Essentials of Contract Law 2nd Edition by Martin A. Frey - Test Bank

Essentials of Contract Law 2nd Edition by Martin A. Frey – Test Bank

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Sample Questions Are Posted Below

CHAPTER 4

Step Four: The Plaintiff’s Allegation of the Defendant’s Breach

True/False

Indicate whether the statement is true or false.

An answer must be all True to be True.

1. T F              The plaintiff may allege that the defendant breached by anticipatory repudiation, nonperformance, or a nonconforming performance.
2. T F              Except where all that remains is the payment of money, a breach by anticipatory repudiation that is actionable occurs when one of the contracting parties makes known to the other, either expressly or impliedly, that the contract will not be performed.
3. T F              When one of the contracting parties makes known to the other that performance will not be forthcoming, the other party must wait until the time for the performance to pass before making other arrangements.
4. T F              After receiving notice of a future nonperformance, the breaching party could resume performance if the nonbreaching party has not relied on the breach.
5. T F              The nonbreaching party could bring a breach of contract action based on breach by anticipatory repudiation even if all that remains is payment by the breaching party.
6. T F              The obligation of the promisor is a duty and the receipt of the promisor’s promise is a right.
7. T F              The plaintiff is always the promisor.
8. T F              The nonbreaching party may allege that the breach was of an express or an implied promise.
9. T F              Only an offeror may bring a breach of contract cause of action.
10. T F              Only an offeror of a unilateral contract may bring a breach of contract cause of action.
11. T F              If the contract was formed through an application of the last shot doctrine, the duty that is alleged to have been breached will be expressed or implied in the last writing.
12. T F              If the contract was integrated, the term alleged to have been breached always will be found in the integration.
13. T F              The duty alleged to have been breached may be implied into the contract through statute, common law, course of performance, course of dealing, or custom.
14. T F              Course of dealing is based on past performances under the contract while course of performance is based on past performance under prior contracts.
15. T F              Good faith is a promise with its inherent duty and right.
16. T F              A statute can create a duty that is incorporated into a contract so the allegation of breach involves the allegation that the statutory duty has been breached.
17. T F              Because custom goes beyond the parties, custom cannot create a duty that is incorporated into a contract.
18. T F              The allegation that an implied warranty has been breached is an illustration of the plaintiff’s allegation of breach by a nonconforming performance.

19. T F              The plaintiff may only allege that an express warranty has been breached.
20. T F              Implied warranties may only arise if the contracting parties are members of an industry.

Multiple-Choice

Identify the best correct answer.

1. Step Four in the road map is:

(a)   the plaintiff’s remedies for the defendant’s breach

(b)   the plaintiff’s allegation of the defendant’s breach

(c)   contract enforcement

(d)   choice of dispute resolution, venue, and law

2. Martha hired Sunshine Pools to build an inground swimming pool in her backyard. Halfway through the project, Sunshine notified Martha that because of a strike in the concrete industry, concrete would be difficult to come by and completing the pool may be delayed.

(a)   Martha should not sue Sunshine for breach of contract based upon a breach by anticipatory repudiation.

(b)   Martha should sue Sunshine for breach of contract based upon a breach by anticipatory repudiation.

(c)   Martha should sue Sunshine in a restitution cause of action seeking the return of the payments she has made.

(d)   Martha should sue Sunshine in a reliance cause of action seeking the return of the payments she has made in reliance on Sunshine’s promise to build the pool.

3. Once a breach by anticipatory repudiation has occurred, the nonbreaching party:

(a)   may ignore the repudiation and wait for the breaching party to perform

(b)   may ignore the repudiation and wait for a reasonable time for the breaching party to perform

(c)   may ignore the repudiation and wait for a reasonable time so long as the damages are not accumulating

(d)   must bring a breach of contract cause of action alleging the breach by anticipatory repudiation

4. If the contract was bilateral:

(a)   only the offeror could be the plaintiff

(b)   only the offeree could be the plaintiff

(c)   either the offeror or the offeree could be the plaintiff

(d)   none of the above

5. If the contract was unilateral:

(a)   only the offeror could be the plaintiff

(b)   only the offeree could be the plaintiff

(c)   either the offeror or the offeree could be the plaintiff

(d)   none of the above

6. Alice contacted Union Construction Company for the addition of a sunroom to her home. Union gave Alice a written bid for $20,000. Alice reviewed the bid and made several changes to the specifications and sent it back to Union. Union reviewed these changes and sent Alice a revised bid for $25,000. Alice left town and when she returned she found that the sunroom had been completed. Alice sent Union a check for $20,000. This check was deposited by Union.

(a)   The contract was for $20,000 and Union should not bring a cause of action for breach of contract.

(b)   The contract was for $25,000 and Union should bring a cause of action for breach of contract for Alice’s failure to perform.

(c)   The contract was for $25,000 and Union should bring a cause of action for breach of contract for Alice’s nonconforming performance.

(d)   Union constructed the sunroom without a contract and it has no successful allegation of breach of contract.

7. Laverne contracted with One Place for space to open a coffee shop. During the negotiation of the lease, One Place promised Laverne the exclusive right to sell bagels. The lease was reduced to writing but the exclusive right was omitted. A short time later, One Place leased space to a bagel shop.

(a)   Laverne could allege through parol evidence that One Place breached the lease contract.

(b)   Laverne could allege through the parol evidence rule that One Place breached the lease contract.

(c)   Laverne could allege through interpretation that One Place breached the lease contract.

(d)   Laverne could not allege that One Place breached the lease contract because the contract was a total integration.

8. When a contract calls for multiple performances:

(a)   future performances under a contract are expected to follow the same pattern as past performances that have established a course of dealing

(b)   future performances under a contract are expected to follow the same pattern as past performances and therefore a deviation can be alleged as a breach of contract

(c)   future performances under a contract are expected to follow the same pattern as past performance and therefore a deviation can be alleged as a breach of custom

(d)   past performances under that contract are irrelevant as to establishing a pattern for future performances and cannot be used to alleged as a breach of contract

9. For the past three years, Zane has been installing Christmas lights for the New Town Mall. The price had been $500. This year Zane installed the lights but sent the Mall a bill for $600. The Mall sent Zane a check for $500.

(a)   Zane could allege that the Mall had breached its contract by not sending him a check for $600.

(b)   Zane should not allege breach of contract because the contract was for $500 under course of performance.

(c)   Zane should not allege breach of contract because the contract was for $500 under course of dealing.

(d)   Zane should not allege breach of contract because the contract was for $500 under custom.

10. The contract for the sale of land described the land as “Blackacre.” Seller refused to sell the land to Buyer.

(a)   Buyer need not discuss the parol evidence rule when alleging a certain 360 acres is “Blackacre.”

(b)   Buyer must discuss the parol evidence rule when alleging a certain 360 acres is “Blackacre.”

(c)   Buyer may not allege that the 360 acres he has in mind is “Blackacre.”

(d)   Buyer may allege that any 360 acres of undeveloped land is “Blackacre.”