Question 1

Molly and Lucy entered into a bilateral contract and Lucy has fully performed. They may rescind the contract and that rescission is binding at common law.

Accepted Answer

False

Question 2

A fundamental difference exists between the breach or nonperformance of a contractual promise and the failure or nonhappening of a condition.

Accepted Answer

A breach or nonperformance of a contractual promise occurs when one party fails to fulfill their obligations under the contract, while the failure or nonhappening of a condition refers to an event that must occur before a party is obligated to perform their contractual duties. These are fundamentally different concepts in contract law, with different legal implications and remedies.

Question 3

An unauthorized alteration of ANY of the material terms in a written contract discharges the entire contract.

Accepted Answer

An unauthorized alteration of a material term in a contract is considered a breach, which can discharge the entire contract, as it undermines the agreement's integrity.

Question 4

An anticipatory repudiation by one party to a contract precludes a discharge by performance by that same party.

Accepted Answer

The answer of An anticipatory repudiation by one party to...

Question 5

An accord and satisfaction discharges the original debt.

Accepted Answer

An accord and satisfaction is a legal agreement between parties to settle a debt or claim where the debtor agrees to pay a different amount or perform a different obligation than originally agreed, and upon fulfillment, the original debt or claim is discharged.

Question 6

Implied-in-fact conditions must fully and literally occur, and they are understood by the parties to be part of the agreement.

Accepted Answer

Implied-in-fact conditions are not explicitly stated but are understood by the parties involved to be part of the agreement, based on the nature of the agreement and the circumstances surrounding it. They must occur for the contract to be fulfilled.

Question 7

If there is a novation, the original promisor's liability to the original promisee is relieved, even if the new promisor fails to perform.

Accepted Answer

In a novation, the original contract is replaced by a new one, releasing the original promisor from their obligations, regardless of whether the new promisor fails to perform.

Question 8

A breach of contract always discharges the injured party from performance under the contract.

Accepted Answer

A breach of contract does not automatically discharge the injured party from performance under the contract. The injured party may choose to continue performing or may choose to terminate the contract and seek damages.

Question 9

A material breach by the seller will discharge the buyer from his obligations under a contract.

Accepted Answer

If the seller commits a material breach, the buyer can choose to terminate the contract and will be discharged from any further obligations under the contract.

Question 10

Substituted contracts immediately discharge the original contracts.

Accepted Answer

A substituted contract replaces the original contract and discharges the parties from their obligations under the original agreement, creating new obligations under the substituted agreement.

Question 11

By agreement, parties to a contract may discharge each other from performance under a contract.

Accepted Answer

Parties to a contract can mutually agree to discharge or release each other from their obligations under the contract, effectively ending the contract or modifying its terms.

Question 12

Daniel, a cabinetmaker, contracts to make a china cabinet to Lora's satisfaction and Lora promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed. Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen. If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it, Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable.

Accepted Answer

The answer of Daniel, a cabinetmaker, contracts to make a...

Question 13

A condition precedent  is a much more frequent occurrence than a condition subsequent .

Accepted Answer

A condition precedent, which must occur before a party is required to perform their part of a contract, is more common because it sets the stage for the obligations under the contract to begin. Conditions subsequent, which can end a party's obligation under a contract after it has begun, are less frequently used in contracts.

Question 14

In the case of Hochster v. De La Tour the plaintiff was allowed to treat the repudiation by De La Tour as breach of contract and immediately bring suit.

Accepted Answer

In Hochster v. De La Tour (1853), the court held that the plaintiff could treat the defendant's repudiation of the contract before the performance was due as an immediate breach, allowing the plaintiff to bring suit immediately rather than waiting until the contract's performance date.

Question 15

In all substituted contracts there must be an agreement among three parties where a new promise is substituted for an existing promise or a new promisor is substituted for an existing promisor.

Accepted Answer

In substituted contracts, there can be an agreement among the original parties to replace the existing promise or promisor with a new one, but it does not necessarily require three parties; the agreement can occur between the original two parties involved.

Question 16

All contractual promises are absolute promises to perform.

Accepted Answer

Not all contractual promises are absolute; some are conditional, meaning that their performance is dependent upon the occurrence of a specified condition or event.

Question 17

An implied-in-law condition need only be substantially performed.

Accepted Answer

An implied-in-law condition, also known as a constructive condition, is a legal concept where the law imposes a condition to ensure fairness. Substantial performance of such a condition is often sufficient to fulfill contractual obligations.

Question 18

A person who has made a financially unsound contract may be relieved from performance under the doctrine of commercial impracticability.

Accepted Answer

The answer of A person who has made a financially...

Question 19

The "perfect tender rule" provides that only substantial deviations from the promised performance in a sales contract under the Code constitute a material breach and discharge the aggrieved party from the duty of performance.

Accepted Answer

The "perfect tender rule" actually states that any deviation from the promised performance in a sales contract under the Uniform Commercial Code allows the aggrieved party to reject the goods, meaning even minor deviations can be considered a breach, not just substantial ones.

Question 20

Discharge by performance is the most frequent method of discharging a contractual duty.

Accepted Answer

Discharge by performance means that the contractual duty has been fulfilled completely, and this is the most frequent method of discharging a contractual obligation.

Quiz 17: Performance Breach and Discharge