Question 1

After the valid performance of a contract by both sides, the contract is said to be discharged.

Group of answer choices

True

False

Question 2

Which of the following is a mode of discharge of contract?

All of the other answer choices are correct.

By impossibility of performance

By performance

By performance of contract

Question 3

When a contract is discharged, the parties are no longer potentially liable for breach of contract under the contract.

Group of answer choices

True

False

Question 4

The obligation to perform a promise under a written contract may be discharged by operation of law, when which of the following situations occurs?

Group of answer choices

All of the other answers are correct.

A debtors debts are completely discharged by the bankruptcy court.

A party materially alters the written contract without the other partys consent.

Six years pass after breach of the written contract, without the non-breaching party filing suit against the breaching party.

Question 5

Ricardo and Sophia would like to discharge their obligations under a valid agreement they made a month ago, because they do not agree about the amount due under that agreement (in other words, the amount owed is in dispute). If they negotiate a new price as the amount due, and then the new price is paid, they have executed:

Group of answer choices

an accord and satisfaction

a discharge by change of contract

an assignment

a modification to the original agreement

Question 6

A material breach occurs when performance is substantial, but not complete.

Group of answer choices

True

False

Question 7

An intentional failure to comply with the terms of a contract is not a breach.

Group of answer choices

True

False

Question 8

Punitive damages are generally not awarded in an action for breach of contract.

Group of answer choices

True

False

Question 9

Courts may imply conditions from the purpose of a contract or from the intent of the parties.

Group of answer choices

True

False

Question 10

Compensatory damages compensate a party injured by a breach of contract by punishing the party that breached the contract.

Group of answer choices

True

False

Question 11

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

Group of answer choices

True

False

Question 12

The amount of compensatory damages is based on the level of wrongdoing by the breaching party.

Group of answer choices

True

False

Question 13

Any material breach allows the nonbreaching party to sue for damages.

Group of answer choices

True

False

Question 14

Reformation is an equitable remedy used when the parties have imperfectly expressed their agreement in writing.

Group of answer choices

True

False

Question 15

In most situations, when a breach of contract occurs, the innocent injured party is held to a duty to mitigate the damages.

Group of answer choices

True

False

Question 16

A contract is substantially performed when performance creates substantially the same benefits as those promised in the contract.

Group of answer choices

True

False

Question 17

Objective impossibility discharges a contract.

Group of answer choices

True

False

Question 18

Barbara and Johann are parties to a contract. They agree on a novation. The novation requires

Group of answer choices

the existence of a previous, valid obligation.

False consideration greater than $5,000.

performance of the original contract by all of the parties.

an accord and satisfaction.

Question 19

Ridgeview Mining Inc. agrees to deliver a certain quantity of oil to Static Energy Corporation. The agreement states that delivery is to be within 9 days, although the parties intend 90 days. Ridgeview cannot convince Static to amend the contract. Ridgeview should seek

Group of answer choices

damages

reformation

rescission

specific performance

Question 20

Isabel orally agrees to buy a unique collection of nineteenth-century cowboy memorabilia for $10,000 from Jessie and sends $2,500 as a down payment. When Isabel pays the rest of the price, Jessie refuses to ship the collection. Isabel should seek

Group of answer choices

damages

rescission

restitution

specific performance

Question 21

Isaac holds one ton of perishable fruit in storage for Juice Smoothies Corporation. Juice Smoothies does not pay for the storage. Isaac sells the fruit to Kayo Beverage Company. This sale represents

Group of answer choices

a breach of contract

a mitigation of damages

liquidated damages

a quasi contract

Question 22

Renee contracts with Scott to pay him $25,000 for his work on Renees new album Hip Pop. After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on

Group of answer choices

neither the accord nor the original obligation.

the accord only.

the accord or the original obligation.

the original obligation only.

Question 23

Tile & Grout (T&G) contracts to resurface the insides of the pools at Water Park. T&G knows that without the resurfacing, Water Park will have to delay its seasonal opening. T&G does not perform as promised. As consequential damages, Water Park can recover

Group of answer choices

the cost of new pools.

the difference between T&Gs price and the eventual cost of resurfacing.

nothing

the loss of profit from the delayed opening.

Question 24

Dino hires Eve to perform at Dinos Club, but Eve later breaches the agreement to accept a higher-paying job at Five Star Arena. Dino files a suit against Eve. The court will most likely

Group of answer choices

award damages to Dino.

cancel Dino and Eves contract.

order Eve to perform the contract.

reform Dino and Eves contract.

Question 25

Ralph agrees to lease an apartment from Susan for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract is

Group of answer choices

discharged

not affected

postponed until the event is rescheduled

breached