Question 1

If performance in a contract becomes extremely difficult after the contract is formed, it automatically discharges the contract.

Accepted Answer

A) True 
 B)False

Question 2

Which of the following statements best describes specific performance?

Accepted Answer

A)   It refers to the payment of compensatory damages by a party as a remedy for breach of contract.
B)   It refers to the carrying out of the specific terms of a contract.
C)   It refers to carrying out of terms that were not specified in a contract in order to compensate for damages.
D)   It refers to the payment of liquidated damages by a party as a remedy for breach of contract.E) A) and D)
F) A) and B) B

Question 3

Which of the following is true of discharge of contracts due to impossibility of performance?

Accepted Answer

A)   Contracts can be discharged by strict impracticability of performance.
B)   If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is still enforced.
C)   If the act called for in an alleged contract is impossible to perform at the time the contract is made, no contract ever comes into existence.
D)   When performance by a party is made impossible by the wrongful act of the other party, the party who cannot perform has breached the contract by the failure to perform.E) B) and C)
F) A) and B)

Question 4

The release of one party to a contract constitutes the consideration for the release of the other.

Accepted Answer

A) True 
 B)False

Question 5

Which of the following statements best defines a tender of performance?

Accepted Answer

A)   It is an offer to perform an obligation in satisfaction of the terms of a contract.
B)   It is an offer to pay money in satisfaction of a debt or claim when one has the ability to pay.
C)   It is a contract provision that states the liquidity damages to be paid by a party if it breaches a contract.
D)   It is a contract provision excusing performance when an extraordinary event occurs.E) A) and B)
F) C) and D)

Question 6

If a party intentionally and without the consent of the other party alters a written contract, the other innocent party is discharged.

Accepted Answer

A) True 
 B)False  True

Question 7

Which of the following statements is true of statutes of limitations?

Accepted Answer

A)   For open accounts, accounts receivable, and ordinary loans, the statute of limitations varies from four to twenty years.
B)   Even if a promisor leaves the state, the statute continues to run while the promisor is beyond the jurisdiction of the court.
C)   Statutes of limitations are uniform for all kinds of debts and suits.
D)   In the case of running accounts, such as purchases from department stores, the statute starts from the date of the last purchase.E) A) and B)
F) A) and C)

Question 8

A force majeure clause in a contract is a contract provision that excuses performance by a party when:

Accepted Answer

A)   an extraordinary event outside the party's control occurs.
B)   death or physical incapacity occurs, making it impossible to perform the services of the contract.
C)   the performance is made impossible by the wrongful act of the other party.
D)   an act that was legal at the time of the contract, is subsequently made illegal.E) None of the above
F) A) and B)

Question 9

In a written contract, Sheldon agreed to tutor the children of Mrs.Smith for a certain period of time. However, Sheldon, prior to starting classes, announced that he would not be able to tutor the children due to other commitments of his. In this case, there has been a(n) :

Accepted Answer

A)   anticipatory breach.
B)   rescission.
C)   negligent breach.
D)   malpractice.E) All of the above
F) A) and B)

Question 10

In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?

Accepted Answer

A)   When the actual damages are difficult to be proved
B)   When the liquidated damages were established prior to the breach of contract
C)   When the amount of liquidated damages fixed by the contract is unreasonable
D)   When the parties refuse to pay the liquidated damages established in the contractE) C) and D)
F) A) and D)

Question 11

When a court orders for specific performance, it is exercising its equity powers.

Accepted Answer

A) True 
 B)False  True

Question 12

A debt that has been outlawed by a statute of limitations cannot be revived.

Accepted Answer

A) True 
 B)False

Question 13

The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed.

Accepted Answer

A) True 
 B)False

Question 14

Contracts for the performance of personal services can be specifically ordered as remedies in breach-of-contract suits.

Accepted Answer

A) True 
 B)False

Question 15

A breach of contract by one of the parties bound on a contract immediately terminates the contract.

Accepted Answer

A) True 
 B)False

Question 16

AB Developers signs a contract with CL Corp., agreeing to build a $20 million office for the corporation. The construction contract was substantially performed. There were, however, a few minor breaches of the contract by AB Developers that made CL Corp. incur damages worth $10,000. Which of the following is most likely to be true in this scenario?

Accepted Answer

A)   Since there was a breach of contract, CL Corp. may not pay any compensation to AB Developers.
B)   CL Corp. needs to pay the full price under the contract since the work was substantially performed.
C)   CL Corp. needs to pay the full price under the contract less the damages suffered by it.
D)   AB Developers needs to pay nominal damages to CL Corp. for breach of contract.E) B) and C)
F) All of the above

Question 17

After a discharge in bankruptcy, creditors' rights of action to enforce most of the contracts of a debtor are barred.

Accepted Answer

A) True 
 B)False

Question 18

What constitutes satisfactory performance in a contract?

Accepted Answer

What constitutes satisfactory performanc...

Question 19

If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged.

Accepted Answer

A) True 
 B)False

Question 20

An offer to provide money in satisfaction of a debt when one has the ability to pay is a(n)  _____.

Accepted Answer

A)   tender of payment
B)   tender of performance
C)   malpractice
D)   anticipatory breachE) None of the above
F) B) and C)

Exam 13: Termination of Contracts

If performance in a contract becomes extremely difficult after the contract is formed, it automatically discharges the contract.

Correct Answer
verified

Which of the following statements best describes specific performance?

Correct Answer
verified
B

Which of the following is true of discharge of contracts due to impossibility of performance?

Correct Answer
verified

The release of one party to a contract constitutes the consideration for the release of the other.

Correct Answer
verified

Which of the following statements best defines a tender of performance?

Correct Answer
verified

If a party intentionally and without the consent of the other party alters a written contract, the other innocent party is discharged.

Correct Answer
verified
True

Which of the following statements is true of statutes of limitations?

Correct Answer
verified

A force majeure clause in a contract is a contract provision that excuses performance by a party when:

Correct Answer
verified

In a written contract, Sheldon agreed to tutor the children of Mrs.Smith for a certain period of time. However, Sheldon, prior to starting classes, announced that he would not be able to tutor the children due to other commitments of his. In this case, there has been a(n) :

Correct Answer
verified

In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?

Correct Answer
verified

When a court orders for specific performance, it is exercising its equity powers.

Correct Answer
verified
True

A debt that has been outlawed by a statute of limitations cannot be revived.

Correct Answer
verified

The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed.

Correct Answer
verified

Contracts for the performance of personal services can be specifically ordered as remedies in breach-of-contract suits.

Correct Answer
verified

A breach of contract by one of the parties bound on a contract immediately terminates the contract.

Correct Answer
verified

Correct Answer
verified

After a discharge in bankruptcy, creditors' rights of action to enforce most of the contracts of a debtor are barred.

Correct Answer
verified

What constitutes satisfactory performance in a contract?

Correct Answer
verified
What constitutes satisfactory performanc...
View Answer

If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged.

Correct Answer
verified

An offer to provide money in satisfaction of a debt when one has the ability to pay is a(n) _____.

Correct Answer
verified

Exam 13: Termination of Contracts

If performance in a contract becomes extremely difficult after the contract is formed, it automatically discharges the contract.

Correct AnswerverifiedShow Answer

Which of the following statements best describes specific performance?

Correct AnswerverifiedB

Which of the following is true of discharge of contracts due to impossibility of performance?

Correct AnswerverifiedShow Answer

The release of one party to a contract constitutes the consideration for the release of the other.

Correct AnswerverifiedShow Answer

Which of the following statements best defines a tender of performance?

Correct AnswerverifiedShow Answer

If a party intentionally and without the consent of the other party alters a written contract, the other innocent party is discharged.

Correct AnswerverifiedTrue

Which of the following statements is true of statutes of limitations?

Correct AnswerverifiedShow Answer

A force majeure clause in a contract is a contract provision that excuses performance by a party when:

Correct AnswerverifiedShow Answer

In a written contract, Sheldon agreed to tutor the children of Mrs.Smith for a certain period of time. However, Sheldon, prior to starting classes, announced that he would not be able to tutor the children due to other commitments of his. In this case, there has been a(n) :

Correct AnswerverifiedShow Answer

In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?

Correct AnswerverifiedShow Answer

When a court orders for specific performance, it is exercising its equity powers.

Correct AnswerverifiedTrue

A debt that has been outlawed by a statute of limitations cannot be revived.

Correct AnswerverifiedShow Answer

The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed.

Correct AnswerverifiedShow Answer

Contracts for the performance of personal services can be specifically ordered as remedies in breach-of-contract suits.

Correct AnswerverifiedShow Answer

A breach of contract by one of the parties bound on a contract immediately terminates the contract.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

After a discharge in bankruptcy, creditors' rights of action to enforce most of the contracts of a debtor are barred.

Correct AnswerverifiedShow Answer

What constitutes satisfactory performance in a contract?

Correct AnswerverifiedWhat constitutes satisfactory performanc...View AnswerShow Answer

If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is discharged.

Correct AnswerverifiedShow Answer

An offer to provide money in satisfaction of a debt when one has the ability to pay is a(n) _____.

Correct AnswerverifiedShow Answer

Correct Answer
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B

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True

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Correct Answer
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True

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Correct Answer
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Correct Answer
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Correct Answer
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What constitutes satisfactory performanc...
View Answer

Correct Answer
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Correct Answer
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