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Discharge of Contracts Chapter Exam

Exam Instructions:

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

Page 1

Question 1 1. _____ occurs when one party to a contract stopped performance of the contract terms in a way that the other party receives little or no benefit from the contract.

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Question 2 2. When is a contract usually discharged?

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Question 3 3. Sunday laws are also commonly known as _____.

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Question 4 4. What kind of institution is usually subject to usury laws?

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Question 5 5. How can a contract be discharged by substituting the old contract for a new one with different terms?

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Question 6 6. Rescission means that a contract has been terminated _____.

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Question 7 7. What mechanism allows a buyer to breach a contract when unforeseen circumstances prevent the buyer from entering into the contract despite having the intention to fulfill the contract from the beginning?

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Question 8 8. How have banks responded to changed circumstances in contracts during economic recession to keep homeowners in their homes?

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Question 9 9. When does the Doctrine of Laches allow a contract to be made unenforceable?

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Question 10 10. What kind of contract has an option for the parties to enforce it even if an element is missing?

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Question 11 11. What does the doctrine of in pari delicto keep courts from doing?

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Question 12 12. Which element of a contract requires that the contract cannot violate law or public policy?

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Question 13 13. Franklin decided to sell his gas station because he received warning from the city that a highway was being built where the station sits. Maurice bid on the gas station with the intention of opening a full-service fueling station and cafe. After all of the papers were signed, Maurice watched a local feature that talked about the new highway. On what basis can Maurice get out of this contract?

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Question 14 14. Barney is a professional children's party clown. He had a party of 23 five-year-old children booked for Sunday morning. He also was invited to his best buddy's bachelor party the night before the event, where he drank way too many beers and woke with a mean hangover. He called the mother of the birthday child to let her know he did not feel he could perform at his best because he was ill. What type of change in circumstance is Barney trying to use?

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Question 15 15. Paulo is an importer of nuts and dried fruits. He scours the earth to find the most exotic treats to sell in his nut shop. On a recent visit to a new country, Zulalania, he discovered the most luscious nuts he had ever tasted. He immediately contracted for a large shipment to the United States. When he returned to the States, he was notified by US Customs that nuts from Zulalania were not allowed in the country due to customs regulations. What can Paulo do to get out of the contract?

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Question 16 16. Which of the following statements describes the meaning of public policy?

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Question 17 17. The right to a free public education is considered a:

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Question 18 18. Mr. Whittaker owns a candy shop in town. He had been there for years. Everyone enjoys his sweet treats. In fact, his chocolate shop was so popular that he was even featured on a food-related television show. Soon after airing, people recognized the brand and flocked to Mr. Whittaker's store just to buy some of his treats. The shop has developed:

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Question 19 19. What type of license is needed to practice law or medicine?

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Question 20 20. Pepe's Pay Day Loans decided to raise their interest rates from 7% to 86% after Christmas. Is this legal in most states?

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Question 21 21. Extortion is sometimes called _____.

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Question 22 22. Burt hired Jackson to remodel his bathroom. Jackson showed up for the first two days, and then Burt never saw him again. Unfortunately, Burt had already paid Jackson for the job. What will a court most likely do?

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Question 23 23. Peggy was hired to paint a mural of Diane's beloved dog. Peggy sprained her painting arm on the day before the start date. After agreeing on a new date, the parties went forward with their plan. What type of breach occurred?

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Question 24 24. Pierre the Chef contracted to cook for a large dinner party at Ms. Hanrahan's estate. Unfortunately, the day before he was supposed to perform the catering, he was pulled over and arrested for drinking too much cooking sherry and driving. Since he was in jail, the job had to be canceled. What type of breach occurred?

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Question 25 25. Billy and Marvin entered into a contract for the sale of Marvin's car. Billy signed on the dotted line and drove away. Marvin's mother called Billy the very next day to demand the return of the vehicle. She stated that Marvin was only 16 years old and had no legal right to sell the car. What type of discharge will occur?

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Question 26 26. Marcia bought a new sportscar. Her monthly payments are $550 per month. When Marcia signed the contract, she had a good job and was able to make her payments. A few months later, she was terminated and could no longer satisfy the car loan. She talked to her sister, Patricia, who agreed to assume the payments. Both ladies went to the car dealer to change the terms. What type of discharge occurred?

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Question 27 27. Which of the following is NOT a reason a contract can be discharged?

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Question 28 28.

Kilwin was eager to get his house painted. He contacted Murphy, from whom he received a quote. After accepting the quote, a contract was drafted and signed but Murphy did not start the job by the date specified in the contract. A week later, Kilwin contracted with another painter.

Does Murphy have a case?

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Question 29 29. Harry and Joe were hanging around the bar when Harry proposed that Joe buy his boat for $500. Joe jumped at the chance to make the deal and paid him on the spot. Harry legally owned the boat, both are adults and nothing illegal was written into the contract. Harry delivered the boat three days later. The next week, Joe had regrets. What can Joe do?

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Question 30 30. Ziggy and Bernie want to start a lawn care business. Neither of the men know much about the law and neither of them could draft a simple contract. For their first client, Melba, they drafted the following: 'We will cut your grass when it looks long and straggly. We will send you a bill or else we will just wait for you to pay us. We may come on Sunday or Tuesday, but most likely Thursday. Sometimes we don't like to work.' Which of the following is true for the above scenario?

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Discharge of Contracts Chapter Exam Instructions

Choose your answers to the questions and click 'Next' to see the next set of questions. You can skip questions if you would like and come back to them later with the "Go To First Skipped Question" button. When you have completed the practice exam, a green submit button will appear. Click it to see your results. Good luck!

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