Question 1

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates.CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is
A)complete.
B)substantial.
C)tender.
D)absolute.

Accepted Answer

CrossCountry's offer to perform is a tender since it is an offer to perform once Discount Outlet Stores designates the cargo to be transported. Tender is an offer to perform made by one party to another, indicating willingness to perform if the other party accepts the offer. CrossCountry has not yet started to perform and is waiting for Discount Outlet Stores to designate the cargo to be transported.

Question 2

App Developers, Inc.(ADI), enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm.To fulfill the contract, ADI hires Max and ten other student interns.With respect to the contract between ADI and Carmen, Max is
A)an intended beneficiary.
B)an incidental beneficiary.
C)a delegate.
D)an assignee.

Accepted Answer

Max is an incidental beneficiary because he is not directly involved in the contract between ADI and Carmen, nor is he intended to benefit from it. His involvement is merely a result of ADI's decision to hire him to fulfill their contractual obligations.

Question 3

Drake enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over.When the results do not match this promise, Drake learns that Eve does not have access to any unique software and files a suit against her, alleging fraud.Proof of an injury is required to
A)recover damages.
B)rescind the contract.
C)undo Eve's influence.
D)punish the defendant.

Accepted Answer

In order to recover damages in a case of fraud, the plaintiff must prove that they suffered some kind of injury or loss as a result of the defendant's actions. Simply proving that Eve lied about the stock-trading algorithm is not enough to recover damages; Drake must also show how he was harmed by her misrepresentation.

Question 4

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is
A)a delegation.
B)an assignment.
C)a third party beneficiary contract.
D)prohibited.

Accepted Answer

The transfer of Kendra's right to payment under the contract to County Bank is an example of an assignment. Kendra is transferring her rights to receive payment from Loren to another party, County Bank. This is allowed under contract law unless specifically prohibited in the contract.

Question 5

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed.Dry Gulch hires Fernando to do the job for $2,000.Dry Gulch may recover from Elliot
A)nothing.
B)compensatory damages.
C)consequential damages.
D)nominal damages.

Accepted Answer

The answer of Dry Gulch Farms hires Elliot to repair...

Question 6

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded
A)if the mistake involves a material fact.
B)if the mistake involves any fact.
C)if the mistake is one of value or quality.
D)under no circumstances.

Accepted Answer

A contract with AgriCo-op can be rescinded if the mistake involves a material fact because a material fact is a critical aspect of a contract that can significantly impact the parties' willingness to enter into the agreement. Mistakes of value or quality are not typically grounds for rescission. Therefore, option C is incorrect. Option B is incorrect because not all mistakes, such as mistakes that do not affect the essence of the agreement, can be used to support rescission. Finally, option D is incorrect because, as explained, a mistake involving a material fact can provide the grounds for rescission.

Question 7

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant.Garland knowingly misrepresents a number of material features about the restaurant and the business.When Jules discovers the truth, he can
A)not rescind the contract because Jules assumed the risk that the bargain would prove to be different from what he thought.
B)rescind the contract on the basis of fraud.
C)rescind the contract on the basis of mistake.
D)rescind the contract on the basis of undue influence.

Accepted Answer

Jules can rescind the contract on the basis of fraud because Garland knowingly misrepresented material features about the restaurant and the business, and Jules relied on those misrepresentations when entering into the contract. It is not a case of assumption of risk, mistake or undue influence.

Question 8

Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1.One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation.Business Computer now refuses to hire Chandra.Business Computer's repudiation of its contract to employ Chandra is most likely
A)a material breach.
B)a minor breach.
C)a condition subsequent.
D)not a breach.

Accepted Answer

Business Computer Solutions entered into a binding contract with Chandra to employ her as an instructor for two years, beginning June 1. However, before the term began, Business Computer lost a major client and refused to hire Chandra. This action constitutes a material breach of the contract since Business Computer did not fulfill its obligation to provide employment to Chandra as per the agreed terms.

Question 9

Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1.Herb's offer, on the same date, to pay Idris is is
A)a concurrent condition.
B)a novation.
C)tender.
D)mutual rescission.

Accepted Answer

Tender is an offer to perform an obligation, such as payment, under a contract. Herb's offer to pay Idris upon delivery of the survey is a tender of payment.

Question 10

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract.They subsequently agree that High Riders Inc.should take Gliding Light's place and assume all of its rights and duties under the contract.This is
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)a settlement agreement.

Accepted Answer

This situation describes a novation, where all parties agree to substitute one party with another and transfer all rights and obligations under the existing contract to this new party.

Question 11

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic 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)a settlement agreement.

Accepted Answer

Rescission of a contract before performance requires a mutual agreement to rescind, as stated in choice A. An accord and satisfaction refers to a situation where parties agree to settle a pre-existing dispute, which is not applicable in this scenario. Novation and settlement agreement involve replacing or modifying a contract, which is not the case here as the contract has not been performed yet. Therefore, the best choice is A.

Question 12

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.Even-Bilt completely performs.Discount E-Sales is entitled to
A)damages.
B)nothing more.
C)to be excused from performance.
D)suspend performance.

Accepted Answer

Even-Bilt has completely performed its obligations as per the contract, therefore, Discount E-Sales is not entitled to anything more.

Question 13

Illya owes Jenny $1,000.In a separate deal, Kasey owes Illya $1,000.Illya unconditionally assigns his rights in the deal with Kasey to Jenny.Illya's right to the $1,000 is then
A)unchanged.
B)extinguished.
C)incidental.
D)assigned to a court.

Accepted Answer

By unconditionally assigning his rights in the deal with Kasey to Jenny, Illya has essentially transferred his right to the $1,000 owed to him by Kasey to Jenny. Therefore, Illya's right to the $1,000 is extinguished and he no longer has any claim to it.

Question 14

Emil enters into a contract to buy Foley's cultivated bottomland and hill and bench acreage if County AgriCredit will lend Emil the funds to pay for the land.Emil's duty to perform is
A)absolute.
B)conditional.
C)manifest
D)irresolute

Accepted Answer

Emil's duty to perform is conditional upon County AgriCredit lending him the funds to pay for the land. If he cannot obtain the financing, he is not obligated to go through with the purchase.

Question 15

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded
A)if AgriCo-op knew or should have known of the mistake.
B)if Lewis's supervisor did not know of the mistake.
C)if Silos knew or should have known of the mistake.
D)under no circumstances.

Accepted Answer

A contract with AgriCo-op that includes the mistake can be rescinded because AgriCo-op knew or should have known of the mistake. The party who caused the mistake or knew of the mistake cannot enforce the contract. Therefore, option A is the correct choice.

Question 16

Water Rites, LLC, enters into a contract to site and dig a well for Rancho Verde.Water Rites completely performs.Rancho Verde is entitled to
A)a discount.
B)rescission.
C)novation.
D)nothing more.

Accepted Answer

Water Rites has completely performed the contract by siting and digging the well as agreed. Rancho Verde is entitled to nothing more as the terms of the contract have been fulfilled.

Question 17

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell.Regarding this agreement, a court would likely
A)enforce it.
B)not enforce it.
C)reform it to reflect the true market value of the property.
D)order the parties to renegotiate the price.

Accepted Answer

This agreement is an example of duress, as Seth is using a threatening statement to pressure Tia into selling her house for less than its worth. Therefore, the court would likely not enforce the agreement as it was not entered into voluntarily by Tia.

Question 18

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting.Forest Hills is entitled to
A)damages.
B)nothing more.
C)to be excused from performance.
D)suspend performance.

Accepted Answer

When a party substantially performs their contract, the other party is entitled to damages for the part of the contract that was not fully performed. This is to compensate for the slight deviation from the agreed terms.

Question 19

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded
A)if the error was made inadvertently and without gross negligence.
B)if the error was made intentionally or negligently.
C)if the error was made intelligently but distractedly.
D)under no circumstances.

Accepted Answer

Rescission of a contract is generally possible if there was a mistake made inadvertently and without gross negligence. This means that if the mistake was made intentionally or negligently, rescission may not be an option. Additionally, if the mistake was made intelligently but distractedly, this would not typically warrant rescission. Therefore, choice A is the best option.

Question 20

Rashi contracts to work for Social Data Analysis Corporation during June for $4,500.On May 31, Social Data cancels the contract.Rashi declines a job of a different type and rank with Tech Collection, Inc., which would have paid $3500.Rashi files a suit against Social Data.As compensatory damages, Rashi can recover
A)$4,500.
B)$4,000.
C)$500.
D)$0.

Accepted Answer

The answer of Rashi contracts to work for Social Data...

Quiz 11: Contract Performance, Breach, and Remedies

CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates.CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is

App Developers, Inc.(ADI) , enters into a contract with Carmen, the chief executive officer of SalesCorp, to create an app for the firm.To fulfill the contract, ADI hires Max and ten other student interns.With respect to the contract between ADI and Carmen, Max is

Loren and Kendra enter into a contract for the distribution of Loren's produce to local restaurants for which he agrees to pay Kendra.Kendra transfers her right to payment under the contract to County Bank.This transfer is

Dry Gulch Farms hires Elliot to repair its irrigation system on site on a certain date for $2,500, but Elliot does not show up as agreed.Dry Gulch hires Fernando to do the job for $2,000.Dry Gulch may recover from Elliot

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded

Garland induces Jules to enter into a contract for the purchase of a Chef's Burger House restaurant.Garland knowingly misrepresents a number of material features about the restaurant and the business.When Jules discovers the truth, he can

Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1.Herb's offer, on the same date, to pay Idris is is

Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract.They subsequently agree that High Riders Inc.should take Gliding Light's place and assume all of its rights and duties under the contract.This is

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corpo-ration.Before either party has performed, rescission of this con-tract requires

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.Even-Bilt completely performs.Discount E-Sales is entitled to

Illya owes Jenny $1,000.In a separate deal, Kasey owes Illya $1,000.Illya unconditionally assigns his rights in the deal with Kasey to Jenny.Illya's right to the $1,000 is then

Emil enters into a contract to buy Foley's cultivated bottomland and hill and bench acreage if County AgriCredit will lend Emil the funds to pay for the land.Emil's duty to perform is

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded

Water Rites, LLC, enters into a contract to site and dig a well for Rancho Verde.Water Rites completely performs.Rancho Verde is entitled to

Seth offers to buy a house from Tia for less than Tia paid for it, stating that he would "hate to see anything bad happen to Tia or her house." Tia agrees to sell.Regarding this agreement, a court would likely

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting.Forest Hills is entitled to

Refer to Fact Pattern 11-1.Any contract with AgriCo-op that includes the mistake may be rescinded