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128. In Deschamps v. Treasure State Trailer Court, where the buyer of a trailer court said he was promised the water
system was in good condition when in fact it was not, the Montana Supreme Court held that the parol evidence rule
would apply.
a. True
b. False
129. If the obligations of a contract have been performed, the contract is discharged.
a. True
b. False
130. If most, but not all, of the obligations of a contract have been finished the contract is considered in breach until
completed.
a. True
b. False
131. Substantial performance, such as delivering 98 percent of the goods ordered, is generally not considered acceptable,
and so is a breach of contract.
a. True
b. False
132. In fulfilling the obligations of a contract, both parties are expected to act in good faith.
a. True
b. False
133. A transfer of contract rights to a third party is an assignment.
a. True
b. False
134. A transfer of contract rights to a third party is a delegation.
a. True
b. False
135. A transfer of contract duties to a third party is a delegation.
a. True
b. False
136. A transfer of contract duties to a third party is an assignment.
a. True
b. False
137. A lawyer promises to represent you in court for a certain fee but then sends an assistant to handle the case. This is
a common, legitimate assignment of duties.
a. True
b. False
138. Assignment of contracts for services is generally not allowed, but delegation of contracts is more likely to be
allowed.
a. True
b. False
139. A third-party beneficiary is a party who is not part of an original contract but who acquires rights under the
contract.
a. True
b. False
140. Thiess owes Gina $2,000. Gina owes Web $4,000. Gina can assign her right to the $2,000 owed her by Thiess to
Web, who becomes a third-party beneficiary of the contract.
a. True
b. False
141. Slight deviations from contract terms will result in a material breach.
a. True
b. False
142. If performance of a contract is clearly inferior to the requirements of the contract, there is a material breach.
a. True
b. False
143. If one party makes it clear that a contract will not be performed as it is supposed to be in the future, the party who
will suffer from the breach must wait until the time of the breach to have the right to sue for damages.
a. True
b. False
144. If you anticipate that the other party to a contract will breach the contract, you must wait until the breach occurs
before taking an alternative course of action or you will have breached the contract.
a. True
b. False
145. The doctrine of anticipatory breach comes from the Statute of Frauds.
a. True
b. False
146. Parties to a contract may agree not to fulfill the contract as it was originally stated.
a. True
b. False
147. A mutual rescission occurs when both parties agree that their contractual relationship should be terminated without
performance.
a. True
b. False
148. A rescission occurs when the parties to a contract agree that it will be terminated without performance.
a. True
b. False
149. If parties to a contract wish to substantially modify their legal obligations under the contract, they must obtain
approval of the court.
a. True
b. False
150. A novation occurs when the parties to a contract agree to release one party from the contract and assign the duties
to another party to form a new contract.
a. True
b. False
151. In a novation, all relevant parties agree to discharge one party from the contract and create a new contract with
another party who accepts responsibility for the discharged party's performance.
a. True
b. False
152. A novation occurs when a third party comes forward to take over the duties of a party who has breached a
contract.
a. True
b. False
153. If someone decides to accept less than full payment to settle a debt, there is an accord and satisfaction.
a. True
b. False
154. An accord is an agreement by parties to a contract to give and accept some performance different from that
originally bargained for.
a. True
b. False
155. An accord is an agreement by parties to a contract to have a third party step in and fulfill part of the duties of a
contract.
a. True
b. False
156. A clause in a contract that says the contract will become void in case of war between the countries of the two
contracting parties is called a legal impossibility agreement.
a. True
b. False
157. If a party to a contract dies or becomes incapacitated the contract is discharged by impossibility.
a. True
b. False
158. If a house burns down before it sale is completed, the contract for sale is discharged by impossibility.
a. True
b. False
159. If a defendant proves impossibility, the defendant's obligations will be discharged.
a. True
b. False
160. Some courts use the notion of impracticability or frustration instead of impossibility.
a. True
b. False
