Question 1

If no time for performance is stated in a contract, a reasonable time is implied.​

Accepted Answer

A) True 
 B)False

Question 2

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.​

Accepted Answer

A) True 
 B)False

Question 3

Restoration, Inc., enters into a contract to refurbish a train depot for Dining, Inc., to open as Whistle Stop. If Restoration completes most of the work promised in the contract, its performance will be​

Accepted Answer

A)  ​absolute. 
B)  ​complete. 
C)  ​material. 
D)  ​substantial. 
A)  ​absolute. 
B)  ​complete. 
C)  ​material. 
D)  ​substantial.

Question 4

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.​

Accepted Answer

A) True 
 B)False

Question 5

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is​

Accepted Answer

A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​prohibited. 
A)  ​a delegation. 
B)  ​an assignment. 
C)  ​a third party beneficiary contract. 
D)  ​prohibited.

Question 6

Real Apps, Inc., enters into a contract with SalesCorp to create an app for the firm. To fulfill the contract, Real Apps hires Tad and ten other student interns. With respect to the contract between Real Apps and SalesCorp, Tad is​

Accepted Answer

A)  ​an intended beneficiary. 
B)  ​an incidental beneficiary. 
C)  ​a delegatee. 
D)  ​an assignee. 
A)  ​an intended beneficiary. 
B)  ​an incidental beneficiary. 
C)  ​a delegatee. 
D)  ​an assignee.

Question 7

Delany & Sons, Inc., owes Evermore Bank $50,000. Delany enters into a contract with Floyd under which Delany promises to manage and oversee Floyd's Seaside Marina. Under the contract, Floyd promises to pay Evermore the amount that will be due Delany until his debt to Evermore is paid. Delany performs as promised, but Floyd does not pay the bank. Can Evermore succeed in a suit against Floyd? Why or why not?​

Accepted Answer

Evermore could succeed in a suit against

Question 8

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to​

Accepted Answer

A)  ​damages. 
B)  ​nothing more. 
C)  ​to be excused from performance. 
D)  ​suspend performance. 
A)  ​damages. 
B)  ​nothing more. 
C)  ​to be excused from performance. 
D)  ​suspend performance.

Question 9

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.​

Accepted Answer

A) True 
 B)False

Question 10

​Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

Accepted Answer

A) True 
 B)False

Question 11

Lestor and MaryElise enter into a contract. Lestor agrees to mow MaryElise's yard every week for the summer. MaryElise is​

Accepted Answer

A)  ​the obligor. 
B)  ​the obligee. 
C)  ​the assignee. 
D)  ​the assignor. 
A)  ​the obligor. 
B)  ​the obligee. 
C)  ​the assignee. 
D)  ​the assignor.

Question 12

Carol and Bob enter into a contract for Bob to perform waste management services for Carol's commercial properties. Later, Bob alters a material term-increases the price-without Carol's knowledge or consent. She​

Accepted Answer

A)  ​can alter a material term, such as the payment date, without Bob's consent. 
B)  ​can treat the contract as discharged. 
C)  ​must adapt her performance accordingly. 
D)  ​must determine whether Bob's alteration constitutes substantial performance. 
A)  ​can alter a material term, such as the payment date, without Bob's consent. 
B)  ​can treat the contract as discharged. 
C)  ​must adapt her performance accordingly. 
D)  ​must determine whether Bob's alteration constitutes substantial performance.

Question 13

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

Accepted Answer

A)  ​neither the accord nor the original obligation. 
B)  ​the accord only. 
C)  ​the accord or the original obligation. 
D)  ​the original obligation only. 
A)  ​neither the accord nor the original obligation. 
B)  ​the accord only. 
C)  ​the accord or the original obligation. 
D)  ​the original obligation only.

Question 14

When a party's performance is perfect, it is said to be complete.​

Accepted Answer

A) True 
 B)False

Question 15

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky 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)  ​a settlement agreement. 
A)  ​a mutual agreement to rescind. 
B)  ​an accord and satisfaction. 
C)  ​a novation. 
D)  ​a settlement agreement.

Question 16

In most contracts, promises of performance are not expressly conditioned.​

Accepted Answer

A) True 
 B)False

Question 17

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is​

Accepted Answer

A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  ​suspended. 
A)  ​breached. 
B)  ​discharged. 
C)  ​not affected. 
D)  ​suspended.

Question 18

Dharma enters into a contract to manage the operations of Esther's dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be​

Accepted Answer

A)  ​canceled. 
B)  ​breached. 
C)  ​altered. 
D)  ​performed. 
A)  ​canceled. 
B)  ​breached. 
C)  ​altered. 
D)  ​performed.

Question 19

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.​

Accepted Answer

A) True 
 B)False

Question 20

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.​

Accepted Answer

A) True 
 B)False

If no time for performance is stated in a contract, a reasonable time is implied.

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Restoration, Inc., enters into a contract to refurbish a train depot for Dining, Inc., to open as Whistle Stop. If Restoration completes most of the work promised in the contract, its performance will be

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is

Real Apps, Inc., enters into a contract with SalesCorp to create an app for the firm. To fulfill the contract, Real Apps hires Tad and ten other student interns. With respect to the contract between Real Apps and SalesCorp, Tad is

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

Lestor and MaryElise enter into a contract. Lestor agrees to mow MaryElise's yard every week for the summer. MaryElise is

Carol and Bob enter into a contract for Bob to perform waste management services for Carol's commercial properties. Later, Bob alters a material term-increases the price-without Carol's knowledge or consent. She

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on

When a party's performance is perfect, it is said to be complete.

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

In most contracts, promises of performance are not expressly conditioned.

Planners & Builders, Inc., enters into a contract with O'Reilly to refurbish a garage on his property as an auto repair shop. O'Reilly's neighbor Nora challenges the project as a violation of the local zoning laws. A court orders a halt to the project. O'Reilly's contract with Planners & Builders is

Dharma enters into a contract to manage the operations of Esther's dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

Exam 11: Third Party Rights and Discharge

If no time for performance is stated in a contract, a reasonable time is implied.​

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.​

Restoration, Inc., enters into a contract to refurbish a train depot for Dining, Inc., to open as Whistle Stop. If Restoration completes most of the work promised in the contract, its performance will be​

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.​

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is​

Real Apps, Inc., enters into a contract with SalesCorp to create an app for the firm. To fulfill the contract, Real Apps hires Tad and ten other student interns. With respect to the contract between Real Apps and SalesCorp, Tad is​

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to​

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.​

​Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

Lestor and MaryElise enter into a contract. Lestor agrees to mow MaryElise's yard every week for the summer. MaryElise is​

Carol and Bob enter into a contract for Bob to perform waste management services for Carol's commercial properties. Later, Bob alters a material term-increases the price-without Carol's knowledge or consent. She​

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on​

When a party's performance is perfect, it is said to be complete.​

Drainage & Irrigation Equipment, Inc., contracts to sell its assets to Earth & Sky Aquatic Corporation. Before either party has performed, rescission of this contract requires​

In most contracts, promises of performance are not expressly conditioned.​

Dharma enters into a contract to manage the operations of Esther's dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be​

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.​

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.​

Law and Legal Reasoning

Business and the Constitution

Courts and Alternative Dispute Resolution

Tort Law

Criminal Law and Cyber Crime

Business Ethics

Nature and Terminology

Agreement in Traditional and E-Contracts

Consideration, Capacity, and Legality

Defenses to Contract Enforceability

Breach of Contract and Remedies

Intellectual Property Rights

Internet Law, Social Media, and Privacy

The Formation of Sales and Lease Contracts

Performance, Breach, and Warranties of Sales and Lease Contracts

Agency Relationships in Business

Small Businesses and Limited Liability Companies

Corporations

Filters

If no time for performance is stated in a contract, a reasonable time is implied.

An incidental third party beneficiary cannot sue to enforce the contract because the benefit is unintentional.

Restoration, Inc., enters into a contract to refurbish a train depot for Dining, Inc., to open as Whistle Stop. If Restoration completes most of the work promised in the contract, its performance will be

To rescind a contract, the parties must make a second agreement that satisfies the legal requirements for a contract.

Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, his transfer of the duties of cutting and trimming to Otis is

Real Apps, Inc., enters into a contract with SalesCorp to create an app for the firm. To fulfill the contract, Real Apps hires Tad and ten other student interns. With respect to the contract between Real Apps and SalesCorp, Tad is

Ed's Electric substantially performs its contract with Forest Hills Apartments, Inc., to deliver and install an alarm system and parking lot lighting. Forest Hills is entitled to

A contract will be discharged if unforeseeable circumstances make it impossible to attain the contract's purpose.

Privity of contract establishes the basic concept that third parties have no rights in contracts to which they are not parties.

Lestor and MaryElise enter into a contract. Lestor agrees to mow MaryElise's yard every week for the summer. MaryElise is

Carol and Bob enter into a contract for Bob to perform waste management services for Carol's commercial properties. Later, Bob alters a material term-increases the price-without Carol's knowledge or consent. She

Renee contracts with Scott to pay him $25,000 for his work on Renee's new album "Hip Pop." After Scott performs, they sign an accord, in which Renee promises to pay him $21,000 within thirty days instead of $25,000 later. But she does not pay. Scott can sue Renee on

When a party's performance is perfect, it is said to be complete.

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

In most contracts, promises of performance are not expressly conditioned.

Dharma enters into a contract to manage the operations of Esther's dental office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be

If a third party has the right to control the details of contract performance, the third party is an incidental beneficiary.

A discharge in bankruptcy will ordinarily allow a creditor to subsequently enforce the debtor's contract.