Master Contract Performance: Actual, Substantial, and Tender

Question 1

In contract law, substantial performance occurs when:

Accepted Answer

A party fulfills all essential contract terms, despite minor performance flaws.

Answer

A party fully performs all contract terms.

Answer

A breaching party demands payment for incomplete performance.

Answer

A party significantly alters contract terms without consent.

Question 2

Identify the INCORRECT statement regarding substantial performance.

Accepted Answer

Tardiness in performance falls under substantial performance.

Answer

It entails performance fulfilling the critical objective of the agreement.

Answer

It permits minor deviations from the exact contract terms.

Answer

It involves completing the substantial portion of contractual tasks.

Question 3

In tendering contract performance, which characteristic is ESSENTIAL?

Accepted Answer

Unconditional nature of the offer

Answer

Adherence to the contractually specified performance location

Answer

Revocability of the tender after its submission

Answer

Acceptance of the tender by the recipient for it to be effective

Question 4

Which outcome is DIRECTLY associated with actual performance of a contract?

Accepted Answer

Fulfillment of contractual obligations

Answer

Violation of contractual agreement

Answer

Temporary suspension of contractual commitments

Answer

Alteration of contractual stipulations

Question 5

Under what circumstances can substantial performance excuse minor breaches?

Accepted Answer

When the breach does not significantly affect the contract's worth

Answer

When the breach results from the recipient's error

Answer

When the recipient condones the breach

Answer

There are no circumstances where substantial performance excuses minor breaches

Question 6

Which of the following is NOT a valid defense against a non-performance-based breach of contract claim?

Accepted Answer

Contributory negligence

Answer

Force majeure

Answer

Extreme hardship

Answer

Impossibility

Question 7

Identify the form of anticipatory breach where there is an unambiguous declaration of unwillingness to perform.

Accepted Answer

Express repudiation

Answer

Implied repudiation

Answer

Wrongful rejection

Answer

Wrongful modification

Question 8

What primary objective does the anticipatory breach doctrine seek to achieve?

Accepted Answer

Providing a remedy prior to the actual breach

Answer

Preventing the breaching party from withdrawing their repudiation

Answer

Punishing the breaching party for their misconduct

Answer

Encouraging the breaching party to fulfill their contractual commitments

Question 9

Which remedy is NOT available for breach of contract due to non-performance?

Accepted Answer

Mandate

Answer

Damages

Answer

Specific performance

Answer

Rescission

Question 10

When can the aggrieved party choose to rescind a contract?

Accepted Answer

When the breach of contract is considered fundamental

Answer

When the breach of contract is not considered fundamental

Answer

When the aggrieved party has sustained substantial monetary loss

Answer

Only when the breaching party gives their consent

Question 11

In contract law, what is the legal effect of substantial performance?

Accepted Answer

The contract is discharged, but the promisor remains liable for damages resulting from the partial non-performance.

Answer

The contract is discharged in full, and the promisor is released from all further obligations.

Answer

The promisee has the right to terminate the contract and claim damages for non-performance.

Answer

The promisor is entitled to specific performance of the contract.

Question 12

Which of the following is NOT an element of a valid tender of performance?

Accepted Answer

The performance must be accepted by the promisee.

Answer

The performance must be in accordance with the terms of the contract.

Answer

The performance must be made at the proper time and place.

Answer

The promisor must have the intention to discharge the contract.

Question 13

When does actual performance discharge a contractual obligation?

Accepted Answer

When the performance is complete and in accordance with the terms of the contract.

Answer

When the performance is substantial and accepted by the promisee.

Answer

When the promisor tenders performance but the promisee refuses it.

Answer

When the promisor is prevented from performing by an act of God.

Question 14

Which of the following is NOT a characteristic of a valid tender of performance?

Accepted Answer

It must be accepted by the promisee.

Answer

It must be unconditional.

Answer

It must be made at the proper time and place.

Answer

It must be made by the promisor or their authorized agent.

Question 15

Regarding substantial performance, which of the following is accurate?

Accepted Answer

It involves the completion of all significant contractual obligations, except for minor deviations.

Answer

It constitutes a complete defense against breach of contract claims.

Answer

It is equivalent to actual performance.

Question 16

Which factor is typically considered by courts when assessing substantial performance?

Accepted Answer

The extent to which the non-performance deprived the non-breaching party of the contract's benefit.

Answer

The subjective intentions of the parties at the time of contracting.

Answer

The cost of completing the non-performed portion of the contract.

Question 17

What is the primary justification for the doctrine of frustration of purpose?

Accepted Answer

To equitably distribute risk when unforeseen circumstances render the contract's purpose impracticable.

Answer

To penalize parties for breaching contracts.

Question 18

Which common law legal remedy is often sought for breaches of contract?

Accepted Answer

Damages

Answer

Recission

Answer

Specific performance

Answer

Injunction

Question 19

What is the primary purpose of an anticipatory breach of contract?

Accepted Answer

To provide the non-breaching party the opportunity to lessen potential losses.

Answer

To terminate the contract immediately.

Answer

To prevent the breaching party from fulfilling their contractual duties.

Question 20

Which of the following is a key principle of promissory estoppel?

Accepted Answer

It may allow enforcement of promises lacking consideration.

Answer

It applies strictly to unilateral contracts.

Answer

It necessitates the promisor's intention to create a legal obligation.

Question 21

How does substantial performance differ from actual performance?

Accepted Answer

Substantial performance permits minor deviations from the exact contractual requirements, while actual performance demands complete fulfillment of all obligations.

Answer

Actual performance is restricted to unilateral contracts.

Question 22

A builder is contracted to construct a house with a specific type of roof. The builder mistakenly installs a different type of roof, but it's functionally equivalent and of equal or better quality. What is the most likely legal outcome?

Accepted Answer

The builder has likely substantially performed the contract, but the homeowner may be entitled to compensation for the deviation.

Answer

The homeowner must accept the work since the alternative roof is of equal or better quality.

Answer

The builder has breached the contract, and the homeowner can withhold payment entirely.

Answer

The builder is not liable as the deviation was unintentional.

Question 23

A contract obligates a supplier to deliver 100 widgets by June 1st. The supplier delivers 90 widgets on June 1st and the remaining 10 widgets on June 15th. What is the most accurate statement regarding the supplier's performance?

Accepted Answer

The supplier has breached the contract by failing to deliver all widgets on time.

Answer

The supplier has substantially performed the contract, as the delay was minor.

Answer

The supplier is not in breach as the delay was due to unforeseen circumstances.

Answer

The supplier has fully performed the contract as all widgets were eventually delivered.

Question 24

A painter agrees to paint a house for £5,000. Before completion, the homeowner informs the painter they no longer want the house painted. What is the painter's best course of action?

Accepted Answer

The painter can sue the homeowner for breach of contract and seek damages for lost profits.

Answer

The painter must accept the homeowner's decision and cannot claim any compensation.

Answer

The painter can sue for specific performance, forcing the homeowner to complete the contract.

Answer

The painter can finish painting the house and then demand full payment.

Question 25

A buyer agrees to purchase a car from a seller and provides a cheque as payment, but the cheque bounces. What is the legal position of the seller?

Accepted Answer

The seller is not obligated to deliver the car until the buyer provides valid payment.

Answer

The buyer has fully performed the contract by providing the cheque.

Answer

The seller is obligated to deliver the car as the buyer has attempted to pay.

Answer

The seller can sue the buyer for the price of the car immediately.

Question 26

A contract specifies a particular type of paint for a project. Without consulting the client, the contractor uses a cheaper but lower quality paint. What is the likely legal outcome?

Accepted Answer

The contractor has likely breached the contract, and the client may be entitled to compensation or a remedy to rectify the situation.

Answer

The contractor has substantially performed the contract, as the paint is still functional.

Answer

The contractor is not liable as the client did not specify the quality of the paint.

Answer

The client must accept the work as the contractor acted in good faith.

Question 27

A property sale contract specifies a closing date. The seller fails to meet this deadline due to unforeseen circumstances. What is the most accurate statement?

Accepted Answer

The seller may be in breach of contract, and the buyer may be entitled to remedies such as termination or damages.

Answer

The seller is obligated to compensate the buyer for any losses incurred due to the delay.

Answer

The seller is excused from the closing date due to the unforeseen circumstances.

Answer

The buyer must accept the delay as unforeseen circumstances are beyond the seller's control.

Question 28

A contract requires a supplier to deliver goods to a specific location. The supplier delivers them to a different location by mistake. What is the most likely legal consequence?

Accepted Answer

The supplier has likely breached the contract by failing to deliver to the agreed location.

Answer

The supplier can claim additional expenses for delivering to the incorrect location.

Answer

The buyer is obligated to accept the goods at the alternative location.

Answer

The supplier is not in breach as the delivery was unintentional.

Question 29

A building construction contract specifies a particular type of brick. Without informing the client, the contractor uses a different type that is more readily available and cheaper, but of similar quality. What is most likely true?

Accepted Answer

The contractor has likely breached the contract, even if the substitute brick is of similar quality.

Answer

The client must accept the work as the contractor acted in good faith.

Answer

The contractor has substantially performed the contract as the brick is of similar quality.

Answer

The contractor is not liable as the client did not specify the source of the brick.

Question 30

A car sale contract requires the seller to provide a valid service history. The seller fails to provide this documentation at the time of sale. What is the most likely legal consequence?

Accepted Answer

The buyer may have grounds to terminate the contract or sue for damages for the seller's failure to provide the service history.

Answer

The seller can claim that the service history is not essential to the contract.

Answer

The buyer must accept the car and seek the service history separately.

Answer

The buyer is obligated to accept the car even without the service history.