1. Perfect performance of a contract:
a. is required under federal law.
b. is required under state law.
c. applies only to personal service contracts.
d. is not always necessary, especially for construction projects.
2. A change of law discharges a contract if the new law:
a. requires a license and none was required before.
b. requires the use of fireproof materials.
c. requires the use of antipollution devices.
d. prohibits the act called for by the contract.
3. If the costs of performing a contract have risen so unexpectedly and dramatically due to an event whose nonoccurrence was a basic assumption on which the contract was made, the contract may be discharged on the grounds of:
a. commercial impracticability.
b. common-law rule.
c. economic frustration.
d. economic stability.
4. Which is not a correct statement concerning rescission of a contract?
a. The breach must be material.
b. The injured party who rescinds may recover money paid under the contract.
c. The contract remains in effect after the rescission.
d. Rescission is the undoing of the contract.