Contract Law Questions

What is meant by the discharge of a contract?

• When a contract is created between parties

• When all contractual obligations are fulfilled or terminated

• When a contract is modified

• When a contract is transferred to another party

Which of the following is NOT a valid way to discharge a contract?

• Performance of obligations

• Mutual agreement

• Verbal disagreement by one party

• Operation of law

In contract law, what is meant by "frustration"?

• When one party becomes angry with the other

• When performance becomes impossible due to unforeseen circumstances

• When a contract is deliberately broken

• When payment is delayed

What happens when a contract is discharged by breach?

• Both parties agree to end the contract

• The contract automatically renews

• The innocent party can claim damages

• The contract must continue regardless

Which scenario represents discharge by performance?

• A. A natural disaster prevents completion

• B. Both parties complete their obligations as agreed

• C. One party refuses to pay

• D. The contract is canceled by court order

What is a novation in contract law?

• A breach of contract

• A modification of terms

• The substitution of a new contract for an old one

• The cancellation of a contract

When does discharge by agreement occur?

• When one party decides to end the contract

• When both parties mutually agree to terminate

• When a court orders termination

• When the contract expires naturally

What is the effect of impossibility of performance?

• The contract must continue regardless

• Only one party is released from obligations

• Both parties are released from their obligations

• The contract is automatically renewed

In what situation would a contract be discharged by operation of law?

• When both parties agree to end it

• When bankruptcy is declared by one party

• When one party is dissatisfied

• When the contract is completed

What is accord and satisfaction in contract discharge?

• When a contract is terminated by court order

• When one party accepts a different performance than originally agreed

• When both parties fail to perform

• When the contract naturally expires