BLAW 341 – Final Exam
Kaplan
Questions with Answers| Latest Update
1. What is a breach of contract?
Answer: A breach of contract occurs when one party fails, without legal excuse,
to perform any promise that forms all or part of the contract.
Rationale: A breach can range from a minor failure to perform a small term to
a total failure to perform any part of the agreement, and the type of breach
determines the non-breaching party's available remedies.
2. What is the difference between a material breach and a minor breach?
Answer: A material breach substantially defeats the purpose of the contract
and excuses the non-breaching party from further performance, while a minor
breach is a small deviation that does not excuse the non-breaching party's own
performance.
Rationale: With a material breach, the injured party may sue for damages and
is discharged from performing; with a minor breach, the injured party must still
perform but may sue for damages caused by the minor deviation.
3. What is substantial performance?
Answer: Substantial performance occurs when a party performs enough of the
essential terms of the contract in good faith, with only minor deviations, that
the other party must still perform but may recover damages for the deviation.
Rationale: Substantial performance is a defense to a claim of material breach
and is common in construction and service contracts where perfect
performance is not always feasible.
4. What is anticipatory repudiation?
Answer: Anticipatory repudiation occurs when one party clearly indicates,
before performance is due, that they will not perform their contractual
obligations.
, Rationale: Upon anticipatory repudiation, the non-breaching party may treat
the contract as immediately breached, sue right away, and is relieved of the
duty to tender their own performance.
5. What is discharge by impossibility of performance?
Answer: Discharge by impossibility occurs when unforeseen events make
performance objectively impossible, such as the destruction of the specific
subject matter of the contract, death or incapacity of a party whose personal
performance was essential, or a change in law that makes the contract's
performance illegal.
Rationale: This is considered 'objective' impossibility (no one could perform),
which discharges the parties' duties, as opposed to 'subjective' impossibility
(this particular party cannot perform), which generally does not excuse
performance.
6. What is the difference between objective and subjective impossibility?
Answer: Objective impossibility means the contract literally cannot be
performed by anyone, which discharges the duty; subjective impossibility
means only this particular party is unable to perform, which generally does not
discharge the duty to perform.
Rationale: Courts distinguish these because objective impossibility reflects an
external barrier to performance, while subjective impossibility usually reflects a
party's own inability or unwillingness, which does not excuse breach.
7. What is commercial impracticability?
Answer: Commercial impracticability discharges a party's duty to perform
when an unforeseen event makes performance extremely and unreasonably
difficult or expensive, beyond the normal risks assumed in the contract.
Rationale: Unlike impossibility, performance is still technically possible under
commercial impracticability, but courts excuse performance because an
unforeseen contingency has made performance so burdensome that it defeats
the basic assumptions of the contract.
8. What is the doctrine of frustration of purpose?
, Answer: Frustration of purpose discharges a contract when an unforeseen
event destroys the underlying purpose or reason for the contract, even though
performance itself remains possible.
Rationale: Both parties must have understood the purpose as the basis of the
contract at formation; if that purpose becomes valueless due to an unforeseen
event, the party who no longer benefits may be excused from performing.
9. What are three ways parties may discharge a contract by agreement?
Answer: Parties may discharge a contract by mutual rescission (both agree to
cancel), novation (substituting a new party or new contract for the original), or
accord and satisfaction (agreeing to accept different performance in
satisfaction of the original obligation).
Rationale: Each method requires mutual assent of the parties and effectively
terminates or modifies the original contractual obligations by agreement
rather than through breach or excuse.
10. What is the difference between a condition precedent and a condition
subsequent?
Answer: A condition precedent is an event that must occur before a party's
duty to perform arises, while a condition subsequent is an event that, if it
occurs, terminates an already-existing duty to perform.
Rationale: Failure of a condition precedent means the obligation never arises,
while occurrence of a condition subsequent extinguishes an obligation that was
previously in effect.
11. What are expectation damages?
Answer: Expectation damages are designed to put the non-breaching party in
the position they would have been in had the contract been fully performed,
typically measured as the benefit of the bargain lost due to the breach.
Rationale: Expectation damages are the most common contract remedy and
aim to give the injured party the value of what they expected to receive under
the contract.
12. What are reliance damages?
Kaplan
Questions with Answers| Latest Update
1. What is a breach of contract?
Answer: A breach of contract occurs when one party fails, without legal excuse,
to perform any promise that forms all or part of the contract.
Rationale: A breach can range from a minor failure to perform a small term to
a total failure to perform any part of the agreement, and the type of breach
determines the non-breaching party's available remedies.
2. What is the difference between a material breach and a minor breach?
Answer: A material breach substantially defeats the purpose of the contract
and excuses the non-breaching party from further performance, while a minor
breach is a small deviation that does not excuse the non-breaching party's own
performance.
Rationale: With a material breach, the injured party may sue for damages and
is discharged from performing; with a minor breach, the injured party must still
perform but may sue for damages caused by the minor deviation.
3. What is substantial performance?
Answer: Substantial performance occurs when a party performs enough of the
essential terms of the contract in good faith, with only minor deviations, that
the other party must still perform but may recover damages for the deviation.
Rationale: Substantial performance is a defense to a claim of material breach
and is common in construction and service contracts where perfect
performance is not always feasible.
4. What is anticipatory repudiation?
Answer: Anticipatory repudiation occurs when one party clearly indicates,
before performance is due, that they will not perform their contractual
obligations.
, Rationale: Upon anticipatory repudiation, the non-breaching party may treat
the contract as immediately breached, sue right away, and is relieved of the
duty to tender their own performance.
5. What is discharge by impossibility of performance?
Answer: Discharge by impossibility occurs when unforeseen events make
performance objectively impossible, such as the destruction of the specific
subject matter of the contract, death or incapacity of a party whose personal
performance was essential, or a change in law that makes the contract's
performance illegal.
Rationale: This is considered 'objective' impossibility (no one could perform),
which discharges the parties' duties, as opposed to 'subjective' impossibility
(this particular party cannot perform), which generally does not excuse
performance.
6. What is the difference between objective and subjective impossibility?
Answer: Objective impossibility means the contract literally cannot be
performed by anyone, which discharges the duty; subjective impossibility
means only this particular party is unable to perform, which generally does not
discharge the duty to perform.
Rationale: Courts distinguish these because objective impossibility reflects an
external barrier to performance, while subjective impossibility usually reflects a
party's own inability or unwillingness, which does not excuse breach.
7. What is commercial impracticability?
Answer: Commercial impracticability discharges a party's duty to perform
when an unforeseen event makes performance extremely and unreasonably
difficult or expensive, beyond the normal risks assumed in the contract.
Rationale: Unlike impossibility, performance is still technically possible under
commercial impracticability, but courts excuse performance because an
unforeseen contingency has made performance so burdensome that it defeats
the basic assumptions of the contract.
8. What is the doctrine of frustration of purpose?
, Answer: Frustration of purpose discharges a contract when an unforeseen
event destroys the underlying purpose or reason for the contract, even though
performance itself remains possible.
Rationale: Both parties must have understood the purpose as the basis of the
contract at formation; if that purpose becomes valueless due to an unforeseen
event, the party who no longer benefits may be excused from performing.
9. What are three ways parties may discharge a contract by agreement?
Answer: Parties may discharge a contract by mutual rescission (both agree to
cancel), novation (substituting a new party or new contract for the original), or
accord and satisfaction (agreeing to accept different performance in
satisfaction of the original obligation).
Rationale: Each method requires mutual assent of the parties and effectively
terminates or modifies the original contractual obligations by agreement
rather than through breach or excuse.
10. What is the difference between a condition precedent and a condition
subsequent?
Answer: A condition precedent is an event that must occur before a party's
duty to perform arises, while a condition subsequent is an event that, if it
occurs, terminates an already-existing duty to perform.
Rationale: Failure of a condition precedent means the obligation never arises,
while occurrence of a condition subsequent extinguishes an obligation that was
previously in effect.
11. What are expectation damages?
Answer: Expectation damages are designed to put the non-breaching party in
the position they would have been in had the contract been fully performed,
typically measured as the benefit of the bargain lost due to the breach.
Rationale: Expectation damages are the most common contract remedy and
aim to give the injured party the value of what they expected to receive under
the contract.
12. What are reliance damages?
