Halia contracted to purchase a building in which she intended to operate a McDonald's franchise. The agreement stated that her contractual obligation to purchase the property was conditional upon her obtaining the franchise from McDonald's. Which of the following describes this condition?
A. It is a condition precedent.
B. It is a condition subsequent.
C. It is a concurrent condition.

The inauguration of a new United States President is scheduled for January 20th. Ted, wishing to be assured of a place from which to witness the inaugural parade, leased a room along the route for the purpose of seeing the President on that date. The contract states that he intends to use the room for the inauguration. Because of the timing, Ted paid a premium for the room. Assume the president becomes ill and had to reschedule the ceremony for January 30th. Which of the following is a correct assessment of the situation?
A. Impossibility of performance discharges the obligations of both parties.
B. Ted still has to pay for the room.
C. Frustration of purpose discharges the obligations of both parties.
D. The president will be liable to the landlord for changing his schedule so abruptly.
E. Both parties remain obligated to perform on January 30th.

Abe contracts with Bart for the construction of a new house. Bart builds the shell of the house in compliance with Abe's instructions but does not perform any further. Which of the following is correct?
A. Bart is in breach of contract.
B. Bart has not substantially performed.
C. Both A and B.
D. None of the above is correct.

In preparation for Thanksgiving, Wegman's Grocery Store ordered in September three thousand turkeys from the Gobbler Farm. Delivery was due on November 15. In October Gobbler Farm realized its production would be insufficient to satisfy its orders. Immediately thereafter Gobbler informed Wegman's that it would not be able to deliver any turkeys to Wegman's. Which of the following describes Gobbler's actions?
A. A. Recision
B. B. Discharge
C. C. Bankruptcy
D. D. Anticipatory repudiation

Floral Inc. offered to sell Chloe "1,000 red roses at 60 cents each" and Chloe agreed. A hail storm ruined Floral Inc.'s rose fields which usually, but not always, was Floral's source of roses. When the demand for Floral's flowers was great, she sometimes purchased flowers from other vendors to provide for her customers. Which of the following is correct?
A. Floral Inc. is excused from performance because of the doctrine of impossibility of performance.
B. This would be a frustration of purpose.
C. Floral Inc. must provide 1,000 roses to Chloe to avoid liability for breach of contract.
D. Floral Inc. is excused by commercial impracticality.
E. None of the selections are correct.

Katy Perry contracted to perform a concert last night in Albany, New York. Due to laryngitis, she was unable to perform. If she is sued by the producer of the concert for breach, does Perry have a defense to a breach of contract action brought against her by the producer of the concert?
A. Yes, failure of a condition precedent.
B. Yes, she substantially performed.
C. Yes, the breach was minor.
D. Yes, impossibility of performance

Answer rating: 100% (QA)

1 This is an example of condition precedent which needs occurrence of an event in order to fulfill t... View the full answer