Contract Performance and Breach: Master the Essentials for LLM Students

Question 1

When is a contract said to be 'frustrated'?

Accepted Answer

When it becomes impossible or radically different to perform due to unforeseen circumstances

Answer

When one party becomes insolvent

Answer

When there is a breach of a fundamental term of the contract

Answer

When the contract is illegal

Question 2

What is the key difference between rescission and termination of a contract?

Accepted Answer

Rescission aims to restore the parties to their pre-contract position, while termination ends the contract without doing so

Answer

Termination restores the parties to their pre-contract position, while rescission ends the contract without doing so

Answer

Rescission and termination are essentially the same thing

Answer

Neither of the above

Question 3

Who bears the burden of proof in a breach of contract case?

Accepted Answer

The plaintiff must prove that the defendant breached the contract

Answer

The defendant must prove that they did not breach the contract

Answer

Both the plaintiff and the defendant must prove their respective claims

Answer

The court decides who has the burden of proof

Question 4

What is the significance of the 'implied term of satisfactory quality' in relation to the sale of goods?

Accepted Answer

It requires that the goods are reasonably fit for the purpose intended

Answer

It ensures that the goods will be of perfect quality

Answer

It only applies to sales between consumers

Answer

It is excluded in all commercial sales

Question 5

What is the key distinction between 'anticipatory breach' and 'actual breach' of contract?

Accepted Answer

Anticipatory breach occurs before performance is due, while actual breach occurs after performance is due

Answer

Actual breach is always more serious than anticipatory breach

Answer

There is no legal difference between anticipatory breach and actual breach

Answer

Only anticipatory breach gives rise to a right to damages

Question 6

Which of the following factors is NOT considered when awarding damages for breach of contract?

Accepted Answer

Prior conduct of the parties

Answer

Nature of the breach

Answer

Foreseeability of the loss

Answer

Mitigation of loss

Question 7

What is the primary purpose of the 'Sale of Goods Act 1979' in the United Kingdom?

Accepted Answer

To regulate the sale and supply of goods

Answer

To protect consumers in their dealings with businesses

Answer

To promote international trade in goods

Answer

To provide a comprehensive guide to all aspects of commercial law

Question 8

What is the fundamental principle of contract interpretation known as the 'Golden Rule'?

Accepted Answer

The contract should be interpreted to give effect to the intentions of the parties

Answer

The contract should be interpreted to avoid ambiguity

Answer

The contract should be interpreted to favor the party who drafted it

Answer

The contract should be interpreted to promote fairness and justice

Question 9

Which of the following is NOT a recognized principle of commercial law in the United Kingdom?

Accepted Answer

Good faith

Answer

Freedom of contract

Answer

Pacta sunt servanda

Answer

Certainty

Question 10

Which of the following is NOT a condition precedent to the implied warranty of merchantability under UK law?

Accepted Answer

The goods are fit for a particular purpose

Answer

The seller is a merchant in the relevant type of goods

Answer

The buyer gives value for the goods

Answer

The buyer relies on the seller's advice

Question 11

In a contract for the sale of goods under UK law, the measure of damages for a breach of warranty is:

Accepted Answer

The difference between the contract price and the market price at the time of the breach

Answer

The seller's price

Answer

The contract price

Answer

Any consequential losses arising from the breach

Question 12

In a contract for the sale of goods under UK law, the seller's obligation to deliver the goods is:

Accepted Answer

Subject to the seller's right of stoppage in transit

Answer

Absolutely unconditional

Answer

Conditional on payment by the buyer

Answer

Conditional on the occurrence of an agreed-upon event

Question 13

Which element is NOT essential for frustration of contract?

Accepted Answer

Mutual agreement between parties to end the contract

Answer

An unforeseen event that affects contract performance

Answer

The event making contract performance impractical or fundamentally different

Answer

The event being beyond the control of both parties

Question 14

What is the legal consequence of a breach of warranty in a sale of goods contract?

Accepted Answer

The buyer may reject the goods or claim damages

Answer

The buyer is entitled to damages

Answer

The contract is void

Answer

The seller is entitled to specific performance

Question 15

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

Accepted Answer

Unforeseen difficulties

Answer

Impossibility

Answer

Frustration

Answer

Mistake

Question 16

What is the general measure of damages for breach of contract?

Accepted Answer

The amount of the loss suffered by the non-breaching party

Answer

The amount of the profit lost by the non-breaching party

Answer

The amount of the contract price

Answer

The amount of the consequential loss suffered by the non-breaching party

Question 17

In the context of performance of sales contracts, what is the legal concept known as anticipatory breach?

Accepted Answer

A breach of contract that occurs before the time for performance

Answer

A breach of contract that occurs after the time for performance

Answer

A defense to a breach of contract claim

Answer

A remedy for breach of contract

Question 18

What is the legal consequence of a breach of a condition in a sale of goods contract?

Accepted Answer

The buyer may reject the goods and claim damages

Answer

The buyer is entitled to accept the goods and claim damages

Answer

The contract is void

Answer

The seller is entitled to specific performance

Question 19

What is the primary legal remedy available for breach of contract?

Accepted Answer

Damages

Answer

Specific performance

Answer

Injunction

Answer

Rescission

Question 20

When may a party be excused from performing a contractual obligation due to frustration of purpose?

Accepted Answer

When the purpose of the contract is made impossible to achieve through no fault of either party.

Answer

When one party breaches the contract.

Answer

When the contract becomes too difficult or expensive to perform.

Question 21

What is the general measure of damages for breach of contract?

Accepted Answer

The amount of money that will put the non-breaching party in the same position they would have been in if the contract had been performed.

Answer

The amount of money that the breaching party has lost.

Question 22

What is the legal definition of anticipatory breach of contract?

Accepted Answer

When a party indicates that they will not perform their contractual obligations in the future.

Answer

When a party breaches a fundamental term of the contract.

Answer

When a party fails to perform their contractual obligations on time.

Question 23

What is the legal effect of anticipatory breach of contract?

Accepted Answer

The non-breaching party can elect to treat the contract as immediately terminated or wait and see if the breach actually occurs.

Answer

The non-breaching party must immediately terminate the contract.