Q&A Hero

Q: Floors n" More, Inc., hires Gordon to renovate Floors n" Mores showroom. Gordon submits plans that Floors n" More approves. Gordon completes the major reconstruction, paints the interior, and buys the fixtures and furnishings. Floors n" More rejects some of these items because they do not match the plans, and subsequently refuses to allow Gordon to finish the work or to collect payment. Could Gordon sue successfully for payment for the entire contract?

Q: Ellen contracts to buy six cases of vintage Fertile Valley wine from Grapes & Vines Winery for $1,200. The contract states that delivery is to be made at Ellen's residence "on or before May 1, to be used for daughter's wedding reception on May 2." On May 1, Grapes & Vines's delivery van is involved in an accident, no wine is delivered that day, and no one from Grapes & Vines tells Ellen. On the morning of May 2, Ellen buys the wine from Happy Hill Winery. That afternoon, just before the reception, Grapes & Vines tenders delivery of the wine at Ellen's residence. She refuses tender. Grapes & Vines sues her for breach of contract. How is the court most likely to rule?

Q: Raphael agrees to lease an apartment from Suzanne for one day to see Thomas, the president of the United States, deliver a speech in the street below. The speech is canceled three days before its scheduled date. The contract a. is discharged. b. is not affected. c. is postponed until another event is scheduled. d. must be performed immediately.

Q: Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If a strike delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is most likely a. breached. b. discharged. c. not affected. d. suspended.

Q: Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If the market price for organic produce exceeds the price in the contract with Harvesters, and Flora decides not to deliver the order. her contract with the grocery is most likely a. breached. b. discharged. c. not affected. d. suspended.

Q: Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of fresh fruits and vegetables every week for three months. If bad weather destroys Flora's crops, the obligation to deliver produce to Harvesters is most likely a. breached. b. discharged. c. not affected. d. suspended.

Q: Ruth contracts to provide Stan with fifty hours of telepathic personal coaching. The state legislature subsequently passes a law making telepathic personal coaching illegal. This law will a. discharge the contract. b. fulfill the contract. c. not affect the contract. d. require immediate performance of the contract.

Q: Rocko owes Sybil $1,000 for yard work Sybil performed for Rocko. The money is due on May 1. On April 30, Rocko goes to the bank to get the money and discovers that the bank will be closed until May 2. Rocko a. will be in breach of contract when he fails to pay Sybil on May 1. b. will not be in breach of contract when he fails to pay Sybil on May 1 due to objective impossibility. c. is discharged from any contractual liability to Sybil. d. will not be in breach of contract when he fails to pay Sybil on May 1 as long as he pays the $1,000 plus ten percent interest on May 2.

Q: Wilson owes Shelby $5,000 for repairs on Wilson's Bobcat Skidsteer. Wilson has financial troubles and he and Shelby sign an accord, in which Wilson promises to pay $4,000 and give Shelby his mountain bike within thirty days instead of the $5,000. Wilson's delivery of the bike and $4,000 to Shelby is a. an accord. b. satisfaction. c. substantial performance. d. novation.

Q: Hal contracts with Credit Services, Inc. (CSI), to pay $500 for its services. After CSI performs, they sign an accord, in which Hal promises to pay $400 within ten days instead of the $500. Hal does not pay. CSI can sue Hal under a. neither the accord nor the contract. b. the accord only. c. the accord or the contract. d. the contract only.

Q: Juan and Isidro enter into a contract to buy, restore, and reopen the Coastal Park Carousel. Before either party begins to perform, they agree to cancel their deal. This is a. substantial performance. b. mutual rescission. c. accord and satisfaction. d. novation.

Q: Ben and Andrew are parties to a contract. They agree on a novation. The novation does not require a. the existence of a previous, valid obligation. b. agreement by all the parties to a new contract. c. performance of the original contract by all of the parties. d. a new, valid contract.

Q: Barbara and Johann are parties to a contract. They agree on a novation. The novation requires a. the existence of a previous, valid obligation. b. consideration greater than $5,000. c. performance of the original contract by all of the parties. d. an accord and satisfaction.

Q: Gliding Light, LLC, and Hang Gliders, Inc., are parties to a contract. They subsequently agree that High Riders Inc. should take Gliding Light's place and assume all of its rights and duties under the contract. This is a. a mutual agreement to rescind. b. an accord and satisfaction. c. a novation. d. a settlement agreement.

Q: Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra. Business Computer's repudiation of its contract to employ Chandra is most likely a. a material breach. b. a minor breach. c. a condition subsequent. d. not a breach.

Q: Business Computer Solutions Education Service enters into a contract to employ Chandra as an instructor for two years to begin June 1. One month before the term begins, Business Computer is underbid by a competitor and loses a major client, Debt Consolidation Corporation. Business Computer now refuses to hire Chandra. Under the circumstances, with respect to damages, Chandra can a. bring an action immediately. b. bring an action only after the contract's two-year term begins. c. bring an action only after the contract's two-year term ends. d. do nothing.

Q: Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job. Natalie's performance is most likely a. a material breach. b. a minor breach. c. a reasonable breach. d. no breach.

Q: Medical Accounts Collection enters into a contract to employ Natalie as a billing and credit manager for two years. During the first year, Natalie is often absent without explanation and when present fails to adequately do her job. Natalie's performance most likely a. discharges Medical Accounts from the contract. b. has no effect on Medical Accounts's performance. c. undercuts Medical Accounts's duties under the contract. d. suspends Medical Accounts's duty to perform.

Q: Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle. Noelle's refusal to make further payments is most likely a. a material breach. b. complete performance. c. excused by Moses's failure to timely install the ventilation system. d. substantial, but not complete, performance.

Q: Moses sells an apartment building to Noelle with a promise to install a new heating and air conditioning system , before September 1. The following February 1, Moses sends Ollie, an HVAC technician, to begin the installation. Noelle orders Ollie to leave and refuses to make further payments to Moses, who files a suit against Noelle. Moses's late attempt to install the ventilation system is most likely a. a material breach. b. complete performance. c. excused by Noelle's refusal to make further payments. d. substantial, but not complete, performance.

Q: Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums, Inc. Shady Grove is entitled to a. damages. b. nothing more. c. repudiation. d. alteration.

Q: Carol enters into a contract to hire Joanne to paint a portrait of Carol's favorite cat. Joanne agrees to do the portrait to Carol's satisfaction for $100. When Joanne finishes the portrait, Carol announces that she is not satisfied with the portrait because it does not look like her cat. Carol a. must accept the portrait and pay Joanne $100. b. must accept the portrait and pay Joanne $50. c. must accept the portrait and pay Joanne $25. d. does not have to accept the portrait or pay Joanne any money.

Q: Phil enters into a contract to hire Bob's Building Business to build a warehouse for Phil. The contract specifies that the warehouse should be built with HighQual Bricks. When construction starts, HighQual Bricks cannot provide enough bricks for the warehouse. Bob's Building Business substitutes Big Red Bricks, which are comparable in quality and price to HighQual Bricks. This deviation from the contract a. discharges Phil from the contract. b. has no effect on the contract. c. increases Bob's Building Business's duties under the contract. d. suspends Bob's Building Business's duty to perform.

Q: Carpets n" Rugs, Inc., agrees to carpet Downtown Realty's offices, using a particular brand of durable carpet. Carpets n" Rugs completes the job but uses a different brand of wear- and weather-resistant carpeting. This is most likely a. a good-faith reason for Downtown Realty to rescind the contract. b. a material breach. c. complete performance. d. substantial performance.

Q: Herb's Hot Dog Vending, Inc., enters into a contract to pay Idris for a business survey and review of Herb's competitors, which Idris delivers on August 1. Herb's offer, on the same date, to pay Idris is a. a concurrent condition. b. a novation. c. tender. d. mutual rescission.

Q: Kali contracts to sell Leony her car for $3,000. This contract will be fully discharged when Kali and Leony a. agree to sign a bill of sale. b. exchange the car for the $3,000. c. sign a receipt. d. shake hands and go their separate ways.

Q: Hilton enters into a contract to erect a fence around Irene's cattle pasture. When the fence is built, Hilton's performance will be a. absolute. b. complete. c. conditional. d. substantial.

Q: Bernadette enters into a contract to operate a Caramel Coffee franchise, which Caramel Coffee agrees to support as long as Bernadette maintains her business license. Caramel Coffee's duty to perform is a. not a condition. b. a condition precedent. c. a concurrent condition. d. a condition subsequent.

Q: Restoration, Inc., contracts to repair a crack in a supporting beam for Stagecraft Theater for $10,000. If Restoration does not perform, Stagecraft must pay a. $10,000. b. $5,000. c. $1,000. d. $0.

Q: Even-Bilt Construction contracts to build a warehouse for Discount E-Sales Company. Even-Bilt completely performs. Discount E-Sales is entitled to a. an accord. b. rescission. c. novation. d. nothing more.

Q: CrossCountry Trucking & Transport enters into a contract with Discount Outlet Stores to load, transport, deliver, and unload the cargo that Discount designates. CrossCountry's offer to perform, when the company is ready, willing, and able to do so, is a. complete. b. substantial. c. tender. d. absolute.

Q: Elton and Florida sign a contract by which Elton agrees to deliver and install a utility sink on May 15 in exchange for Florida's promise to pay the $250 price on May 15. The delivery and installation of the sink and the payment of the price are examples of a. conditions precedent. b. concurrent conditions. c. conditions subsequent. d. implied conditions.

Q: Emil enters into a contract to buy Foley's cultivated bottomland and hill and bench acreage if County AgriCredit will lend Emil the funds to pay for the land. Emil's duty to perform is a. absolute. b. conditional. c. manifest. d. irresolute.

Q: Jen agrees to buy Kev's Dirt Bike business on the express condition that Valley Credit Union approves the financing. This approval is a. a concurrent condition. b. a condition precedent. c. a condition subsequent. d. an implied condition.

Q: Kathleen offers to buy Richard's prize stallion for $10,000 only if a licensed veterinarian certifies that the horse is sound for breeding. After inspecting the stallion, the veterinarian concludes that the stallion is sterile and thus not fit for breeding. Kathleen a. must still buy the stallion. b. does not have to buy the stallion. c. must still buy the stallion, but may pay a lower price. d. does not have to buy the stallion, but must buy another horse of similar value from Richard.

Q: Dylan enters into a contract to manage the operations of Cash's accounting office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be a. breached. b. rescinded. c. altered. d. performed.

Q: Valley View Farms enters into a contract to sell Sarah's Corner Shop a truckload of eggs from free range chickens. Valley View then fails to deliver the eggs to Sarah's Corner Shop. Sarah a. must still pay for the eggs or she will be in breach of contract. b. does not have to pay for the eggs because Valley View failed to perform. c. must still pay for the eggs, but can file suit against Valley View for breach of contract. d. does not have to pay for the eggs, but cannot file suit against Valley View for breach of contract.

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

Q: A condition is a qualification in a contract based on a future event that is certain to occur.

Q: An occurrence or event that makes performance temporarily impossible operates to discharge the parties' contractual duties.

Q: After a contract is made, a supervening event may make performance impossible in an objective sense.

Q: A contract will be discharged if reasonably foreseeable circumstances make it impossible to attain the contract's purpose.

Q: A contract is discharged when a change in the law renders the performance illegal.

Q: A discharge in bankruptcy will ordinarily prevent creditors from enforcing most of the debtor's contracts.

Q: Objective impossibility discharges a contract.

Q: The law allows an innocent party to be discharged when the other party has materially altered a written contract without consent.

Q: A contractual obligation may not be discharged through novation.

Q: A novation requires the existence of a previous, valid obligation.

Q: A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.

Q: Only personal contracts can be discharged by agreement of the parties.

Q: When an anticipatory repudiation occurs, it is treated as a material breach of a contract.

Q: Anticipatory repudiation discharges a contract.

Q: Any breach allows the nonbreaching party to sue for damages.

Q: Any breach excuses the nonbreaching party's duty to perform.

Q: A party is entitled to cancel a contract based on the other party's material breach.

Q: A material breach occurs when performance is substantial, but not complete.

Q: A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.

Q: Performance that provides a party with most of the benefits of a contract, in spite of a deviation from the terms, is substantial performance.

Q: In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is included. The contract says nothing about office furniture, but does state, "This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?

Q: Raconteur Data Analysis Corporation in Seattle, Washington, offers a job to Trista, who lives in Utah. Trista orally agrees to work for Raconteur for two years. She moves her family to Seattle and begins work. Three months later, she is fired for no stated cause. She files a suit against Raconteur for reinstatement or pay. Raconteur pleads the lack of a written contract. In whose favor is the court likely to rule, and why?

Q: Ulrich files a suit against Vern to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove a. an orally agreed-on condition precedent. b. terms discussed before the contract but not contained in it. c. terms discussed at the time of the contract that contradict the written terms. d. nothing.

Q: Alain and Brie sign a contract for the sale of Alain's Coffee Caf to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementAlain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price. The writing that Alain and Brie signed is a. a completely integrated contract. b. a conditionally integrated contract. c. a partially integrated contract. d. a supplemental integrated contract.

Q: Alain and Brie sign a contract for the sale of Alain's Coffee Caf to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementAlain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price. Brie later disputes some of the provisions of the deal with Alain. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are a. ambiguous. b. consistent. c. contradictory. d. clear.

Q: Hanson and Taylor sign a written contract for the transfer of Hanson's Foot & Ankle Clinic to Taylor. Hanson claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under a. the doctrine of promissory estoppel. b. the "main purpose" rule. c. the "partial performance" exception. d. the Statute of Frauds.

Q: Brenda induces Carmen to enter into a contract for the sale of a gas station and convenience store. Brenda tells Carmen that she is the sole owner, but their signed, written contract lists Brenda's parents as co-owners. The parol evidence rule governs a. contracts that are induced by fraud. b. contracts that must be in writing to be enforceable. c. the admissibility in court of oral evidence. d. the merging of oral and written statements into one contract.

Q: Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a contract. The only written evidence of the contract is a memo on DAI's letterhead as signed by a DAI officer in its files. The contract can be enforced if the memo includes a. a correct title, such as "Chloe-DAI Contract." b. all essential terms. c. a statement of the consideration. d. the parties' addresses.

Q: Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be enforceable, the contract must include a. no particular signatures. b. the signatures of all parties to the deal. c. the signature of the party against whom enforcement is sought. d. the signature of the party who is seeking enforcement.

Q: Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include a. a correct title, such as "Land Transfer" or "Real Estate Agreement." b. a declaration of the contract's purpose. c. a statement of the source of financing. d. a description of the land.

Q: Hal's True Hardware Stores and Ideal Tools, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include a. a correct title, such as "Purchase Order" or "Sales Invoice." b. a date, such as "October 2014" or "10/2014." c. a quantity term, such as "50 hammers" or "100 boxes of assorted nails." d. the parties' contact information.

Q: Grain Farms, LLC, and Harvest-to-Market Truck & Transport Company sign a written contract that does not involve a sale of goods. To be enforceable, the writing must include a. a correct title, such as "Shipment Contract." b. all essential and nonessential terms. c. a statement of the consideration. d. a description of the parties' businesses.

Q: Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against a. no one. b. Lucas and Natural Soft Drinks. c. Lucas. d. Natural Soft Drinks.

Q: Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For this promise to be enforceable under the doctrine of promissory estoppel, a. the Charger must be considered a customized good. b. Carolina must act in reliance on Benito's promise to her detriment. c. Benito's promise must have been overheard by a third party. d. there must be written evidence of the deal.

Q: Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in a. all states. b. no states. c. one state. d. some states.

Q: Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if a. Daisy foreseeably and justifiably relied on Elton's promise to her detriment. b. Elton denies the existence of any contract. c. neither party has begun to perform. d. the deal does not involve customized goods.

Q: Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by a. either party. b. Miranda only. c. neither party. d. Nicky only.

Q: Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the contract. Organic can enforce the contract to a. any extent because the order was placed orally. b. no extent because the order was placed orally. c. the extent of the ten accepted cartons. d. the extent of the twenty ordered cartons.

Q: Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate a. the method of delivery. b. the method of payment. c. the quantity of saddles. d. the seller.

Q: Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral contract for Atlantic's sale to PRC of six used forklifts for $1,900 each. Before PRC takes possession of the items, this contract is enforceable by a. either party. b. neither party. c. Atlantic only. d. PRC only.

Q: Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more than a. $5. b. $15. c. $50. d. $500.

Q: Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret. The contract must be in writing if the pecans cost a. $100. b. $150. c. $250. d. $500.