Question 1

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.

Accepted Answer

Both the Code and the Restatement have provisions for discharge of contractual duties in cases involving commercial impracticability.

Question 2

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible.

Accepted Answer

The Restatement and the Code have not made the traditional test of objective impossibility more stringent; rather, they recognize that performance is excused when it is objectively impossible due to circumstances such as death or incapacity of a person necessary for performance, or the destruction of a specific thing necessary for performance, without necessarily requiring that performance be "actually or literally impossible."

Question 3

An implied-in-fact condition and constructive condition are the same.

Accepted Answer

Implied-in-fact conditions and constructive conditions are different. An implied-in-fact condition is one that is not expressly stated in the contract but is intended by both parties to be part of the agreement. A constructive condition, on the other hand, is one that is imposed by law to ensure fairness or prevent unjust enrichment.

Question 4

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

Accepted Answer

A concurrent condition means that both parties have obligations to perform at the same time.

Question 5

There is only one way to completely and legally discharge a contract.

Accepted Answer

There are multiple ways to completely and legally discharge a contract, including performance by the parties, mutual agreement, conditions precedent, impossibility of performance, and operation of law.

Question 6

Breach of a contractual promise and failure of a condition have fundamentally the same effect.

Accepted Answer

Breach of a contractual promise results in remedies for the aggrieved party, such as damages, while failure of a condition can lead to the termination of the contract or discharge of the parties from their obligations, without necessarily implying fault or giving rise to remedies.

Question 7

Cora and Bruce have an executory contract for the sale of some goods. Cora files for bankruptcy and is then discharged by the bankruptcy court. Cora has no obligation to perform under the contract.

Accepted Answer

When a person files for bankruptcy, their obligations under executory contracts are terminated. Therefore, Cora has no obligation to perform under the contract with Bruce.

Question 8

Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house.

Accepted Answer

This statement is a correct statement of the law of substitution, which allows for one form of performance to substitute for another in satisfaction of a debt or obligation. Until the substituted performance is completed, the debt remains outstanding.

Question 9

After the coronation of Edward VII did not take place on the scheduled date and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose was added to the law of contracts.

Accepted Answer

This statement is true. The doctrine of frustration of purpose was added to the law of contracts in response to the numerous suits filed after the coronation of Edward VII did not take place on the scheduled date.

Question 10

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party.

Accepted Answer

A contract may include a condition that the duty of one party to accept and pay for the performance of the other party is dependent upon the approval of a third party. This is often seen in contracts for the sale of goods or services where a buyer may require approval from a lender or other financial institution before agreeing to the contract.

Question 11

A novation is an agreement between two parties to have one substitute for the other in a contract.

Accepted Answer

A novation involves three parties: the original contracting parties and the new party. It is an agreement where the new party replaces one of the original parties in the contract, taking on their rights and obligations.

Question 12

A change in Sal's financial condition, making it impossible for him to fulfill a contractual obligation, would be
considered objective impossibility, which would discharge his contractual duty.

Accepted Answer

Objective impossibility refers to situations where it is literally impossible for anyone to perform the duty, such as when the subject matter of the contract is destroyed or the performance becomes illegal. Financial difficulty does not constitute objective impossibility.

Question 13

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2005 V­6 motor provided that Phelps' Garage approves the quality of the motor." This provision:

Accepted Answer

This provision creates an express condition which must be met before Walter's duty to pay arises. The provision states that Phelps' Garage must approve the quality of the motor before Walter is obligated to pay Faye. Once the condition is met, Walter's duty to pay becomes enforceable.

Question 14

A(n) is a substituted contract that involves an agreement among three parties to substitute a new promisee in
Place of an existing promisee, or to replace an existing promisor with a new one.

Accepted Answer

A novation is a substituted contract that involves the agreement of three parties to replace an existing promisee or promisor with a new one. An accord is an agreement between two parties to satisfy a existing obligation in a different way. Satisfaction occurs when the parties have fulfilled the terms of an existing contract. Mutual rescission occurs when both parties agree to terminate a contract.

Question 15

Belinda has a household insurance policy, which requires that she notify the insurance company within thirty days of any loss before she is eligible to receive payment for her loss. The notification requirement is a condition precedent to the insurance company's obligation to perform, even though the notification must occur subsequent to the loss.

Accepted Answer

The statement accurately describes a condition precedent in an insurance policy.

Question 16

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:

Accepted Answer

This provision is an express condition because it is explicitly stated in the contract that William must furnish a certificate of occupancy before Angela is required to pay.

Question 17

A(n) is a contract between a promisee and a promisor by which the promisee agrees to accept and the
Promisor agrees to render a substituted performance in satisfaction of an existing contractual duty.

Accepted Answer

The answer of A(n) is a contract between a promisee...

Question 18

An intentional breach of contract is generally held to be material.

Accepted Answer

An intentional breach of contract is considered material because the party who has been wronged can prove that the other party made a deliberate attempt to break the terms of the contract. This can lead to legal consequences, such as the right to terminate the agreement and seek damages for any losses incurred.

Question 19

Forrest has a contract with Denzel to construct a new condominium complex. The contract provides that Forrest must furnish a certificate of occupancy and conformity with the local fire code before Denzel has an obligation to pay. The furnishing of the certificate is an implied in fact condition subsequent to the construction of the building.

Accepted Answer

The furnishing of the certificate is a condition precedent to Denzel's obligation to pay, not a condition subsequent. Conditions precedent must be fulfilled before a party's contractual obligation becomes due.

Question 20

Which of the following is a contract with a condition subsequent?

Accepted Answer

The answer of Which of the following is a contract...

Quiz 17: Performance, Breach, and Discharge

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible.

An implied-in-fact condition and constructive condition are the same.

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

There is only one way to completely and legally discharge a contract.

Breach of a contractual promise and failure of a condition have fundamentally the same effect.

Cora and Bruce have an executory contract for the sale of some goods. Cora files for bankruptcy and is then discharged by the bankruptcy court. Cora has no obligation to perform under the contract.

Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house.

After the coronation of Edward VII did not take place on the scheduled date and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose was added to the law of contracts.

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party.

A novation is an agreement between two parties to have one substitute for the other in a contract.

A change in Sal's financial condition, making it impossible for him to fulfill a contractual obligation, would be considered objective impossibility, which would discharge his contractual duty.

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2005 V6 motor provided that Phelps' Garage approves the quality of the motor." This provision:

A(n) is a substituted contract that involves an agreement among three parties to substitute a new promisee in Place of an existing promisee, or to replace an existing promisor with a new one.

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:

A(n) is a contract between a promisee and a promisor by which the promisee agrees to accept and the Promisor agrees to render a substituted performance in satisfaction of an existing contractual duty.

An intentional breach of contract is generally held to be material.

Which of the following is a contract with a condition subsequent?

Quiz 17: Performance, Breach, and Discharge

The Code and the Restatement have no provisions for discharge of contractual duties in cases involving commercial impracticability.

The Restatement and the Code have made the traditional test of objective impossibility more stringent by requiring that the performance must be actually or literally impossible.

An implied-in-fact condition and constructive condition are the same.

Concurrent conditions occur when mutual duties of performance are to take place simultaneously.

There is only one way to completely and legally discharge a contract.

Breach of a contractual promise and failure of a condition have fundamentally the same effect.

Cora and Bruce have an executory contract for the sale of some goods. Cora files for bankruptcy and is then discharged by the bankruptcy court. Cora has no obligation to perform under the contract.

Marie owes Nathan $300 and the parties agree that Marie will paint Nathan's house in satisfaction of the debt. The debt is not discharged until Marie performs the substituted agreement by painting Nathan's house.

After the coronation of Edward VII did not take place on the scheduled date and parties who had entered into contracts in anticipation of the event filed numerous suits, the doctrine of frustration of purpose was added to the law of contracts.

A contract may condition the duty to accept and pay for the performance of the other party upon the approval of a third party.

A novation is an agreement between two parties to have one substitute for the other in a contract.

A change in Sal's financial condition, making it impossible for him to fulfill a contractual obligation, would be considered objective impossibility, which would discharge his contractual duty.

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2005 V­6 motor provided that Phelps' Garage approves the quality of the motor." This provision:

A(n) is a substituted contract that involves an agreement among three parties to substitute a new promisee in Place of an existing promisee, or to replace an existing promisor with a new one.

William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is:

A(n) is a contract between a promisee and a promisor by which the promisee agrees to accept and the Promisor agrees to render a substituted performance in satisfaction of an existing contractual duty.

An intentional breach of contract is generally held to be material.

Which of the following is a contract with a condition subsequent?

A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks $1,200 for a 2005 V6 motor provided that Phelps' Garage approves the quality of the motor." This provision: