ALLIED BUS230 MODULE 5 check your understanding

Question Points
1. Subjective
impossibility usually discharges a contract.
a. True
b. False

2. As soon
as a breach occurs, the victim has a duty to:
a. notify the court.
b. mitigate the
damages.
c. sue the breaching
party.
d. contact a lawyer.

3. Substantial
performance is:
a. slightly less
than full performance.
b. achieved when a
person in good faith has fulfilled all the major requirements of the contract.
c. often applied to
construction contracts.
d. all of the
choices apply.
4. The
parties to a contract may end the contract through agreement, but this method
does not include:
a. novation.
b. accord and
satisfaction.
c. change in the
law.
d. rescission.
5. Mintz
sued Jacobs for breach of contract. The court awarded Mintz $1 as damages. This
amount is known as:
a. liquidated
damages.
b. nominal damages.
c. premeditated
damages.
d. abnormal damages.
6. A refusal
by a creditor to accept a debtor’s offer to pay cash in settlement of his or
her debt:
a. discharges the
debt.
b. excuses the
debtor from future interest payments.
c. renews the debt
for six years.
d. bars legal action
by the creditor on the debt.
7. Which of
the following statements is true about the term legal impossibility?
a. The defense of
legal impossibility is accepted by the courts in only a few situations.
b. Hardships such as
strikes, riots, and acts of God are automatically included in the term legal
impossibility.
c. Physical
impossibility is the same as legal impossibility.
d. All of the
choices apply.
8. Equitable
remedies are usually allowed by courts:
a. when money
damages will not adequately compensate the injured party for his or
b. only when fraud
or duress is involved.
c. in place of
nominal damages.
d. in all of the
choices apply situations.
9. When
Wilson finished painting Bryan’s house, Bryan paid her the agreed price. The
contract was discharged by:
a. accord and
satisfaction.
b. novation.
c. full performance.
d. mutual agreement.
10. Specific
performance is an equitable remedy.
a. True
b. False

11. A material
change in the terms of a written contract without the consent of both parties
is called:
a. alteration.
b. accord and
satisfaction.
c. rescission.
d. none of the
choices apply.

12. Duress and
undue influence have the same meaning.
a. True
b. False
A
material breach of contract discharges the contract.
a. True
b. False
14. Jameson
and French entered into a contract in which Jameson was required to deliver
merchandise to French by January 19. On January 5, Jameson told French that he
(Jameson) had no intention of delivering the merchandise required by the contract.
Prior to January 19, French may successfully sue Jameson for:
a. accord and
satisfaction.
b. substantial
performance.
c. liquidated
damages.
d. anticipatory
breach
15. A contract
is not generally discharged by:
a. refusal of a
tender of performance.
b. accord and
satisfaction.
c. novation.
d. a refusal of a
tender of payment.
16. Damages to
be awarded to an injured party in case of a breach of contract may be determined
by the parties in advance and stated in the contract. These damages are called:
a. substantial
damages.
b. inconsequential
damages.
c. liquidated
damages.
d. equitable
damages.
17. In
assessing damages for an actual loss, a court will usually grant a plaintiff:
a. compensatory
damages.
b. nominal damages.
c. punitive damages.
d. liquidated
damages.
18. Failure to
perform one’s duty under a contract is:
a. an actual breach.
b. illegal.
c. unethical.
d. voidable.
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19. Under the
common law, the death or serious illness of one of the parties to a contract:
a. has no effect on
the contract.
b. discharges a
personal services contract.
c. makes the
contract impossible to perform.
d. none of the
choices apply.
20. Substantial
performance does not apply to contracts calling for payment of money.
a. True
b. False