Question 1

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

Accepted Answer

Contracts containing conditions affecting the performance obligations of the parties are called conditional contracts. The conditions may be either implied by law or expressly inserted into the contract by the parties.

Question 2

Which of the following is true regarding types of conditions?

Accepted Answer

There are three types of conditions: precedent, subsequent, and concurrent.

Question 3

The most frequently awarded damages are compensatory damages.

Accepted Answer

The most frequently awarded damages are compensatory damages.

Question 4

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

Accepted Answer

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

Question 5

Which of the following conditions occur when each party's performance is conditioned on the performance of the other?

Accepted Answer

Concurrent conditions occur when each party's performance is conditioned on the performance of the other.

Question 6

Specific performance is an order requiring that the breaching party fulfill the terms of the agreement.

Accepted Answer

Specific performance is sometimes called specific enforcement. It is an order requiring that the breaching party fulfill the terms of the agreement.

Question 7

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

Accepted Answer

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

Question 8

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

Accepted Answer

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

Question 9

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

Accepted Answer

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

Question 10

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

Accepted Answer

Reformation occurs when a written contract does not reflect the parties' actual agreement or there are inconsistencies in the contract, and the written document is rewritten to reflect what the parties had agreed on.

Question 11

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

Accepted Answer

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

Question 12

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

Accepted Answer

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

Question 13

Which of the following is true regarding ways by which a party's contractual obligations may be discharged?

Accepted Answer

Discharge may occur through performance, the happening of a condition or its failure to occur, material breach by one or both parties, agreement of the parties, and operation of law.

Question 14

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

Accepted Answer

Express conditions are explicitly stated in the contract and are usually preceded by words such as conditioned on, if, provided that, or when.

Question 15

Which of the following describes conditions that are not explicitly stated but are inferred from the nature and language of the contract?

Accepted Answer

Implied conditions are those that are not explicitly stated but are inferred from the nature and language of the contract.

Question 16

When an enforceable contract does not exist,the court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring.

Accepted Answer

When an enforceable contract does not in fact exist, the court may grant a recovery based on quasi-contract; that is, the court may impose a contract like obligation on a party to prevent an injustice from occurring.

Question 17

Substitution of a party to a contract is called guaranteeing.

Accepted Answer

Sometimes the parties to the agreement want to replace one of the parties with a third party. This substitution of a party is called novation.

Question 18

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

Accepted Answer

The courts generally enforce a liquidated damages clause as long as they appear to bear a reasonable relationship to what the actual costs will be. If the amount specified is so unreasonable as to not seem to bear any logical relationship to foreseeable costs, the courts declare the clause a penalty clause and do not enforce it.

Question 19

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

Accepted Answer

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

Question 20

Bob's house was damaged by fire.He got three independent appraisals regarding the damage and submitted those to his insurer informing the insurer that he was willing to use the lowest appraisal as a basis for his insurance reimbursement.The adjuster for the insurance company asked Bob to submit to an oral examination under oath regarding the fire,but Bob refused.The insurance company denied reimbursement based on Bob's refusal to provide the examination under oath.Which of the following is true regarding whether Bob should be allowed to recover under the policy if the court follows the case in the text Hamilton v.State Farm Fire & Casualty Insurance Company?

Accepted Answer

According to the court in Hamilton v. State Farm Fire & Casualty Insurance Company failure to cooperate with an insurer through providing an examination under oath has been held to be a material breach and a defense to suit on the policy. The court also recognized that the burden is on the insurer to show actual prejudice.

Quiz 20: Performance,Breach of Contract,discharge,and Remedies

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

Which of the following is true regarding types of conditions?

The most frequently awarded damages are compensatory damages.

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

Which of the following conditions occur when each party's performance is conditioned on the performance of the other?

Specific performance is an order requiring that the breaching party fulfill the terms of the agreement.

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

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

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

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

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

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

Which of the following is true regarding ways by which a party's contractual obligations may be discharged?

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

Which of the following describes conditions that are not explicitly stated but are inferred from the nature and language of the contract?

When an enforceable contract does not exist,the court may grant a recovery based on quasi-contract in order to prevent an injustice from occurring.

Substitution of a party to a contract is called guaranteeing.

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

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