FYLSX Contract Conditions, Performance & Discharge

Question 1

An insurance policy states that the insurer will pay 'only if written notice of loss is given within 10 days.' The insured gives notice on day 12. Under the traditional rule, what is the effect?

Accepted Answer

The insurer does not have to pay because an express condition requires strict compliance

Answer

The insurer must pay because the insured substantially performed

Answer

The insurer must pay, minus damages for the delay

Answer

The insurer may delay payment but must eventually pay

Question 2

A builder agrees to use 'Reading pipe' in a house but mistakenly installs pipe of identical quality from a different maker. Replacing it would mean tearing down walls at huge cost. What can the owner most likely recover?

Accepted Answer

The difference in market value between the house as promised and as built, which here is roughly zero

Answer

The full cost of tearing out and replacing the pipe

Answer

Nothing, because the substitution was not material

Answer

Rescission of the entire contract

Question 3

S contracts to sell B a specific, unique antique table. Before delivery, and through no fault of either party, a fire destroys the table. What is the effect on S's duty to deliver?

Accepted Answer

S's duty is discharged by impossibility or impracticability

Answer

S must deliver a comparable table

Answer

S is liable for B's expectation damages

Answer

The contract is suspended until S finds a replacement

Question 4

R rents a room for one day at a premium price, and both parties know the only reason is to watch a royal parade. The parade is cancelled. R can still physically use the room. Which doctrine best excuses R?

Accepted Answer

Frustration of purpose

Answer

Impossibility

Answer

Mutual mistake

Answer

Unconscionability

Question 5

In March, a supplier unequivocally tells a buyer it will not deliver goods due in July. Which of the following can the buyer NOT do?

Accepted Answer

Hold the supplier to the contract after the supplier retracts the repudiation, when the buyer has not relied on it or treated it as final

Answer

Sue immediately for breach

Answer

Wait a commercially reasonable time for the supplier to perform

Answer

Suspend its own performance

Question 6

Under UCC § 2-609, a seller has reasonable grounds to doubt that a buyer will pay. The seller sends a written demand for adequate assurance. If the buyer gives no adequate assurance within a reasonable time, what is the outer limit before the buyer's silence counts as a repudiation?

Accepted Answer

30 days

Answer

10 days

Answer

60 days

Answer

90 days

FYLSX Contract Conditions, Performance & Discharge

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