Contract Law Quiz

Under constructive conditions of exchange, which statement is most accurate?

• Payment must always precede performance

• Performance must always precede payment unless agreed otherwise

• Performance and payment must always occur simultaneously

• The timing of performance and payment is entirely up to the parties' discretion

In Kingston v. Preston, what did the court establish?

• Perfect tender is required in all contracts

• Implied conditions can make each party's performance dependent on the other's

• All conditions must be explicitly stated in contracts

• Payment must always precede performance

Under the UCC's perfect tender rule (§ 2-601), if a seller delivers goods that don't exactly match the contract:

• The buyer must accept the goods if they are substantially similar

• The buyer can reject the entire shipment

• The buyer must accept but can sue for damages

• The seller has unlimited opportunities to cure any defects

What is the key difference between common law substantial performance and the UCC's perfect tender rule?

• Common law is more lenient, allowing minor deviations, while UCC requires exact performance

• UCC is more lenient than common law

• They are identical in their requirements

• Neither allows for any deviation from perfect performance

In Bartus v. Riccardi, what principle regarding tender of substitute goods was established?

• Newer models are always acceptable substitutes

• No substitutes are ever acceptable

• The seller must get buyer's approval for any substitution

• A substitute must conform to the contract specifications, even if it's technically 'better'

Under UCC § 2-608, when can a buyer revoke acceptance of goods?

• At any time for any reason

• Only if the nonconformity substantially impairs the value of the goods

• Only within 24 hours of delivery

• Only if the seller agrees

In Jacob & Youngs v. Kent, what was the court's ruling regarding substantial performance?

• Only perfect performance is acceptable

• Trivial variations won't defeat substantial performance

• Any deviation from the contract specifications is a material breach

• The contractor must rebuild the entire structure

When are conditions considered concurrent?

• When both parties must perform simultaneously

• When one party must always perform first

• When timing isn't specified in the contract

• When the contract is unclear

Under the common law, if a party substantially performs but with minor defects:

• They lose all right to payment

• The other party can completely refuse to perform

• They can demand full payment with no deductions

• They can recover payment minus damages for the defects

According to the UCC, when a seller attempts to cure a defective tender:

• They never have the right to cure

• They always have unlimited time to cure

• They may have the right to cure within the contract time

• The buyer must always accept the cure attempt