Question 1

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely
A)a material breach.
B)a minor breach.
C)a reasonable breach.
D)no breach.

Accepted Answer

A material breach occurs when a party fails to perform a contract's major element, significantly harming the other party. Here, Architect LLC's failure to deliver more than half of the designs as agreed significantly undermines the contract's purpose, constituting a material breach.

Question 2

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are
A)avoided.
B)breached.
C)conditioned.
D)performed.

Accepted Answer

The duties under a contract are discharged when they are performed, meaning that the obligations outlined in the contract are fulfilled. In this case, Vera fulfilling her role as a lifeguard for the agreed period would discharge the duties under the contract.

Question 3

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Accepted Answer

A mutual agreement to rescind is required for the rescission of a contract before either party has performed. This means both parties agree to cancel the contract and treat it as though it never happened.

Question 4

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
A)a condition.
B)a novation.
C)a breach of contract.
D)an operation of law.

Accepted Answer

A condition is a stipulation or prerequisite that must be met for a contract or agreement to be valid or enforceable. In this case, being a student at State University is a condition for leasing university housing.

Question 5

Trucking LLC enters into a contract to deliver a certain quantity of potatoes to United Foods's refrigerated warehouse in exchange for a specified payment. Trucking delivers substantially all of the spuds to the location. United's duty to pay is
A)discharged.
B)breached.
C)absolute.
D)performed.

Accepted Answer

United's duty to pay becomes absolute once Trucking LLC has delivered substantially all of the potatoes as per the contract, obligating United Foods to make the specified payment.

Question 6

Dairy Farm enters into a contract with EZ Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach occurred when Dairy
A)entered into the contract.
B)decided that it was not advantageous to fulfill the contract.
C)failed to perform as promised.
D)was sued by EZ.

Accepted Answer

C) Dairy Farm's failure to perform as promised constitutes a breach of contract. The breach occurs when one party fails to fulfill their contractual obligations, not at the decision-making or litigation stages.

Question 7

Ghee agrees to buy Hole's Donut Shop on the express condition that the shop's suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is
A)a concurrent condition.
B)a condition precedent.
C)a condition subsequent.
D)an implied condition.

Accepted Answer

A condition precedent is a requirement that must be fulfilled before a party's performance can be required under a contract. In this case, Ghee's agreement to buy the donut shop is contingent upon the suppliers agreeing to extend the same credit terms to Ghee as they currently do to Hole. This means Ghee's obligation to proceed with the purchase is conditional upon this requirement being met first.

Question 8

Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is
A)breached.
B)discharged.
C)rescinded.
D)suspended.

Accepted Answer

Bottling Company's refusal to perform the deal due to the rise in fuel prices for glass ovens constitutes a breach of contract. Changes in cost do not typically allow a party to unilaterally withdraw from a binding agreement.

Question 9

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny
A)execute a bill of sale.
B)exchange the horse for the money.
C)sign a receipt.
D)agree that the deal is fair.

Accepted Answer

The contract will be fully discharged when Megan and Nonny exchange the horse for the money, as this act fulfills the obligations of both parties under the contract.

Question 10

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be
A)conditional.
B)complete.
C)material.
D)substantial.

Accepted Answer

When Hilton has built the fence as per the contract, his performance is considered complete because he has fulfilled the contractual obligation in its entirety.

Question 11

Sage enters into a contract to sell her condo to Tel for a certain price on a specific day. On that day, Sage unconditionally offers to perform. Sage's offer
A)conditions Tel's promise to pay for the property.
B)constitutes tender of performance.
C)excuses the parties' performance under the contract.
D)suspends the parties' contractual obligations.

Accepted Answer

Sage's unconditional offer to perform constitutes tender of performance, which means she is indicating her readiness to fulfill her obligations under the contract by offering to sell the condo as agreed.

Question 12

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This
A)discharges the original contract.
B)has no effect on Juan's performance.
C)changes Isidro's duties under the contract.
D)suspends both parties duties to perform.

Accepted Answer

When Juan and Isidro make a new agreement to rescind their original contract, it effectively discharges the original contract, meaning all obligations under that contract are terminated.

Question 13

Iggy and Jen sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jen's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of
A)conditions precedent.
B)concurrent conditions.
C)conditions subsequent.
D)implied conditions.

Accepted Answer

The delivery and installation of the fireplace by Iggy and the payment of the price by Jen are concurrent conditions because each party's duty to perform is conditioned upon the other party performing their part of the contract at the same time. Iggy's duty to install the fireplace is conditioned on Jen's promise to pay within ten days, and vice versa, making their obligations to each other occur simultaneously.

Question 14

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be
A)conditional.
B)complete.
C)material.
D)substantial.

Accepted Answer

If Restoration Inc. completes most of the work promised in the contract, its performance is considered "substantial." This means that while the work may not be fully complete in every detail, it is close enough to what was promised that the performance is considered to fulfill most of the contract's requirements.

Question 15

Security Company enters into a contract with Tower Apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract is
A)conditioned.
B)terminated.
C)excused.
D)suspended.

Accepted Answer

When both parties to a contract have performed the acts they promised, the contract is considered terminated because its terms have been fulfilled.

Question 16

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This
A)discharges the employer from the contract.
B)has no effect on the employer's performance.
C)changes the employer's duties under the contract.
D)suspends the employer's duty to perform.

Accepted Answer

Emma's frequent absences without explanation and failure to adequately perform her job duties constitute a breach of contract, which can discharge the employer from the contract obligations.

Question 17

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is
A)conditional.
B)complete.
C)material.
D)substantial.

Accepted Answer

When Fresh Catch Company places the goods at East Bay Café's disposal, it has fulfilled its obligation under the contract, meaning its performance is complete.

Question 18

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)specific performance.

Accepted Answer

A novation occurs when a new party replaces an original party in a contract, assuming all rights and duties. This is exactly what happens when In the Wind Inc. takes Gliders' place in the contract with Hang Time Inc.

Question 19

A novation requires
A)the existence of a previous, valid obligation.
B)consideration greater than $5,000.
C)performance of the original contract by all of the parties.
D)an accord and satisfaction.

Accepted Answer

A novation requires the existence of a previous, valid obligation. It involves replacing an original party or obligation in a contract with a new one, but it does not necessitate a specific consideration amount, the performance of the original contract by all parties, or an accord and satisfaction.

Question 20

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez
A)must pay Josh the contract price.
B)must pay Josh half of the contract price as a compromise.
C)must pay Josh only the cost of his materials.
D)does not have to pay Josh.

Accepted Answer

The contract was for a portrait to Inez's satisfaction. Since she is not satisfied, the condition of the contract has not been met, and she is not obligated to pay.

Quiz 18: Performance and Dischapterarge

Architect LLC enters into a contract with Barn & Silo Inc. to provide designs for a certain number of farm buildings. Architect provides fewer than half of the designs by the time specified in the contract because the firm is busy with other projects. Architect's performance is most likely

Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is

Trucking LLC enters into a contract to deliver a certain quantity of potatoes to United Foods's refrigerated warehouse in exchange for a specified payment. Trucking delivers substantially all of the spuds to the location. United's duty to pay is

Dairy Farm enters into a contract with EZ Ice Cream Inc. to supply milk. Later, Dairy decides that it is no longer advantageous to fulfill the contract and subsequently fails to perform as promised. EZ files a suit against Dairy. A breach occurred when Dairy

Ghee agrees to buy Hole's Donut Shop on the express condition that the shop's suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be

Sage enters into a contract to sell her condo to Tel for a certain price on a specific day. On that day, Sage unconditionally offers to perform. Sage's offer

Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they make a new agreement to rescind their deal. This

Iggy and Jen sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jen's promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of

Restoration Inc. enters into a contract to refurbish an old bus depot for Quality Diners LLC. If Restoration completes most of the work promised in the contract, its performance will be

Security Company enters into a contract with Tower Apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract is

Debt Collection Service enters into a contract to employ Emma as a billing manager for two years. During the first year, Emma is often absent without explanation and when present fails to adequately do her job. This

East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is

Gliders LLC and Hang Time Inc. are parties to a contract. They subsequently agree that In the Wind Inc. should take Gliders' place and assume all of its rights and duties under the contract. This is

A novation requires

Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez