Party Duties in Contract Law: Obligations and Performance

Question 1

Which of the following is NOT a requirement for a contract to be legally enforceable?

Accepted Answer

Written form

Answer

Offer and acceptance

Answer

Consideration

Answer

Capacity to contract

Question 2

What is the effect of a breach of condition in a contract?

Accepted Answer

It gives the innocent party the right to terminate the contract and claim damages

Answer

It gives the innocent party the right to claim damages only

Answer

It gives the innocent party the right to terminate the contract only

Answer

It has no effect on the contract

Question 3

What is the difference between an express and an implied term in a contract?

Accepted Answer

Express terms are stated in the contract, while implied terms are not

Answer

Implied terms are stated in the contract, while express terms are not

Answer

Both express and implied terms are stated in the contract

Answer

There is no difference between express and implied terms

Question 4

Which of the following is NOT an obligation of the parties to a contract?

Accepted Answer

To modify the contract without the other party's consent

Answer

To perform the contract in good faith

Answer

To avoid causing damage to each other

Answer

To give reasonable notice of termination

Question 5

An obligation that requires the performance of a specific act is known as a(n):

Accepted Answer

absolute obligation

Answer

conditional obligation

Answer

joint obligation

Answer

concurrent obligation

Question 6

When the time for performance is not specified in a contract, it must be performed:

Accepted Answer

within a reasonable time

Answer

immediately

Answer

on the date the contract was formed

Answer

upon request

Question 7

Which of the following is NOT a defense to non-performance of a contractual obligation?

Accepted Answer

breach of contract by the other party

Answer

impossibility

Answer

frustration

Answer

subsequent illegality

Question 8

A party's duty to cooperate in the performance of a contract is known as:

Accepted Answer

good faith

Answer

utmost faith

Answer

warranty

Answer

consideration

Question 9

In which of the following circumstances will a party be excused from performing a contractual obligation due to frustration?

Accepted Answer

a change in circumstances makes performance impossible or radically different

Answer

a change in circumstances makes performance more difficult

Answer

a change in circumstances makes performance more expensive

Answer

the other party breaches the contract

Question 10

A term of a contract that is implied by law and cannot be excluded by the parties is known as a(n):

Accepted Answer

implied term

Answer

express term

Answer

warranty

Answer

condition

Question 11

Which of the following is NOT an implied obligation of parties to a contract?

Accepted Answer

Duty to maximize loss

Answer

Duty of care

Answer

Duty of confidentiality

Answer

Duty to perform in good faith

Question 12

When is performance due when the time for performance is not specified in a contract?

Accepted Answer

Within a reasonable time

Answer

Immediately upon formation of the contract

Answer

On the day following formation of the contract

Answer

The next business day after formation of the contract

Question 13

Is a party excused from performing their contractual obligations if their performance becomes impossible due to an act of God?

Accepted Answer

Yes

Answer

No

Question 14

Can a party be held liable for damages caused by their breach of contract if they acted in good faith?

Accepted Answer

Yes

Answer

No

Question 15

In a unilateral contract, acceptance of the offer is accomplished through:

Accepted Answer

Performance of the requested act

Answer

Promise to perform the requested act

Answer

Notification of acceptance to the offeror

Answer

Payment of consideration

Question 16

Which of the following is NOT a valid defense to a breach of contract claim?

Accepted Answer

Act of God

Answer

Illegality

Answer

Mistake

Answer

Duress

Question 17

In contract interpretation, the parol evidence rule generally:

Accepted Answer

Prohibits extrinsic evidence from being admitted to interpret a written contract unless the contract is ambiguous.

Answer

Allows extrinsic evidence to be admitted to contradict the terms of a written contract.

Answer

Prohibits extrinsic evidence from being admitted to explain or clarify the terms of a written contract.

Question 18

What is the immediate legal consequence when one party clearly indicates they won't fulfill their contractual obligations before the performance date?

Accepted Answer

A breach of contract occurs.

Answer

The contract is automatically discharged.

Answer

The contract becomes unenforceable.

Answer

Statutory liability arises.

Question 19

Which of the following is NOT an implied term of a contract for the sale of goods in the United Kingdom?

Accepted Answer

The seller must provide the buyer with a warranty of merchantability.

Answer

Title passes to the buyer when the goods are delivered.

Answer

The seller must deliver the goods within a reasonable time.

Answer

The buyer must pay for the goods within a reasonable time.

Question 20

When is a party to a contract excused from performance due to frustration?

Accepted Answer

When the performance becomes impossible or impracticable.

Answer

When the performance becomes more difficult.

Answer

When the performance becomes more expensive.

Answer

When the performance becomes less profitable.

Question 21

Which of the following is a condition precedent?

Accepted Answer

An event that must occur before a party's obligation arises.

Answer

An event that terminates a party's obligation.

Answer

An event that excuses a party's performance.

Answer

An event that validates a contract.

Question 22

What is the time of performance for a contract that is silent on the matter in the United Kingdom?

Accepted Answer

Within a reasonable time.

Answer

Immediately.

Answer

On the first day of the month following the formation of the contract.

Answer

On the last day of the month following the formation of the contract.

Question 23

What is the effect of a breach of a warranty?

Accepted Answer

It gives the innocent party the right to claim damages.

Answer

It gives the innocent party the right to terminate the contract.

Answer

It does not affect the validity of the contract.

Answer

It gives the innocent party the right to both terminate the contract and claim damages.

Question 24

In contract law, what is the best definition of the doctrine of frustration?

Accepted Answer

A contract is terminated because an unforeseen event makes it impractical or impossible to fulfill.

Answer

A contract is terminated because one party made a mistake about its terms.

Answer

A contract is terminated because one party violated a crucial term.

Answer

A contract is terminated because one party becomes insolvent.

Question 25

Which principle is NOT used by courts when interpreting contract terms?

Accepted Answer

Relying on the doctrine of precedent

Answer

Enforcing the parties' shared intent

Answer

Applying the plain meaning rule

Answer

Applying the principle of contra proferentem

Question 26

What is the primary obligation of a promisor in a legally binding contract?

Accepted Answer

To perform the promised act in accordance with the agreed terms.

Answer

To refrain from interfering with the promisee's performance

Answer

To disclose any material facts that may affect the promisee's decision

Answer

To pay damages if the promise is breached

Question 27

Under which of the following circumstances can a promisor be excused from performing their obligation in a contract?

Accepted Answer

If the performance becomes objectively impossible or illegal

Answer

If the promisor makes a mistake

Answer

If the promisee breaches the contract first

Answer

If the promisor changes their mind

Question 28

What is the time for performance of a contractual obligation, if not specified in the contract?

Accepted Answer

Within a reasonable time after the contract is formed

Answer

Within one year of the contract being signed

Answer

Immediately upon demand by the promisee

Question 29

Where must a contractual obligation be performed if not specified in the contract?

Accepted Answer

At the promisor's usual place of business

Answer

In a public place

Answer

At the promisee's place of residence

Question 30

What is the fundamental principle governing the measure of damages for breach of contract?

Accepted Answer

To restore the promisee to the position they would have been in if the contract had been performed

Answer

To punish the promisor for their breach

Answer

To prevent the promisee from profiting from the breach

Question 31

What is the legal significance of an anticipatory breach of contract?

Accepted Answer

It gives the non-breaching party the right to immediately terminate the contract and claim damages

Answer

It prevents the breaching party from being held liable for damages

Answer

It excuses the non-breaching party from performing their obligations

Question 32

Which of the following is NOT a type of condition precedent to a contract?

Accepted Answer

A promise that is made in exchange for a counter-promise

Answer

A term that is essential to the contract

Answer

An event that must occur before the contract can be performed

Answer

A condition that must be satisfied before a party's obligation to perform arises

Question 33

The doctrine of frustration of purpose may apply when:

Accepted Answer

The main purpose of the contract is frustrated by an unforeseen event

Answer

The contract is impossible to perform

Answer

One party breaches the contract

Answer

The contract is illegal

Question 34

The obligation to mitigate losses arises when:

Accepted Answer

A party has suffered a breach of contract

Answer

A party has made a mistake in the contract

Answer

A party has terminated the contract

Answer

A party has entered into a new contract

Question 35

The rule in Hadley v Baxendale states that the recovery of damages for breach of contract is limited to:

Accepted Answer

Losses that were reasonably foreseeable at the time of the breach

Answer

Losses that were caused by the other party's negligence

Answer

Losses that were contemplated by the parties at the time of contracting

Answer

Losses that were actually incurred as a result of the breach

Question 36

The doctrine of promissory estoppel may prevent a party from withdrawing a promise if:

Accepted Answer

The other party has reasonably relied on the promise to their detriment

Answer

The promise is made under seal

Answer

The promise is supported by consideration

Answer

The promise is in writing

Question 37

Which of the following is not a fundamental obligation of a contracting party?

Accepted Answer

To provide unsolicited advice to the other party

Answer

To act in good faith

Answer

To avoid causing harm to the other party

Answer

To perform the agreed-upon obligations

Question 38

What is a potential legal consequence of a breach of contract?

Accepted Answer

Damages

Answer

Revocation of driving privileges

Answer

Loss of citizenship

Answer

Imprisonment

Question 39

What is the primary determinant of the time for performance of a contract?

Accepted Answer

The agreement of the parties

Answer

The applicable law

Answer

A court order

Question 40

Which of the following is not a relevant factor in determining the place of performance of a contract?

Accepted Answer

The subjective intentions of the parties

Answer

The governing law of the contract

Answer

The subject matter of the contract

Answer

The location of the parties

Question 41

What does a contracting party's duty to mitigate losses entail?

Accepted Answer

Taking reasonable steps to minimize the loss suffered as a result of a breach of contract

Answer

Seeking compensation for all losses incurred as a result of a breach of contract

Answer

Accepting any losses incurred as a result of a breach of contract

Question 42

What is a key characteristic of a contractual condition?

Accepted Answer

Its breach gives rise to a right to terminate the contract

Answer

It is a minor term of a contract

Answer

Its breach does not have any legal consequences

Question 43

When does the doctrine of frustration of contract come into play?

Accepted Answer

When an unforeseen event makes the performance of the contract impossible or radically different from what was originally intended

Answer

When one party fails to perform their obligations under the contract

Question 44

Which remedy is typically awarded when a party breaches a contract?

Accepted Answer

Damages

Answer

Rescission

Answer

Injunction

Answer

Specific performance