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Nelda receives a contract for a job at a law firm on the condition that she passes the bar exam. This is known as a condition ________.


A) precedent
B) subsequent
C) concurrent
D) nominal
E) certain

F) C) and E)
G) A) and B)

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An offer for the sale of a vehicle contained the condition that the buyer must return the signed offer with a $1,000 deposit upon acceptance. The requirement to send $1,000 is an example of what type of condition?


A) Express
B) Implied
C) Conditional
D) Concurrent
E) At large

F) A) and B)
G) B) and D)

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Monetary damages can also be referred to as legal ________.


A) possibilities
B) injunctions
C) remedies
D) consequences
E) equities

F) B) and E)
G) B) and C)

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________ is the termination of the contract, and ________ is the return of any property given up under the contract.


A) Rescission; restitution
B) Rescission; reformation
C) Reformation; restitution
D) Reformation; rescission
E) Rescission; compensation

F) None of the above
G) B) and E)

Correct Answer

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If a contract does not clearly specify that the satisfaction is to be personal, the ________ standard applies.


A) Express
B) Subjective
C) Objective
D) Absolute
E) Unbiased

F) C) and E)
G) A) and D)

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Whenever a party fails to perform his or her obligations under the contract, a ________ occurs.


A) Split
B) Break
C) Breach
D) Misdeed
E) Mistake

F) C) and D)
G) A) and B)

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________ remedies, as applied in the U.S., developed from the English court's authority to fashion remedies when existing laws did not provide any adequate ones.


A) Positive
B) Remedial
C) Consequential
D) Equitable
E) Equalized

F) A) and D)
G) A) and B)

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Which of the following is used when, by agreement, one of the parties substitutes a different performance for his or her original duty under the contract?


A) Accord and satisfaction
B) Novation
C) Substituted contract
D) Mutual rescission
E) Alteration

F) D) and E)
G) A) and E)

Correct Answer

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Yolef and Stacia enter into a contract for Stacia to cook a meal for Yolef and Yolef to pay Stacia $50. Yolef shows up at Stacia's house with $100 and hands it to Stacia. Stacia refuses to accept the money. Yolef has:


A) Discharged his duties under the contract.
B) Performed subject to satisfaction of a contracting party.
C) Substantially performed his duties.
D) Breached the contract.
E) Not yet performed his duties under the contract.

F) All of the above
G) None of the above

Correct Answer

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Which is an example of a situation in which the court would likely award punitive damages after a breach of contract?


A) When fraud occurred.
B) When anticipatory breach occurred.
C) When anticipatory repudiation occurred.
D) When substantial performance occurred.
E) When only nominal damages occurred.

F) A) and C)
G) A) and B)

Correct Answer

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Conditions that are not explicitly stated, but are inferred from the nature and language of the contract, are known as ________ conditions.


A) Express
B) Implied
C) Conditional
D) Concurrent
E) At large

F) A) and B)
G) D) and E)

Correct Answer

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Courtney and Jonathan agreed that Jonathan would paint Courtney's home for $800 with Courtney supplying the paint. Jonathan went to Courtney's home on several occasions to do the job, but she never had the paint. Finally, he moved on to other jobs. Six months later, Courtney sued Jonathan for not painting her home. Who is likely to win and why? Include the legal term for Jonathan's offer of performance.

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Jonathan is most likely to win...

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Paula puts a clause in her contract with Raul that says if he fails to pay rent in the future, he must move out of her apartment immediately. This is an example of a condition ________.


A) precedent
B) subsequent
C) concurrent
D) enhancer
E) expressed

F) A) and E)
G) A) and B)

Correct Answer

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Which of the following occurs when parties agree that they simply wish to discharge each other from their mutual obligations and therefore rescind or cancel the contract?


A) Accord and satisfaction
B) Novation
C) Substituted contract
D) Mutual rescission
E) Alteration

F) All of the above
G) A) and D)

Correct Answer

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A contractual condition of satisfaction may be judged by either a[n] ________ or ________ standard.


A) Objective; express
B) Subjective; express
C) Objective; absolute
D) Absolute; express
E) Objective; subjective

F) All of the above
G) A) and B)

Correct Answer

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Under ordinary circumstances, a party's duty to perform a promise agreed to in a contract is easy to be changed to a different promise.

A) True
B) False

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________ damages are designed to put the plaintiff in the position he or she would have been in had the contract been fully performed.


A) Equitable
B) Compensatory
C) Consequential
D) Nominal
E) Punitive

F) A) and D)
G) B) and D)

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Juan and Carlos enter into a contract which states: "Carlos will paint Juan's bedroom in Juan's house white and Juan promises to pay Carlos $100 upon completion." Which of the following is an example of an implied condition?


A) That Carlos will paint Juan's bedroom.
B) That Carlos will use white paint when painting Juan's bedroom.
C) That Juan will pay Carlos $100.
D) That Juan will pay Carlos upon completion of the painting.
E) That Juan will allow Carlos access to his bedroom

F) C) and D)
G) None of the above

Correct Answer

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[Hawaiian Adventure] Hannah decides to go on a fun trip to Hawaii. While she is gone, she needs someone to take care of her two dogs, Champ and Sage. She hires Amir three months in advance, and they reach a contractual arrangement whereby he will be paid $200 for taking care of the dogs for two weeks. Amir comes over two months before Hannah is set to leave, takes one look at Champ and Sage, and declares that they are too difficult to handle so he will not care for them. Hannah then hires Alisha who agrees to care for Champ and Sage. Two weeks before Hannah is set to leave, however, Alisha calls and tells her that she just broke both her legs in an automobile accident and has been put on bed rest for two months. Finally, Hannah hires Kelsey to care for the dogs and heads off to Hawaii where she has a great time. Unfortunately, when Hannah returns home, she finds that Kelsey has disappeared with Champ and Sage. Later, they are found in good health at an exclusive resort visited by Kelsey. Kelsey refuses to return Champ and Sage to Hannah, claiming that they were all enjoying the resort and that she has become quite attached to them. -What was the effect of Amir's refusal to keep Champ and Sage?


A) He committed an anticipatory repudiation.
B) He is not guilty of any breach because he gave Hannah sufficient warning that he was not willing to perform.
C) He is not guilty of any breach because the contract is not over $1,000 in amount.
D) He is guilty of an immaterial breach because of the low value of the contract.
E) He is guilty of a nominal breach.

F) A) and B)
G) D) and E)

Correct Answer

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[Dream Home] Jacob finds a dream home on the lake. He wants to buy it but is unsure whether he can get a loan. He signs a contract with the seller that he will buy the home provided that he can obtain a loan. Jacob also includes a clause in the contract with the seller stating that if he loses his job before the date the purchase contract is signed, the seller will release him from any obligation. After obtaining a loan and buying the home, Jacob decides he wants to have new windows installed. He enters into a contract with a window contractor. The window contractor visits the home, but never finds Jacob there. The contractor makes several attempts to reach Jacob, but Jacob does not return phone calls and makes no attempt to assist the contractor in arranging the window installation. -The provision that the seller will release Jacob unless he is able to obtain a loan is a(n) ________.


A) Condition subsequent
B) Condition precedent
C) Bona fide condition
D) Condition concurrent
E) Exculpatory condition

F) D) and E)
G) A) and E)

Correct Answer

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