Busfin 3500 Final Exam Questions With Correct
Answers
Methods of discharging a contract Correct Answer-1) Performance
2) happening of a condition or its failure to occur
3) material breech by one or by both parties
4) agreement of the parties
5) Operation of law
Conditional contracts Correct Answer-contracts containing conditions
affecting the performance obligations of the parties. could be implied by
law or expressly stated in the contract
Discharge by condition precedent Correct Answer-a particular event that
must occur for a parties duty to arise. if the event does not occur then the
parties duty to perform does not arise
condition subsequent Correct Answer-a future event that terminates the
parties obligations when it occurs, contract is discharged
Concurrent Conditions Correct Answer-Parties are to perform their
obligations simultaneously. the paying for of a shipment upon arrival is
an example of this.
Express conditions Correct Answer-explicitly stated conditions in the
contract. If payment should be recieved at a specified time then it has to
be that way or else the contract is discharged
, Implied conditions Correct Answer-those conditions that are not
explicitly stated but are inferred from the language within the contract.
Discharge by performance Correct Answer-when parties do what they
respectivly agreed to do under the conditions of the contract
Complete performance Correct Answer-occurs when all steps of a
parties duty are carried out perfectly. in many instances, complete
performance is difficult if not impossible to attain
Substantial performance Correct Answer-occurs when the following
have been met
1) completion of nearly all the terms of the agreement
2) an honest effort to complete all the terms and conditions
3) no willful departure from the terms of the agreement
Substantial performance allows the courts to discharge a party from a
contract although they may have to pay compensatory damages
Performance subject to satisfaction of a contracting party Correct
Answer-performance of the contract subject to the satisfaction of one of
the contracting parties. these parties are allowed to choose whether or
not the other is able to be discharged, expressly stated in the contract
Answers
Methods of discharging a contract Correct Answer-1) Performance
2) happening of a condition or its failure to occur
3) material breech by one or by both parties
4) agreement of the parties
5) Operation of law
Conditional contracts Correct Answer-contracts containing conditions
affecting the performance obligations of the parties. could be implied by
law or expressly stated in the contract
Discharge by condition precedent Correct Answer-a particular event that
must occur for a parties duty to arise. if the event does not occur then the
parties duty to perform does not arise
condition subsequent Correct Answer-a future event that terminates the
parties obligations when it occurs, contract is discharged
Concurrent Conditions Correct Answer-Parties are to perform their
obligations simultaneously. the paying for of a shipment upon arrival is
an example of this.
Express conditions Correct Answer-explicitly stated conditions in the
contract. If payment should be recieved at a specified time then it has to
be that way or else the contract is discharged
, Implied conditions Correct Answer-those conditions that are not
explicitly stated but are inferred from the language within the contract.
Discharge by performance Correct Answer-when parties do what they
respectivly agreed to do under the conditions of the contract
Complete performance Correct Answer-occurs when all steps of a
parties duty are carried out perfectly. in many instances, complete
performance is difficult if not impossible to attain
Substantial performance Correct Answer-occurs when the following
have been met
1) completion of nearly all the terms of the agreement
2) an honest effort to complete all the terms and conditions
3) no willful departure from the terms of the agreement
Substantial performance allows the courts to discharge a party from a
contract although they may have to pay compensatory damages
Performance subject to satisfaction of a contracting party Correct
Answer-performance of the contract subject to the satisfaction of one of
the contracting parties. these parties are allowed to choose whether or
not the other is able to be discharged, expressly stated in the contract
