Chapter 6 Test

What do the meanings of the words "may" and "must" in the second sentence of this section imply for contracts? (check all that apply)

• there is no option in the performance of duties

• there is an option in the performance of duties

• there is no option in the enforcement of rights

• there is an option in the enforcement of rights

When both parties have completed everything they were supposed to in a contract then...

(check all that apply)

• the contract is discharged by performance

• the contract is discharged by agreement

• the contract has ended

• one party can now sue the other party

If a time limit is stated in a contract...

• ...neither party can sue for more time

• ...it is ONLY valid if the words "time is of the essence" is included.

• ...then the contract is invalid, because no one can predict what will happen in the future.

• ...it still has to be based on what is reasonable for the situation.

In which industry would the court most likely consider time as a more important factor in determining completion of performance?

• grocery deliveries

• construction

• manufacturing

• technology development

Which of the following is true regarding the standard for "satisfactory performance" in contracts? (check all that apply)

• it must be included in the contract

• it is always determined by the receiver of the goods or service

• it is always determined by the provider of the goods or service

• it cannot be included in the contract

• it is what is reasonable unless otherwise stated

If a contractor builds an entire house but can't finish the final paint job, they can argue to get most of the money in the contract anyway based on the legal of...

• satisfactory performance

• substantial performance

• tender of performance

• discharge by agreement

In contract law tender is...(check all that apply)

• a requirement before you can sue

• an offer to do what you said you would do in the contract

• a way to get out of fullfilling the performance part of a contract if the other party rejects it

• a way to get out of fullfiling the payment part of a contract if the other party rejects it

Which of the following are parties, who have capacity, allowed to do in a contract? (check all that apply)

• agree to end the contract

• agree to change the contract

• agree to accept a different payment or performance

• make any change in the contract without the other party's consent or knowledge

Which of the following should be the judgement in the "Case Study" at the top of page 133?

• for the Wolf Trap Foundation based on involuntary discharge due to impossibility of performance

• for the Opera Co. based on involuntary discharge due to impossibility of performance

• for the Wolf Trap Foundation based on involuntary discharge by operation of the law

• for the Opera Co. based on discharge by agreement

Which of the following could have led to a different legal judgement? (check all that apply)

• if the Wolf Trap Foundation had another venue that was available, accessible and operational

• if the Opera Co. had other singers that could have performed that night

• if the 2 organizations had agreed to delay the last performance until the venue was fixed

• if one of the Opera Company's star singers had become too sick to sing