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Performance Flashcards

7 cards from real OK BAR practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Performance flashcards as text

  1. A contract requires delivery in three monthly installments, each separately priced and accepted. One installment is slightly nonconforming but curable. Under the UCC, the buyer may reject that installment only if:

    Answer: The nonconformity substantially impairs the value of that installment and cannot be cured

    Installment contracts are an exception to perfect tender: rejection of an installment requires substantial impairment of that installment's value that cannot be cured.

  2. A buyer under an installment contract wants to cancel the entire contract after one defective installment. Cancellation is proper only if:

    Answer: The nonconformity substantially impairs the value of the whole contract

    The whole installment contract is breached only when a nonconformity or default substantially impairs the value of the entire contract.

  3. A contract says 'time is of the essence' and the seller closes one day late. The buyer refuses to perform. A court will most likely:

    Answer: Hold the buyer's refusal proper because the express provision made timely performance a condition

    An express time-is-of-the-essence clause makes timely performance a condition, so even a short delay is a material breach excusing the other party.

  4. An owner fires a contractor after the contractor, without justification, walks off the job at 40% completion. The contractor's only possible recovery is:

    Answer: Restitution for the benefit conferred, offset by the owner's damages (in jurisdictions allowing recovery by a breaching party)

    A materially breaching party cannot recover on the contract but may in many jurisdictions obtain restitution for benefits conferred, reduced by the nonbreaching party's damages.

  5. Which factor is NOT part of the Restatement analysis for whether a breach is material?

    Answer: Whether the contract was written or oral

    Materiality turns on factors like deprivation of benefit, adequacy of compensation, forfeiture, likelihood of cure, and good faith—not on whether the contract was written.

  6. A minor breach by one party has what effect on the other party's duties?

    Answer: The other party must still perform but may recover damages for the breach

    A minor (immaterial) breach does not excuse counter-performance; the injured party must perform and is limited to a damages remedy.

  7. A buyer rightfully rejects goods but is a merchant in possession of them with no seller instructions. Regarding perishable goods, the merchant buyer must:

    Answer: Make reasonable efforts to sell them for the seller's account

    A merchant buyer in possession of rightfully rejected perishable goods must follow reasonable seller instructions or, absent them, make reasonable efforts to resell for the seller's account.