Question 1

Performance of an accord discharges an original contractual obligation.

Accepted Answer

Performance of an accord, which is a new agreement between parties, discharges the original contractual obligation. Once the parties have entered into an accord and the new obligation under the accord has been performed, the original obligation is considered complete.

Question 2

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

Accepted Answer

This is known as the doctrine of impossibility or impracticability, and it can be used as a defense for non-performance of a contract. Examples of supervening events could be natural disasters, government regulations, or death or illness of a party involved in the contract.

Question 3

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000.Uri wants to transfer his right to the ownership of the house to Val,his niece.This transfer generally
A) cannot be prohibited.
B) cannot be allowed.
C) can be prevented.
D) can be circumvented.

Accepted Answer

The answer of Trudy and Uri enter into a contract...

Question 4

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

Accepted Answer

This statement is true. Substantial performance refers to fulfilling the majority of obligations under a contract, while material breach refers to failing to fulfill a significant obligation. Anything less than substantial performance would constitute a breach of contract.

Question 5

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell.Ewell transfers his right to payment under the contract to Flex Construction Company.Flex is
A) a delegatee.
B) an assignee.
C) an obligee.
D) a prohibitee.

Accepted Answer

Flex Construction Company is an assignee because it has been assigned the right to payment under the contract between Dwayne and Ewell.

Question 6

A party who substantially performs his or her duties under a contract can enforce the contract against the other party.

Accepted Answer

This is known as the doctrine of substantial performance. It means that if a party has performed their obligations under the contract to a reasonable degree, they can enforce the contract and seek damages if the other party fails to perform. However, the level of performance must be significant enough that it can be considered as almost complete fulfillment of the contract.

Question 7

McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay.McCall transfers his right to payment under the contract to Midtown Bank.This transfer is
A) a delegation.
B) an assignment.
C) a novation.
D) prohibited by law.

Accepted Answer

This is an assignment because McCall is transferring his right to payment to a third party, Midtown Bank. Delegation involves transferring the duty to perform the contract, not the right to receive payment. Novation involves substituting a new party for one of the original parties to the contract with the consent of all parties. There is no indication that this transfer is prohibited by law.

Question 8

Any breach of contract discharges the breaching party.

Accepted Answer

Any breach of contract does not necessarily discharge the breaching party. The consequences of a breach of contract depend on the specific terms of the contract and the laws governing the contract. The non-breaching party may have the option to terminate the contract or seek damages, but the breaching party is not automatically discharged from their obligations under the contract.

Question 9

Performance that provides a party with most of the benefits of a contract,in spite of a deviation from the terms,is complete performance.

Accepted Answer

Complete performance requires adherence to all terms of the contract, while a deviation from the terms may result in partial performance or breach of contract.

Question 10

A novation revokes and discharges a prior contract.

Accepted Answer

Novation involves the creation of a new contract, which replaces and discharges the obligations of a prior contract. Thus, it revokes and discharges the prior contract.

Question 11

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

Accepted Answer

The most common ways to discharge a contract are by performance, agreement, frustration, and breach is only one of the ways.

Question 12

A condition subsequent terminates a party's promise to perform.

Accepted Answer

A condition subsequent is an event or circumstance that, when it occurs or fails to occur, terminates a party's promise to perform.

Question 13

Clem attempts to free himself from the duties of his contract with Drew by telling Drew to find someone else to perform them.This is
A) a delegation.
B) an assignment.
C) a third party beneficiary contract.
D) none of the choices.

Accepted Answer

The answer of Clem attempts to free himself from the...

Question 14

Musica Production Company and Nora enter into a contract for Nora to write six songs for which Musica agrees to pay her.Nora transfers her right to payment under the contract to Omni Entertainment Agency.Nora is
A) a delegator.
B) an assignor.
C) a payor.
D) a righter.

Accepted Answer

Nora is transferring her right to payment under the contract to Omni Entertainment Agency, thus making her an assignor.

Question 15

Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously.

Accepted Answer

Concurrent conditions refer to a situation where the performance of both parties is required to occur simultaneously. If one party fails to perform, then the other party is discharged from their obligation under the contract.

Question 16

When a contract party alters a written contract,the other party must adapt his or her performance accordingly.

Accepted Answer

When one party alters a written contract without the agreement of the other party, it is considered a breach of contract. The non-altering party is not obligated to adapt their performance but instead has the option to terminate the contract and seek damages for any losses incurred.

Question 17

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

Accepted Answer

This is known as the doctrine of discharge by non-performance or discharge by breach. It means that if a condition precedent or subsequent is not satisfied, the parties are released from their contractual obligations.

Question 18

A contract will be discharged if foreseeable circumstances make it impossible to attain the contract's purpose.

Accepted Answer

The answer of A contract will be discharged if foreseeable...

Question 19

Contracts that are executory on both sides can be rescinded by agreement.

Accepted Answer

When both parties to a contract have yet to perform their obligations, the contract is considered executory on both sides. In such cases, the parties have the option to rescind the contract by mutual agreement.

Question 20

If a contract requires performance to the personal satisfaction of a party,the party must in all cases be personally satisfied.

Accepted Answer

The answer of If a contract requires performance to the...

Quiz 13: Third Party Rights and Discharge