Question 1

If there is a novation, the original promisor remains liable to the original promisee if the new promisor fails to perform.

Accepted Answer

In a novation, the original promisor is released from liability, and the new promisor assumes the obligation to the original promisee.

Question 2

All contractual promises are absolute promises to perform.

Accepted Answer

Not all contractual promises are absolute; some may be conditional, depending on certain events or circumstances.

Question 3

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

Accepted Answer

False

Question 4

Substituted contracts immediately discharge the original contracts.

Accepted Answer

A substituted contract replaces the original contract, discharging the parties from their obligations under the original agreement.

Question 5

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

Accepted Answer

The doctrine of commercial impracticability typically applies when unforeseen events make performance extremely difficult or expensive, not merely because a contract is financially unsound.

Question 6

An accord and satisfaction discharges the original debt.

Accepted Answer

An accord and satisfaction is a legal contract whereby the parties agree to settle a debt or claim, and the performance of the accord discharges the original obligation.

Question 7

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" requires that the goods delivered exactly meet the terms of the contract, and any deviation, not just substantial ones, can constitute a breach.

Question 8

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

Accepted Answer

A condition precedent is more common as it must occur before a party is obligated to perform a contractual duty, whereas a condition subsequent terminates an existing duty.

Question 9

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

Accepted Answer

An implied-in-law condition, also known as a constructive condition, is not explicitly stated in a contract but is imposed by law to ensure fairness. It requires substantial performance rather than complete performance.

Question 10

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

Accepted Answer

A material breach is a significant failure to perform under a contract, which allows the non-breaching party to be discharged from their obligations.

Question 11

Robert and John entered into a bilateral contract and Robert has fully performed. Their mutual rescission of the contract is binding at common law.

Accepted Answer

At common law, mutual rescission requires that both parties have remaining obligations under the contract. Since Robert has fully performed, there are no remaining obligations on his part, making mutual rescission not binding.

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

Accepted Answer

A breach of a contractual promise is a failure to perform an obligation, while the failure of a condition refers to an unmet prerequisite that affects the duty to perform.

Question 14

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 each other from their obligations, effectively ending the contract through mutual consent or agreement.

Question 15

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

Accepted Answer

Not all breaches of contract discharge the injured party from performance; only material breaches do. Minor breaches may allow for damages but not discharge.

Question 16

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

Accepted Answer

Discharge by performance occurs when all parties fulfill their contractual obligations, making it the most common way contracts are completed and discharged.

Question 17

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 understood by the parties to be part of the agreement, even though they are not explicitly stated, and must occur for the contract to be fulfilled.

Question 18

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 non-breaching party from their obligations under the contract.

Question 19

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, the court held that the plaintiff could treat the anticipatory repudiation as a breach and sue immediately, rather than waiting for the performance date.

Question 20

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

The answer of In all substituted contracts there must be...

Quiz 17: Performance, Breach, and Discharge