contracts to sell its assets to Trulevel Hardware Corpo?ration.Before either party has performed,rescission of this con?tract requires

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

Question 25

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.

Question 26

Fact Pattern 17-B2
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
Refer to Fact Pattern 17-B2.Bell's repudiation is most likely

A)a material breach.
B)a minor breach.
C)Chris's breach.
D)no breach.

Question 27

On April 1,KO Contractors,Inc. ,contracts to build a store for Lo-Cost Housewares at a specific location in Metro City.On May 1,Metro changes its zoning law to prohibit the construction of a commercial building at that location.Lo-Cost files a suit against KO.In this situation

A)KO is in breach of contract.
B)Lo-Cost is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Question 28

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.Lacy's refusal to make further payments is most likely

A)a material breach.
B)complete performance.
C)excused by Kip's failure to fix the roof.
D)substantial,but not complete,performance.

Question 29

Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest.Later,the state legislature passes a law lowering the maximum permissible rate of interest to 15 per?cent.Blueberry's best argument for avoiding payment to County Credit 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 30

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

A)absolute.
B)conditional.
C)licentious.
D)operational.

Question 31

Juana contracts to sell Ignacio her MP3 player for $30.This contract will be fully discharged when Juana and Ignacio

A)agree to sign a bill of sale.
B)exchange the player for the $30.
C)sign a receipt.
D)shake hands and go their separate ways.

Question 32

Rachel operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pure Metals,Inc. ,in six months.An un?fore?seen shortage of scrap steel suddenly develops,making it impossible for Rachel to fulfill the contract for less than $500 per ton.Rachel's best de?fense 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 33

Candace enters into a contract to pay Parker for a business survey and review of Candace's competitors,which Parker delivers on June 1.Candace's offer,on the same date,to pay Parker is

A)tandem.
B)tonnage.
C)tender.
D)tinder.

Question 34

Tanya contracts with Suite Condos Corporation to buy a unit in Suite's Bayview Tower at a premium for its view of River Bay.Unforeseeably,the town of River Bay changes its zoning law.Resort Hotels,Inc. ,constructs River Bay Resort,blocking what would have been Tanya's view.Tanya's best argument for a change in the Suite contract or its price is

A)frustration of purpose.
B)objective impossibility of performance.
C)anticipatory repudiation.
D)commercial impracticability.

Question 35

Fact Pattern 17-B2
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1.One month before the term begins,Bell is underbid by a competitor and loses a major client,Delta Hospital Center.Bell now refuses to hire Chris.
Refer to Fact Pattern 17-B2.Under the circumstances,with respect to damages,Chris can

A)bring an action immediately.
B)bring an action only after the contract's two-year term begins.
C)bring an action only after the contract's two-year term ends.
D)do nothing.

Question 36

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

A)canceled.
B)compromised.
C)altered.
D)performed.

Question 37

Estimable Builders,Inc. ,contracts with Beach Investment Company to build a Cool Juice 'n Fruit stand near Divers' Beach.The work is to begin on April 1 and be done by June 1,so that the stand can open for the summer.Estimable does not finish until June 14.The stand opens but Beach Investment loses two weeks' early summer sales due to the delay.Is Beach Investment's duty to pay for the construction of the stand discharged?

Question 38

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.

Question 39

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums,Inc.Shady Grove is entitled to

A)damages.
B)nothing more.
C)repudiation.
D)alteration.

Question 40

Melissa agrees to work as Garry's personal accountant for one year but dies in the sixth month of the contract.Melissa's estate

A)is discharged from any contractual liability.
B)must find a competent accountant to fulfill the contract.
C)must pay damages.
D)must refund any money paid to Melissa on the contract.

Question 41

Fred,the owner and manager of Green Grocer Store,contracts to buy sixty crates of fresh peaches from Holly,the owner and manager of Ideal Farms.Suppose that Holly dies before she can harvest and deliver the peaches.How does Holly's death affect their contract? If Holly does not die,but does not deliver,and Fred suffers a loss,is there any limit to the time within which Fred can file a suit against Holly for breach of con?tract? If so,how might Fred extend this time?