Columbia Southern University Doctrine of Commercial Impracticability Questions
QUESTION 1 1. If an unforeseen event occurs after a contract has been made that makes one of the party’s performance under the contract prohibitively more expensive than was contemplated when the contract was made:
the party whose performance is now more expensive still has to perform their obligations under the contract.
that party’s obligation to perform under the contract can be cancelled under the doctrine of commercial impracticability.
the parties to the contract will have to renegotiate the terms of the contract.
the contract is automatically breached.
QUESTION 2 1. If A and B make a contract and then, with A’s consent, C replaces B in the contract:
the contract has been breached.
A can still hold B liable if the contract is breached.
a novation has occurred.
B can hold C responsible if the contract is breached.
QUESTION 3 1. Is a prenuptial agreement that is in writing always enforceable?
No, unless there is consideration for the agreement.
Yes, promises made in contemplation of marriage must be in writing.
No, prenuptial agreements violate public policy and are not enforceable.
Yes, because a prenuptial agreement has all of the elements necessary to form a contract.
QUESTION 4 1. If a specific future event terminates a party’s obligations under a contract, that future event is called a(n): foreseeable event. continuing condition. avoidable condition. condition subsequent.
QUESTION 5 1. If a party to a contract unjustifiably fails to perform their obligations under a contract:
substantial performance will save them from having breached the contract.
that party can avoid breaching the contract by creating a novation.
a material breach of the contract has occurred.
the contract is cancelled.
QUESTION 6 1. If a party to a contract performs almost all of their obligations under the contract and has not intentionally failed to perform the obligations under the contract that they have not completed:
a court may find that there has not been a breach of contract according to the substantial performance doctrine.
they have breached the contract.
a continuing condition has not been satisfied.
the contract is voidable.
QUESTION 7 1. Impossibility of performance can relieve a party from performance of their obligations under a contract if:
an unforeseen event causes performance of the obligations to be physically impossible.
the contract specifically provides that performance is forgiven.
the contract is in writing.
an event that was expected when the contract was made occurs.
QUESTION 8 1. If a contract requires that a party to the contract perform specific obligations that are expected to take 2 years to complete, what circumstance would remove that contract from the statute of frauds requirement that contracts that cannot be performed within 1 year be in writing?
No circumstance would remove the contract from the statute of frauds’ requirement that the contract be in writing because all contracts that cannot be performed within a year must be in writing.
If the contract was between two business entities, the contract would not have to be in writing.
If there is a possibility that the obligations under the contract could be performed in less than a year after the contract was made, the contract would not have to be in writing.
If the parties to the contract agree that the contract will be enforceable even though it is not in writing, the contract would not have to be in writing.
QUESTION 9 1. If a verbal contract should be in writing according to the statute of frauds, but a party to the contract relies on the contract and takes some action to their detriment:
they have acted in violation of the statute of frauds.
a court may enforce the contract under the promissory estoppel doctrine.
a court will require that the other party to the contract restore whatever has been received from the party who took action under the contract.
a court will declare that the contract is voidable.
QUESTION 10 1. If a specific event must occur before a party to a contract is required to perform their obligations under the contract, the contract:
is voidable.
must be in writing.
contains a condition precedent.
is not enforceable.
QUESTION 11
- Bill and Spenser entered into a contract on March 1, 2019, which required Spenser to build a house according to plans and specifications supplied by Bill. Under that contract, Spenser was required to begin work on the house by April 1, 2019, and complete the house by April 15, 2020. Was that contract required to be in writing? Why, or why not?
Your response must be at least 75 words in length.
- QUESTION 12
4-H and Chuck, a farmer, entered into a verbal contract that required Chuck to deliver 20,000 bushels of corn to 4-H when Chuck harvested the corn crop on his farm. Chuck planted enough corn on his farm to produce the 20,000 bushels of corn that he was required to deliver to 4-H, but as the corn was growing, a severe storm dumped excessive amounts of rain on Chuck’s farm and damaged his corn crop. When Chuck harvested his corn crop, he was only able to salvage 7,000 bushels of corn and could not deliver the 20,000 bushels that he had agreed to deliver to 4-H. Does Chuck have a defense to breach of the contract with 4-H? What is that defense
- Your response must be at least 75 words in length