Question 1

Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

Accepted Answer

A) True 
 B)False

Question 2

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that

Accepted Answer

A)  performance of the contract is commercially impracticable.
B)  payment of the loan would force the debtor into bankruptcy.
C)  the law has rendered performance of the contract illegal.
D)  the specific subject matter of the contract has been destroyed.E) B) and D)
F) A) and D)

Question 3

Any contract can be discharged by agreement of the parties.

Accepted Answer

A) True 
 B)False

Question 4

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

Accepted Answer

A) True 
 B)False

Question 5

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

Accepted Answer

A)  absolute.
B)  conditional.
C)  substantial.
D)  commercially impracticable.E) A) and C)
F) A) and B)

Question 6

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

Accepted Answer

A)  a mutual agreement to rescind.
B)  an accord and satisfaction.
C)  a novation.
D)  specific performance.E) All of the above
F) A) and B)

Question 7

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Accepted Answer

A) True 
 B)False

Question 8

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Accepted Answer

A) True 
 B)False

Question 9

The most common way to terminate contractual duties is by repudiation.

Accepted Answer

A) True 
 B)False

Question 10

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

Accepted Answer

A)  a condition.
B)  a novation.
C)  a breach of contract.
D)  an operation of law.E) B) and C)
F) B) and D)

Question 11

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

Accepted Answer

A)  breached.
B)  discharged.
C)  rescinded.
D)  suspended.E) None of the above
F) A) and B)

Question 12

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Accepted Answer

A)  execute a bill of sale.
B)  exchange the horse for the money.
C)  sign a receipt.
D)  agree that the deal is fair.E) B) and D)
F) B) and C)

Exam 18: Performance and Dischapterarge

Any contract can be discharged by agreement of the parties.

Correct Answer
verified

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

Correct Answer
verified

Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

Correct Answer
verified

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

Correct Answer
verified

The most common way to terminate contractual duties is by repudiation.

Correct Answer
verified

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

Correct Answer
verified

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

Correct Answer
verified

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Correct Answer
verified

Correct Answer
verified

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Correct Answer
verified

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that

Correct Answer
verified

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Correct Answer
verified

Exam 18: Performance and Dischapterarge

Any contract can be discharged by agreement of the parties.

Correct AnswerverifiedShow Answer

If performance of a contract is not substantial, there is a material breach, which excuses the nonbreaching party from performance.

Correct AnswerverifiedShow Answer

Tender is an unconditional offer to perform by a person who is ready, willing, and able to do so.

Correct AnswerverifiedShow Answer

Drain Equipment Inc. contracts to sell its assets to Earth Aquatic Corporation. Before either party has performed, rescission of this contract requires

Correct AnswerverifiedShow Answer

The most common way to terminate contractual duties is by repudiation.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

When the subject matter of a contract is personal, the performance need only satisfy a reasonable person.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Megan contracts to sell Nonny her horse for $4,000. This contract will be fully discharged when Megan and Nonny

Correct AnswerverifiedShow Answer

Business Center signs an agreement with Credit Lending Inc. to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. The borrower's best argument for avoiding payment to the lender is that

Correct AnswerverifiedShow Answer

A statute of limitations limits the amount of damages that the nonbreaching party can obtain for a breach.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified

Correct Answer
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