CHAPTER 13—TERMINATION OF CONTRACTS Key
1. Which of the following statements best defines a tender of performance?
2. An offer to provide money in satisfaction of a debt when one has the ability to pay is a(n) _____.
3. AB Developers signs a contract with CL Corp., agreeing to build a $20 million office for the corporation. The
construction contract was substantially performed. There were, however, a few minor breaches of the contract
by AB Developers that made CL Corp. incur damages worth $10,000. Which of the following is most likely to
be true in this scenario?
4. Which of the following statements is true of statutes of limitations?
5. A force majeure clause in a contract is a contract provision that excuses performance by a party when:
6. In a written contract, Sheldon agreed to tutor the children of Mrs.Smith for a certain period of time. However,
Sheldon, prior to starting classes, announced that he would not be able to tutor the children due to other
commitments of his. In this case, there has been a(n):
7. Which of the following is true of discharge of contracts due to impossibility of performance?
8. In which of the following cases will a court refuse to enforce the provision of liquidated damages on a party?
9. Which of the following statements best describes specific performance?
10. If an act is legal at the time of entering a contract but is subsequently made illegal, the contract is
discharged.
11. After a discharge in bankruptcy, creditors’ rights of action to enforce most of the contracts of a debtor are
barred.
12. A debt that has been outlawed by a statute of limitations cannot be revived.
13. If a party intentionally and without the consent of the other party alters a written contract, the other innocent
party is discharged.
14. The release of one party to a contract constitutes the consideration for the release of the other.
15. If performance in a contract becomes extremely difficult after the contract is formed, it automatically
discharges the contract.
16. A breach of contract by one of the parties bound on a contract immediately terminates the contract.
17. The rescission of a contract releases an aggrieved party from all obligations that are yet to be performed.
18. When a court orders for specific performance, it is exercising its equity powers.
19. Contracts for the performance of personal services can be specifically ordered as remedies in breach-of-
contract suits.
20. What constitutes satisfactory performance in a contract?