Question 1

Unless one of the parties contractually assumes the risk,the ____ discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible.

Accepted Answer

The frustration of purpose doctrine discharges a contract if supervening circumstances make fulfillment of the purpose which both parties had in mind impossible unless one of the parties contractually assumes the risk.

Question 2

The Code greatly alters the common law doctrine of material breach by adopting what is known as the:

Accepted Answer

The perfect tender rule is a significant departure from the common law's material breach doctrine. Under this rule, the seller must deliver perfect goods, and any deviation from the buyer's order constitutes a breach. This rule applies even if the deviation is minor, and the buyer can reject the entire shipment. Therefore, the Code's adoption of the perfect tender rule significantly alters the common law's approach to breach in the sale of goods.

Question 3

Henry hires Ace Roofing to put a new roof on his house.When Ace comes,Henry refuses to let them on the roof,saying that he has a headache and doesn't want to listen to pounding.The next day,Henry still has a headache and he refuses to allow them on the roof.The day after,the baby is sleeping and Henry refuses to allow them to work.After four weeks of this,Ace:

Accepted Answer

Henry is in breach of the contract by preventing Ace Roofing from performing their work for four weeks. However, the contract does not necessarily dictate that Henry must also be discharged. It would be up to Ace Roofing to decide if they want to terminate the contract with Henry or continue to work with him.

Question 4

Which of the following would be considered a material breach of a contract?

Accepted Answer

A material breach of contract is a breach that goes to the heart of the agreement and is considered a failure to perform a substantial contractual obligation. Any of the options listed would qualify as a material breach. Partial performance that omits an essential part of the contract would mean that the party has not fulfilled its obligation completely. Delivery of only 50 chairs in a contract that calls for 100 chairs is a failure to provide the correct quantity agreed upon. An intentional breach of the contract would also qualify as a material breach, as it indicates a conscious decision to not fulfill the terms of the agreement.

Question 5

Conditions may be classified:

Accepted Answer

Conditions may be classified by how they are imposed and when they affect a duty of performance. These classifications are not mutually exclusive, so the best answer is C - both.

Question 6

Russell promises Marty $1,500 if he will completely landscape Russell's yard.Which of the following would discharge Russell's obligations to pay under this contract?

Accepted Answer

The contract clearly states that Marty must completely landscape Russell's yard, which includes planting flowers, shrubs, or grasses. If Marty fails to do so, then he has not fulfilled his end of the contract and Russell is not obligated to pay him. The other three options may be considered breaches of the contract, but they do not necessarily discharge Russell's obligations to pay.

Question 7

On November 1,Paula and Mia enter into a contract where both parties are obligated to perform on December 31.On December 1,Paula tells Mia,"I cannot and do not plan to perform my duties in our contract." This statement is a(n):

Accepted Answer

Paula's statement is an anticipatory repudiation, which is a clear indication that she will not perform her duties on December 31. This statement relieves Mia of her obligations to perform and she may seek damages for breach of contract.

Question 8

Lynn,a tailor,agrees to sew a pair of drapes for Zach's living room.Zach promises to pay Lynn $300.Lynn completes the drapes using material selected by Zach,but Zach is not satisfied and refuses to pay for them.In this case:

Accepted Answer

The question mentions that Zach is not satisfied with the drapes, so the issue is whether his dissatisfaction is reasonable. In such cases, the standard applied is a reasonable person's standard of satisfaction, which is an objective standard. Therefore, option A is the correct answer. Option B is incorrect because a subjective standard of satisfaction is not applied here. Option C is also incorrect because the doctrine of frustration of purpose does not apply in this case. Option D is incorrect because the condition of satisfaction is not an express condition, but rather an implied condition that the customer should be satisfied with the finished product.

Question 9

Meg has contracted to paint a portrait of Julio,but dies before completing the portrait.Which of the following is correct?

Accepted Answer

Meg's contractual duty is discharged due to objective impossibility, as her death made it impossible for her to complete the portrait. Therefore, she is no longer obligated to perform under the contract.

Question 10

Phil,a tax accountant,promises to do Marge's individual federal,state,local,and gift taxes for the year.He completes all but the gift taxes.Under the substantial performance doctrine,Marge will:

Accepted Answer

Under the substantial performance doctrine, if a contract has been largely completed but there are minor omissions or defects, the party who performed the contract may still be entitled to receive payment. In this case, Phil completed all but the gift taxes, so Marge would still be obligated to pay him for the work he did complete.

Question 11

An express condition is usually preceded by such words as:

Accepted Answer

An express condition is usually preceded by the word "if".

Question 12

"The law generally restricts the time within which an action can be brought by either party to a contract." This statement is:

Accepted Answer

Statutes of limitation are laws that restrict the time within which parties to a contract can bring legal action against one another. These laws vary depending on the type of contract and the jurisdiction, but they generally exist to ensure that legal disputes are dealt with in a timely manner and to prevent parties from bringing up old claims that are difficult to defend against due to the passage of time.

Question 13

Brooklyn and Doug make a contract for Brooklyn to manufacture five leather sofas of a specified design.Prior to their manufacture,the factory is destroyed in an accidental fire that is no one's fault.The sofas are available from other sources.Brooklyn:

Accepted Answer

Brooklyn is discharged from her duty to deliver the sofas due to the destruction of the factory, which was beyond her control and not her fault. This is considered an “act of God” event, and Brooklyn would not be held liable for breach of contract.

Question 14

Which of the following is/are correct with regard to conditions subsequent?

Accepted Answer

A) This statement is incorrect. Conditions subsequent are not very common in contracts.
B) This statement is correct. A "sale or return" contract is an example of a contract with a condition subsequent, where the seller has the right to demand the return of the goods if they are not sold by a certain date.
C) This statement is incorrect. A condition subsequent occurs after performance is due under a contract.
D) This statement is incorrect as not all of the choices are correct.

Question 15

Bill recently borrowed $50 from Ricardo for a couple of weeks.Bill,still short of cash,tells Ricardo,"I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill,"OK,that's great!" Ricardo's performance of his new duty will be a(n):

Accepted Answer

Ricardo's agreement to accept the performance of washing and waxing his car as a way to satisfy the $50 debt is a satisfaction, as it fulfills the obligation under the original contract.

Question 16

Miller has a contract to sell 1,000 bushels of wheat to a bakery.The wheat is stored in a grain elevator and has become infested with insects.Miller is:

Accepted Answer

The answer of Miller has a contract to sell 1,000...

Question 17

A tailor agrees to sew a suit for Bryan,who promises in return to pay $1,200 for the suit if he is satisfied with it.The tailor completes the suit,which fits Bryan perfectly.Nevertheless,he says that he is not satisfied and refuses to accept or pay for it.Bryan is honest in his dissatisfaction,but gives no reasonable objections.In this case:

Accepted Answer

The tailor has no recourse because he agreed to the subjective standard of Bryan's satisfaction.

Question 18

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $5 per bushel unless weather conditions require additional labor to be hired.The rate would then be $5.50 per bushel.A freeze warning required Louis to hire 100 additional overtime workers,raising the cost per bushel to $6.75.Louis wants to get out of his contract.Can he?

Accepted Answer

The parties anticipated potential weather-related issues and included provisions in their contract to address them, indicating that the hardship was expected and accounted for.

Question 19

Justin contracted with Kevin to serve as a guide for Kevin on his three-day rafting trip to Colorado.The contract was made on April 15 with the trip to begin on June 15.On May 15,Kevin notified Justin that he had changed his mind and would not be taking the trip.He also refused to pay Justin any compensation.In this case:

Accepted Answer

Kevin has anticipatorily repudiated the contract by notifying Justin before the performance was due. Therefore, Justin can sue Kevin for damages caused by the breach of contract.

Question 20

Refusal of a tender of performance by one party to a bilateral contract will:

Accepted Answer

Refusal of a tender of performance in a bilateral contract is treated as a repudiation by the non-tendering party. This repudiation excuses the tendering party from further performance under the contract, as their obligation to perform is contingent upon the other party's willingness to accept the performance or perform their part of the contract.

Quiz 17: Performance,breach,and Discharge