Question 1

A third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the obligor is said to be an intended beneficiary.

Accepted Answer

An intended beneficiary is a third party who is not in privity of contract but who has rights under the contract and can enforce the contract against the obligor. This is a recognized legal concept in contract law.

Question 2

A "force majeure clause" sets damages in advance for failure to perform.

Accepted Answer

A force majeure clause typically excuses a party from performing its obligations under a contract if certain events beyond their control occur, such as natural disasters or acts of war. It does not set damages in advance for failure to perform.

Question 3

A debtor who files for bankruptcy and receives a discharge from the federal bankruptcy court is relieved of the legal liability to pay the debts.

Accepted Answer

When a debtor receives a discharge from the federal bankruptcy court, they are legally released from the obligation to pay the debts included in the bankruptcy filing. However, certain debts may not be eligible for discharge, such as child support, student loans, and some tax debts.

Question 4

The reasonable person test is a subjective test that is used to judge contracts involving the mechanical fitness and most commercial contract.

Accepted Answer

The reasonable person test is an objective test used to evaluate the behavior and actions of individuals in legal cases, such as negligence or breach of duty. It is not specific to contracts involving mechanical fitness or commercial contracts.

Question 5

A contract for decorating someone's home that contains a personal satisfaction test would allow the homeowner to judge the satisfaction based on the homeowner's own personal tastes,so long as the homeowner acted in good faith.

Accepted Answer

The inclusion of a personal satisfaction test in a contract for decorating someone's home would allow the homeowner to assess their satisfaction based on their own personal tastes, as long as they act in good faith. This means that they would need to provide honest feedback and not act in bad faith or use subjective criteria to unfairly judge the decorator's work. As long as the homeowner follows reasonable standards of behavior, such a contract provision would be valid and enforceable.

Question 6

In a condition subsequent,the duty of performance is discharged upon the failure to meet a condition after the duty has already arisen.

Accepted Answer

In a condition subsequent, the duty of performance is discharged if the condition is not met after the duty has already arisen. This means that the obligation to perform is terminated upon the occurrence of the subsequent condition.

Question 7

When there is a substituted contract,the discharge of the duties under the original contract occurs as soon as the substituted contract comes into existence.

Accepted Answer

This is because the substituted contract takes the place of the original contract, and the parties are bound by its terms and conditions. Once the substituted contract is formed, the obligations and duties under the original contract are discharged, and the parties are now bound by the terms of the new agreement.

Question 8

The doctrines of commercial impracticality applies only to unforeseeable events.

Accepted Answer

The doctrine of commercial impracticability applies when an unforeseen event occurs that makes performance of a contract extremely difficult or costly, beyond what was anticipated by the parties.

Question 9

Because of the uncertainty that they add to contracts,conditions must be express.

Accepted Answer

Conditions in contracts can be either express or implied. Express conditions are explicitly stated, while implied conditions are understood to be part of the contract even if not specifically mentioned.

Question 10

A new contract entered into by the parties that revokes and discharges a prior contract is known as mutual rescission.

Accepted Answer

The answer of A new contract entered into by the...

Question 11

In a novation,both of the original parties are replaced by new parties.

Accepted Answer

In a novation, one of the original parties is replaced by a new party, with the consent of all involved, while the other original party remains.

Question 12

A condition concurrent is one that requires the occurrence of an event before a party is obligated to perform a duty under the contract.

Accepted Answer

A condition concurrent requires that both parties perform their obligations simultaneously, not that an event occurs before a duty is performed.

Question 13

A donee beneficiary is someone who obtains rights under a contract without giving valuable consideration for those rights.

Accepted Answer

A donee beneficiary is a third-party beneficiary who has the right to enforce a contract even though they did not provide consideration for the contract.

Question 14

An accord and satisfaction discharges the original contract upon the formation of the accord.

Accepted Answer

The answer of An accord and satisfaction discharges the original...

Question 15

Impossibility,excusing performance of a contract,is measured objectively.

Accepted Answer

Impossibility is measured objectively, meaning that it is not based on subjective beliefs or opinions. It is determined by whether or not the performance of the contract is truly impossible under the circumstances, regardless of the intentions or efforts of the parties involved.

Question 16

A unilateral rescission is effective in terminating a contract if done in good faith.

Accepted Answer

A unilateral rescission typically requires a legal basis, such as fraud or misrepresentation, and cannot be done solely in good faith without the other party's consent or a court order.

Question 17

For a condition to be enforceable,it must be an express condition.

Accepted Answer

For a condition to be enforceable, it can be an express condition or an implied condition. An express condition is one that is explicitly mentioned in the contract, while an implied condition is one that is not explicitly stated but inferred from the nature of the contract or the conduct of the parties.

Question 18

In general,an incidental beneficiary has no enforceable contract rights because she was not intended to have such rights.

Accepted Answer

Incidental beneficiaries are not intended to have enforceable contract rights and therefore cannot sue for breach of contract.

Question 19

A covenant is an unconditional promise to perform.

Accepted Answer

The answer of A covenant is an unconditional promise to...

Question 20

A contract cannot be based on the satisfaction of a third party,such as an engineer or architect.

Accepted Answer

Contracts can include clauses that require the satisfaction or approval of a third party, such as an engineer or architect, as a condition for fulfillment.

Quiz 15: Third-Party Rights and Discharge