SD Bar Contracts 3

Question 1

Which of the following best describes a condition precedent in contract law?

Accepted Answer

An event that must occur before a party's duty to perform becomes due

Answer

A condition precedent is an event or occurrence that must take place before a contractual duty to perform is activated.

Question 2

Under contract law, an agreement to accept less than the full amount owed to settle an undisputed, liquidated debt is:

Accepted Answer

Unenforceable for lack of consideration

Answer

An accord to accept less on an undisputed, liquidated debt lacks consideration because the debtor is giving less than already owed, making it generally unenforceable at common law.

Question 3

A novation replaces an original contract by:

Accepted Answer

Substituting a new party and discharging the original party from liability

Answer

A novation substitutes a new party for an original party with the consent of all parties, fully releasing the original party from contractual liability.

Question 4

Under the doctrine of substantial performance, a contractor who substantially but imperfectly performs a construction contract is entitled to:

Accepted Answer

The contract price minus the cost to remedy the defects

Answer

Substantial performance entitles the contractor to the contract price less the cost to complete or repair the defective performance, preventing forfeiture for minor deviations.

Question 5

Which of the following is an example of impossibility of performance that discharges a contract?

Accepted Answer

The specific subject matter of the contract is destroyed before performance without fault of either party

Answer

True impossibility arises when performance becomes objectively impossible due to unforeseen destruction of the contract's specific subject matter, discharging both parties.

(SD Bar) South Dakota Bar Exam Practice Test

(SD Bar) South Dakota Bar Exam Practice Test

SD Bar Contracts 3