Question 17 (1 point)

A term in a contract that says that, on the occurrence of an event (like a hurricane or riot) the parties' obligations to perform will end is an example of what kind of clause?

Question 17 options:

1)	A condition precedent

2)	Tender of performance

3)	Discharge by frustration

4)	A condition subsequent

Question 18 (1 point)

Which of the following is an example of a liquidated damages clause?

Question 18 options:

1)	This contract will automatically terminate in the event that the purchaser orders less than the quota for 4 consecutive weeks.

2)	This is the entire agreement between the parties. No oral promises, conditions, warranties, representations, understandings, or interpretations were relied upon by either party to this contract.

3)	Time shall be of the essence in this contract.

4)	If the supplier fails to deliver the the weekly supply of products to the retailer on or before the first day of each week, the supplier shall pay the retailer $100 for each day, or portion of a day, that the delivery is late.

Question 19 (1 point)

Which of the following is an example of a condition subsequent clause?

Question 19 options:

1)	The supplier shall not be liable to the retailer in respect of any losses, damages, costs, or claims resulting from circumstances that are not within the control of the supplier.

2)	If the supplier fails to deliver the the weekly supply of products to the retailer on or before the first day of each week, the supplier shall pay the retailer $100 for each day that the delivery is late.

3)	This contract will automatically terminate in the event that the purchaser orders less than the quota for 4 consecutive weeks.

4)	This is the entire agreement between the parties. No oral promises, conditions, warranties, representations, understandings, or interpretations were relied upon by either party to execute this contract.

Question 20 (1 point)

Which of the following is false with regard to remedies for breach of contract?

Question 20 options:

1)	Specific performance is an equitable remedy forcing a person to comply with the terms of the contract.

2)	The non-breaching party does not need to show that they have suffered a financial loss as a result of the breach - the victim of the breach need only show that the breach happened.

3)	A person who breaches a contract is liable for all the foreseeable loss that directly and naturally flows from the breach.

4)	The victim of a breach cannot recover damages that he could have avoided if he had tried to mitigate his loss.