Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
What does it mean to discharge a contract? - (ANSWER)end/terminate one's obligation
Henderson and Carl mutually agree that they will not be able to perform their contract obligations and
therefore elect to discontinue the contract. This is considered a(n) ________blank. - (ANSWER)mutual
rescission
A(n) ________blank occurs when a party unjustifiably fails to substantially perform their obligations
under the contract. - (ANSWER)material breach
In their contract, Jordan (the homeowner) and Mel (the contractor) have stipulated that Mel will build
Jordan a room addition with brick exterior for $40,000. Instead of using brick, however, Mel uses vinyl
siding. This is an example of a(n) ________blank breach of contract. - (ANSWER)material
Bob agreed to tutor Lola in Spanish for two (2) hours and Lola agreed to pay $25.00 per hour for the
tutoring services. Bob tutored Lola and she paid Bob $50.00. This means that the parties have been
________blank. - (ANSWER)discharged by performance
Which of the following is a basis for discharge by operation of law when performance is still objectively
possible but would be extraordinarily injurious or expensive to one party? - (ANSWER)commercial
impracticability
Remedies are generally classified as ________blank. - (ANSWER)legal or equitable
A(n) ________blank of contract often arises when market conditions change and one party realizes that
it will not be profitable to carry out the terms of the contract. - (ANSWER)anticipatory repudiation
What is the plaintiff requesting if he wants to be awarded a very small amount just to signify that he has
been wronged by the defendant? - (ANSWER)nominal damages
What type of damages are specified in the contract? - (ANSWER)liquidated damages
,Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
Courts are very reluctant to grant ________blank and will do so only when monetary damages simply
are not adequate, typically because the subject matter of the contract is unique. - (ANSWER)specific
performance
Which of the following is a court order prohibiting a person from doing something? -
(ANSWER)injunction
Replacing one of the original parties to a contract with a third party is referred to as a(n): -
(ANSWER)novation
4 ways to discharge a contract - (ANSWER)1) performance
2) material breach by one/both parties
3) mutual agreement
4) operation of law
performance - (ANSWER)doing what they respectively agreed to do under the terms of the contract
parties also discharge their duty by making an offer to perform and being ready, willing, and able to
perform. This offer of performance is known as - (ANSWER)tender
If a painter shows up at Sherry's house with his paint and ladders and is ready to start painting the
garage, he has tendered performance. If Sherry refuses to let him start, the painter has now discharged
his duties under the contract by his tender of performance and may sue Sherry for material breach
2 types of performance - (ANSWER)complete and substantial
complete performance - (ANSWER)all aspects of parties' duties under contract are carried out perfectly
,Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
substantial performance - (ANSWER)when (1) "nearly all" terms of agreement completed, (2) honest
effort to complete all terms, and (3) no "willful departure" from terms of agreement
discharge by material breach - (ANSWER)a party unjustifiably fails to substantially perform his/her
contractual obligations; this discharges the non-breaching party of their contractual obligation
Can the non-breaching party sue for damages? - (ANSWER)YES
anticipatory repudiation - (ANSWER)A type of material breach: *before the time of performance* a party
decides to not complete their contractual obligations; non-breaching party discharged from obligations
and can sue
when does anticipatory repudiation happen? - (ANSWER)often when market conditions change and one
party realizes it is not profitable to carry out its terms
How can anticipatory repudiation occur? - (ANSWER)expressly
implied through actions
Hillman & Sykes Hypothetical - (ANSWER)the actions of Hillman brothers violates no "willful departure"
for substantial performance. Because of this, even with Sykes' personality, she may not have to pay.
discharge by mutual agreement - (ANSWER)when both parties agree to discharge each other from their
obligations
4 types of discharge by mutual agreement - (ANSWER)1) mutual rescission
2) substituted contract
3) accord & satisfaction
4) novation
, Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
mutual rescission - (ANSWER)parties simply wish to discharge each other from mutual obligations and
therefore may rescind or cancel the contract
substituted contract - (ANSWER)instead of cancelling contract and relationship, parties want to
substitute a new agreement
accord and satisfaction - (ANSWER)1 party wishes to sub a different performance for his/her original
contractual duty; party's duty under contract is not discharged until new duty performed
novation - (ANSWER)(1) parties wish to replace one of the parties with a 3rd party, (2) original duties
same under contract, but one party discharged, and 3rd takes their place (3) all three parties must agree
discharge by operation of law - (ANSWER)discharged not by anything the parties due but by operation of
law: alteration of contract, bankruptcy, tolling of the statute of limitations, *impossibility of
performance*, *commercial impracticability*, *frustration of performance*
impossibility of performance - (ANSWER)A doctrine under which a party to a contract is relieved of his or
her duty to perform when performance becomes impossible or totally impracticable (through no fault of
either party) - destruction of the subject matter, death or incapacity of a party whose personal services
are necessary, subsequent illegality
commercial impracticability - (ANSWER)used when performance is still objectively possible but would be
extraordinarily injurious or expensive to one party
doctrine most commonly used when raw materials needed for manufacturing goods under a contract
become extraordinarily expensive due to an embargo, war, crop failure, etc.
frustration of purpose - (ANSWER)both parties recognize that the contract is intended to fulfill a
particular purpose and the occurrence of that purpose is said to be a basic assumption on which the
contract is made. If due to factors beyond control the event does not occur, and neither party assumed
risk of nonoccurrence, the contract cannot be discharged (coronation example)
Solutions
What does it mean to discharge a contract? - (ANSWER)end/terminate one's obligation
Henderson and Carl mutually agree that they will not be able to perform their contract obligations and
therefore elect to discontinue the contract. This is considered a(n) ________blank. - (ANSWER)mutual
rescission
A(n) ________blank occurs when a party unjustifiably fails to substantially perform their obligations
under the contract. - (ANSWER)material breach
In their contract, Jordan (the homeowner) and Mel (the contractor) have stipulated that Mel will build
Jordan a room addition with brick exterior for $40,000. Instead of using brick, however, Mel uses vinyl
siding. This is an example of a(n) ________blank breach of contract. - (ANSWER)material
Bob agreed to tutor Lola in Spanish for two (2) hours and Lola agreed to pay $25.00 per hour for the
tutoring services. Bob tutored Lola and she paid Bob $50.00. This means that the parties have been
________blank. - (ANSWER)discharged by performance
Which of the following is a basis for discharge by operation of law when performance is still objectively
possible but would be extraordinarily injurious or expensive to one party? - (ANSWER)commercial
impracticability
Remedies are generally classified as ________blank. - (ANSWER)legal or equitable
A(n) ________blank of contract often arises when market conditions change and one party realizes that
it will not be profitable to carry out the terms of the contract. - (ANSWER)anticipatory repudiation
What is the plaintiff requesting if he wants to be awarded a very small amount just to signify that he has
been wronged by the defendant? - (ANSWER)nominal damages
What type of damages are specified in the contract? - (ANSWER)liquidated damages
,Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
Courts are very reluctant to grant ________blank and will do so only when monetary damages simply
are not adequate, typically because the subject matter of the contract is unique. - (ANSWER)specific
performance
Which of the following is a court order prohibiting a person from doing something? -
(ANSWER)injunction
Replacing one of the original parties to a contract with a third party is referred to as a(n): -
(ANSWER)novation
4 ways to discharge a contract - (ANSWER)1) performance
2) material breach by one/both parties
3) mutual agreement
4) operation of law
performance - (ANSWER)doing what they respectively agreed to do under the terms of the contract
parties also discharge their duty by making an offer to perform and being ready, willing, and able to
perform. This offer of performance is known as - (ANSWER)tender
If a painter shows up at Sherry's house with his paint and ladders and is ready to start painting the
garage, he has tendered performance. If Sherry refuses to let him start, the painter has now discharged
his duties under the contract by his tender of performance and may sue Sherry for material breach
2 types of performance - (ANSWER)complete and substantial
complete performance - (ANSWER)all aspects of parties' duties under contract are carried out perfectly
,Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
substantial performance - (ANSWER)when (1) "nearly all" terms of agreement completed, (2) honest
effort to complete all terms, and (3) no "willful departure" from terms of agreement
discharge by material breach - (ANSWER)a party unjustifiably fails to substantially perform his/her
contractual obligations; this discharges the non-breaching party of their contractual obligation
Can the non-breaching party sue for damages? - (ANSWER)YES
anticipatory repudiation - (ANSWER)A type of material breach: *before the time of performance* a party
decides to not complete their contractual obligations; non-breaching party discharged from obligations
and can sue
when does anticipatory repudiation happen? - (ANSWER)often when market conditions change and one
party realizes it is not profitable to carry out its terms
How can anticipatory repudiation occur? - (ANSWER)expressly
implied through actions
Hillman & Sykes Hypothetical - (ANSWER)the actions of Hillman brothers violates no "willful departure"
for substantial performance. Because of this, even with Sykes' personality, she may not have to pay.
discharge by mutual agreement - (ANSWER)when both parties agree to discharge each other from their
obligations
4 types of discharge by mutual agreement - (ANSWER)1) mutual rescission
2) substituted contract
3) accord & satisfaction
4) novation
, Legs 3010 Exam 3 2026 Questions And Answers | A+ Graded | With Expert
Solutions
mutual rescission - (ANSWER)parties simply wish to discharge each other from mutual obligations and
therefore may rescind or cancel the contract
substituted contract - (ANSWER)instead of cancelling contract and relationship, parties want to
substitute a new agreement
accord and satisfaction - (ANSWER)1 party wishes to sub a different performance for his/her original
contractual duty; party's duty under contract is not discharged until new duty performed
novation - (ANSWER)(1) parties wish to replace one of the parties with a 3rd party, (2) original duties
same under contract, but one party discharged, and 3rd takes their place (3) all three parties must agree
discharge by operation of law - (ANSWER)discharged not by anything the parties due but by operation of
law: alteration of contract, bankruptcy, tolling of the statute of limitations, *impossibility of
performance*, *commercial impracticability*, *frustration of performance*
impossibility of performance - (ANSWER)A doctrine under which a party to a contract is relieved of his or
her duty to perform when performance becomes impossible or totally impracticable (through no fault of
either party) - destruction of the subject matter, death or incapacity of a party whose personal services
are necessary, subsequent illegality
commercial impracticability - (ANSWER)used when performance is still objectively possible but would be
extraordinarily injurious or expensive to one party
doctrine most commonly used when raw materials needed for manufacturing goods under a contract
become extraordinarily expensive due to an embargo, war, crop failure, etc.
frustration of purpose - (ANSWER)both parties recognize that the contract is intended to fulfill a
particular purpose and the occurrence of that purpose is said to be a basic assumption on which the
contract is made. If due to factors beyond control the event does not occur, and neither party assumed
risk of nonoccurrence, the contract cannot be discharged (coronation example)
