1. When both parties are to perform at the same time, this is known as a __________ condition.

concurrent

precedent

subsequent

biannual

consequential

2. Which of the following is true of an incidental beneficiary? This is a beneficiary who owes a consideration to the contracting parties for the benefits received.

This is a beneficiary for whose benefit the contract was not made, but will benefit if the contract is executed.

The beneficiary has to furnish the insured party with consideration to enforce payment of policy.

The beneficiary has legal grounds for enforcing a contract made by those in privity of contract.

3. A baseball fan is disappointed that construction under the construction contract between the city and a construction company is behind schedule. The baseball fan may sue the construction company.

True or False

4. __________ damages are awarded for losses closely attributable to a breach to cover expenses incurred by the innocent party to prevent further loss.

Incidental

Compensatory

Nominal

Speculative

Liquidated

5. Lillian's parents signed a new life insurance contract that named her as the beneficiary upon their death. Lillian would be a(n) __________ beneficiary.

third party

limited

incidental

intended

consequential

6. Ordinarily, substantial performance does not discharge a contract.

True or False

7. A __________ is a document intended to terminate and discharge the contractual obligations of a party.

commercial impracticability proposal

frustration-of-purpose doctrine

novation

mutual rescission

general release

8. _________ performance occurs when both parties fully accomplish every term, condition, and promise to which they agree.

Reasonable

Complete

Substantial

Satisfactory

Concurrent

9. Satisfactory performance is not a condition of every contract.

True or False

10. In a bilateral contract, a condition precedent is a promise that, if not performed, leads either to rescission or to termination of the entire agreement.

True or False

11. The assignor is obligated by any express and implied warranties that serve to protect either the assignee or the obligor.

True or False

12. Tulio and Belinda are in a contract. Belinda tells Tulio that she cannot complete the contract and suggests Yellan replace her in the contract. All three parties agree. This is called a(n)

novation.

assignment.

delegation.

general release.

injunction.

13. Rights are typically delegated and duties are typically assigned.

True or False

14. One who transfers contract rights to another is called the

novator.

injunctor.

obligor.

assignor.

assignee.

15. In an assignment, the assignee "steps into the shoes" of the assignor.

True or False

16. An assignment is a transfer of a contract right, and a delegation is a transfer of a contract duty.

True or False

17. A(n) __________ is a transfer of a contract duty.

novation

delegation

assignment

general release

injunction

18. If due notice has been given by the assignee to an obligor, and the obligor makes payment to the assignor, the obligor is not excused from making payment to the assignee.

True or False

19. Donee beneficiaries have no legal grounds to bring suit for acts promised by contracting parties.

True or False

20. A(n) __________ beneficiary is a third party who does not provide any consideration for benefits received and who does not owe the contracting parties any legal duties.

concurrent

anticipatory

donee

creditor

precedent