Quizzes-Law1-Fall2013
Chp. 17 Performance and Discharge
1. Dylan enters into a contract to manage the operations of Cash’s accounting office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be
a. canceled.
b. compromised.
c. altered.
d. performed.
2. Juana contracts to sell Ignacio her MP3 player for $30. This contract will be fully discharged when Juana and Ignacio
a. agree to sign a bill of sale.
b. exchange the player for the $30.
c. sign a receipt.
d. shake hands and go their separate ways.
3. Dinah contracts to repair a rip in a ventilation duct for Ernie’s Café for $100. If Dinah does not perform, Ernie must pay
a. $100.
b. $50.
c. $10.
d. $0.
4. McCoy enters into a contract to operate a Tasty Yogurt franchise, which Tasty agrees to support as long as McCoy maintains his business license. Tsaty’s duty to perform is
a. absolute.
b. conditional.
c. licentious.
d. operational.
5. Candace enters into a contract to pay Parker for a business survey and review of Candace’s competitors, which Parker delivers on June 1. Candace’s offer, on the same date, to pay Parker is
a. tandem.
b. tonnage.
c. tender.
d. tinder.
6. Tia signs a lease that states any change in the zoning law that affects the lease will cause its termination. Union City’s zoning board adopts an affecting zoning classification. This adoption satisfies
a. no condition.
b. the condition precedent.
c. the concurrent condition.
d. the condition subsequent.
7. Red’s Plumbing Service substantially performs its contract with Shady Grove Condominiums, Inc. Shady Grove is entitled to
a. damages.
b. nothing more.
c. repudiation.
d. alteration.
8. Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be
a. absolute.
b. complete.
c. material.
d. substantial.
Fact Pattern 1 1 (Questions 9 - 10 apply)
Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy.
9. Refer to Fact Pattern B1. Kip’s late attempt to fix the roof is most likely
a. a material breach.
b. complete performance.
c. excused by Lacy’s refusal to make further payments.
d. substantial, but not complete, performance.
10. Refer to Fact Pattern 17-B1. Lacy’s refusal to make further payments is most likely
a. a material breach.
b. complete performance.
c. excused by Kip’s failure to fix the roof.
d. substantial, but not complete, performance.
Fact Pattern 2 (Questions 11– 12 apply)
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
11. Refer to Fact Pattern 2. Under the circumstances, with respect to damages, Chris can
a. bring an action immediately.
b. bring an action only after the contract’s two-year term begins.
c. bring an action only after the contract’s two-year term ends.
d. do nothing.
12. Refer to Fact Pattern 2. Bell’s repudiation is most likely
a. a material breach.
b. a minor breach.
c. Chris’s breach.
d. no breach.
13. Straitedge Toolmakers, Inc., contracts to sell its assets to Trulevel Hardware 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. commercial impracticability.
14. 3D FX, LLC, and Vivid Star CG, Inc., are parties to a contract. They subsequently agree that Pixellated Inc. should take 3D’s 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. commercial impracticability.
15. Mona and Nero want to discharge their contract by executing a new agreement with performance different from what they originally promised. 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 original contract.
16. On April 1, KO Contractors, Inc., contracts to build a store for Lo-Cost Housewares at a specific location in Metro City. On May 1, Metro changes its zoning law to prohibit the construction of a commercial building at that location. Lo-Cost files a suit against KO. In this situation
a. KO is in breach of contract.
b. Lo-Cost is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
17. Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. Blueberry’s best argument for avoiding payment to County Credit is that
a. performance of the contract is commercially impracticable.
b. payment of the loan would force the debtor into bankruptcy.
c. the law has rendered performance of the contract illegal.
d. the specific subject matter of the contract has been destroyed.
18. Melissa agrees to work as Garry’s personal accountant for one year but dies in the sixth month of the contract. Melissa’s estate
a. is discharged from any contractual liability.
b. must find a competent accountant to fulfill the contract.
c. must pay damages.
d. must refund any money paid to Melissa on the contract.
19. Rachel operates a scrap metal business and contracts to provide ten tons of scrap steel at $50 per ton to be delivered to Pure Metals, Inc., in six months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Rachel to fulfill the contract for less than $500 per ton. Rachel’s best defense against performing the contract would be that
a. performance of the contract is commercially impracticable.
b. procuring the steel would force the seller into bankruptcy.
c. the law has rendered performance of the contract illegal.
d. the specific subject matter of the contract has been destroyed.
20. Tanya contracts with Suite Condos Corporation to buy a unit in Suite’s Bayview Tower at a premium for its view of River Bay. Unforeseeably, the town of River Bay changes its zoning law. Resort Hotels, Inc., constructs River Bay Resort, blocking what would have been Tanya’s view. Tanya’s best argument for a change in the Suite contract or its price is
a. frustration of purpose.
b. objective impossibility of performance.
c. anticipatory repudiation.
d. commercial impracticability.
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