LSU BLAW 3201 FRY FINAL EXAM
QUESTIONS WITH COMPLETE
SOLUTIONS
/. A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks
$1,200 for a 2003 V-6 motor provided that Phelps' Garage approves the quality of the
motor." This provision:
a. makes the contract unenforceable since Walter's promise is illusory.
b. creates an express condition which must be met before Walter's duty to pay arises.
c. cannot create an express condition because it lacks the necessary words "on
condition that."
d. cannot be valid since it makes Walter's duty to pay dependent upon the opinion of a
third party. - Answer-creates an express condition which must be met before Walter's
duty to pay arises.
/.William has a contract to build a new office building for Angela. The contract contains a
provision requiring William to furnish a certificate of occupancy from the building
inspector before Angela is required to pay. This provision is:
a. an express condition.
b. an implied-in-fact condition.
c. an implied-in-law condition.
d. a condition subsequent. - Answer-an express condition.
/.Which of the following is a contract with a condition subsequent?
a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan
from her bank.
b. Roger bought a VCR, but he may return the VCR within ten days and get all of his
money back.
c. Both (a) and (b) are examples of a condition subsequent.
d. Neither (a) nor (b) is an example of a condition subsequent. - Answer-Roger bought a
VCR, but he may return the VCR within ten days and get all of his money back.
/.A(n) ____ is a substituted contract that involves an agreement among three parties to
substitute a new promisee in place of an existing promisee, or to replace an existing
promisor with a new one. - Answer-novation
/.A(n) ____ is a contract between a promisee and a promisor by which the promisee
agrees to accept and the promisor agrees to render a substituted performance in
satisfaction of an existing contractual duty. - Answer-accord
/.Which of the following is/are correct with regard to conditions subsequent?
,a. Conditions subsequent are quite common in contracts.
b. A "sale or return" contract is an example of a contract with a condition subsequent.
c. A condition subsequent must occur before performance is due under a contract.
d. All of the above are correct. - Answer-A "sale or return" contract is an example of a
contract with a condition subsequent.
/.Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash,
tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo
tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): -
Answer-satisfaction.
/.On November 1, Paula and Roberta enter into a contract where both parties are
obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no
way, perform my duties in our contract." This statement is a(n): - Answer-anticipatory
repudiation.
/.A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law
generally restricts the time within which an action can be brought by either party to a
contract." C's statement is: - Answer-true, because of statutes of limitation.
/.The Code greatly alters the common law doctrine of material breach by adopting what
is known as the:
a. perfect tender rule.
b. anticipatory repudiation rule.
c. prevention of performance rule.
d. discharge by operation of rule law. - Answer-perfect tender rule.
/.Unless one of the parties contractually assumes the risk, the ____ discharges a
contract if supervening circumstances make fulfillment of the purpose which both parties
had in mind impossible. - Answer-frustration of purpose doctrine
/.Meg has contracted to paint a portrait of Julio, but dies before completing the portrait.
Which of the following is correct?
a. Meg's executor must find a capable artist to complete the work to Julio's satisfaction.
b. Meg's contractual duty is discharged due to objective impossibility.
c. A novation must be entered between Julio and a third person in order to discharge
Meg's duty under the contract.
d. Meg's contractual duty is discharged due to subjective impossibility. - Answer-Meg's
contractual duty is discharged due to objective impossibility.
/.Refusal of a tender of performance by one party to a bilateral contract will: - Answer-be
treated as a repudiation, excusing the tendering party from further duty of performance
under the contract.
/.Conditions may be classified:
a. by how they are imposed.
, b. by when they affect a duty of performance.
c. Both (a) and (b); they are not mutually exclusive.
d. Neither (a) nor (b). - Answer-Both (a) and (b); they are not mutually exclusive.
/.Which of the following would be considered a material breach of a contract?
a. Partial performance that omits some essential part of the contract.
b. Delivery of 50 chairs in a contract that calls for 100 chairs.
c. An intentional breach of the contract.
d. All of the above would be material breaches.
e. Only (a) and (b) above would be material breaches. - Answer-all of the above
/.Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of
the following would discharge Russell's obligations to pay under this contract?
a. Marty leaves a one-foot strip of land barren.
b. Marty doesn't begin work on the landscaping until after he finishes two other jobs.
c. Marty doesn't plant any flowers, shrubs, or grasses.
d. Russell isn't satisfied with Marty's design. - Answer-Marty doesn't plant any flowers,
shrubs, or grasses.
/.Phil, the tax accountant, promises to do Marge's individual federal, state, local, and gift
taxes for the year. He completes all but the gift taxes. Under the substantial
performance doctrine:
a. Marge will not have to pay Phil.
b. Marge will not have to accept the work.
c. Marge will have to pay Phil for all but the gift taxes.
d. Marge will have to pay Phil the contract price. - Answer-Marge will have to pay Phil
for all but the gift taxes.
/.Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry
refuses to let them on the roof, saying that he has a headache and doesn't want to listen
to pounding. The next day, Henry still has a headache and he refuses to allow them on
the roof. The day after, the baby is sleeping and Henry refuses to allow them to work.
After four weeks of this, Ace: - Answer-may be discharged, but Henry is not.
/.Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay
Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan
perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for
it. Bryan is honest in his dissatisfaction, but he is unreasonable.
a. Bryan must pay for the suit even if he is dissatisfied.
b. This is an illusory contract, because only Anita is bound.
c. Bryan's approval is an objective standard.
d. Anita has no recourse against Bryan, because she agreed to the subjective standard.
- Answer-Anita has no recourse against Bryan, because she agreed to the subjective
standard.
QUESTIONS WITH COMPLETE
SOLUTIONS
/. A contract contains the provision, "Walter Hamilton promises to pay Faye Weeks
$1,200 for a 2003 V-6 motor provided that Phelps' Garage approves the quality of the
motor." This provision:
a. makes the contract unenforceable since Walter's promise is illusory.
b. creates an express condition which must be met before Walter's duty to pay arises.
c. cannot create an express condition because it lacks the necessary words "on
condition that."
d. cannot be valid since it makes Walter's duty to pay dependent upon the opinion of a
third party. - Answer-creates an express condition which must be met before Walter's
duty to pay arises.
/.William has a contract to build a new office building for Angela. The contract contains a
provision requiring William to furnish a certificate of occupancy from the building
inspector before Angela is required to pay. This provision is:
a. an express condition.
b. an implied-in-fact condition.
c. an implied-in-law condition.
d. a condition subsequent. - Answer-an express condition.
/.Which of the following is a contract with a condition subsequent?
a. Rhonda enters into a contract to buy a new car conditional upon her getting a loan
from her bank.
b. Roger bought a VCR, but he may return the VCR within ten days and get all of his
money back.
c. Both (a) and (b) are examples of a condition subsequent.
d. Neither (a) nor (b) is an example of a condition subsequent. - Answer-Roger bought a
VCR, but he may return the VCR within ten days and get all of his money back.
/.A(n) ____ is a substituted contract that involves an agreement among three parties to
substitute a new promisee in place of an existing promisee, or to replace an existing
promisor with a new one. - Answer-novation
/.A(n) ____ is a contract between a promisee and a promisor by which the promisee
agrees to accept and the promisor agrees to render a substituted performance in
satisfaction of an existing contractual duty. - Answer-accord
/.Which of the following is/are correct with regard to conditions subsequent?
,a. Conditions subsequent are quite common in contracts.
b. A "sale or return" contract is an example of a contract with a condition subsequent.
c. A condition subsequent must occur before performance is due under a contract.
d. All of the above are correct. - Answer-A "sale or return" contract is an example of a
contract with a condition subsequent.
/.Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash,
tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo
tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n): -
Answer-satisfaction.
/.On November 1, Paula and Roberta enter into a contract where both parties are
obligated to perform on December 31. On December 1, Paula tells Roberta, "I can, in no
way, perform my duties in our contract." This statement is a(n): - Answer-anticipatory
repudiation.
/.A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law
generally restricts the time within which an action can be brought by either party to a
contract." C's statement is: - Answer-true, because of statutes of limitation.
/.The Code greatly alters the common law doctrine of material breach by adopting what
is known as the:
a. perfect tender rule.
b. anticipatory repudiation rule.
c. prevention of performance rule.
d. discharge by operation of rule law. - Answer-perfect tender rule.
/.Unless one of the parties contractually assumes the risk, the ____ discharges a
contract if supervening circumstances make fulfillment of the purpose which both parties
had in mind impossible. - Answer-frustration of purpose doctrine
/.Meg has contracted to paint a portrait of Julio, but dies before completing the portrait.
Which of the following is correct?
a. Meg's executor must find a capable artist to complete the work to Julio's satisfaction.
b. Meg's contractual duty is discharged due to objective impossibility.
c. A novation must be entered between Julio and a third person in order to discharge
Meg's duty under the contract.
d. Meg's contractual duty is discharged due to subjective impossibility. - Answer-Meg's
contractual duty is discharged due to objective impossibility.
/.Refusal of a tender of performance by one party to a bilateral contract will: - Answer-be
treated as a repudiation, excusing the tendering party from further duty of performance
under the contract.
/.Conditions may be classified:
a. by how they are imposed.
, b. by when they affect a duty of performance.
c. Both (a) and (b); they are not mutually exclusive.
d. Neither (a) nor (b). - Answer-Both (a) and (b); they are not mutually exclusive.
/.Which of the following would be considered a material breach of a contract?
a. Partial performance that omits some essential part of the contract.
b. Delivery of 50 chairs in a contract that calls for 100 chairs.
c. An intentional breach of the contract.
d. All of the above would be material breaches.
e. Only (a) and (b) above would be material breaches. - Answer-all of the above
/.Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of
the following would discharge Russell's obligations to pay under this contract?
a. Marty leaves a one-foot strip of land barren.
b. Marty doesn't begin work on the landscaping until after he finishes two other jobs.
c. Marty doesn't plant any flowers, shrubs, or grasses.
d. Russell isn't satisfied with Marty's design. - Answer-Marty doesn't plant any flowers,
shrubs, or grasses.
/.Phil, the tax accountant, promises to do Marge's individual federal, state, local, and gift
taxes for the year. He completes all but the gift taxes. Under the substantial
performance doctrine:
a. Marge will not have to pay Phil.
b. Marge will not have to accept the work.
c. Marge will have to pay Phil for all but the gift taxes.
d. Marge will have to pay Phil the contract price. - Answer-Marge will have to pay Phil
for all but the gift taxes.
/.Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry
refuses to let them on the roof, saying that he has a headache and doesn't want to listen
to pounding. The next day, Henry still has a headache and he refuses to allow them on
the roof. The day after, the baby is sleeping and Henry refuses to allow them to work.
After four weeks of this, Ace: - Answer-may be discharged, but Henry is not.
/.Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay
Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan
perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for
it. Bryan is honest in his dissatisfaction, but he is unreasonable.
a. Bryan must pay for the suit even if he is dissatisfied.
b. This is an illusory contract, because only Anita is bound.
c. Bryan's approval is an objective standard.
d. Anita has no recourse against Bryan, because she agreed to the subjective standard.
- Answer-Anita has no recourse against Bryan, because she agreed to the subjective
standard.
