26. An uncertain future event whose occurrence is necessary for the existence of a contractual obligation is called:

a condition precedent.

a condition subsequent.

a concurrent condition.

a constructive condition.

27. Which of the following is most likely to excuse performance of a contractual obligation?

Incapacitating illness of the promisor in a contract for personal services.

Death of the promisor in a contract for the sale of land.

Destruction of the equipment the promisor had planned to use to perform his promises.

The enactment of a new law that makes it less profitable for the promisor to perform his promise.

28. Which of the following is most likely to result in an award of punitive damages in a contract case? (Select the option that is most closely associated with the use of punitive damages):

A breach of the implied covenant of good faith and fair dealing.

Any material breach.

Late performance when time is of the essence.

Prevention or hindrance by a party who benefits from a condition.

29. Thorp promises to buy Wilson's house (subject to Thorp's obtaining suitable financing at an interest rate no greater than 12%). The language in parenthesis constitutes.

a constructive condition.

a condition precedent.

an implied-in-fact condition.

a condition subsequent.

30. Which of the following is a true statement about conditions in contract law?

If A's duty is subject to a condition precedent and the condition does not occur. A will be in breach of contract if he does not perform his duty.

Courts recognize conditions only if they are stated in writing.

If A's duty to perform is subject to a condition subsequent, the occurrence of that condition will extinguish A's duty to perform.

All of the above are true.