Question 1

The federal Credit Consumer Protection Act gives a consumer the right to cancel a credit transaction within three days when contract requires that the consumer pledge his or her home as a security deposit.

Accepted Answer

A) True 
 B)False

Question 2

An injunction is also called a(n) :

Accepted Answer

A)   exaction.
B)   restraining order.
C)   gag order.
D)   anticipatory breach.

Question 3

If a party has completely failed to perform contractual obligations within the time specified:

Accepted Answer

A)   the nonbreaching party is not required to pay under any circumstances.
B)   the nonbreaching party may be required to pay for the work that has already been completed.
C)   the contract is terminated.
D)   the contract may be terminated only under certain conditions.

Question 4

A breach of contract results when a party to a contract refuses to perform as required by the contract or performs in an unsatisfactory manner.

Accepted Answer

A) True 
 B)False

Question 5

A court order prohibiting the performance of a certain act is termed a(n) :

Accepted Answer

A)   gag order.
B)   transaction.
C)   injunction.
D)   restraining order.

Question 6

Provide an example of a contract terminated by performance.

Accepted Answer

Any completed transa...

Question 7

A party who announces the intention to break a contract is said to have created an anticipatory breach.

Accepted Answer

A) True 
 B)False

Question 8

A restraining order or injunction is a court order that directs a party to perform as he/she agreed to do.

Accepted Answer

A) True 
 B)False  False

Question 9

What is impossibility of performance? Provide an example of a contract that would likely be deemed impossible to perform.

Accepted Answer

Unforeseen circumstances may make it imp...

Question 10

Contracts may be terminated by alteration.

Accepted Answer

A) True 
 B)False

Question 11

A party who announces an intention to break a contract is said to create a(n) :

Accepted Answer

A)   anticipatory breach.
B)   negligent breach.
C)   accidental breach.
D)   equitable breach.

Question 12

A contract may provide for its termination after a certain period of time.

Accepted Answer

A) True 
 B)False

Question 13

A tender of performance is an offer to perform and is considered evidence of willingness to fulfill the terms of a contract.

Accepted Answer

A) True 
 B)False

Question 14

The legal term used in a case where a contract has largely been completed, and only small details remain unfinished, is:

Accepted Answer

A)   substantially performed.
B)   mostly performed.
C)   performed by tender.
D)   performed by mutual agreement.

Question 15

A contract is enforceable even if:

Accepted Answer

A)   laws and regulations increase the cost of performance.
B)   laws and regulations enacted after the contract is entered make performance illegal.
C)   laws and regulations do not absolve the parties from their contractual obligations.
D)   the contract calls for a special skill or talent possessed by a party to the contract that dies before timely performance can be rendered. A

Question 16

A court order of specific performance prohibits a party from performing a certain act.

Accepted Answer

A) True 
 B)False

Question 17

In some cases, the injured party may sue for _____, that is, a court order directing a person to perform as he/she agreed to do.

Accepted Answer

A)   specific performance
B)   liquidated damages
C)   rescission
D)   an injunction A

Question 18

Courts will generally enforce liquidated damages clauses:

Accepted Answer

A)   if the specified damages amount to a penalty.
B)   provided the damages specified are closely related to the actual damages.
C)   if the damages specified amount to a forfeiture.
D)   provided exemplary damages are deemed an inadequate remedy.

Question 19

A deliberate change of an important element in a written contract that affects the rights or obligations of the parties is known as a(n) :

Accepted Answer

A)   mitigation.
B)   breach of contract.
C)   material alteration.
D)   injunction.

Question 20

All of the following requirements must be met for a tender of money or performance to be valid EXCEPT:

Accepted Answer

A)   the tender must be made as specified in the contract.
B)   payment must be made by check if money is mentioned in the contract.
C)   when tender of payment is made, it must be for the exact amount.
D)   if the contract calls for the delivery of specific goods, only the tender of these particular goods will satisfy the contract.

Exam 15: Discharge of Contracts

The federal Credit Consumer Protection Act gives a consumer the right to cancel a credit transaction within three days when contract requires that the consumer pledge his or her home as a security deposit.

Correct AnswerverifiedShow Answer

An injunction is also called a(n) :

Correct AnswerverifiedShow Answer

If a party has completely failed to perform contractual obligations within the time specified:

Correct AnswerverifiedShow Answer

A breach of contract results when a party to a contract refuses to perform as required by the contract or performs in an unsatisfactory manner.

Correct AnswerverifiedShow Answer

A court order prohibiting the performance of a certain act is termed a(n) :

Correct AnswerverifiedShow Answer

Provide an example of a contract terminated by performance.

Correct AnswerverifiedAny completed transa...View AnswerShow Answer

A party who announces the intention to break a contract is said to have created an anticipatory breach.

Correct AnswerverifiedShow Answer

A restraining order or injunction is a court order that directs a party to perform as he/she agreed to do.

Correct AnswerverifiedFalse

What is impossibility of performance? Provide an example of a contract that would likely be deemed impossible to perform.

Correct AnswerverifiedUnforeseen circumstances may make it imp...View AnswerShow Answer

Contracts may be terminated by alteration.

Correct AnswerverifiedShow Answer

A party who announces an intention to break a contract is said to create a(n) :

Correct AnswerverifiedShow Answer

A contract may provide for its termination after a certain period of time.

Correct AnswerverifiedShow Answer

A tender of performance is an offer to perform and is considered evidence of willingness to fulfill the terms of a contract.

Correct AnswerverifiedShow Answer

The legal term used in a case where a contract has largely been completed, and only small details remain unfinished, is:

Correct AnswerverifiedShow Answer

A contract is enforceable even if:

Correct AnswerverifiedA

A court order of specific performance prohibits a party from performing a certain act.

Correct AnswerverifiedShow Answer

In some cases, the injured party may sue for _____, that is, a court order directing a person to perform as he/she agreed to do.

Correct AnswerverifiedA

Courts will generally enforce liquidated damages clauses:

Correct AnswerverifiedShow Answer

A deliberate change of an important element in a written contract that affects the rights or obligations of the parties is known as a(n) :

Correct AnswerverifiedShow Answer

All of the following requirements must be met for a tender of money or performance to be valid EXCEPT:

Correct AnswerverifiedShow Answer

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Any completed transa...
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False

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Unforeseen circumstances may make it imp...
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A

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