Chapter 19 - Performance & Discharge Quiz

CHAPTER 19 - PERFORMANCE & DISCHARGE QUIZ

1. Your grandfather tells you, "If you get a 4.0 grade point average this semester, then you can have my car when I die." Your grades are _______________, and your grandfather's death is _______________.

a. a condition precedent; not a condition
b. a condition precedent; a condition precedent
c. not a condition; a condition precedent
d. not a condition; not a condition

2. Mike, a recent law school graduate, takes the bar exam in July. He expects to get the results in the mail in September. In August, he is hired by the law firm of Dewey, Cheatum, and Howe. His contract says, "You can start immediately at $42,000 per year, but if you fail the bar exam, you will be terminated immediately." The bar exam clause is a(n)

a. condition precedent.
b. condition subsequent.
c. concurrent condition.
d. none of the above

3. John promises to buy Tommy's car for $6,000. This is an example of a(n)

a. conditional promise.
b. absolute promise.
c. qualified promise.
d. none of the above.

4. Professor Plum orders 500 textbooks from a publisher. They mistakenly miscount the number of books during shipping, and only 498 are sent. What has likely occurred?

a. complete performance
b. substantial performance
c. a breach of contract
d. both B and C

5. IBM signs an agreement with Best Buy that says, "...will deliver 100 computers if you promise payment upon delivery." Which of the following has happened?

a. an express condition
b. a concurrent condition
c. both A and B
d. none of the above

6. Al orders a computer, monitor, mouse and keyboard for IBM. They will be delivered on June 3, and will cost $1,500. On June 3, everything but the mouse arrives by mail. The mouse has a value of $20. What must Al pay, and when?

a. $1,500, on June 3
b. $1,500, when the mouse is delivered
c. $1,480, on June 3
d. $0, as IBM has breached the contract

7. Ann offers to sell her car to Mike for $5,000. Mike says, "I'll buy it if you will take it to my mechanic tomorrow and he says it is in good working order." Ann agrees. What has happened here?

a. Mike has made a counteroffer.
b. Mike has inserted a condition precedent.
c. Mike has made a condition subsequent.
d. both A and B

8. Al hires Vincent to paint a portrait of his daughter. He inserts this condition precedent into the contract: "I will not pay unless completely satisfied." After the painting is done, Al thinks it is unflattering. Can he avoid payment?

a. yes, because he has an absolute right to refuse payment if he is not personally satisfied
b. yes, but only if he is dissatisfied in good faith
c. yes, but only if a reasonable person would be dissatisfied
d. no

9. Al hires Mac to build an office building. He inserts this condition precedent into the contract: "I will not pay unless completely satisfied." After the work is done, Al claims that he is dissatisfied. Can he avoid payment?

10. Ben orders a computer from IBM. They never ship the computer to him. What has happened?

a. a breach of contract
b. a material breach of contract
c. an immaterial breach of contract
d. none of the above

11. A furniture store orders five chairs from a carpenter. They give a key to their store to the carpenter, and tell him to deliver the goods on Sunday, when they will be closed. The chairs are delivered on Sunday, but no payment has yet been made. What has the carpenter done?

a. performance
b. tender
c. both A and B
d. none of the above

12. Bill orders 100 kegs of Budweiser for his new bar which will open June 1. The beer costs $30 per keg to make, and is sold to Bill for $40 per keg. The contract says, "Delivery by June 1, time is of the essence." The beer is not delivered on time, and Bill hurriedly orders 100 kegs from another brewery. The Budweiser delivery is made on June 3. What amount must Bill pay Budweiser?

a. $4,000
b. $3,000
c. $0
d. A reasonable amount

13. Ned hires Bart to mow his lawn for the summer. One week before Bart is to start mowing, Ned tells him, "I've changed my mind. I'm going to make my heathen sons do my yardwork instead." When may Bart sue Ned for damages, if ever?

a. immediately
b. on what was to be his first day of work
c. on what was to be his last day of work
d. never

14. Dan and Mike have a valid contract. Dan is to deliver a shipment of steel to Mike's refinery. In what circumstances can the contract be discharged before performance has taken place?

a. if Dan wants to avoid his contractual obligation to deliver
b. if Mike wants to avoid his contractual obligation to pay
c. if both Mike and Dan want to avoid their contractual duties
d. a valid contract may not be discharged in any of these ways

15. Tom sells used cars, all of which cost at least $1,200. If Tom makes a contract, it _______________ be in writing. If, after making a valid contract, Tom and a buyer wish to rescind their contract, the mutual rescission _______________ be in writing.

a. must; must
b. must; need not
c. need not; must
d. need not; need not

16. Which of the following are examples of objective impossibility?

a. death of a party to a contract
b. destruction of the subject matter of the contract
c. both A and B
d. none of the above

17. Billy and Chrysler have a valid contract which calls for Billy to make car payments for the next three years. Billy runs out of money, and needs Amanda to help him make payments. She takes over his payments with a via a novation. Which of the following statements are accurate?

a. Billy's duties are discharged.
b. Amanda's duties are discharged.
c. The bank's duties are discharged.
d. both A and C

18. Ann and Betty have a contract. Betty wants to change the agreement, and offers Ann an accord. In which of these ways may Ann discharge her contractual obligations?

a. by performing her original contractual duties
b. by performing the duties called for in the accord
c. both A and B
d. none of the above

19. Mel has a contract with Bob in which he will deliver 100 bottles of tequila for $1,000. One night, Mel puts correction fluid over the price on his copy of the contract, and changes the dollar amount to $1,800. He delivers the goods, and demands $1,800 from Bob after showing him the contract. Bob remembers very well how much he was supposed to pay, and is furious at this attempted scam. He refuses to accept the delivery. How much is Bob obligated to pay in this situation?

a. $1,800
b. $1,000
c. $0
d. A reasonable amount based on fair market value

20. Alex and Pat have a UCC contract. Alex breaches the contract in 1997. Pat finds out about this breach in 1998. If the agreement was written, what is the last year in which Pat may bring a lawsuit for breach of contract?

a. 2001
b. 2002
c. 2003
d. 2004

21. The UCC statute of limitations is four years. May parties to a contract lengthen or shorten this period by mutual consent?

a. Yes, they may lengthen it.
b. Yes, they may shorten it.
c. both A and B
d. No, they must keep it at four years.

22. Billy and Chrysler have a valid contract which calls for Billy to make car payments for the next three years. Billy runs out of money, and needs Amanda to help him make payments. Which of the following situations is/are a novation?

a. Amanda promises Billy to make payments.
b. Amanda promises the bank she will make the payments, and the bank agrees.
c. both A and B
d. none of the above

23. Fred is to deliver goods to Barney. He calls one day and says, "I just can't make the delivery. It's impossible." Fred's contractual duties will be discharged if performance is _______________ impossible.

a. objectively
b. subjectively
c. both A and B
d. none of the above

24. Frank calls Tom and says, "I can't pay you for the goods you delivered today because my bank is closed for the Fourth of July." Frank's inability to pay is an example of_______________ impossibility.

a. subjective
b. objective
c. both subjective and objective
d. none of the above

25. Mac is hired to put up an office building. Before he begins, a local zoning law is enacted that prohibits office buildings in the area Mac is to build in. What must Mac do now, based on his contractual obligation?

a. build the offices in the same location
b. build the offices in a new location without zoning restrictions
c. attempt to convince the town to make an exception to the new zoning restriction
d. nothing

26. Mark rents a small apartment for $2,000 a month because it overlooks Wrigley Field. One day, a new scoreboard is installed that blocks the view from his balcony. Will Mark have any chance to get out of the rest of his lease?

a. yes, because viewing the games has become objectively impossible
b. yes, because viewing the games has become subjectively impossible
c. yes, because the purpose for which he leased the apartment has been frustrated
d. no