Dynamic Business Law: The Essentials, 5th Edition
SOLUTION MANUAL by Kubasek, Browne, Herron
Conditional contract - ANSWER: A contract that becomes enforceable only on the
happening or termination of a specified condition.
Implied; Expressly - ANSWER: Conditional contracts may be either _________ by law
or_________ inserted into the contract by the parties.
Condition precedent - ANSWER: In a contract, an event that must occur for a party's
duty to arise.
Condition subsequent - ANSWER: In a contract, a future event that terminates the
obligations of the parties when it occurs.
Concurrent conditions - ANSWER: In a contract, terms under which each party's
performance is conditioned on the performance of the other; occur only when the
parties are required to perform for each other simultaneously.
Express condition - ANSWER: A condition specifically and explicitly stated in a
contract and usually preceded by words such as conditioned on, if, provided that, or
when.
Implied condition - ANSWER: A condition that is not specifically and explicitly stated
but is inferred from the nature and language of the contract.
Tender - ANSWER: An offer by a party in a contract to perform, along with being
ready, willing, and able to perform, a duty outlined in that contract.
Complete performance - ANSWER: Contract performance occurs when all aspects of
the parties' duties under the contract are carried out perfectly.
Substantial performance - ANSWER: Contract performance occurs when nearly all
the terms of the agreement have been met, there has been an honest effort to
complete all the terms, and there has been no willful departure from the terms of
the agreement.
Breach - ANSWER: This occurs whenever a party fails to perform his or her
obligations under the contract. If the __________ is a minor one, it may entitle the
non-_____________ party to damages, but it does not discharge the non-
____________ party from the contract.
Material Breach - ANSWER: A substantial breach of a significant term or terms of a
contract that excuses the non-breaching party from further performance under the
, contract and gives the non-breaching party the right to recover damages. A
____________ occurs when a party unjustifiably fails to perform his obligations
substantially under the contract.
Accord; Satisfaction - ANSWER: The promise to perform the new duty is called the
_________, and the actual performance of that new duty is called the __________.
Bankruptcy - ANSWER: When a party files __________, the court allocates the assets
of the __________ among the ___________ creditors and then issues the party a
discharge in __________. Once the assets have been distributed, all the __________
debts are discharged.
Impossibility of Performance - ANSWER: Sometimes an unforeseen event occurs that
makes it physically or legally impossible for a party to carry out the terms of the
contract. In such a situation, the parties will be discharged on grounds of
_________________.
Objective Impossibilty; Subjective Impossibility - ANSWER: Courts distinguish
between ________________, meaning it is in fact not possible to lawfully carry out
one's contractual obligations, and ____________, meaning it would be very difficult
to carry out the contract.
Destruction of the subject matter - ANSWER: This can discharge a contract if it occurs
without the promisor's fault.
Death or incapacity of a party whose personal services are necessary - ANSWER: The
second situation of objective impossibility is the __________ to fulfill the terms of
the contract. For example, if a famous artist is commissioned to paint a portrait and
the artist dies, the contract is discharged. The artist's style is unique, and there is no
way for anyone to take over the artist's role.
One party has breached a contract - ANSWER: If ____________, a number of factors
go into the decision of whether it makes sense to file suit. Some of those
considerations are (1) the likelihood of success, (2) the desire or need to maintain an
ongoing relationship with the potential defendant, (3) the possibility of getting a
better or faster resolution through some form of alternative dispute resolution, and
(4) the cost of litigation or some form of alternative dispute resolution (ADR)
compared to the value of the likely remedy.
Commercial impracticability - ANSWER: ________________ is seen by some as a
response to a somewhat unfair harshness of the objective impossibility standard.
_____________ is used when performance is still objectively possible but would be
extraordinarily injurious or expensive to one party. ___________ arises when,
because of an unforeseeable event, one party would incur unreasonable expense,
injury, or loss if that party were forced to carry out the terms of the agreement.
SOLUTION MANUAL by Kubasek, Browne, Herron
Conditional contract - ANSWER: A contract that becomes enforceable only on the
happening or termination of a specified condition.
Implied; Expressly - ANSWER: Conditional contracts may be either _________ by law
or_________ inserted into the contract by the parties.
Condition precedent - ANSWER: In a contract, an event that must occur for a party's
duty to arise.
Condition subsequent - ANSWER: In a contract, a future event that terminates the
obligations of the parties when it occurs.
Concurrent conditions - ANSWER: In a contract, terms under which each party's
performance is conditioned on the performance of the other; occur only when the
parties are required to perform for each other simultaneously.
Express condition - ANSWER: A condition specifically and explicitly stated in a
contract and usually preceded by words such as conditioned on, if, provided that, or
when.
Implied condition - ANSWER: A condition that is not specifically and explicitly stated
but is inferred from the nature and language of the contract.
Tender - ANSWER: An offer by a party in a contract to perform, along with being
ready, willing, and able to perform, a duty outlined in that contract.
Complete performance - ANSWER: Contract performance occurs when all aspects of
the parties' duties under the contract are carried out perfectly.
Substantial performance - ANSWER: Contract performance occurs when nearly all
the terms of the agreement have been met, there has been an honest effort to
complete all the terms, and there has been no willful departure from the terms of
the agreement.
Breach - ANSWER: This occurs whenever a party fails to perform his or her
obligations under the contract. If the __________ is a minor one, it may entitle the
non-_____________ party to damages, but it does not discharge the non-
____________ party from the contract.
Material Breach - ANSWER: A substantial breach of a significant term or terms of a
contract that excuses the non-breaching party from further performance under the
, contract and gives the non-breaching party the right to recover damages. A
____________ occurs when a party unjustifiably fails to perform his obligations
substantially under the contract.
Accord; Satisfaction - ANSWER: The promise to perform the new duty is called the
_________, and the actual performance of that new duty is called the __________.
Bankruptcy - ANSWER: When a party files __________, the court allocates the assets
of the __________ among the ___________ creditors and then issues the party a
discharge in __________. Once the assets have been distributed, all the __________
debts are discharged.
Impossibility of Performance - ANSWER: Sometimes an unforeseen event occurs that
makes it physically or legally impossible for a party to carry out the terms of the
contract. In such a situation, the parties will be discharged on grounds of
_________________.
Objective Impossibilty; Subjective Impossibility - ANSWER: Courts distinguish
between ________________, meaning it is in fact not possible to lawfully carry out
one's contractual obligations, and ____________, meaning it would be very difficult
to carry out the contract.
Destruction of the subject matter - ANSWER: This can discharge a contract if it occurs
without the promisor's fault.
Death or incapacity of a party whose personal services are necessary - ANSWER: The
second situation of objective impossibility is the __________ to fulfill the terms of
the contract. For example, if a famous artist is commissioned to paint a portrait and
the artist dies, the contract is discharged. The artist's style is unique, and there is no
way for anyone to take over the artist's role.
One party has breached a contract - ANSWER: If ____________, a number of factors
go into the decision of whether it makes sense to file suit. Some of those
considerations are (1) the likelihood of success, (2) the desire or need to maintain an
ongoing relationship with the potential defendant, (3) the possibility of getting a
better or faster resolution through some form of alternative dispute resolution, and
(4) the cost of litigation or some form of alternative dispute resolution (ADR)
compared to the value of the likely remedy.
Commercial impracticability - ANSWER: ________________ is seen by some as a
response to a somewhat unfair harshness of the objective impossibility standard.
_____________ is used when performance is still objectively possible but would be
extraordinarily injurious or expensive to one party. ___________ arises when,
because of an unforeseeable event, one party would incur unreasonable expense,
injury, or loss if that party were forced to carry out the terms of the agreement.
