Performance and Breach of Contracts: Master the Essentials

Question 1

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

Accepted Answer

Imprisonment

Answer

Damages

Answer

Specific performance

Answer

Injunction

Question 2

A condition in a contract is a term that:

Accepted Answer

Goes to the root of the contract and allows the innocent party to terminate the contract upon its breach

Answer

Is less important than a warranty and cannot be breached without giving rise to a right to terminate

Answer

Can be breached without giving rise to a right to terminate the contract

Answer

Is an implied term that is not expressly stated in the contract

Question 3

Frustration of a contract occurs when:

Accepted Answer

An unforeseen event makes it impossible or radically different to perform the contract

Answer

One party fails to perform their contractual obligations

Answer

The parties agree to terminate the contract

Answer

The contract is illegal or void

Question 4

A breach of a condition of a contract will:

Accepted Answer

Entitle the innocent party to terminate the contract and claim damages

Answer

Only give rise to a claim for damages

Answer

Not affect the validity of the contract

Answer

Be excused if it is caused by force majeure

Question 5

Specific performance is a type of legal remedy that:

Accepted Answer

Compels a party to perform their contractual obligations

Answer

Orders a party to pay damages for breach of contract

Answer

Prevents a party from doing something through an injunction

Answer

Terminates the contract

Question 6

An injunction is a court order that:

Accepted Answer

Prevents a party from doing something

Answer

Compels a party to do something

Answer

Transfers property from one party to another

Answer

Awards damages for breach of contract

Question 7

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

Accepted Answer

Statute of Limitations

Answer

Frustration

Answer

Breach of condition

Answer

Mutual agreement of the parties

Question 8

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

Accepted Answer

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

Answer

A condition is more important than a warranty.

Answer

A warranty is a promise that something is true, while a condition is a promise that something will be done.

Answer

There is no difference between a condition and a warranty.

Question 9

What is the effect of a termination of a contract?

Accepted Answer

It discharges the parties from their obligations.

Answer

It allows the parties to start the contract again from the beginning.

Answer

It has no effect on the parties' rights and obligations.

Answer

It is a breach of contract.

Question 10

Which of the following factors is NOT taken into account when determining whether a contract has been frustrated?

Accepted Answer

The financial hardship that will be caused to the parties if the contract is terminated

Answer

The original purpose of the contract

Answer

The extent to which the event that has occurred has made performance impossible or impracticable

Answer

The parties' expectations at the time the contract was entered into

Question 11

Which of the following grounds is NOT a reason for setting aside a voidable contract?

Accepted Answer

Good consideration

Answer

Mistake

Answer

Misrepresentation

Answer

Duress

Question 12

Which of the following is the most common cause of frustration of a contract?

Accepted Answer

An unforeseen change of circumstances that makes performance of the contract radically different from what was intended

Answer

A change in law that makes performance illegal

Answer

The death of one of the parties

Answer

A mutual mistake about a material fact

Question 13

Under the Sale of Goods Act 1979, which of the following is an implied condition in a contract for the sale of goods?

Accepted Answer

The goods will be of satisfactory quality.

Accepted Answer

The goods will be fit for their intended purpose.

Answer

The goods will be delivered on time.

Question 14

What's the key difference between an anticipatory breach and an actual breach of contract?

Accepted Answer

An anticipatory breach is when a party says they won't fulfill a contract, while an actual breach is when they don't do what they agreed to.

Answer

An anticipatory breach is less serious than an actual breach and doesn't have legal consequences.

Answer

Only actual breaches can be fixed through legal action, not anticipatory breaches.

Answer

There's no real difference between anticipatory and actual breaches of contract.

Question 15

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

Accepted Answer

Rescission

Answer

Damages

Answer

Specific performance

Answer

Injunctions

Question 16

What is the term used to describe a fundamental obligation in a contract that, if breached, allows the innocent party to terminate the contract?

Accepted Answer

Condition

Answer

Warranty

Answer

Term

Answer

Covenant

Question 17

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

Accepted Answer

Foreseeability

Answer

Subsequent illegality

Answer

Commercial impossibility

Answer

Change in circumstances

Question 18

What is the purpose of an injunction as a remedy for breach of contract?

Accepted Answer

To prevent the breaching party from further breaching the contract

Answer

To order the breaching party to perform the obligation

Answer

To compensate the innocent party for their losses

Answer

To terminate the contract

Question 19

Which of the following types of damages aims to compensate the innocent party for actual losses suffered as a result of the breach?

Accepted Answer

Special damages

Answer

Nominal damages

Answer

General damages

Answer

Exemplary damages

Question 20

What is the difference between a condition precedent and a condition subsequent?

Accepted Answer

A condition precedent must be fulfilled before the contract becomes effective, while a condition subsequent brings the contract to an end if it occurs.

Answer

A condition subsequent must be fulfilled before the contract becomes effective, while a condition precedent brings the contract to an end if it occurs.

Answer

There is no difference between a condition precedent and a condition subsequent.

Answer

Both conditions must be met for the contract to be valid.

Question 21

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

Accepted Answer

Compensation

Answer

Damages

Answer

Injunction

Answer

Specific performance

Question 22

Which of the following is a defining characteristic of a condition in a contract?

Accepted Answer

A crucial term that forms the foundation of the contract.

Answer

A term that is automatically implied by the law.

Answer

A trivial term that has no significant impact on the contract.

Question 23

Which of the following is NOT a form of anticipatory breach of contract?

Accepted Answer

Delay in delivering goods

Answer

Express repudiation

Answer

Declaration of inability to perform

Answer

Sale of goods to a third party

Question 24

Which of the following statements accurately describes the nature of specific performance as a remedy for breach of contract?

Accepted Answer

It is an equitable remedy, granted at the discretion of the court, to compel the performance of a specific contractual obligation.

Answer

It is a remedy available for breaches of all types of contracts.

Answer

It is a legal remedy, automatically granted upon breach of contract.

Question 25

Which of the following is a direct consequence of frustration of a contract?

Accepted Answer

The contract is automatically terminated.

Answer

The contract is void from its inception.

Answer

The contract remains valid but unenforceable.

Answer

The contract is breached by both parties.

Question 26

Which of the following is a type of termination clause in a contract?

Accepted Answer

Fixed-term clause

Answer

Damages clause

Answer

Specific performance clause

Answer

Injunction clause

Question 27

Which of the following is NOT a valid ground for termination of a contract for breach?

Accepted Answer

Breach of a minor or immaterial term

Answer

Repudiation of the contract

Answer

Frustration of the contract

Question 28

What is a key requirement for an effective termination clause in a contract?

Accepted Answer

Clear and unambiguous language

Answer

Signatures of both parties

Answer

Written form

Answer

Drafting by a legal professional