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1.
(p. 452)
Under ordinary circumstances, a party's duty to perform a promise agreed to in a contract
is absolute.
2.
(p. 452)
Contractual conditions may be expressly inserted into the contract by the parties but may
not be implied by law.
3.
(p. 458)
Substitution of a party to a contract is called guaranteeing.
4.
(p. 463)
The most frequently awarded damages are compensatory damages.
5.
(p. 466)
In a case where no actual damages result from the breach of a contract, the court may
award the plaintiff nominal damages.
6.
(p. 467)
Liquidated damages will be enforced based upon the free-will concept of contracts even
if the liquidated damages amount is unreasonable.
7.
(p. 469)
Rewriting a contract to reflect what the parties had agreed on is referred to as
rescission.
8.
(p. 469)
When an enforceable contract does not exist, the court may grant a recovery based on
quasi-contract in order to prevent an injustice from occurring.
9.
(p. 468)
Restitution is the return of any property given up under the contract.
10.
(p. 468)
Specific performance is an order requiring that the breaching party fulfill the terms of the
agreement.
11.
(p. 456)
Bob's house was damaged by fire. He got three independent appraisals regarding the
damage and submitted those to his insurer informing the insurer that he was willing to use the
lowest appraisal as a basis for his insurance reimbursement. The adjuster for the insurance
company asked Bob to submit to an oral examination under oath regarding the fire, but Bob
refused. The insurance company denied reimbursement based on Bob's refusal to provide the
examination under oath. Which of the following is true regarding whether Bob should be allowed
to recover under the policy if the court follows the case in the text
Hamilton v. State Farm Fire &
Casualty Insurance Company
?
12.
(p. 452)
When a party's obligations under a contract are terminated, the party is said to be ____.
13.
(p. 452)
Which of the following is true regarding ways by which a party's contractual obligations
may be discharged?
14.
(p. 452)
Contracts containing conditions affecting the performance obligations of the parties are
called ______ contracts.
15.
(p. 452)
Which of the following is true regarding types of conditions?
16.
(p. 452)
A condition ______ is a particular event that must occur in order for a party's duty to
arise.
17.
(p. 452)
A condition ______ is a future event that terminates the obligations of the parties when it
occurs.
18.
(p. 453)
Which of the following conditions occur when each party's performance is conditioned on
the performance of the other?
19.
(p. 453)
Which of the following describes conditions explicitly stated in the contract?
20.
(p. 453)
Which of the following describes conditions that are not explicitly stated but are inferred
from the nature and language of the contract?
21.
(p. 454)
The parties' discharge of their obligations by doing what they respectively agreed to do
under the terms of the contract is called ____.
22.
(p. 454)
An offer of performance by being ready, willing, and able to perform is known as ____.
23.
(p. 454)
Which of the following are the two primary kinds of performance?
24.
(p. 454)
Which of the following occurs when all aspects of the parties' duties under the contract
are carried out perfectly?
25.
(p. 454)
A contractual condition of satisfaction is considered a[n] ______ condition that must be
met before the other party's obligation to pay for the performance arises.
26.
(p. 454)
A contractual condition of satisfaction may be judged by either a[n] ______ or ______
standard.
27.
(p. 454-455)
If a contract does not clearly specify that the satisfaction is to be personal, the
______ standard applies.
