Question 1

Jane and Kelly want Lucy to replace Kelly as a party to their con?tract.They can best accomplish this by
A)a mutual agreement to rescind.
B)an accord and satisfaction.
C)a novation.
D)an alteration of the contract.

Accepted Answer

A novation is the best option as it involves the substitution of a new party (Lucy) for one of the original parties (Kelly) in the contract. This requires the mutual agreement of all parties involved and releases the original party (Kelly) from any further obligations under the contract while Lucy assumes all rights and responsibilities. Option A, a mutual agreement to rescind, would essentially cancel the existing contract and require a new agreement to be formed with Lucy included. Option B, an accord and satisfaction, typically involves the settlement of a disputed claim and would not be applicable in this scenario. Option D, an alteration of the contract, would require the consent of all parties and would not necessarily result in the replacement of Kelly with Lucy.

Question 2

Fact Pattern 17-A1 (Questions A9-A10 apply)
Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 17-A1.With respect to Mutual's duties,Neil's performance most likely
A)discharges Mutual from the contract.
B)has no effect on Mutual's performance.
C)increases Mutual's duties under the contract.
D)suspends Mutual's duty to perform.

Accepted Answer

Neil's failure to perform his duties adequately constitutes a breach of contract, which can discharge Mutual from its obligations under the contract.

Question 3

Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year.Belle's duty to perform is
A)absolute.
B)conditional.
C)illusional.
D)irresolute.

Accepted Answer

Belle's duty to perform is conditional upon Dell City annexing the property within the next year. If Dell City does not annex the property within the next year, Belle would not have a duty to perform under the contract.

Question 4

Fact Pattern 17-A2 (Questions A16-A19 apply)
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.Evelyn dies before the apples are delivered to Hill & Dale.Evelyn's contract with Hill & Dale is
A)breached.
B)discharged.
C)not affected.
D)suspended.

Accepted Answer

The contract is not affected because Evelyn's death does not discharge her contractual obligations. Her estate or successors would typically be responsible for fulfilling the contract.

Question 5

Fact Pattern 17-A2 (Questions A16-A19 apply)
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.When bad weather destroys Eve's Garden's apple crop,the obliga?tion to deliver apples to Hill & Dale is
A)breached.
B)discharged.
C)not affected.
D)suspended.

Accepted Answer

The obligation to deliver apples to Hill & Dale is discharged due to the destruction of the apple crop by bad weather, which is an occurrence beyond the control of Eve's Farm and Garden Company. This is an example of frustration of purpose, which discharges the party from performing their obligations under the contract.

Question 6

Fact Pattern 17-A2 (Questions A16-A19 apply)
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.When the market price for apples exceeds the price in the contract with Hill & Dale,Evelyn decides not to deliver the apples.Evelyn's contract with Hill & Dale is
A)breached.
B)discharged.
C)not affected.
D)suspended.

Accepted Answer

By refusing to deliver the apples, Evelyn has breached the contract with Hill & Dale. A contract is a legally binding agreement, and if one party does not fulfill their obligations, it is considered a breach of contract. Therefore, the contract with Hill & Dale is breached.

Question 7

Fact Pattern 17-A1 (Questions A9-A10 apply)
Mutual Company enters into a contract to employ Neil as an investment manager for two years.During the first year,Neil is often absent without explanation and when present fails to adequately monitor and manage Mutual's investments.
-Refer to Fact Pattern 17-A1.Neil's performance is most likely
A)a material breach.
B)a minor breach.
C)Mutual's breach.
D)no breach.

Accepted Answer

Neil's frequent absences and inadequate performance in managing Mutual's investments would likely be considered a material breach of his employment contract. A material breach is a significant failure to perform a contractual obligation, and in this case, Neil's actions could potentially cause substantial harm to Mutual's financial interests.

Question 8

Lark enters into a contract to mine limestone in Milena's quarry,sell it,and share the profits on its sale with Milena.If the duties under this contract are discharged like those under most contracts,the duties will be
A)repudiated.
B)breached.
C)performed.
D)rescinded.

Accepted Answer

If the duties under the contract are discharged like most contracts, the parties will be expected to perform their duties. This means that Lark will be expected to mine limestone, sell it, and share the profits with Milena, and Milena will be expected to allow Lark to mine limestone in her quarry and receive a share of the profits. If either party fails to perform their duties, it would result in a breach of the contract, which could lead to legal consequences. However, if both parties perform their duties as agreed, the contract will be considered fulfilled. Therefore, the correct answer is C (performed).

Question 9

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching.The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal.This law will
A)discharge the contract.
B)fulfill the contract.
C)not affect the contract.
D)require immediate performance of the contract.

Accepted Answer

The law making telepathic personal coaching illegal constitutes a supervening illegality that will discharge the contract. The parties will be released from their contractual obligations as a result of the change in law.

Question 10

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 a.m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been
A)absolute.
B)complete.
C)conditional.
D)substantial.

Accepted Answer

The answer of Safe-T Guard Services enters into a contract...

Question 11

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15.The delivery and installation of the sink and the payment of the price are ex?amples of
A)conditions precedent.
B)concurrent conditions.
C)conditions subsequent.
D)implied conditions.

Accepted Answer

The delivery and installation of the sink and the payment of the price are examples of concurrent conditions because both parties are expected to perform their obligations simultaneously on May 15.

Question 12

Clyde contracts with Deephole Excavation,Inc.,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is
A)breached.
B)discharged.
C)not affected.
D)suspended.

Accepted Answer

The court order to halt the dig has discharged the contract. This means that both parties are released from their obligations under the contract. Clyde is no longer obligated to provide the gravel and Deephole is no longer obligated to dig the pond.

Question 13

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is
A)complete.
B)substantial.
C)tender.
D)tough.

Accepted Answer

Lake Port Services' offer is a tender, which is an offer to perform that is unconditional and made in good faith. The tender must be made at the place, time, and manner reasonably required by the other party in accordance with the terms of the offer or contract. Therefore, choice C, tender, is the best choice.

Question 14

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing.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 condition that must be fulfilled before a contract can be executed. In this case, the approval of the financing by Valley Credit Union is a condition that must be met before the sale of the dirt bike business can be completed.

Question 15

Fact Pattern 17-A2 (Questions A16-A19 apply)
Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples.
-Refer to Fact Pattern 17-A2.A strike delays delivery of the apples by ten days.Evelyn's contract with Hill & Dale is
A)breached.
B)discharged.
C)not affected.
D)suspended.

Accepted Answer

The contract is suspended due to the strike, meaning that the obligations of both parties are temporarily put on hold until the strike ends and the delivery can be completed.

Question 16

Frisco agrees to lease an apart?ment from Gina for one day to see Harry,the president of the United States,deliver a speech in the street below.The speech is can?celed ten days before its scheduled date.The con?tract
A)is discharged.
B)is not affected.
C)is postponed until another event is scheduled.
D)must be performed immediately.

Accepted Answer

The contract is discharged because the purpose for leasing the apartment was to see the speech, and since the speech was canceled, the purpose of the contract cannot be fulfilled.

Question 17

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.Even-Bilt completely performs.Discount E-Sales is entitled to
A)an accord.
B)rescission.
C)novation.
D)nothing more.

Accepted Answer

As Even-Bilt Construction has completely performed the contract, Discount E-Sales Company is entitled to nothing more. The contract has been fulfilled, and the obligations of both parties have been met. Therefore, none of the other options (accord, rescission, or novation) apply in this scenario.

Question 18

Commercial Construction,Inc.(CCI),contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1.On June 1,Rita's bank is closed,and for this reason,Rita's claims it cannot pay on time.In this situation
A)CCI is in breach of contract.
B)Rita's is in breach of contract.
C)the contract is discharged.
D)the contract is suspended.

Accepted Answer

Rita's is in breach of contract as they failed to make payment on the agreed upon date. The fact that their bank was closed is not a valid excuse for non-payment. However, CCI may choose to grant an extension or pursue legal action for breach of contract.

Question 19

Real Cheap Painters,Inc.,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely
A)an absolute excuse for Quint's refusal to pay.
B)a material breach.
C)complete performance.
D)substantial performance.

Accepted Answer

The answer of Real Cheap Painters,Inc.,agrees to paint Quint's house,using...

Question 20

Quito contracts with Rewind Graphix,Inc.,to pay $5,000 for its work on the animated film "Song." After Rewind performs,they sign an accord,in which Quito promises to pay $4,000 within ten days instead of $5,000 later.But Quito does not pay.Rewind can sue Quito under
A)neither the accord nor the original obligation.
B)the accord only.
C)the accord or the original obligation.
D)the original obligation only.

Accepted Answer

Rewind can choose to sue Quito under either the original obligation of $5,000 or the accord of $4,000. The accord, being a new contract, replaces the original obligation but if Quito does not fulfill the new promise, Rewind can still choose to enforce the original obligation.

Quiz 17: Performance and Discharge

Jane and Kelly want Lucy to replace Kelly as a party to their con?tract.They can best accomplish this by

Belle enters into a contract to subdivide and sell housing lots in Colin's hillside field if Dell City annexes the property within the next year.Belle's duty to perform is

Fact Pattern 17-A2 (Questions A16-A19 apply) Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.Evelyn dies before the apples are delivered to Hill & Dale.Evelyn's contract with Hill & Dale is

Fact Pattern 17-A2 (Questions A16-A19 apply) Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.When bad weather destroys Eve's Garden's apple crop,the obliga?tion to deliver apples to Hill & Dale is

Lark enters into a contract to mine limestone in Milena's quarry,sell it,and share the profits on its sale with Milena.If the duties under this contract are discharged like those under most contracts,the duties will be

Ruth contracts to provide Shelly with fifty hours of telepathic personal coaching.The state legisla?ture sub?sequently passes a law making tele?pathic personal coaching illegal.This law will

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 p.m.and 6 a.m.nightly for six months.At the end of the term,if there has been no vandalism or theft in the Park,Safe-T's performance will have been

Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $150 price on May 15.The delivery and installation of the sink and the payment of the price are ex?amples of

Clyde contracts with Deephole Excavation,Inc.,to dig an agricultural pond on his farm.Deephole is to keep the excavated gravel in payment.Clyde's neighbor Eden challenges the dig as an illegal gravel pit.A court orders a halt to the dig.Clyde's contract with Deephole is

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates.Lake Port's offer to perform,when Lake Port is ready,willing,able to do so,is

Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing.This approval is

Fact Pattern 17-A2 (Questions A16-A19 apply) Evelyn,who owns and operates Eve's Farm & Garden Company,agrees to sell Hill & Dale Produce,Inc.,fifty bush?els of apples. -Refer to Fact Pattern 17-A2.A strike delays delivery of the apples by ten days.Evelyn's contract with Hill & Dale is

Frisco agrees to lease an apart?ment from Gina for one day to see Harry,the president of the United States,deliver a speech in the street below.The speech is can?celed ten days before its scheduled date.The con?tract

Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company.Even-Bilt completely performs.Discount E-Sales is entitled to

Commercial Construction,Inc.(CCI) ,contracts to build a store for Rita's Pizza Company with Rita's payment due on June 1.On June 1,Rita's bank is closed,and for this reason,Rita's claims it cannot pay on time.In this situation

Real Cheap Painters,Inc.,agrees to paint Quint's house,using a particular brand of "discount" paint.Real Cheap completes the job but uses a dif?ferent brand of discounted paint.This is most likely

Quito contracts with Rewind Graphix,Inc.,to pay $5,000 for its work on the animated film "Song." After Rewind performs,they sign an accord,in which Quito promises to pay $4,000 within ten days instead of $5,000 later.But Quito does not pay.Rewind can sue Quito under