Question 1

Abel entered into a written agreement with Burrows to buy a horse. In the meantime, the horse died. Under the common law, this contract was discharged by

Accepted Answer

Under common law, a contract is discharged by impossibility when a party cannot perform their contractual obligations due to unforeseen circumstances that make the performance impossible. In this case, the death of the horse makes it impossible for Burrows to deliver the horse to Abel, thus discharging the contract by impossibility.

Question 2

You borrowed $500 from the bank, agreeing to repay the money in five equal installments on the 15^thof each month. Without your permission, the bank changed the payment date to the 14^th. The contract is

Accepted Answer

The contract is discharged by alteration because the bank unilaterally changed a significant term of the agreement (the payment date) without your consent, which fundamentally alters the obligations originally agreed upon.

Question 3

____________________ occurs when all but the minor details of a contract have been completed.

Accepted Answer

The answer of ____________________ occurs when all but the minor...

Question 4

Martin was unable to pay $2,000 she owed Farmer on April 10, the due date. Martin offered her a computer and several programs in full payment instead of cash, and Farmer accepted. Martin was discharged from her contract by

Accepted Answer

Accord and satisfaction occur when the parties agree to accept a performance that is different from what was originally agreed upon, thereby discharging the original contract. In this case, Farmer accepted a computer and several programs instead of the $2,000 cash originally agreed upon.

Question 5

Performing a contract involves either paying money or performing a(n) ____________________.

Accepted Answer

The answer of Performing a contract involves either paying money...

Question 6

The parties to a contract may end the contract through agreement, but this method does not include

Accepted Answer

A novation, accord and satisfaction, and rescission are all methods by which parties can agree to end a contract. However, a change in the law is not a method of ending a contract through agreement between the parties; it is an external factor that might render the contract unenforceable or void.

Question 7

A valid claim filed after the statute of limitations has expired is usually

Accepted Answer

A valid claim filed after the statute of limitations has expired is usually denied because the statute of limitations sets the maximum time after an event within which legal proceedings may be initiated. Once this period expires, the legal claim is typically not enforceable.

Question 8

When one party makes a material change in the terms of the contract without the approval of the other party, the contract is discharged by

Accepted Answer

When one party unilaterally makes a material alteration to the terms of a contract without the consent of the other party, the contract is considered discharged by alteration. This means the contract is voided due to the unauthorized changes.

Question 9

Johnson owed Ginger $900. Johnson agreed to pay Ginger back by painting his house. Ginger accepted this change in the contractual agreement. Until Johnson actually paints Ginger's house, this new contract is a(n)

Accepted Answer

An accord is an agreement to accept some performance other than what was originally agreed upon. Since Johnson has agreed to paint Ginger's house instead of paying $900, but has not yet performed the painting, this is an accord. Satisfaction would occur once the painting is completed, fulfilling the accord.

Question 10

If no time for performance is stated in a contract, the contract must be completed within a(n) ____________________ time.

Accepted Answer

The answer of If no time for performance is stated...

Question 11

Which of the following statements is true about the term subjective impossibility?

Accepted Answer

Subjective impossibility refers to a situation where a party cannot perform their contractual obligations due to personal inability or circumstances, rather than because the task itself is objectively impossible. Courts generally do not accept subjective impossibility as a defense, except in rare situations where the performance is made impossible due to unforeseen and uncontrollable factors directly affecting the obligated party's ability to perform.

Question 12

The most common method of discharging contracts is by ____________________.

Accepted Answer

The answer of The most common method of discharging contracts...

Question 13

Substantial performance is

Accepted Answer

Substantial performance is a legal concept that applies when a party has completed the major requirements of a contract, often in good faith, even if the performance is slightly less than full. This concept is frequently applied in various types of contracts, including construction contracts, to determine if the obligations have been sufficiently met to warrant payment or fulfillment of the contract's other terms.

Question 14

The statute that fixes a time limit within which a lawsuit must be filed is called the ____________________.

Accepted Answer

The answer of The statute that fixes a time limit...

Question 15

Under the common law, an example of a contract that would terminate because of a person's death is

Accepted Answer

Under common law, a contract that is based on the personal services or talents of an individual, such as a performance by a well-known actor, would terminate upon that person's death because the service cannot be performed by anyone else. Contracts for the sale of goods (like an RV) or for making a donation do not depend on the personal performance of the deceased and can typically be fulfilled by the estate or another party.

Question 16

Cole owed Williams $150. When Cole couldn't pay the $150, Williams accepted $75 and a shaver worth $50 as full settlement. The contract was discharged by

Accepted Answer

Accord and satisfaction occur when the parties agree to accept different performance than originally agreed upon, and the new agreement is fully performed. In this case, Williams accepted $75 and a shaver worth $50 instead of the original $150, discharging the contract through accord and satisfaction.

Question 17

Rescission of a contract means

Accepted Answer

Rescission of a contract means that the parties agree to treat the contract as if it never existed, effectively releasing each other from their respective rights and obligations under the original agreement. This does not necessarily involve entering into a novation (which is the replacement of an obligation with a new one) or accepting substantial performance (which relates to fulfilling the terms of the contract as closely as possible).

Question 18

Under the common law, the death or serious illness of one of the parties to a contract

Accepted Answer

Under common law, the death or serious illness of a party to a personal services contract discharges the contract because the performance is based on the unique skills or attributes of the person who is no longer able to perform the services.

Question 19

A contract is not generally discharged by

Accepted Answer

The answer of A contract is not generally discharged by
...

Question 20

Freeman contracted to build a wooden garage for Douglas. Before construction began, a local ordinance was enacted prohibiting wooden structures in the zone where the garage was to be located. The agreement is ineffective under the common law because of

Accepted Answer

The agreement becomes ineffective due to impossibility, as the new local ordinance makes it illegal to fulfill the contract's terms by building a wooden garage in the specified zone. This situation falls under the legal doctrine of impossibility, where unforeseen legal changes render the performance of the contract impossible.

Quiz 13: The Termination of Contracts: Discharge