chapter5商法.docVIP

TRUE-FALSE QUESTIONS of Chapter Five ___1.Complete performance occurs when a contract’s conditions fully occur. ___2.A material breach of contract does not excuse the nonbreaching party from further performance. ___3.An executory contract cannot be rescinded. ___4.Objrctive impossibility discharge a contract. ___5.If a contract does not require a certain time for performance,a reasonable time will be implied. ___6.Damages are designed to compensate a nonbreaching party for the loss of a bargain. ___7.Liquidated damages are uncertain in amount. ___8.On a breach of contract,a nonbreaching party has a duty to mitigate damages that he or she suffers. ___9.Consequential damages are foreseeable damages that arise from a party’s breach of a contract. ___10.Specific performance is the usual remedy when one party has breached a contract for a sale of goods. MULTIPLE—CHOICE QUESTIONS of Chapter Five ___1. Adam contracts with Beth to deliver Beth’s goods to her customers. This contract will, like most contract, be discharged by accord and satisfaction. agreement. operation of law. performance. ___2.Don contract to build a store for Pat $500,000, with payments to be in installments of $50,000 as the work progresses. Don finishes the store except for a cover over a compressor on the roof. A cover can be installed for $500. Pat refuses to pay the last installment. If Don’s breach is not material, Don has a claim against Pat,and Pat has a claim against Don. Don has a claim against Pat for $50,000,but Pat has no claim against Don. neither party has a claim. Pat has a claim against Don for the failure to cover the compressor,but Don has no claim against Pat. ___3.Tony and Carol contract for the sale of Tony’s business. Carol give Tony a down payment, and Tony gives Carol the keys to one of his stores. Before the contract is fully performed, however,they agree to return the down payment and keys, and cancel the sale.This is an accord and satisfaction. an alteration