Question 1

A novation requires the contracting parties to make restitution of whatever they received under the contract.

Accepted Answer

The answer of A novation requires the contracting parties to...

Question 2

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Accepted Answer

When the subject matter of a contract is personal, the performance must satisfy the specific party to whom the duty is owed, not just any reasonable person, because the standard of satisfaction is subjective in personal contracts.

Question 3

For mutual rescission of a contract to take place, both parties must provide additional consideration.

Accepted Answer

Mutual rescission of a contract occurs when both parties agree to terminate the contract and return to their pre-contractual positions, without the need for additional consideration.

Question 4

Dom enters into a contract to buy Ezra's office building for a certain price subject to an appraiser's evaluation of the structure's condition. If the appraiser deems the condition to be substandard, the parties' obligations will be

Accepted Answer

The contract is contingent upon the appraiser's evaluation. If the condition is deemed substandard, the contract allows for the parties' obligations to be discharged, meaning they are released from their contractual duties under these specific terms.

Question 5

When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.

Accepted Answer

This situation is referred to as frustration of purpose or impossibility of performance, where unforeseen events significantly alter the circumstances of a contract, making it unjust to hold the parties to their original obligations.

Question 6

Emil enters into a contract to buy Foley's cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is

Accepted Answer

Emil's duty to perform is conditional upon obtaining a loan from County AgriCredit. If Emil does not get the loan, he is not obligated to buy the land.

Question 7

Most contracts need to be performed to the personal satisfaction of each contracting party.

Accepted Answer

Most contracts are based on meeting an objective standard of performance rather than the personal satisfaction of each party, unless specifically stated otherwise in the contract terms.

Question 8

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Accepted Answer

A statute of limitations sets a deadline for filing a lawsuit, not the amount of damages that can be obtained.

Question 9

Build-It Construction LLC agrees to build a warehouse for Corporate Storage Inc. According to the terms of the deal, Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are

Accepted Answer

The promise to pay is conditioned on the warehouse being built.

Question 10

Only contracts that have been fully executed can be rescinded by agreement.

Accepted Answer

Contracts can be rescinded by mutual agreement of the parties involved at any stage before full execution, not only after they have been fully executed.

Question 11

Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.

Accepted Answer

Anticipatory repudiation occurs when one party indicates in advance that they will not perform their contractual obligations, allowing the non-breaching party to treat the contract as breached immediately and seek remedies without waiting for the actual time of performance.

Question 12

Any breach of contract effectively excuses both parties from performing.

Accepted Answer

A breach of contract by one party does not automatically excuse the non-breaching party from performing their obligations under the contract unless the breach is considered material or goes to the essence of the agreement.

Question 13

Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.

Accepted Answer

Performance becomes commercially impracticable when unforeseen events occur that significantly increase the difficulty and/or cost of fulfilling the contract, beyond what could have been reasonably anticipated at the time the contract was made. A slight increase in cost due to foreseeable events does not typically meet this threshold.

Question 14

Any contract can be discharged by agreement of the parties.

Accepted Answer

A contract can be discharged by mutual agreement of the parties involved, which can take the form of a rescission, variation, or novation, effectively ending the contract's obligations.

Question 15

Under the policy that a contract can be terminated if major difficulties arise, a material breach discharges the non-breaching party from a contract.

Accepted Answer

A material breach is considered a significant failure to perform under the terms of the contract, which justifies the non-breaching party's right to terminate the contract and be discharged from further obligations.

Question 16

Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.

Accepted Answer

When the specific subject matter of a contract is destroyed without the fault of either party, the contractual obligations are typically discharged because the performance becomes impossible. This is known as the doctrine of frustration or impossibility of performance.

Question 17

Range Free Farms enters into a contract to deliver to Sara's Market a truckload of eggs for a certain payment. Range Free fails to deliver. Sara's Market

Accepted Answer

Sara's Market does not have to pay because Range Free Farms did not fulfill their part of the contract by failing to deliver the eggs. Payment is typically contingent upon the fulfillment of the delivery obligation.

Question 18

An accord and its satisfaction do not discharge an original contractual obligation.

Accepted Answer

An accord and its satisfaction is a legal agreement where the parties agree to discharge the original contractual obligation by performing a new obligation, effectively settling and discharging the original contract.

Question 19

Any breach of contract allows the breaching party to negotiate to receive additional benefits in order to remedy the breach.

Accepted Answer

A breach of contract typically results in consequences for the breaching party, such as damages or specific performance, rather than providing them an opportunity to negotiate for additional benefits.

Question 20

The most common way to terminate contractual duties is by

Accepted Answer

The most common and straightforward way to terminate contractual duties is by performance, meaning that all parties involved have fulfilled their obligations as outlined in the contract.

Quiz 18: Performance and Dischapterarge