Question 1

When a change in the law renders the performance of a contract illegal, the nonperforming party is normally held in breach of contract.

Accepted Answer

A) True 
 B)False

Question 2

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires

Accepted Answer

A)   ​a mutual agreement to rescind.
B)   ​an accord and satisfaction.
C)   ​a novation.
D)   ​a settlement agreement.E) A) and D)
F) None of the above

Question 3

Any breach discharges the nonbreaching party from the contract.

Accepted Answer

A) True 
 B)False

Question 4

Any breach allows the nonbreaching party to sue for damages.

Accepted Answer

A) True 
 B)False

Question 5

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This novation does not require

Accepted Answer

A)   ​the existence of a previous, valid obligation.
B)   ​the agreement by all of the parties to the new contract.
C)   ​performance of the original contract by all of the parties.
D)   ​a new, valid contract.E) A) and D)
F) All of the above

Question 6

Objective impossibility discharges a contract.

Accepted Answer

A) True 
 B)False

Question 7

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations

Accepted Answer

A)   ​must still be performed.
B)   ​must now be renegotiated.
C)   ​are on "hold."
D)   ​are discharged.E) All of the above
F) B) and D)

Question 8

A material breach occurs when performance is substantial, but not complete.

Accepted Answer

A) True 
 B)False

Question 9

​Amy and Bob enter into a contract for Bob to perform waste management services for Amy's commercial properties. Later, Bob alters a material term-increases the price-without Amy's knowledge or consent. Amy

Accepted Answer

A)   ​can alter a material term, such as the payment date, without Bob's consent.
B)   ​can treat the contract as discharged.
C)   ​must adapt his performance accordingly.
D)   ​must determine whether Bob's alteration constitutes substantial performance.E) A) and D)
F) C) and D)

Question 10

​Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation

Accepted Answer

A)   ​Contractors is in breach of contract.
B)   ​the local zoning authority is in breach of contract.
C)   ​the contract is discharged.
D)   ​Discount must compensate Contractors for its lost profit.E) A) and C)
F) A) and B)

Question 11

Fact Pattern 18-2
Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months.
-Refer to Fact Pattern 18-2. ​If Flora dies before the deliveries begin, her contract with Harvesters is

Accepted Answer

A)   ​breached.
B)   ​discharged.
C)   ​not affected.
D)   ​suspended.E) A) and C)
F) B) and C)

Question 12

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.

Accepted Answer

A) True 
 B)False

Exam 18: Performance and Discharge

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires

Correct Answer
verified

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations

Correct Answer
verified

A material breach occurs when performance is substantial, but not complete.

Correct Answer
verified

When a change in the law renders the performance of a contract illegal, the nonperforming party is normally held in breach of contract.

Correct Answer
verified

Fact Pattern 18-2 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 18-2. If Flora dies before the deliveries begin, her contract with Harvesters is

Correct Answer
verified

Any breach allows the nonbreaching party to sue for damages.

Correct Answer
verified

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This novation does not require

Correct Answer
verified

Any breach discharges the nonbreaching party from the contract.

Correct Answer
verified

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.

Correct Answer
verified

Objective impossibility discharges a contract.

Correct Answer
verified

Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation

Correct Answer
verified

Amy and Bob enter into a contract for Bob to perform waste management services for Amy's commercial properties. Later, Bob alters a material term-increases the price-without Amy's knowledge or consent. Amy

Correct Answer
verified

Exam 18: Performance and Discharge

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires

Correct AnswerverifiedShow Answer

Ann offers to buy Beth's land only if an appraiser estimates that its current value is more than a certain price. Later, the appraiser deems the worth of the land to be less than Beth's price. Ann and Beth's obligations

Correct AnswerverifiedShow Answer

A material breach occurs when performance is substantial, but not complete.

Correct AnswerverifiedShow Answer

When a change in the law renders the performance of a contract illegal, the nonperforming party is normally held in breach of contract.

Correct AnswerverifiedShow Answer

Fact Pattern 18-2 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 18-2. ​If Flora dies before the deliveries begin, her contract with Harvesters is

Correct AnswerverifiedShow Answer

Any breach allows the nonbreaching party to sue for damages.

Correct AnswerverifiedShow Answer

Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This novation does not require

Correct AnswerverifiedShow Answer

Any breach discharges the nonbreaching party from the contract.

Correct AnswerverifiedShow Answer

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.

Correct AnswerverifiedShow Answer

Objective impossibility discharges a contract.

Correct AnswerverifiedShow Answer

​Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation

Correct AnswerverifiedShow Answer

​Amy and Bob enter into a contract for Bob to perform waste management services for Amy's commercial properties. Later, Bob alters a material term-increases the price-without Amy's knowledge or consent. Amy

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Fact Pattern 18-2 Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. -Refer to Fact Pattern 18-2. If Flora dies before the deliveries begin, her contract with Harvesters is

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Contractors LLC agrees to build a store for Discount Retail, Inc., at a specific location. Before construction begins, the local zoning law is changed to prohibit commercial buildings at that location. In this situation

Correct Answer
verified

Amy and Bob enter into a contract for Bob to perform waste management services for Amy's commercial properties. Later, Bob alters a material term-increases the price-without Amy's knowledge or consent. Amy

Correct Answer
verified