Commercial Law Final Exam
Questions With 100% Verified Answers
Methods of Discharge -
correct answer ✅Excuse of Conditions
Performance
Breach of Contract
Agreement of Parties
Impossibility of performance
Supervening Illegality
Death or Destruction of the subject matter or parties
Frustration of Purpose
Condition -
correct answer ✅timing element of the contract creating or
distinguishing a party's duty to perform
condition precedent -
correct answer ✅a condition that must be fulfilled before a party's
performance can be required
Condition fails to occur
,Commercial Law Final Exam
Questions With 100% Verified Answers
Ex: A agrees to purchase B's house if A can get financing; if A fails to
find financing, terminates obligation to perform (purchase house
from B)
Condition terminates an obligation to perform (condition
subsequent
Ex: A agrees to pay B alimony pursuant to the terms of separation
agreement until B remarries; remarriage of B terminates A's
obligation to perform
Situations where a party does something to prevent or excuse the
performance of the other
Performance Prevented -
correct answer ✅During the period of the condition, a party
engages in an act which makes performance impossible for the
other party
Person preventing performance is still bound to the contract
The other party is excused
, Commercial Law Final Exam
Questions With 100% Verified Answers
Ex: A agrees to paint B's house on Thursday; when A arrives to
paint, B has locked the gate preventing A's performance; A is
excused, B is still liable for costs and expenses
If Party A is obligated to perform after a condition and Party A
prevents the occurrence of the condition, Party A is still liable
Ex: A hires B to remodel A's house for a sum certain and the receipt
of an architect's certificate. If A prevents architect for giving
certificate, A will remain liable to B for payment
Voluntary DIsablement -
correct answer ✅form of anticipatory breach in which a party's
conduct makes it so that he cannot perform his own conditions.
A party to a contract voluntarily engages in conduct that makes it
impossible for that party to perform his obligation
The other party is excused from performance
Ex: A agrees to purchase a vase from B, payment and delivery in 2
weeks; B sells vase to C a week later; unlikely that B will repurchase
vase from C to sell to B; B has engaged in voluntary disablement;
A's obligation to B is discharged
Questions With 100% Verified Answers
Methods of Discharge -
correct answer ✅Excuse of Conditions
Performance
Breach of Contract
Agreement of Parties
Impossibility of performance
Supervening Illegality
Death or Destruction of the subject matter or parties
Frustration of Purpose
Condition -
correct answer ✅timing element of the contract creating or
distinguishing a party's duty to perform
condition precedent -
correct answer ✅a condition that must be fulfilled before a party's
performance can be required
Condition fails to occur
,Commercial Law Final Exam
Questions With 100% Verified Answers
Ex: A agrees to purchase B's house if A can get financing; if A fails to
find financing, terminates obligation to perform (purchase house
from B)
Condition terminates an obligation to perform (condition
subsequent
Ex: A agrees to pay B alimony pursuant to the terms of separation
agreement until B remarries; remarriage of B terminates A's
obligation to perform
Situations where a party does something to prevent or excuse the
performance of the other
Performance Prevented -
correct answer ✅During the period of the condition, a party
engages in an act which makes performance impossible for the
other party
Person preventing performance is still bound to the contract
The other party is excused
, Commercial Law Final Exam
Questions With 100% Verified Answers
Ex: A agrees to paint B's house on Thursday; when A arrives to
paint, B has locked the gate preventing A's performance; A is
excused, B is still liable for costs and expenses
If Party A is obligated to perform after a condition and Party A
prevents the occurrence of the condition, Party A is still liable
Ex: A hires B to remodel A's house for a sum certain and the receipt
of an architect's certificate. If A prevents architect for giving
certificate, A will remain liable to B for payment
Voluntary DIsablement -
correct answer ✅form of anticipatory breach in which a party's
conduct makes it so that he cannot perform his own conditions.
A party to a contract voluntarily engages in conduct that makes it
impossible for that party to perform his obligation
The other party is excused from performance
Ex: A agrees to purchase a vase from B, payment and delivery in 2
weeks; B sells vase to C a week later; unlikely that B will repurchase
vase from C to sell to B; B has engaged in voluntary disablement;
A's obligation to B is discharged
