BLAW FINAL EXAM REVIEW CH 13 & 14
What is the legal effect of a subsequent illegality involving a contract?
The contract is discharged.
What is the legal effect of the death or incapacity of a party whose personal services are necessary to fulfill the terms of the contract?
The contract is discharged.
Which of the following is required for a plaintiff to recover under a theory of quasi-contract?
The defendant would be unjustly enriched from receiving the benefit from the plaintiff without compensating the plaintiff for it.
When each party's performance is conditioned on the performance of the other, the conditions are ______.
concurrent
If the court applies the frustration of purpose doctrine, the contract is ______.
discharged
When a party's obligations under a contract are terminated they are said to be _______.
discharged
Which of the following is an incorrect statement regarding the rights of a nonbreaching party in a contract after anticipatory repudiation?
The nonbreaching party is still required to perform his obligations under the contract and can then sue the other party for breach.
Monetary damages for a breach of contract are also known as ______ damages.
legal
A(n) ______ breach of contract occurs when a party unjustifiably fails to perform his obligations substantially under the contract.
material
Sometimes the parties to an agreement want to replace one of the parties with a third party. This substitution of a party is called a(n) ______.
novation
A subsequent illegality involving a contract results in ______ impossibility.
objective
In the context of impossibility of performance, ______ impossibility means it is in fact not possible to lawfully carry out one's contractual obligations.
objective
In the context of the impossibility of performance, ______ impossibility means it is in fact not possible to lawfully carry out one's contractual obligations.
objective
The death or incapacity of a party whose personal services are necessary to fulfill the terms of the contract constitutes ______ impossibility.
objective
A(n) ______ is a party who agrees to receive something from the other party to the contract.
obligee
By way of an attorney-client agreement, Charity Vance looks forward to attorney Jack Highlander's legal representation of her in a divorce proceeding next month. In this specific context, Charity is a(n) ______ of the contract.
obligee
Which of the following is an accurate statement regarding a novation in the context of the discharge of contracts by mutual agreement?
All three parties (the original contracting parties and the third party) must agree to a novation for it to be valid.
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and void or voidable contracts?
Allowing evidence that proves a contract is void or voidable violates the parol evidence rule.
Which of the following is an accurate statement regarding the rights of third-party beneficiaries to sue to enforce contract obligations?
An intended beneficiary can sue to enforce a contract obligation, while an incidental beneficiary cannot sue to enforce a contract obligation.
According to the Uniform Commercial Code, which of the following is a recognized exception to the writing requirement of the statute of frauds?
An oral contract for customized goods
Which of the following is an accurate statement regarding legal remedies and equitable remedies for a breach of contract?
Both legal remedies and equitable remedies are potentially available in a breach of contract action.
The most frequently awarded damages are ______ damages.
compensatory
Contracts containing conditions affecting the performance obligations of the parties in a contract are called ______ contracts.
conditional
A(n) ______ beneficiary is a third party who benefits from a contract in which the promisor agrees to pay the promisee's debt.
creditor
If Juan agrees to pay Amanda's credit card debt, Amanda's credit card company is a(n) ______ beneficiary.
creditor
A(n) ______ occurs when a party to a contract transfers his or her duty to perform to a third party who is not part of the original contract.
delegation
A delegation occurs when a(n) ______ transfers his or her duty to perform to a(n) ______.
delegator; delegate
A ______ beneficiary is a third party who benefits from a contract in which a promisor agrees to give a gift to the third party.
donee
If a contract intends to grant a gift to a third party, the third party is a(n) ______ beneficiary.
donee
If, consistent with his contractual duty, a painter shows up at a home with his paint and ladder and is ready to begin painting the garage, he _____.
has tendered performance upon arrival at the house
If a homeowner enters into a contract with a builder to replace the windows in his house, there is a(n) ______ condition that the builder will be allowed to enter the house to complete the window removal and installation.
implied
In the context of discharging a contract, ______ conditions are those that are not explicitly stated but are inferred from the nature and language of the contract.
implied
A(n) ______ breach of contract occurs when a party unjustifiably fails to perform his obligations substantially under the contract
material
Contracted parties may agree that they simply wish to discharge each other from their mutual obligations and therefore cancel the contract. This is known as ______.
mutual rescission
Suppose James agreed to cater a reception for Bill's son, but it appears that the child is not going to graduate when planned. James agrees not to hold Bill responsible for paying him the agreed-upon cost for catering in exchange for Bill's agreement not to expect James to cater the reception; this is known as a(n) ______.
mutual rescission
If no actual damages resulted from a breach of contract, the court may award the plaintiff ______ damages.
nominal
In the context of legal remedies, a court awards a plaintiff $1. This is most likely indicative of ______ damages.
nominal
Which of the following is not a recognized exception to the statute of frauds?
nonperformance
A(n) ______ is a party who agrees to do something under a contract.
obligor
Attorney Jack Highlander agrees to represent Charity Vance in a divorce proceeding next month. In this specific context, Highlander is a(n) ______ under the contract.
obligor
Contracts whose performance, based on the terms of the contract, cannot possibly occur within ______ fall within the statute of frauds and therefore must be in writing.
one year
The ______ evidence rule states that oral evidence of an agreement made prior to or contemporaneously with a written agreement is inadmissible when the parties intended the written agreement to be the complete and final version of their agreement.
parol
The purpose of the ______ rule is to restrict evidence from being admitted that substantially contradicts the agreement in its written form.
parol evidence
Which of the following is not a required element for substantial performance?
parol evidence justifying substantial performance instead of complete performance
The ______ evidence rule is a ______ law rule that specifically addresses the admissibility of oral evidence as it relates to written contracts.
parol; common
Under ______ performance, if the buyer in an alleged contract for the sale of land has paid any portion of the sales price and has begun to improve the land permanently, the course will consider such actions proof of the contract.
partial
Specific ______ is an order requiring the breaching party to fulfill the terms of an agreement.
performance
Which of the following is the most common situation resulting in the discharge of a contract?
performance
When an entire contract is conditioned on something occurring first, that first thing is known as a condition ______.
precedent
A ______ agreement is a contract entered into by two parties before marriage that clearly states the ownership rights each party enjoys in the other party's property.
prenuptial
Various exceptions to the statute of ______ include admission, partial performance, and promissory estoppel.
frauds
Which of the following is an accurate statement regarding objective impossibility?
It discharges the parties' obligations under a contract.
In the context of discharging a contract, ______ conditions occur when each party's performance is conditioned on the performance of the other.
concurrent
Which of the following is an accurate statement regarding secondary obligations and the statute of frauds?
A secondary obligation is within the statute of frauds and therefore must be in writing to be enforceable.
Which of the following is an accurate statement regarding the relationship between the parol evidence rule and void or voidable contracts?
Courts allow parol evidence to demonstrate that a contract is void or voidable.
Which of the following are duties that cannot be delegated?
Duties that are personal in nature
Which of the following is an incorrect statement regarding the subsequent modification of an existing, written contract?
If the contract's terms require modifications to be in writing, oral modifications are nevertheless admissible.
The ______ of the statute of limitations is the expiration of the time allowed by the statute.
tolling
______ performance occurs when every aspect of the parties' duties under a contract is carried out perfectly.
Complete
Damages specified as a term of the contract, before a breach of contract occurs, are known as ______ damages.
liquidated
Which of the following is not a specific type of contract that falls within the statute of frauds?
a contract for the sale of goods valued at less than $500
Which of the following is a specific type of contract that falls within the statute of frauds?
a contract related to an interest in land
Which of the following is a correct statement regarding the relationship between the parol evidence rule and incomplete contracts?
When a contract is fundamentally flawed in missing critical information, courts can allow parol evidence to provide the missing information.
Which of the following is an incorrect statement regarding the applicability of the parol evidence rule to a nonfinalized, partially written and partially oral, contract?
When a contract consists of both written and oral elements, judges tend to treat the agreement as finalized.
Which of the following is not an element required for a writing to satisfy the statute of frauds?
the signature of the plaintiff suing to enforce the contract
Under the statute of frauds, which of the following parts of a land is not considered real property?
the tractors used on the land
Which of the following is not a relevant factor in determining the appropriate amount of punitive damages?
the wealth of a plaintiff
Promissory ______ is the legal enforcement of an otherwise unenforceable contract due to a party's detrimental reliance on the contract.
estoppel
Suppose an assignor transfers rights to an assignee under a contract stating "I assign all of my rights under the contract," but nothing is said specifically about a delegation of duties. What would a court likely conclude regarding the assignment of rights and the delegation of duties under such a contract?
Due to its ambiguous language, the contract involves both an assignment of rights and a delegation of duties.
In the context of impossibility of performance, ______ impossibility means it would be very difficult to carry out a contract.
subjective
In the context of the discharge of a contract by law, which of the following is an accurate statement regarding subjective impossibility of performance?
It does not discharge the parties' obligations under a contract.
In the context of discharging a contract, a condition ______ is a future event that terminates the obligations of the parties when it occurs.
subsequent
What is the legal effect of a minor breach of contract?
It may entitle a nonbreaching party to damages, but it does not discharge the nonbreaching party from the contract.
Where did the frustration of purpose doctrine originate?
England
______ damages are also known as special damages.
Consequential
Under the statute of frauds, which of the following is not true of the contracts related to an interest in land?
Contracts transferring other interests in land are outside the statute of frauds.
Which of the following is an accurate statement regarding the applicability of the parol evidence rule to evidence of a condition precedent?
Evidence of a condition precedent agreed to orally is admissible because the contract is not modified by such evidence.
______ damages may be specified in a contract as either a fixed amount or a formula for determining how much money is due.
Liquidated
Which of the following is an accurate statement regarding the tolling of the statute of limitations and contract enforcement?
Once the statute of limitations has tolled, neither party can any longer sue the other for a breach of contract.
______ is the termination of a contract.
Rescission
In the context of the discharge of contracts by law, what is the legal effect of impossibility of performance?
The parties to the contract will be discharged.
Which of the following is a type of intended beneficiary?
a creditor beneficiary
All but which of the following evidence is typically excluded under the parol evidence rule?
a written contract itself
A(n) ______ and ______ is used when one of the parties wants to substitute a different performance for his original duty under the contract.
accord; satisfaction
Usually, injunctions are prohibitions against ______.
actions
According to the Uniform Commercial Code, which of the following is a recognized exception to the writing requirement of the statute of frauds?
an oral contract between merchants
Which of the following is not a recognized exception to the parol evidence rule?
contracts that are represented to be the full and final agreement of the parties
Which of the following is not a recognized exception to the parol evidence rule?
contracts with a merger clause
In the context of discharging a contract, ______ conditions are explicitly stated in the contract
express
In the context of discharging a contract, ______ conditions are explicitly stated in the contract.
express
Commercial ______ arises when, because of an unforeseeable event, one party would incur unreasonable expense, injury, or loss if that party were forced to carry out the terms of the agreement.
impracticability
In the context of the discharge of contracts, which of the following is required for complete performance?
perfect performance
Contracted parties discharge their obligations by doing what they respectively agreed to do under the terms of an agreement; this is called discharge by ______.
performance
John enters into an agreement to lease an apartment for five years, conditioned on him not being called to active duty in the National Guard. If he is called to serve, this is a condition ______, and his obligation to be bound by the lease is discharged.
subsequent
Which of the following is not a writing element required by the statute of frauds?
the signature of both parties at the end of the contract
Uniform Commercial Code Section, ______ requires a contract for the sale of goods priced at $500 or more to be in writing to be enforceable.
2-201
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and contracts with serious and obvious typographical errors?
A written agreement is fundamentally altered by allowing parol evidence to correct a typo.
______ damages are designed to put a plaintiff in the position he would have been in had the contract been fully performed.
Compensatory
____ damages are also known as special damages.
Consequential
Suppose an assignor transfers rights to an assignee under a contract stating "I assign the contract," but nothing is said specifically about a delegation of duties. What would a court likely conclude regarding the assignment of rights and the delegation of duties under such a contract?
Due to its ambiguous language, the contract involves both an assignment of rights and a delegation of duties.
Which of the following is an incorrect statement regarding legal remedies and equitable remedies for a breach of contract?
Equitable remedies and legal remedies are known as money damages.
Which of the following is an accurate statement regarding the relationship between the parol evidence rule and the subsequent modification of an existing, written contract?
Evidence of a written contract's subsequent modification is admissible if it was made after the contract and if it clearly indicates the modification.
______ conditions are usually preceded by words such as conditioned on, if, provided that, or when
Express
______ conditions are usually preceded by words such as conditioned on, if, provided that, or when.
Express
What is the legal effect of a material breach of contract?
It discharges a nonbreaching party from his obligations under the contract.
Which of the following states does not adhere to the admission exception of the statute of frauds?
Louisiana
______ damages are designed to punish the defendant and deter him and others from engaging in similar behavior in the future.
Punitive
Contractual rights that cannot be assigned include all but which of the following?
Rights for a bank to sell a mortgage instrument to another bank
Contractual rights that cannot be assigned include all but which of the following?
Rights to receive money
______ promises, ______ promises, and suretyship promises refer to agreements in which a third party agrees to pay the debt owed by another party if that other party fails to pay his or her debt.
Secondary; collateral
According to the Uniform Commercial Code (UCC), Section 2-201, which of the following is an incorrect statement about contracts for the sale of goods priced at $500 or more?
Terms other than quantity must be exact and included in the written contracts.
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and evidence of prior dealings or usage of trade?
The parol evidence rule prohibits the admissibility of evidence of prior dealings or usage of trade.
Which of the following is an accurate statement regarding the enforceability of a prenuptial agreement?
To be enforceable, a prenuptial agreement must be in writing.
According to the ______, parol evidence is admissible for the sake of clarification if the evidence addresses prior dealings between the parties or usages of trade in the same business as the parties' field
Uniform Commercial Code
According to the ______, parol evidence is admissible for the sake of clarification if the evidence addresses prior dealings between the parties or usages of trade in the same business as the parties' field.
Uniform Commercial Code
Which of the following is an incorrect statement regarding the relationship between the parol evidence rule and contracts containing ambiguous terms?
When a contract contains ambiguous terms, the court allows only written evidence to be introduced to clarify the ambiguous terms.
Which of the following is a type of intended beneficiary?
a donee beneficiary
In an accord and satisfaction, the promise to perform the new duty is called the ______, and the actual performance of that new duty is called the ______.
accord; satisfaction
A(n) ______ is a statement made in court, under oath, or at some stage during a legal proceeding in which a party against whom charges have been brought admits that an oral contract existed, even though the contract was required to be in writing.
admission
If a contracting party decides, before the actual time for performance arises, not to fulfill her obligations under the contract and announces her intentions to the other party, a(n) ______ has occurred.
anticipatory repudiation
A(n) ______ occurs when a party to a contract transfers his or her rights to a third party.
assignment
An assignment occurs when a party to a contract, the ______, transfers his or her rights to the contract to a third party, the _____
assignor; assignee
A ______ occurs when a party fails to perform his or her obligations under a contract.
breach
Which of the following is a duty that can be delegated?
duties that are standardized and nonpersonal in nature
Specific performance is also called specific ______.
enforcement
Consequential damages are ______ damages that result from special facts and circumstances arising outside the contract itself.
foreseeable
Partial performance is an exception to the statute of ______ in which the performance of portions of an unwritten agreement by one or both parties can constitute proof that an oral contract exists between the parties.
frauds
Promissory estoppel is an exception to the statute of ______.
frauds
Contractual conditions may be either ______ by law or ______ inserted into a contract by the parties in the contract.
implied; expressly
If an unforeseen event occurs that makes it physically or legally impossible for a party to carry out the terms of a contract, the parties will be discharged due to ______.
impossibility of performance
Commercial ______ is used when performance is still objectively possible but would be extraordinarily injurious or expensive to one party.
impracticability
A(n) ______ beneficiary is one who unintentionally gains a benefit from a contract between other parties.
incidental
A(n) ______ is an order either forcing a person to do something or prohibiting a person from doing something.
injunction
A third-party beneficiary is a(n) ______ beneficiary of a contract between two other parties.
intended
A(n) ______ beneficiary is a third party to a contract whom the contracting parties intended to benefit directly from their contract.
intended
The most common form of donee beneficiary contract is a(n) ______ insurance policy.
life
Contracts are typically private agreements, in the sense that the focus of the contract is the two parties involved and no one else. The two parties are said to be in ______ of contract.
privity
Parties not in ______ of contract usually do not have rights to a contract.
privity
A court may order a(n) ______ of a written contract if the contract does not reflect the parties' actual agreement and needs to be rewritten.
reformation
A(n) ______ obligation arises when a party outside a primary agreement promises to fulfill the primary debtor's obligations if the primary debtor fails to fulfill his or her obligation.
secondary
The contracts involving promises to pay a debt that are within the statute of frauds are of a very limited kind. These promises are referred to as _____.
secondary promises, collateral promises, or suretyship promises
In the context of the discharge of contracts, ______ performance occurs when nearly all the terms of an agreement have been met, there has been an honest effort to complete all of the terms, and there has been no willful departure from the terms of the agreement.
substantial
Which of the following is not a recognized situation in which a contract may be discharged by operation of law?
temporary impossibility
Parties can discharge their contractual duty by making an offer to perform and being ready, willing, and able to perform. This offer of performance is known as ______.
tender
If a condition precedent does not occur when discharging a contract, ______.
the contracting party's duty to perform does not arise
According to the statute of frauds, contracts whose performance cannot possibly occur within one year must be in writing. The one-year period begins to run ______.
the day after the contract is created
In determining whether a third party is an intended beneficiary, courts ask whether the contracting parties intended the third party to be all but which of the following?
the incidental beneficiary
A(n) ______ contract is created when two parties enter into a contract with the intended purpose of benefiting a third party.
third-party beneficiary
Which of the following is a recognized purpose of the statute of frauds?
to prevent parties from entering into contracts with which they do not agree
Which of the following is not one of the main purposes of the statute of frauds?
to promote the notion that a person's word is his or her "bond"
Which of the following is not a category of monetary damages for a breach of contract?
transitional
Which of the following is not a recognized situation in which a contract may be discharged by operation of law?
unilateral mistake of fact