Discharge of Contracts: Ultimate Guide for Law Students

Question 1

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

Accepted Answer

Repudiation

Answer

Agreement and mutual consent

Answer

Performance

Answer

Frustration

Question 2

When an agreement is modified with the mutual consent of the parties involved, what is the legal term used to describe the new agreement?

Accepted Answer

Variation

Answer

Rescission

Answer

Novation

Answer

Assignment

Question 3

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

Accepted Answer

Termination ends the contract, while rescission sets the parties back to their original positions.

Answer

Rescission is only possible where there has been a breach of contract, while termination is not.

Answer

Termination is available in all cases of breach of contract, while rescission is not.

Answer

There is no difference between termination and rescission.

Question 4

What is the legal effect of a variation to a contract?

Accepted Answer

It modifies the terms of the original contract

Answer

It substitutes the original contract with a new one

Answer

It discharges the original contract and creates a new one

Answer

It has no legal effect on the original contract

Question 5

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

Accepted Answer

Substitution

Answer

Performance

Answer

Breach

Answer

Mutual agreement

Question 6

When is performance of a contract excused due to an unforeseen event?

Accepted Answer

Frustration

Answer

Impossibility

Answer

Renunciation

Answer

Waiver

Question 7

What is the main distinction between a condition and a warranty in a contract?

Accepted Answer

A condition is a fundamental term of the contract, whereas a warranty is a less important term.

Answer

A warranty is a fundamental term of the contract, whereas a condition is a less important term.

Answer

A condition must be breached before a party can terminate the contract, whereas a warranty does not.

Answer

A warranty must be breached before a party can terminate the contract, whereas a condition does not.

Question 8

When is a contract discharged by agreement?

Accepted Answer

When all parties consent to end the contract

Answer

When performance has been completed

Answer

When a breach of contract has occurred

Answer

When the court orders its termination

Question 9

What is the remedy for a breach of warranty?

Accepted Answer

Damages

Answer

Specific performance

Answer

Rescission

Answer

Injunction

Question 10

What is the doctrine of frustration?

Accepted Answer

A legal principle that excuses performance of a contract when an unforeseen event makes it impossible or impractical to perform

Answer

A principle that allows a party to terminate a contract if they are dissatisfied with the other party's performance

Answer

A rule that prevents a party from suing for breach of contract if they have waived their right to do so

Answer

A legal doctrine that allows a party to rescind a contract if they were mistaken about a material fact

Question 11

Which of the following is a discharge of a contract by performance?

Accepted Answer

When both parties fully perform their contractual obligations

Answer

When one party breaches the contract

Answer

When the parties agree to terminate the contract

Answer

When the court orders the termination of the contract

Question 12

What is the legal effect of a breach of contract?

Accepted Answer

The innocent party may claim damages

Answer

The contract remains valid

Answer

The contract is automatically terminated

Answer

The contract is void

Question 13

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

Accepted Answer

An anticipatory breach occurs before the time for performance, while an actual breach occurs after the time for performance

Answer

An actual breach occurs before the time for performance, while an anticipatory breach occurs after the time for performance

Answer

There is no difference between an anticipatory breach and an actual breach

Answer

An anticipatory breach is more serious than an actual breach

Question 14

What is the effect of a waiver of a breach of contract?

Accepted Answer

The breach is excused

Answer

The contract is terminated

Answer

The innocent party's right to damages is extinguished

Answer

The contract is modified

Question 15

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

Accepted Answer

A breach of a condition gives rise to a right to rescind the contract, while a breach of a warranty does not

Answer

A condition is more important than a warranty

Answer

A warranty is a representation of fact, while a condition is not

Answer

There is no difference between a condition and a warranty

Question 16

What is the doctrine of anticipatory breach?

Accepted Answer

A breach that occurs before the time for performance

Answer

A breach that occurs after the time for performance

Answer

A breach that is not material

Answer

A breach that is excused by the frustration of the contract

Question 17

What is a key difference between rescission and damages as remedies for breach of contract?

Accepted Answer

Rescission restores the parties to their pre-contractual positions, while damages compensate for the breach.

Answer

Rescission is only available for material breaches, while damages are always available for any breach.

Answer

Damages are always calculated based on the actual losses suffered by the non-breaching party.

Answer

Rescission is a more common remedy than damages.

Question 18

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

Accepted Answer

Freezing

Answer

Agreement

Answer

Performance

Answer

Breach

Question 19

When is a contract discharged by performance?

Accepted Answer

When all obligations under the contract have been fulfilled

Answer

When the contract has become impossible to perform due to unforeseen circumstances

Answer

When the parties have mutually agreed to terminate the contract

Answer

When one party has breached the contract

Question 20

What is the primary legal consequence of a breach of contract?

Accepted Answer

The innocent party is entitled to legal remedies

Answer

The guilty party is exempt from any further performance obligations

Answer

The contract is automatically terminated

Answer

The innocent party is obligated to continue performing despite the breach

Question 21

What is the primary purpose of a contract rescission?

Accepted Answer

To restore the parties to their pre-contractual positions

Answer

To punish the party responsible for the breach

Answer

To create a new contract between the parties

Question 22

What is the immediate legal effect of an agreement to terminate a contract?

Accepted Answer

The contract is discharged immediately

Answer

The contract remains in force until a specified date

Answer

The contract is not discharged unless it is in writing

Answer

The contract is discharged only if certain conditions are met

Question 23

In which scenario is a contract said to be discharged by merger?

Accepted Answer

When a new contract is created between the same parties, superseding the old contract

Answer

When a party assigns its rights under the contract to a third party

Answer

When a party delegates its obligations under the contract to a third party

Question 24

In which situation would a contract be discharged due to frustration?

Accepted Answer

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

Answer

When both parties mutually agree to terminate the contract

Answer

When one party breaches the terms of the contract