Understanding Business and Personal Law
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Chapter 11: How Contracts Come to an End
      
  1.The statute of limitations for failure to perform contracts for the sale of goods is four years in most states.  
  a.   TRUE  
  b.   FALSE  
      
  2.A mutual release is an agreement between two parties to accept substantial performance of the contract.  
  a.   TRUE  
  b.   FALSE  
      
  3.A tender is  
  a.   a debt that is excused when the debtor dies.  
  b.   a required amount of money stated in the contract.  
  c.   the ability to bring suit against a party who did not fulfill the terms of the contract.  
  d.   an offer to do what you have agreed to do under the contract.  
      
  4.All contracts must mention satisfactory performance in order to be considered valid.  
  a.   TRUE  
  b.   FALSE  
      
  5.When a contract is altered, the law declares the contract discharged by an impossibility of performance.  
  a.   TRUE  
  b.   FALSE  
      
  6.A person who cannot pay his or her debts could wind up in debtors' prison for a period of one year.  
  a.   TRUE  
  b.   FALSE  
      
  7.One example of a debt that cannot be discharged under bankruptcy laws is a(n)  
  a.   education loan.  
  b.   hospital bill.  
  c.   car loan.  
  d.   home mortgage loan.  
      
  8.If time for performance is not stated in the contract, the court will say that the actions associated with the contract must be completed  
  a.   in a time agreeable by the court.  
  b.   within a reasonable time.  
  c.   within six months.  
  d.   within a year.  
      
  9.A law that specifies in what time a legal action can be brought on a contract is called the  
  a.   time statute.  
  b.   Statute of Frauds.  
  c.   statute of limitations.  
  d.   law of performance statute.  
      
  10.The courts will allow a discharge for impossibility of performance when  
  a.   substantial performance has occurred in good faith.  
  b.   a tender of performance occurs.  
  c.   death or illness prevents the performance of the contract.  
  d.   there is mutual agreement by all parties involved.  

 
 
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