A material breach of contract does not excuse the

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Unformatted text preview: material breach of contract does not excuse the nonbreaching party from further performance. A) True B) False Feedback: A material breach of contract (which occurs when performance is not at least substantial) excuses the nonbreaching party from performance of his or her contractual duties and gives the party a cause of action to sue for damages caused by the breach. A minor breach of contract does not excuse the nonbreaching party?s duty to perform, however, although it may affect the extent of his or her performance and, like any contract breach, allows the nonbreaching party to sue for damages. Points Earned: 1.0/1.0 Correct Answer(s): False 9. An executory contract cannot be rescinded. A) True B) False Feedback: An executory contract can be rescinded. If it is executory on both sides, it can be rescinded solely by agreement. In any case, the parties must make a new agreement, and this agreement must qualify as a contract. (The parties? promises not to perform are consideration for the new contract.) Points Earned: 1.0/1.0 Correct Answer(s): False 10. Objective impossibility discharges a contract. A) True B) False Points Earned: 1.0/1.0 Correct Answer(s): True 1. Greg enters into a contract with Holly that indirectly benefits Ira, although neither Greg nor Holly intended that result. Ira is A) a delegatee. B) an assignee. C) an incidental beneficiary. Feedback: D) an intended beneficiary. Points Earned: 1.0/1.0 Correct Answer(s): C 2. Jim and Kay enter into a contract that intentionally benefits Lora. Loras rights under this contract will vest A) only if she manifests assent to it. B) only if she materially alters her position in detrimental reliance on it. C) if she manifests assent to it or if she materially alters her position in detrimental reliance on it. Feedback: D) none of these. Points Earned: 1.0/1.0 Correct Answer(s): C 3. Dan and Eve sign a contract under which Dan agrees to repair Eves computer for $150. Later...
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This note was uploaded on 12/01/2010 for the course BUSINESS L 100 taught by Professor Random during the Fall '10 term at Oklahoma City Community College.

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