Chapter 18 Book set Flashcards
Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny
exchange the horse for the money
When a lapse of time and a change in circumstances make it substantially more burdensome for the parties to perform, a contract is discharged.
True
Contractual obligations will be discharged when the specific subject matter of the contract is destroyed.
True
A contract promise that is absolute must be performed, or the party who made the promise will be in breach.
True
Vera enters into a contract to work as a lifeguard at Water Park for the summer in exchange for a weekly paycheck. The duties under this contract will be discharged when the duties are
performed
Dom enters into a contract to buy Ezra’s office building for a certain price subject to an appraiser’s evaluation of the structure’s condition. If the appraiser deems the condition to be substandard, the parties’ obligations will be
discharged
Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.
True
If one party’s performance on a contract is substantial, the other party’s duty to perform need only comport with the level of the rendered performance.
False
A novation requires the contracting parties to make restitution of whatever they received under the contract.
True
Range Free Farms enters into a contract to deliver to Sara’s Market a truckload of eggs for a certain payment. Range Free fails to deliver. Sara’s Market
does not have to pay because Range Free did not perform.
Bottling Company enters into a contract with Chug’s Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug’s that due to the added cost it will not perform their deal. Bottling’s contractual obligation to Chug’s is
breached
Any breach of contract allows the breaching party to negotiate to receive additional benefits in order to remedy the breach.
False
An accord and its satisfaction do not discharge an original contractual obligation.
False
Once performance has been tendered, the party making the tender has done everything possible to carry out the terms of the contract.
True
Performance becomes commercially impracticable when a foreseeable, added burden of performing increases the cost slightly.
False
If a condition to a lease for university housing that the tenant must be a student is not satisfied, the landlord’s obligations under the lease are discharged.
True
A buyer who offers to pay for goods has tendered payment but cannot yet demand delivery.
False
The most common way to terminate contractual duties is by repudiation.
False
Build-It Construction LLC agrees to build a warehouse for Corporate Storage Inc. According to the terms of the deal, Corporate does not have to pay Build-It if the warehouse is not built. Their respective promises are
not conditioned.
A seller who places goods at the disposal of a buyer has tendered delivery but cannot yet demand payment.
False
There is only one way to discharge a contract—all parties must fulfill their contractual duties.
False
When a party’s performance is perfect, it is complete.
True
Only contracts that have been fully executed can be rescinded by agreement.
False
Under the policy that a contract can be terminated if major difficulties arise, a material breach discharges the non-breaching party from a contract.
True
A breach of contract occurs when a party fails to perform part or all of the required duties under a contract.
True
Ghee agrees to buy Hole’s Donut Shop on the express condition that the shop’s suppliers extend the same credit terms to Ghee that the suppliers currently extend to Hole. This approval is
a condition precedent.
Anticipatory repudiation of a contract is treated as a present, material breach in order to give the non-breaching party an opportunity to seek a similar deal elsewhere.
True
East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East’s disposal. Fresh’s performance under the contract is
complete
The most common way to terminate contractual duties is by
performance
Any contract can be discharged by agreement of the parties.
True
Under a construction contract that requires a builder to meet certain specifications, complete performance is required to avoid material breach.
True
To provide a point at which contracting parties can know that their duties have ended, the duty to perform a contract is always absolute.
False
Sage enters into a contract to sell her condo to Tel for a certain price on a specific day. On that day, Sage unconditionally offers to perform. Sage’s offer
constitutes tender of performance.
A contract is substantially performed when one party receives most of the benefits promised in the deal.
True
A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.
False
Any breach of contract effectively excuses both parties from performing.
False
For mutual rescission of a contract to take place, both parties must provide additional consideration.
False
If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.
True
Emil enters into a contract to buy Foley’s cultivated bottomland if County AgriCredit will lend Emil the funds to pay for the land. Emil’s duty to perform is
conditional
In most contracts, promises of performance are conditioned.
False
Whether performance under a contract is substantial is decided on a case-by-case basis, examining all of the facts of the particular situation.
True
Trucking LLC enters into a contract to deliver a certain quantity of potatoes to United Foods’s refrigerated warehouse in exchange for a specified payment. Trucking delivers substantially all of the spuds to the location. United’s duty to pay is
absolute
Security Company enters into a contract with Tower Apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract is
terminated
There is no difference between complete and substantial performance.
False
State University provides housing on campus and in some adjacent off-campus neighborhoods. To lease a university house or apartment, a person must be a student at State. This requirement is
a condition.
When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.
False
Most contracts need to be performed to the personal satisfaction of each contracting party.
False
If a contract condition is not satisfied, the obligations of the parties are not discharged.
False
Iggy and Jen sign a contract by which Iggy agrees to deliver and install a gas fireplace on October 15 in exchange for Jen’s promise to pay the $500 price within ten days of the install date. The delivery and installation of the fireplace and the payment of the price are examples of
concurrent conditions
