Exam 19: Discharge of Contracts

For the parties to enter into an accord and satisfaction that discharges the original obligation,there must be a bona fide dispute.

Which of the following is not an element of an accord and satisfaction?

In a case of the sale of property,time is not regarded as of the essence when there has not been any appreciable change in the market value or condition of the property and when the person who delayed does not appear to have done so for the purpose of speculating on a change in market price.

The parties may agree that the adequacy of performance under a contract is to be determined by a third party.

When a building contractor has substantially performed a contract to construct a building,the contractor is entitled to recover the full contract price.

The doctrine of substantial performance is concerned with the issue of whether an imperfect performance will be considered adequate to discharge one's responsibilities under a contract.

A seller's inability to obtain from any supplier the goods called for by the contract generally discharges the contract for impossibility of performance.

Bankruptcy results in a discharge of contractual obligations by __________.

An agreement that does not specify the time for performance is not binding because it is too indefinite.

In most bilateral contracts,the performances of the parties are __________.

Impossibility of performance applies when the debtor does not have sufficient funds to pay a debt.

Payment by check is a conditional payment.

A person who substantially performs a contract is liable for damages to the other party.

Through which of the following circumstances may a contract be discharged?

The phrase "time is of the essence" means that:

An offer to perform is known as a(n)__________.

In a mutual rescission,both parties,acting in good faith,renew their commitment to perform all obligations set forth in their original agreement.

A condition subsequent can alter but not terminate a contract.

The death or disability of a party to a contract discharges the contract when:

To avoid litigation over impossibility and impracticability issues,modern contracting parties often contract around the doctrine of impossibility,specifying the failures that will excuse performance in their contracts.The clauses in which they do this are called __________ clauses,and they are generally enforced by courts as written.