Quizzes-Law1-OC-Fall2014
Chapter 17 – Performance and Discharge
1. Dharma enters into a contract to manage the operations of Esther’s dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be
a. canceled.
b. breached.
c. altered.
d. performed.
2. Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony
a. agree to sign a bill of sale.
b. exchange the car for the $3,000.
c. sign a receipt.
d. shake hands and go their separate ways.
3. Restoration, Inc., contracts to repair a crack in a supporting beam for Stagecraft Theater for $10,000. If Restoration does not perform, Stagecraft must pay
a. $10,000.
b. $5,000.
c. $1,000.
d. $0.
4. Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel Coffee agrees to support as long as Bernadette maintains her business license. Caramel Coffee’s duty to perform is
a. not a condition.
b. a condition precedent.
c. a concurrent condition.
d. a condition subsequent.
5. Polly agrees to buy Quinn’s Cycle World store business on the express condition that Ridgeline Credit Union approves the financing. This approval is
a. not a condition.
b. a condition precedent.
c. a concurrent condition.
d. a condition subsequent.
6. Herb’s Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb’s competitors, which Idris delivers on August 1. Herb’s offer, on the same date, to pay Idris is
a. a concurrent condition.
b. a novation.
c. tender.
d. mutual rescission.
7. Ed’s Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to
a. damages.
b. nothing more.
c. to be excused from performance.
d. suspend performance.
8. Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to
b. nothing more.
c. to be excused from performance.
d. suspend performance.
Fact Pattern (Questions 9–10 apply)
Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle.
9. Refer to Fact Pattern . Moses’s late attempt to install the ventilation system is most likely
a. a material breach.
b. complete performance.
c. excused by Noelle’s refusal to make further payments.
d. substantial, but not complete, performance.
10. Refer to Fact Pattern . Noelle’s refusal to make further payments is most likely
a. a material breach.
b. complete performance.
c. excused by Moses’s failure to timely install the ventilation system.
d. substantial, but not complete, performance.
Fact Pattern (Questions 11–12 apply)
Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra.
11. Refer to Fact Pattern Under the circumstances, with respect to damages, Chandra 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. Business Computer’s repudiation of its contract to employ Chandra is most likely
a. a material breach.
b. a minor breach.
c. a condition subsequent.
d. not a breach.
13. Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic 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. a settlement agreement.
14. Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light’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. a settlement agreement.
15. Omar and Penn 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, Construction Contractors, Inc., contracts to build a store for Discount Retail, Inc., at a specific location in Electro City. On April 10, Electro changes its zoning law to prohibit the construction of a commercial building at that location. Discount Retail files a suit against Construction Contractors. In this situation
a. Construction Contractors is in breach of contract.
b. Discount Retail is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
17. OnTrack Rehabilitation Center signs an agreement with Platinum 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. OnTrack’s best argument for avoiding payment to Platinum Bank 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. Lana agrees to work as Michelle’s personal assistant for one year but dies in the ninth month of the contract. Lana’s estate
a. is discharged from any contractual liability.
b. must find a competent assistant to fulfill the contract.
c. must pay damages.
d. must refund any money paid to Lana on the contract.
19. Adrian operates a recycled metals business and contracts to provide ten tons of scrap steel at $500 per ton to be delivered to Build-It-Rite Materials, Inc., in seven months. An unforeseen shortage of scrap steel suddenly develops, making it impossible for Adrian to fulfill the contract for less than $5,000 per ton. Adrian’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. Nina contracts with Office Suites Corporation to buy a suite in its Prospect Point Tower at a premium for its view of Quay Harbor. Unforeseeably, the town of Quay Harbor changes its zoning law, and Resort Hotels, Inc., constructs Seaview Resort, blocking what would have been Nina’s view. Nina’s best argument for a change in the Office Suites contract or its price is
a. frustration of purpose.
b. objective impossibility of performance.
c. anticipatory repudiation.
d. commercial impracticability.
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