Discharge of Contracts: Understanding How Contracts End

Question 1

What is the legal effect of a contract being frustrated?

Accepted Answer

The parties are discharged from their obligations.

Answer

The contract is void from the beginning.

Answer

The contract remains in force.

Answer

The contract is enforceable for a reasonable time.

Question 2

When is a breach of contract considered to be anticipatory?

Accepted Answer

When the party in breach informs the other party that they do not intend to perform.

Answer

When the party in breach makes it impossible to perform.

Answer

When the party in breach demands that the other party perform first.

Answer

When the party in breach fails to perform on time.

Question 3

Which of the following is a remedy for breach of contract that allows the innocent party to cancel the contract and return to their original position?

Accepted Answer

Rescission

Answer

Damages

Answer

Injunction

Answer

Specific Performance

Question 4

When can a party be discharged from their contractual obligations under the doctrine of illegality?

Accepted Answer

When the contract is for an illegal purpose.

Answer

When the contract is made under a mistake of law or fact.

Answer

When the contract is made under duress.

Answer

When the performance of the contract becomes impossible.

Question 5

What is the key difference between a condition and a warranty in a contract?

Accepted Answer

A breach of a condition gives the innocent party the right to terminate the contract whereas a breach of a warranty only gives the innocent party the right to damages.

Answer

A condition is more important than a warranty.

Answer

A warranty is less important than a condition.

Answer

A breach of a warranty can give the innocent party the right to terminate the contract.

Question 6

Which of the following is NOT a ground for frustration of a contract?

Accepted Answer

Slight change in circumstances

Answer

Change in law

Answer

Failure of purpose

Answer

Unforeseen change in circumstances

Question 7

What is the difference between actual and anticipatory breach of contract?

Accepted Answer

Actual breach occurs when a party fails to perform their obligations under the contract while anticipatory breach occurs when a party indicates that they will not perform.

Answer

Anticipatory breach is always more serious than actual breach.

Answer

Actual breach can only occur in contracts for the sale of goods.

Answer

Anticipatory breach occurs when a party performs their obligations under the contract.

Question 8

What is the effect of a novation on a contract?

Accepted Answer

It discharges the existing contract and creates a new one.

Answer

It modifies the existing contract.

Answer

It breaches the existing contract.

Answer

It has no effect on the existing contract.

Question 9

Which of the following is NOT a type of agreement that can be used to terminate a contract?

Accepted Answer

Guarantee

Answer

Rescission

Answer

Novation

Answer

Waiver

Question 10

Which of the following is NOT a valid way to discharge a contract?

Accepted Answer

Rescission

Answer

Performance

Answer

Agreement

Answer

Frustration

Question 11

When a contract is discharged by agreement, what must the parties do?

Accepted Answer

Mutually agree to cancel the contract

Answer

Enter into a new contract

Answer

Agree to continue the contract indefinitely

Answer

Obtain a court order

Question 12

Which of the following is NOT a breach of contract?

Accepted Answer

Changes in circumstances beyond control

Answer

Failing to deliver goods on time

Answer

Performing the contract poorly

Answer

Refusing to perform the contract

Question 13

When a contract is discharged by frustration, what does it mean?

Accepted Answer

The contract becomes impossible to perform

Answer

The contract has been violated

Answer

The parties have agreed to end the contract

Answer

The contract has been fully carried out

Question 14

Which factor is NOT considered when calculating damages for a breach of contract?

Accepted Answer

Guilty party's financial situation

Answer

Type of violation

Answer

Innocent party's losses

Answer

Foreseeability of harm

Question 15

What is a key element of the doctrine of frustration?

Accepted Answer

Change in circumstances outside control

Answer

Impossibility of performance

Answer

Fault of one of the parties

Answer

Mutual agreement to end the contract

Question 16

When a contract is discharged by performance, what does it mean?

Accepted Answer

All obligations under the contract have been met

Answer

The contract has been violated

Answer

The parties have agreed to end the contract

Answer

The contract has become impossible to perform

Question 17

Which of the following is **NOT** a method of discharging a contract?

Accepted Answer

Rescission

Answer

Performance

Answer

Agreement

Answer

Frustration

Question 18

When a contract is discharged by performance, what must have occurred?

Accepted Answer

Both parties have completely fulfilled their obligations

Answer

One or both parties have partially fulfilled their obligations

Answer

One or both parties have breached their obligations

Answer

The parties have agreed to terminate the contract

Question 19

Under which circumstances might a contract be discharged by frustration?

Accepted Answer

When the subject matter of the contract is destroyed or becomes unavailable

Answer

When one party becomes bankrupt

Answer

When one party breaches the contract

Answer

When the parties agree to terminate the contract

Question 20

Which of the following is NOT a potential remedy for breach of contract?

Accepted Answer

Compensation

Answer

Damages

Answer

Specific performance

Answer

Injunction

Question 21

Which elements are essential for valid consideration in a contract?

Accepted Answer

Value, legality, and capability of performance

Answer

Solely monetary payment

Answer

Identical value for both parties

Answer

Promise after contract formation

Question 22

When can a mistake in forming a contract make the contract void?

Accepted Answer

Only if the mistake is fundamental and relates to the identity of the subject matter of the contract.

Answer

Whenever the mistake is material to the contract.

Answer

If the mistake is unilateral and the other party was aware of it.

Answer

Only if the mistake is caused by the other party.

Question 23

Which of the following is NOT a method of discharging a contract?

Accepted Answer

Impossibility

Answer

Performance

Answer

Agreement

Answer

Frustration

Question 24

When performance of a contract becomes impossible due to an unforeseen event, it may be discharged on the grounds of:

Accepted Answer

Frustration

Answer

Breach of contract

Answer

Mutual agreement

Answer

Statute of Limitations

Question 25

Can a contract be discharged if both parties agree to terminate it?

Accepted Answer

True

Answer

False

Question 26

Does the Statute of Limitations set a time limit for pursuing a breach of contract claim?

Accepted Answer

True

Answer

False

Question 27

Can a contract be implied from the conduct of the parties, even if there is no written or oral agreement?

Accepted Answer

True

Answer

False

Question 28

In the case of discharge by performance, which requirement must be met?

Accepted Answer

Full performance of obligations by both parties

Answer

Substantial performance of obligations by one party

Answer

Agreement between parties to terminate the contract

Answer

Impossibility of contract performance

Question 29

What is the legal term for the new agreement that replaces the original contract in the context of discharge by agreement?

Accepted Answer

Novation

Answer

Rescission

Answer

Variation

Answer

Assignment

Question 30

Which type of breach of contract involves an express or implied renunciation of the contract before the time of performance?

Accepted Answer

Anticipatory breach

Answer

Actual breach

Answer

Fundamental breach

Answer

Minor breach

Question 31

What is the legal principle that allows a party to terminate a contract if the other party has breached a fundamental term of the contract?

Accepted Answer

Doctrine of fundamental breach

Answer

Doctrine of frustration

Answer

Doctrine of substantial performance

Answer

Doctrine of promissory estoppel

Question 32

What is the main purpose of a limitation period in contract law?

Accepted Answer

To prevent stale claims from being brought to court

Answer

To give parties a reasonable time to resolve their disputes

Answer

To punish parties who breach their contracts

Answer

To encourage parties to enter into contracts

Question 33

Which of the following is NOT a method of discharging a contract, as per English law and jurisdiction?

Accepted Answer

Damages

Answer

Performance

Answer

Agreement

Answer

Frustration

Question 34

What is the legal principle that states that a contract can be discharged if it becomes impossible to perform due to unforeseen circumstances, within the context of English law?

Accepted Answer

Frustration

Answer

Breach of contract

Answer

Performance

Answer

Agreement

Question 35

What is the legal effect of a breach of contract under English law?

Accepted Answer

The innocent party can sue for damages.

Answer

The contract is automatically terminated.

Answer

The contract remains in force.

Answer

Both parties are released from their obligations.

Question 36

What is the purpose of the doctrine of anticipatory breach of contract under English law?

Accepted Answer

To allow the innocent party to sue for damages before the contract is actually breached.

Answer

To allow the breaching party to withdraw from the contract without penalty.

Answer

To prevent the innocent party from performing their obligations under the contract.

Answer

To make it more difficult for the breaching party to avoid liability.

Question 37

What is the legal principle that states that a party cannot take advantage of their own breach of contract in English law?

Accepted Answer

Estoppel

Answer

Waiver

Answer

Election

Answer

Ratification

Question 38

What is the distinction between an express and an implied term of a contract in English law?

Accepted Answer

An express term is explicitly stated in the contract, while an implied term is not.

Answer

An implied term is explicitly stated in the contract, while an express term is not.

Answer

There is no distinction between an express and an implied term.

Answer

An express term is always more significant than an implied term.

Question 39

In a contract of sale, what is the primary legal outcome of a breach of warranty?

Accepted Answer

Damages

Answer

Rescission of the contract

Answer

Specific performance of the contract

Answer

Injunction to prevent further breach

Question 40

Which of the following is NOT a recognized method for terminating a contract?

Accepted Answer

Assignment

Answer

Performance

Answer

Agreement

Answer

Frustration

Question 41

Which of the following is NOT a method of discharging a contract?

Accepted Answer

Renewal

Answer

Agreement

Answer

Frustration

Answer

Performance

Question 42

When a contract is discharged by agreement, the parties must reach a new agreement that:

Accepted Answer

Either rescinds or varies the original contract

Answer

Confirms the original contract

Answer

Extends the term of the original contract

Answer

Amends a minor term of the original contract

Question 43

Which of the following is NOT a legal consequence of discharging a contract by breach?

Accepted Answer

The contract is void from the beginning

Answer

The non-breaching party is discharged from their obligations

Answer

Damages are awarded to the non-breaching party

Answer

The breaching party may be liable for additional costs and expenses

Question 44

When a contract is discharged by frustration, the parties are:

Accepted Answer

Excused from further performance

Answer

Entitled to damages

Answer

Required to renegotiate the terms of the contract

Answer

Obliged to complete performance

Question 45

Which of the following is an example of a supervening event that could lead to the frustration of a contract?

Accepted Answer

An Act of Parliament making the contract illegal

Answer

Delay in delivery

Answer

Change in market conditions

Answer

Increase in costs

Question 46

When a contract is discharged by performance, the parties are:

Accepted Answer

Mutually released from their obligations

Answer

The party who received performance is released

Answer

Neither party is released

Answer

Only the party who performed is released

Question 47

Which of the following is not a recognized method of discharging a contract?

Accepted Answer

Assignment

Answer

Frustration

Answer

Performance

Answer

Breach

Question 48

When the parties to a contract have both fulfilled their respective obligations, the contract is discharged by:

Accepted Answer

Performance

Answer

Breach

Answer

Agreement

Answer

Frustration

Question 49

In the event that an unforeseen occurrence renders the performance of a contract impossible, it may be discharged through:

Accepted Answer

Frustration

Answer

Breach

Answer

Performance

Answer

Agreement

Question 50

When a contract is discharged by mutual agreement, both parties must:

Accepted Answer

Provide consideration

Answer

Obtain the consent of a third party

Answer

Fulfill their obligations

Answer

Execute a written agreement

Question 51

Discharge of a contract by frustration occurs when:

Accepted Answer

Performance becomes objectively impossible or substantially different.

Answer

One party simply changes their mind.

Answer

The contract is discovered to be illegal.

Question 52

Discharge of a contract by agreement requires:

Accepted Answer

Consideration from both parties

Answer

Complete performance of the contract

Answer

A court order

Answer

Agreement from the party in breach only