Question 1

Which of the following correctly expresses an important difference between a condition precedent and a condition subsequent?

Accepted Answer

A condition precedent is a condition that must occur before the parties are obligated to perform under a contract. If the condition precedent does not occur, the parties are not bound to perform. On the other hand, a condition subsequent is a condition that terminates the parties' obligations to perform if it occurs. Thus, the occurrence of a condition subsequent terminates the contract, while the occurrence of a condition precedent keeps the contract alive.

Question 2

Which of the following refers to discharge of a contract due to a situation that makes performance of that contract unreasonably expensive, injurious, or costly to a party?

Accepted Answer

This refers to the doctrine of commercial impracticability which allows for the discharge of a contract due to unforeseen circumstances that make performance excessively difficult or costly. Rescission refers to the cancellation of a contract by mutual agreement, while condition precedent and condition subsequent both refer to specific conditions that must be met for a contract to be valid or fulfilled.

Question 3

A failure to deliver goods is sufficient to be considered as an exception to the perfect tender rule according to the United Nations Convention on the International Sale of Goods (CISG).

Accepted Answer

Under the CISG, a failure to deliver goods is not automatically considered an exception to the perfect tender rule; the breach must be fundamental to justify avoidance of the contract.

Question 4

Which of the following statements is true about the sovereign acts doctrine?

Accepted Answer

The sovereign acts doctrine protects the government in a subsequent suit for breach of contract if a new law of general application indirectly affects a government contract. It does not allow one Congress to bind a later Congress or Congress to pass laws deliberately targeting its existing contractual obligations.

Question 5

If the subject matter of a contract is destroyed, the contract is discharged because performance is impossible.

Accepted Answer

When the subject matter of a contract is destroyed, it becomes impossible to perform the contract. In such cases, the contract would be discharged due to impossibility of performance.

Question 6

Death or illness of a promisor whose personal performance is required to fulfill the contract when no substitute is possible can be used as a defense to nonperformance.

Accepted Answer

The death or illness of a promisor whose personal performance is required and no substitute is possible can be used as a defense to nonperformance. This is known as impossibility of performance.

Question 7

A party can be discharged through novation even if all parties in the contract do not provide consent.

Accepted Answer

Novation requires the consent of all parties involved in the contract, as it involves replacing an existing contract with a new one.

Question 8

The Uniform Commercial Code (UCC) allows a buyer to accept any number of units of the goods and reject the rest if the goods fail to conform to the contract in any respect.

Accepted Answer

According to UCC § 2-601, if goods fail to conform to the contract in any respect, the buyer may reject the whole, accept the whole, or accept any commercial unit or units and reject the rest.

Question 9

In terms of contract discharge, distinguish between a contract that is subject to a condition precedent and one that is subject to a condition subsequent.

Accepted Answer

The answer of In terms of contract discharge, distinguish between...

Question 10

Explain the standard of substantial performance as it relates to contract performance and discharge.

Accepted Answer

The answer of Explain the standard of substantial performance as...

Question 11

In case of a material breach of contract, the injured party can terminate the contract and sue to recover damages.

Accepted Answer

This is a correct statement according to contract law principles.

Question 12

Bob signed a contract to donate to a charity every month. He included a clause that the contract would be terminated if the charity did not function properly. What restriction has Bob established in this contract?

Accepted Answer

Bob has established a condition subsequent in this contract, meaning the contract will be terminated if a specific event (the charity not functioning properly) occurs after the contract has been formed.

Question 13

A material breach of contract is usually unintentional and not substantial.

Accepted Answer

A material breach of contract is usually intentional and substantial, meaning it goes to the core of the contract and significantly affects the obligations of one or more parties.

Question 14

What are the conditions that must be met to show an exception to the perfect tender rule under the United Nations Convention on Contracts for the International Sale of Goods (CISG)?

Accepted Answer

The answer of What are the conditions that must be...

Question 15

According to the sovereign acts doctrine, the government can be held liable for breach of contract due to legislative or executive acts.

Accepted Answer

According to the sovereign acts doctrine, the government cannot be held liable for breach of contract due to legislative or executive acts, as these acts are considered sovereign in nature and therefore immune from legal action.

Question 16

Complete performance is the standard used by courts today to determine if a contract has been breached.

Accepted Answer

Courts typically use the standard of "substantial performance" rather than "complete performance" to determine if a contract has been breached. Substantial performance means that the essential terms of the contract have been fulfilled, even if there are minor deviations.

Question 17

Tom has agreed to the terms of a contract that obligates him to paint Dorothy's house within thirty days. Before he began painting, Dorothy's house was destroyed by a tornado. Which of the following statements is true about Tom's contract obligations?

Accepted Answer

The destruction of Dorothy's house by a tornado makes it impossible for Tom to fulfill the contract. Therefore, the contract is discharged by impossibility of performance. Tom is no longer obligated to paint Dorothy's house or any future residence.

Question 18

Novation changes the contractual duties of the substituted party.

Accepted Answer

The answer of Novation changes the contractual duties of the...

Question 19

When a contractual agreement is formed between two parties, but if one party cannot perform because a previously unforeseeable circumstance makes performance impossible, which party is relieved of its duties?

Accepted Answer

When a previously unforeseeable circumstance makes performance impossible, the contractual agreement would be discharged, and both parties would be relieved of their duties. This is known as the doctrine of impossibility or impracticability of performance.

Question 20

Joe and Lucas enter into a contractual agreement in which Lucas promises to deliver a unique antique artifact to Joe in the next ten days, but the artifact is stolen before Lucas could fulfill his promise. Which of the following statements is true about this scenario?

Accepted Answer

Lucas was unable to perform his promise due to the theft of the artifact, which was out of his control. This falls under the doctrine of impossibility of performance, which discharges the contract. Lucas is not held liable for any damages to Joe in this scenario.

Quiz 10: The Law of Contracts and Sales Ii