OK Bar Performance 5

Question 1

A contract conditions a duty on the obligee obtaining financing, but the obligee deliberately never applies for a loan. The condition is:

Accepted Answer

Excused by the prevention doctrine, because the party hindered its occurrence in bad faith

Answer

Under the prevention doctrine, a party who wrongfully prevents or hinders the occurrence of a condition cannot rely on its nonoccurrence, and the condition is excused.

Question 2

An insurer's policy requires proof of loss within 60 days, but the insurer tells the insured 'take your time, no rush.' The insured files on day 75. The insurer's best-defeated defense is the deadline, because the insurer:

Accepted Answer

Waived the condition and may be estopped from reasserting it

Answer

A party may waive a condition inserted for its benefit, and reliance on the waiver estops later insistence on strict compliance.

Question 3

Parties to an existing contract agree that one party will accept a different, substituted performance, with the original duty discharged only upon performance of the new one. This arrangement is:

Accepted Answer

An accord, with satisfaction discharging both the accord and the original duty

Answer

An accord is an agreement to accept substitute performance; the original duty is suspended and discharged only when the accord is performed (satisfaction).

Question 4

A debtor owes an undisputed, liquidated $10,000 debt and sends a check for $6,000 marked 'payment in full,' which the creditor cashes. At common law, the creditor may:

Accepted Answer

Still recover the remaining $4,000, because part payment of a liquidated debt lacks consideration

Answer

Payment of less than a liquidated, undisputed debt gives no consideration for discharging the balance, so an accord and satisfaction fails.

Question 5

All original parties agree that a new party will assume the contractor's duties and the original contractor is completely released. This is:

Accepted Answer

A novation, discharging the original contractor

Answer

A novation requires assent of all parties to substitute a new obligor and immediately discharges the original party, unlike a mere delegation.

(OK Bar) Oklahoma Bar Exam Practice Test

(OK Bar) Oklahoma Bar Exam Practice Test

OK Bar Performance 5