EXAM 4: LSB 3213; 84 Questions with Solutions
A condition precedent must be met before a party's performance can be required. Correct
Answer-True
A party normally satisfies its duties under a contract by novation. Correct Answer-False
Complete performance occurs when conditions in a contract are Correct Answer-fully
satisfied.
Performance that provides a party with most of the benefits of a contract, in spite of a
deviation from the terms, is Correct Answer-substantial performance.
An intention variation from a contract prevents substantial performance. Correct Answer-
False
Anything less than complete performance is a material breach of contract. Correct Answer-
False
Any breach allows the nonbreaching party to cancel the contract. Correct Answer-False
, EXAM 4: LSB 3213; 84 Questions with Solutions
After a contract is made, a supervening event may make performance Correct Answer-
impossible and discharge the contract.
City Restoration Corporation substantially performs its contract with Downtown Apartments,
Inc. Downtown is entitled to Correct Answer-damages.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for
Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised
in the contract, its performance will be Correct Answer-substantial.
Super Toolmakers, Inc., contracts to sell its business to True Hardware Corporation. Before
either party has performed, rescission of this contract requires Correct Answer-a mutual
agreement to rescind.
Mona and Nero want to discharge their contract by executing and performing a new
agreement. They can best accomplish this by Correct Answer-accord and satisfaction.
A condition precedent must be met before a party's performance can be required. Correct
Answer-True
A party normally satisfies its duties under a contract by novation. Correct Answer-False
Complete performance occurs when conditions in a contract are Correct Answer-fully
satisfied.
Performance that provides a party with most of the benefits of a contract, in spite of a
deviation from the terms, is Correct Answer-substantial performance.
An intention variation from a contract prevents substantial performance. Correct Answer-
False
Anything less than complete performance is a material breach of contract. Correct Answer-
False
Any breach allows the nonbreaching party to cancel the contract. Correct Answer-False
, EXAM 4: LSB 3213; 84 Questions with Solutions
After a contract is made, a supervening event may make performance Correct Answer-
impossible and discharge the contract.
City Restoration Corporation substantially performs its contract with Downtown Apartments,
Inc. Downtown is entitled to Correct Answer-damages.
Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for
Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised
in the contract, its performance will be Correct Answer-substantial.
Super Toolmakers, Inc., contracts to sell its business to True Hardware Corporation. Before
either party has performed, rescission of this contract requires Correct Answer-a mutual
agreement to rescind.
Mona and Nero want to discharge their contract by executing and performing a new
agreement. They can best accomplish this by Correct Answer-accord and satisfaction.
