Question 1

The legal right to sue for a breach of contract is subject to a statute of limitations.

Accepted Answer

A statute of limitations sets a time limit for bringing legal claims. In the case of breach of contract, the time limit varies depending on the jurisdiction and the type of contract, but there is generally a limit of several years within which a claim must be brought. After the statute of limitations has expired, the right to sue for breach of contract is typically barred.

Question 2

Generally,neither a "time is of the essence" clause nor a "force majeure" clause will be recognized by the courts because these types of clauses are seen as a violation of public policy.

Accepted Answer

Both "time is of the essence" and "force majeure" clauses are commonly recognized by courts and are considered enforceable contract provisions, as long as they are properly drafted and do not violate public policy.

Question 3

Mohammed suffers a substantial financial loss when Olson Company breaches a contract.Under the statute of limitations,to receive damages Mohammed must file suit against Olson Company within

Accepted Answer

The statute of limitations varies by state, so it depends on the specific state where Mohammed lives as to how long he has to file a lawsuit against Olson Company.

Question 4

M & E contracted to sell 500 music stands to Coda,Inc.M & E shipped the stands in accordance with the agreement.Coda paid for the stands as promised.The contract between M & E and Coda is discharged by

Accepted Answer

Full performance means that both parties have fulfilled their obligations as per the contract. M & E shipped the stands as per the agreement, and Coda paid for them as promised. Therefore, the contract between M & E and Coda is discharged by full performance.

Question 5

Melody is a recent graduate of State Law School.She lands an impressive employment contract with the firm of Dewey,Cheathem,and Howe,Attorneys at Law,on the stated provision that she pass the upcoming bar exam.This provision in the employment agreement is a(n)

Accepted Answer

The answer of Melody is a recent graduate of State...

Question 6

Commercial impracticability means some event has occurred that neither party anticipated and fulfilling the contract would now be extraordinarily difficult and unfair to one party.

Accepted Answer

Commercial impracticability refers to a situation where fulfilling a contract becomes exceedingly difficult and unfair due to some unforeseen event. This concept is recognized in the legal system and can excuse a party from fulfilling their obligations under the contract.

Question 7

In negotiating the purchase of a vehicle,the sales representative told Karla,"I guarantee that you will be personally satisfied with this car." The guarantee was written on the contract when Karla purchased the car.If a controversy arises over Karla's satisfaction,the court will apply a subjective standard,which means Karla's judgment must be reasonable.

Accepted Answer

The subjective standard in this context means the court will consider Karla's personal satisfaction, not whether her judgment is considered reasonable by an objective standard.

Question 8

The statement,"You will have a job with Snelling & Snelling as long as you complete your degree in business administration this May" does not create a condition because it does not include the phrase "provided that."

Accepted Answer

The statement includes the phrase "as long as," which is a synonym for "provided that," indicating that the job offer is conditional upon the completion of the degree in business administration.

Question 9

Concurrent conditions arise when there is both a condition precedent and a condition subsequent.

Accepted Answer

Concurrent conditions refer to situations where two or more parties are required to perform their obligations at the same time, not to the presence of both a condition precedent and a condition subsequent.

Question 10

Al contracted to sell his house to Bev.Subsequently,they both changed their minds and decided to cancel the contract.The contract between Al and Bev is discharged by

Accepted Answer

The contract between Al and Bev can be discharged by agreement, which means that both parties mutually agree to cancel the contract.

Question 11

A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee.The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month.

Accepted Answer

The wholesaler's notification of inability to fulfill the contract is considered a breach of contract, even if the performance is not due until next month. The retailer can either sue for damages or seek specific performance (forcing the wholesaler to fulfill the contract).

Question 12

Alice signs a contract with Bob to buy Bob's house for $150,000,with the clause,"if I am able to obtain a mortgage loan for $125,000,at no more than 7% interest,payable over 15 years." Assume that Alice tries but is unable to obtain the described loan,and therefore refuses to proceed with the purchase.Alice is in breach of the contract.

Accepted Answer

The clause in the contract stating "if I am able to obtain a mortgage loan for $125,000, at no more than 7% interest, payable over 15 years" is a condition precedent. This means that Alice's obligation to buy the house is only triggered if she is able to obtain the specified loan. If Alice is unable to obtain the loan, she is not in breach of the contract because the condition precedent was not met.

Question 13

Ramon purchased 5,000 pounds of coffee from Quick Jump Coffee.The coffee was to be delivered on September 1.Since the contract included a date for performance,time is of the essence and the delivery date is strictly enforceable.

Accepted Answer

The answer of Ramon purchased 5,000 pounds of coffee from...

Question 14

Most contracts are discharged by mutual agreement of the parties.

Accepted Answer

Most contracts are discharged by performance, meaning that the parties fulfill their respective obligations as outlined in the contract.

Question 15

An employment contract is an example of a personal satisfaction contract.

Accepted Answer

The answer of An employment contract is an example of...

Question 16

Abdulla hired Granite Construction to build an addition onto his home.Granite Construction dug the foundation but then abandoned the project.Granite Construction is entitled to receive the full contract price minus the value of the defects.

Accepted Answer

If Granite Construction abandoned the project without just cause, they are not entitled to payment for work not completed. Additionally, if there were defects in the work already completed, Abdulla may be entitled to damages or a reduction in the amount owed to Granite Construction.

Question 17

A court may,at times,discharge a party who has not performed.

Accepted Answer

A court may discharge a party who has not performed if it is deemed equitable and just to do so. This may occur due to circumstances such as impossibility of performance or the other party's breach of contract.

Question 18

Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in paper cartons.A shortage of paper makes paper cartons much more expensive,so Jessie uses styrofoam cartons and ships the eggs.Lester is entitled to cancel the contract based on a material breach of the contract.

Accepted Answer

The answer of Assume that Jessie and Lester have formed...

Question 19

Monumental,Inc.contracts with Champion Builders to erect a three-story office building on a parcel of land it has purchased.Before construction begins,the local zoning board changes the zoning of the parcel and those adjoining it to residential use only.Monumental's contract with Champion is discharged.

Accepted Answer

The contract between Monumental, Inc. and Champion Builders is discharged due to frustration of purpose, as the unforeseen zoning change to residential use only prevents the construction of the intended office building, making the contract's original purpose impossible to fulfill.

Question 20

Teresa tells her son Noah that she will give him her car when she finds a new job,provided that he get all As in his classes this semester.Teresa's finding a new job is __________,and Noah's grades are __________.

Accepted Answer

Teresa's finding a new job is a condition precedent for her giving the car because it must happen before she will give the car. Similarly, Noah getting all As is also a condition precedent for him receiving the car, as it must occur for the transfer to happen.

Quiz 18: Contract Termination