MGMT 254 EXAM 4

In most contracts, discharge takes place by: a. material breach. b. mutual rescission. c. performance. d. impossibility.

c. performance.

An express promise by a landlord to not disturb the tenant's possession of the land is known as the covenant of: a. domesticity. b. tranquil possession. c. quiet enjoyment. d. unfettered use.

c. quiet enjoyment.

A court of equity, at its discretion, may grant a(n) __________ to command the other party to refrain from doing a specific act. a. restitution. b. injunction. c. specific performance. d. All of these are correct.

b. injunction.

When a contract is intended to benefit a third person, such a person is a(n): a. incidental beneficiary. b. intended beneficiary. c. assignor. d. assignee.

b. intended beneficiary.

The party owing a debt under a contract is the: a. obligee. b. obligor. c. assignee. d. assignor.

b. obligor.

When the damages sustained by the plaintiff can be measured in monetary terms, specific performance will be: a. accompany an order for monetary damages. b. ordered. c. refused. d. All of these are correct.

c. refused.

Which of the following is true about the vesting of an incidental beneficiary's rights? a. An incidental beneficiary was not meant to benefit from the contract, thus he acquires no rights b. States are consistent in their rules as to when vesting occurs. c. Vesting cannot require the third party to change position in reliance on the promise made for his benefit. d. Regardless of whether an incidental beneficiary's rights have vested, the promisor and promisee may, by later agreement, vary those rights.

a. An incidental beneficiary was not meant to benefit from the contract, thus he acquires no rights

Carlos orally agrees to sell his house to Andy for $50,000. Can Andy enforce this agreement in court? a. Andy cannot enforce the agreement without a written contract signed by Carlos. b. Andy can enforce the agreement to sell the house because they did not use a realtor. c. Carlos can enforce the sale of the land against Andy, but Andy cannot enforce the contract. d. Carlos must sell the real estate to Andy because of Andy's right to specific performance applicable to sales of real estate.

a. Andy cannot enforce the agreement without a written contract signed by Carlos.

Adam enters into a contract to buy a new house. Which of the following would be a contract with condition subsequent and thus terminate the contract? a. If the house does not pass an agreed upon inspection. b. If Adam cannot get a loan c. If Adam pays a $500 deposit on the property d. If the interest rates are low enough

a. If the house does not pass an agreed upon inspection.

Not all classes of beneficiaries receive rights in the underlying contract. Which one does not? a. Incidental beneficiaries. b. Creditor beneficiaries. c. Donee beneficiaries. d. Intended beneficiaries.

a. Incidental beneficiaries.

Which of the following promises does have to be evidenced by a writing in order to be enforceable? a. Jack's agreement with Steve to sell his condominium for $150,000. b. Sarah's promise to work for Angie for ten months. c. Sam and Alicia decide to get married. . d. Karen's agreement with Sandy to buy her sewing machine for $200.

a. Jack's agreement with Steve to sell his condominium for $150,000.

Chelsey contract with Lake Land, Inc to build a boat dock at her lake house. Lake Land then assigned the job to Martin, a local contractor. A few days after the dock was completed, Chelsey woke up to see the dock and her boat floating away. In addition to not having the dock, she had to pay someone to haul her boat back to a storage area and keep the boat there until a new dock could be completed adding to the damages. She sued Lake Land for the $5,000 which included the cost of the dock, hauling and storage for the boat. Lake Land claimed that she would have to sue Martin, because the job was assigned to him. What is the likely outcome? a. Lake Land, Inc is responsible for the $5,000 because the contract was originally with them. b. Martin would be responsible for half of the money because he actually did the work but Lake Land would be responsible for the other half because the contract was originally with them. c. Neither Lake Land Inc. nor Martin are responsible because the dock was completed. d. Lake Land, Inc duties and obligations both transferred to Martin when the assignment was made.

a. Lake Land, Inc is responsible for the $5,000 because the contract was originally with them.

Which of the following will be seen as commercial impracticability? a. Performance is rendered unjust by a supervening event not caused by her own fault. b. A shortage of materials necessary for production of goods and/or provision of services called for under the contract c. An unanticipated increase in the cost of performance d. Hardship caused by neglect or oversight.

a. Performance is rendered unjust by a supervening event not caused by her own fault.

Evan is a college student with 2 years left in school. He is looking at apartments in Cold Springs apartment complex. He wants to rent the apartment for those 2 years and be sure that the lease cannot be terminated by the landlord before that time. What type of lease tenancy would be best for Evan? a. Tenancy for Years b. Tenancy at Will c. Tenancy at sufferance d. Periodic tenancy

a. Tenancy for Years

Mr., & Mrs. Peak have been looking at a house that Jason Greene has for sale. In negotiating the price, the Peaks' asked Mr. Greene if he is willing to leave the washer, dryer and refrigerator. He agrees, but the agreement for the appliances is not written in to the sale documents that all parties signed. When the Peaks move in, they see the appliances have been removed and sue Mr. Greene to have the appliances returned. What is the likely outcome? a. The Parol evidence rule does not require the appliances to be returned. b. Based on implied verbal contracts, the appliances will have to be returned. c. The parol evidence rule would require the appliances to be returned or replaced. d. The appliances would not be returned the Peaks already moved into the house.

a. The Parol evidence rule does not require the appliances to be returned.

​If a tenant fails to pay rent on time the landlord: __________. a. may take legal steps to evict the tenant. b. may use the security deposit to pay the tenant's rent. c. has an automatic lien on the tenant's personal property for the money due. d. has the right to lock the tenant out of the property.

a. ​may take legal steps to evict the tenant.

Which of the following is true regarding noncompliance with the statute of frauds? a. The basic legal effect under the statute of frauds and the UCC is the same. b. The statute of frauds applies to executed and executory contracts. c. A party to a contract which was unenforceable because of the statute of frauds but who relied upon the contract may not recover in restitution the benefits he conferred on the other party. d. The doctrine of promissory estoppel cannot displace the requirement of a writing under a statute of frauds.

a. The basic legal effect under the statute of frauds and the UCC is the same.

Millie, a tenant, abandons her apartment after six months, even though there are six months left on her lease. Will the landlord be able to hold Millie liable for rent? a. Yes, but he may also be required to mitigate his damages. b. Yes, but only after notice is given to the tenant. c. No, he can only collect rent from a new tenant after he rents it again. d. No, the Millie's obligation to pay ended when she abandoned the apartment.

a. Yes, but he may also be required to mitigate his damages.

A(n) __________ is a contract by which an obligee promises to accept a stated performance in satisfaction of the obligor's existing contractual duty. a. accord b. satisfaction c. novation d. mutual rescission

a. accord

Randolph enters into a contract with a contractor to build a large office building in Central City. Gas-N-Go will greatly benefit from this contract since his convenience store is adjacent to the building. Gas-N-Go in this instance is: a. an incidental beneficiary. b. a partial beneficiary. c. a donee beneficiary. d. an implied beneficiary

a. an incidental beneficiary.

In January, Ann and Barbara enter into a contract together to open a small business together on June 1. In April, Ann tells Barbara, "It's going to be impossible for me to go into business with you." This statement is: a. anticipatory repudiation. b. a material alteration. c. a reformation d. an accord.

a. anticipatory repudiation.

A tenancy for an indefinite time period that may be terminated at any time by landlord or tenant is called a tenancy: a. at will. b. for years. c. at sufferance. d. from year to year.

a. at will.

Even though all creditors have not been paid in full a discharge under the __________ eliminates ordinary contract claims against the debtor. a. bankruptcy law b. frustration of purpose doctrine c. perfect tender rule d. impossibility of performance doctrine

a. bankruptcy law

Trent wants to buy a new car. He goes to the bank to get a loan for the purchase, and signs an agreement to pay $15.00 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n): a. creditor beneficiary. b. assignee. c. donee beneficiary. d. incidental beneficiary.

a. creditor beneficiary.

Courts of equity will not grant specific performance of contracts: a. for a personal services contract. b. for the sale of real estate. c. for the sale of the original manuscript of a rare edition book. d. All of these are correct.

a. for a personal services contract.

A(n) __________ is an intended beneficiary of a contract who receives the benefits of the contract as a gift. a. incidental beneficiary b. donee beneficiary c. assignor d. creditor beneficiary

a. incidental beneficiary

A clear and specific contractual prohibition against the assignment of rights __________ enforceable at common law. a. is b. is not c. common law is silent about this matter d. None of these are correct.

a. is

If taxes or assessments on leased premises are increased because of improvements made by the tenant the: ___________. a. landlord is only liable for such increases if the improvements stay with the property. b. tenant is always liable for such increases. c. landlord is liable for such increases only to the extent that the improvements actually increase the fair market value of the property. d. landlord is liable for such increases whether or not the improvements stay with the property.

a. landlord is only liable for such increases if the improvements stay with the property.

In a lease agreement, the person who owns the real property and permits the occupation of the premises is known as the __________, and the person who occupies the property is known as the __________. a. lessor; lessee b. lessee; lessor c. grantor; grantee d. grantee; grantor

a. lessor; lessee

A small sum of damages fixed without regard to the amount loss is known as: a. nominal damages. b. out-of-pocket damages. c. inconsequential damages. d. None of these are correct.

a. nominal damages.

When a judge enters a very small order for damages, when the plaintiff has not sustained or cannot prove any injury or loss for a breach of contract action, she has entered an order for: a. nominal damages. b. exemplary damages. c. mitigated damages. d. compensatory damages.

a. nominal damages.

A(n) __________ is a substitution for an old contract with a new one that either replaces an existing obligation with a new obligation with a new obligation or replaces an original party with a new party. a. novation b. delegation c. partial assignment d. assignment

a. novation

Maxine signs a contract to sell her townhouse to Jackson for $120,000. Two days later Maxine changes her mind after discovering that she could have sold the property to another buyer for an additional $50,000. Jackson sues and asks the court to have the property conveyed to him at the price of $120,000. Jackson is seeking: a. specific performance. b. punitive damages. c. liquidated damages. d. incidental damages.

a. specific performance.

​Rent is automatically increased: a. if the lease contains an escalation clause. b. when the cost of living increases. c. if the lessor's taxes on the rented property are increased. d. if the lessor makes expensive improvements to the property.

a. ​if the lease contains an escalation clause.

When an anticipatory repudiation of a contract occurs, the non-breaching party may do any of the following except: a. ​immediately seek an injunction. b. consider the repudiation as an offer to cancel the contract. c. immediately declare a breach of contract. d. do nothing and wait for performance per the contract.

a. ​immediately seek an injunction.

Contracts for the sale of goods priced (starting) at _____ or more must ordinarily be in writing under UCC Section 2-201. a. $50 b. $500 c. $1500 d. $1,000

b. $500

Fairfield Apartments has a strict "no pets" rule for all of its tenants. Carter, who is visually impaired, has a guide dog that lives with him. When Carter applies for an apartment at Fairfield, he is told that his application was rejected because there is a "no pets" rule. Which of the following is true? a. Fairfield can reject Carter as a tenant because they have a "not pets" policy b. Carter would be protected under the American's with Disabilities Act (ADA) c. Leases are allowed to prohibit pet ownership so the rejection would be legal d. Carter would be allowed to keep the dog if the dog was classified as a "small dog"

b. Carter would be protected under the American's with Disabilities Act (ADA)

Which type of condition is more common? a. Conditions subsequent are quite common in contracts. b. Conditions precedent are common in contracts. c. Neither conditions subsequent nor conditions are common in contracts. d. None of these are correct.

b. Conditions precedent are common in contracts.

Jason rents an apartment at Uptown Lofts and has signed a 1 year lease. After 6 months, Jason moves out, without giving notice. What legal concept would require Uptown Lofts to try to rent the apartment to someone else as soon as possible? a. Liquidated damages b. Mitigation of damages c. They would not be required to lease it until Jason's lease was up. d. Nominal damages

b. Mitigation of damages

__________ is performance that, though incomplete, does not defeat the purpose of the contract. a. Material breach b. Substantial performance c. Perfect tender rule d. Impossibility of performance doctrine

b. Substantial performance

Jonathan signed a 1 year lease on an apartment. A clause in that lease stated that the apartment ownership could terminate the lease at any time by giving him 30 days' notice. After Jonathan had been living there for 5 months, he received a notice that the lease was being terminated and he had to move out within 30 days because the owners were selling the apartments to a mall development. How would this 30 day notice clause affect the contract? a. The 1 year lease would over-ride the 30 day notice clause. b. The 30-day notice clause can be used to discharge the contract c. The 30-day notice clause is illegal because a contract cannot be discharged by the action of either party alone. d. The owners can only use the 30-day notice clause at the end of the lease period.

b. The 30-day notice clause can be used to discharge the contract

Brianna borrowed money from First City Bank to open a new shopping center in which she rents space exclusively to businesses who provide products that are homemade, environmentally friendly or all-natural. A store selling homemade soaps in a store called Bubbles & Suds has already contracted to lease a space in the building, even though it is not yet complete. Brianna assigned the rent checks from Bubbles & Suds, once they begin paying rent, to First City Bank in repayment for the loan. Is this a legal assignment? a. The assignment cannot be made because Bubbles & Suds has not moved into the space yet. b. The assignment can be made on future or expected rights to money. c. Bubbles & Suds can make the assignment, but Brianna cannot. d. The assignment can be made only if Bubbles & Suds agrees.

b. The assignment can be made on future or expected rights to money.

Mason contracted with TRB Builders to add on 2 rooms to his house. The terms of the contract did not specify a work start date because the two of them had agreed that TRB could start whenever they "had extra time." After 6 months, TRB had not started the construction. Mason pursued the matter in court to try and force TRB to start construction. What would be the likely outcome? a. The court will likely force TRB to start immediately based on the Parol evidence rule. b. The court will not make a start date because none was stated in the contract details. c. The court will rule the contract to be void. d. The court will set a start date based on implied rules

b. The court will not make a start date because none was stated in the contract details.

Mr. Davidson owns a development company that has built waterparks in several dozen cities. He took out a loan for $500,000 to develop a waterpark in his hometown in Florida. He made this decision based on reports that several new businesses were going to open there, including a new automobile manufacturing facility. Halfway through the construction of the waterpark, the automobile manufacturer decided to location elsewhere causing a severe economic downturn in his community. How will this economic problem affect Mr. Davidson's requirement to repay the loan? a. The economic downturn will release Mr. Davidson from having to repay the loan. b. The economic downturn will not relive his obligation to repay the loan. c. Because the waterpark was not completed, Mr. Davidson will only have to repay the part of the loan that he has spent. d. Because the economic downturn was not anticipated, he will not have to repay the loan.

b. The economic downturn will not relive his obligation to repay the loan.

Landon rents an apartment at Manor Creek and is 2 months past due on his rent. Which of the following is NOT a legal remedy that Manor Creek could employ? a. The landlord can terminate the lease and rent to another tenant b. The landlord can lock Landon out of the apartment until he pays the rent c. The landlord & tenant may create a lien for the rent d. The landlord can evict the tenant and retake possession of the property

b. The landlord can lock Landon out of the apartment until he pays the rent

Jayden, a U.S. citizen, contracts with a Canadian life insurance company for $100,000 dollars of coverage. The insurance company sends Jayden an e-mail, which Jayden signs, scans and returns. Will a court entertain parol evidence on whether the parties intended for the policy to be valued in Canadian dollars or U.S. dollars? a. No, the court will look to the document to determine the parties' intent. b. Yes, because the intent of the parties is uncertain. c. Yes, because of the Foreign Corrupt Practices Act. d. No, because the parties should have been more specific about the currency issue and are stuck with what they have signed.

b. Yes, because the intent of the parties is uncertain.

On March 1, Jimmy, a student, received a telephone call from Peterson, Inc. offering him a job for one year beginning on May 15, after completion of the school year. According to the personnel manager, he will have to move to Texas and be ready to start work at 9:00 a.m. on May 15. Should Jimmy ask for a letter confirming the telephone conversation if he accepts the offer immediately? a. Yes, because the job offer is a collateral promise. b. Yes, because the job offer is for longer than one year from March 1. c. Yes, because the job offer is covered by the parol evidence rule. d. yes, because oral contracts are always void.

b. Yes, because the job offer is for longer than one year from March 1.

Wilma has an insurance policy on the contents of her apartment, which requires that she notify the insurance company within 60 days of any loss before she is eligible to receive payment for her loss. The notification requirement is: a. a concurrent condition. b. a condition precedent. c. an implied-in-law condition. d. a condition subsequent.

b. a condition precedent.

The fact that no time is specified in the contract means that: a. the contract is unenforceable. b. a reasonable time for performance will be implied. c. time shall be of the essence. d. the time for performance will be ignored by the courts.

b. a reasonable time for performance will be implied.

Carol is a tenant and rents an apartment at Bardstown Apartments. She wants to transfer away her entire interest under a lease to Mike. What type of document would they need to sign? a. sublease. b. assignment. c. escalation clause. d. abandonment.

b. assignment.

The transfer of a contract right to a third party is known as a(n): a. implied warranty. b. assignment. c. delegation. d. novation.

b. assignment.

​The damages that are typically recoverable when a contract has been breached and one party has suffered loss are called: a. emotional distress damages. b. ​compensatory damages. c. punitive damages. d. liquidated damages.

b. compensatory damages.

A __________ is an event that terminates an existing duty. a. condition precedent b. condition subsequent c. concurrent condition d. None of these are correct.

b. condition subsequent

Compensatory damages are designed to place the injured party in a position as good as the one he would have been in had the other party performed, and are known as: a. mitigation damages. b. consequential damages. c. punitive damages. d. All of these are correct.

b. consequential damages.

Officer Friendly has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Officer Friendly's mother is a(n): a. incidental beneficiary. b. donee beneficiary. c. creditor beneficiary. d. assignee.

b. donee beneficiary.

Under the modern view, a residential lease: a. must contain an escalation clause. b. includes an implied warranty of habitability. c. must be a tenancy for years. d. cannot be a tenancy at will.

b. includes an implied warranty of habitability.

When the parties express their contract in a writing that is intended to be the complete and final expression of their rights and duties, the __________ excludes prior oral or written negotiations or agreements of the parties? a. promissory estoppel rule b. parol evidence rule c. statute of frauds d. the possibility test

b. parol evidence rule

Heather contracted with TopNotch Builders to add a room to her home. The contract did not specify a time for completion of the project but TopNotch started work right away. However eight months later, the room was not complete and in fact she still had a large hole in her existing home covered only by a tarp. Heather then contracted with another firm to finish the work. TopNotch sued Heather for breach of contract. Heather sued TopNotch breach of contract. If no time limit is set... a. all contracts are implied to be completed within 1 year. b. the contract should be completed within a reasonable time frame. c. the contract is void d. neither party can sue the other

b. the contract should be completed within a reasonable time frame.

A provision in a residential lease stating that the landlord cutting off heat or water will not constitute an eviction is: __________. a. a stipulation. b. unconscionable. c. a covenant. d. valid.

b. unconscionable

The customs and __________ or commercial activity to which the contract relates may be used to interpret the terms of a contract. a. course of dealing b. usage of trade c. course of performance d. extrinsic set of evidence

b. usage of trade

Aiden contracts with Mrs. Barnes to maintain and clean her pool from May until September for $1,000 per month. In June, Mrs. Barnes informs Aiden that she is canceling the contract because her neighbor is going to maintain the pool at no charge. Aiden is able to find another job cleaning Mr. Nolen's pool, but can only earn $800 a month for the remaining 3 months of the summer. What, if any, damages can Aiden recover? a. Aiden is not entitled to recover any damages because he found a new job. b. Aiden can recover the entire $1000 a month from Mrs. Barnes because she was in breach. c. Aiden can recover the $200 per month from Mrs. Barnes that he lost because she cancelled the contract. d. Aiden can demand that Mr. Nolen pay the difference that Mrs. Barnes owes him.

c. Aiden can recover the $200 per month from Mrs. Barnes that he lost because she cancelled the contract.

Which of the following duties could NOT be delegated? a. Joe has a contractual duty to pay Izzie $50. b. Ken has a contractual duty to deliver 50 bushels of corn to Martin by October 1. c. Andy has a duty to teach an accounting class at a community college during the fall semester. d. Josh has a duty to mow Genelle's lawn at least once a week

c. Andy has a duty to teach an accounting class at a community college during the fall semester.

Blaine owns a gun shop and shooting range. After several customers ask about taking shooting lessons, Blaine contracts with Jacob Jackson, a highly skilled, retired army marksman to give lessons. After a few months, Tracy shows up and says that Jacob has delegated the lessons to her. While Tracy does know how to use a gun, she does not have the experience or background that Jacob has. Is Blaine bound by Jacob's delegation? a. Jacob can delegate any duties from the contract. b. Blaine must accept the delegation because Tracy can actually give lessons. c. Blaine can bar this delegation because Jacob has special skills that were specifically contracted for. d. Jacob can delegate the duties because he found his own replacement so he is not in violation of the contract.

c. Blaine can bar this delegation because Jacob has special skills that were specifically contracted for.

​The remedy of specific performance will most likely be granted in the case of a(n): a. contract for the sale of Florida oranges. b. contract to buy shares of publicly-traded stock. c. contract for the sale of a business. d. employment contract.

c. contract for the sale of a business.

Alfie enters into a contract to give Ezra the right of first refusal on a tract of land owned by Alfie. Alfie subsequently offers the land to Frank without first offering it to Ezra. An appropriate remedy for Ezra to seek would be: a. reformation. b. liquidated damages. c. injunction. d. punitive damages.

c. injunction.

When the __________ of the promisor's promise to pay the debt of another is to benefit the promisor, the statute of frauds is not applicable. a. promisory estoppel b. probability c. main purpose d. parol evidence

c. main purpose

Shaun is the owner of S&S Cleaning Service. Shaun has a verbal agreement with several businesses to mop, vacuum, dust, and clean the bathrooms once per week for a set fee. Each Saturday Shaun's cleaning crew has cleaned the offices belonging to Magnolia Real Estate and on the last day of the month, Magnolia leaves a check for the agreed upon fee. Nine months into the service, the cleaning crew reports that no check was left. When Shaun contacted Magnolia Real Estate, they stated that they no longer wanted the offices cleaned. Shaun demanded that they pay for the past month, but Magnolia refused, stating that a verbal contract is not enforceable. What would be the likely outcome? a. Magnolia Real Estate would not have to pay because the contract was verbal. b. Magnolia Real Estate would have to pay under the Parol evidence rule c. Magnolia Real Estate would have to pay because the conduct both parties actions implied a contract. d. Magnolia Real Estate would not have to pay because the terms were too indefinite.

c. Magnolia Real Estate would have to pay because the conduct both parties actions implied a contract.

__________ damages are ordered in excess of actual loss and are imposed for the purpose of punishing the defendant. a. Nominal b. Consequential c. Punitive d. Compensatory

c. Punitive

Riley rents an apartment at Cumberland Crossing and has 5 months remaining on her lease. She comes home from work one day to find that a water pipe has burst and flooded her entire apartment. The landlord claims that he cannot get the repairs done for at least 2 months. Under what circumstances could Riley claim constructive eviction? a. Once she reports the damage, it would be considered constructive eviction b. No claim for constructive eviction can be made if the landlord promises to make the repairs. c. Riley would have to move out of the apartment in order to claim constructive eviction. d. The landlord is not responsible for damages to the property.

c. Riley would have to move out of the apartment in order to claim constructive eviction.

__________ is an offer by one party—who is ready, willing, and able to perform—to the other party to perform his obligation according to the terms of the contract. a. Rendering b. Offering c. Tender d. Presentment

c. Tender

Mr. & Mrs. Young wanted to purchase some land from Mr. Sanders. They met in person several times and finally agreed on a price of $200,000. They verbally agreed explicitly and specifically on all the terms and conditions of the contract and all 3 of them "shook hands" on the deal. Two days later, the Young's take a check to Mr. Sanders but he tells them he has already sold the land to someone else for $250,000. The Young's sue for breach of contract. What would be the likely outcome? a. The Young's would get the land because the terms of the oral contract were explicit b. The Young's could get the land if they meet the new $250,000 price. c. The Young's would not get the land based on the statute of frauds d. The Young's would not get the land based on the Parol evidence rule

c. The Young's would not get the land based on the statute of frauds

Fabulous Florist contracted with Miller Trucking to deliver flowers to all of their customers for a set price per mile, to and from the florist. The Florist asks Miller Trucking to deliver some flowers about 2 hours away but Miller refuses to make the delivery stating that gas is too high and it would be too much wear-and-tear on the truck to make that run. Miller Trucking says they though the agreement was for local deliveries only even though the contract did not specifically mention any driving restrictions. How would applying the "common law rule" affect this situation? a. The common law rule would require Fabulous Florist to pay more if they wanted out of town delivery. b. The common law rule would not require Miller Trucking to make the delivery c. The common law rule would require Miller Trucking to make all deliveries, regardless of their distance. d. The common law rule would render this contract void.

c. The common law rule would require Miller Trucking to make all deliveries, regardless of their distance.

Jayden, who makes videos and commercials, sent several emails to Brantley, owner of The Closet, a clothing store. The emails contained information about what type of commercial Jayden would make, as well as pricing, shooting dates and likely competition dates. Branley replied "sounds good, let's do it", so on the following Thursday, Jayden shows up at The Closet and starts videotaping for the commercial. After working for about 5 hours, Brantley arrives and tells Jayden he isn't doing the commercial anymore. Jayden asks for payment for his time but Brantley refuses saying they didn't have a written contract. Brantley said he was just getting information and did not intent to enter into a contract. Jayden sues. What would be the likely outcome? a. Brantley would not have to pay Jayden because he didn't actually finish the commercial. b. Jayden & Brantley did not enter into a valid because it was not in writing. c. This contract is valid because an exchange of emails constitutes an enforceable contract. d. This contract is not valid because Jayden & Brantley did not discuss all the specific terms of a valid agreement.

c. This contract is valid because an exchange of emails constitutes an enforceable contract.

Lucas has a loan from City Motors for his car. He has always made his payments early or on-time. However last month, Lucas was 3 days late in making the payment. The employee for City Motors told him not to worry about paying the late fee because he had been a good customer and accepted his check for the regular payment amount. Which of the following legal concepts describe City Motors' actions in this case? a. Mitigation of damages b. Rescission c. Waiver d. Injunction

c. Waiver

Andrew owes Rachel $200 for a used television which he bought last year at Rachel's yard sale. When Andrew is unable to pay, the two agree that the debt can be paid by Andrew's typing all of Rachel's term papers for the school year. The new contract is a(n): a. novation. b. satisfaction. c. accord. d. discharged

c. accord.

A(n) __________ stands exactly in the position of the __________. a. assignee; beneficiary b. assignor; assignee c. assignee; assignor d. None of these are correct.

c. assignee; assignor

​If a tenant remains in possession after the termination of the lease without permission of the landlord, the landlord may treat the tenant as either a trespasser or a tenant. Until the landlord elects to do one or the other, a tenancy __________ exists. a. for years b. ​from year to year c. at sufferance d. at will

c. at sufferance

By operation of law one might be able to discharge their contractual obligations by: a. default. b. mutual rescission. c. bankruptcy. d. satisfaction.

c. bankruptcy.

​The failure to act or perform in the manner called for by a contract is a: a. forbearance. b. ​reservation of right. c. ​breach. d. waiver.

c. breach.

The rule of mitigation of damages requires that a party injured by a breach of contract must: a. discharge the contract before filing suit for breach. b. hire someone else to perform the contract. c. ​take reasonable steps to reduce the damages that would otherwise be sustained because of the breach. d. ​take any and all steps possible to reduce the damages that will be sustained because of the breach.

c. take reasonable steps to reduce the damages that would otherwise be sustained because of the breach.

A landlord is most likely liable to a tenant who is injured by: a. an obvious condition of the leased premises known to the tenant at the time the lease was made. b. an unforeseeable criminal act of a third person. c. the criminal act of a third person, when such conduct was reasonably foreseeable. d. a defective condition of the leased premises that is under the control of the tenant.

c. the criminal act of a third person, when such conduct was reasonably foreseeable.

General contract provisions of a writing must: a. specify the parties to a contract. b. specify the subject matter and essential terms. c. be signed by the party to be charged or his agent. d. All of these are correct.

d. All of these are correct.

Parol evidence is admissible to show: a. fraud. b. duress. c. mistake. d. All of these are correct.

d. All of these are correct.

Which of the following is/are true concerning the requirements for the form of an assignment? a. An assignment may be in any form. b. Statutes may require certain assignments be in writing or executed in a particular form. c. Any words, written or spoken, that show an intention to transfer or assign will be respected. d. All of these are correct.

d. All of these are correct.

Which of the following would meet the signature requirement for a writing to satisfy the statute of frauds? a. Initials of both parties. b. An electronic signature. c. A printed name. d. All of these are correct.

d. All of these are correct.

Alex and Pam entered into an oral contract in which Pam agreed to buy Alex's car for $8,000 with all payments to be made within 1 year. After 6 years, Pam still has only paid $5,000 of the agreed upon amount and Alex files a lawsuit. Will Alex be able to recover the rest of the money? a. Based on a discharge by operation of law, Alex will be able to recover the remaining money. b. Based on condition precedent, Alex will be able to recover the remaining money. c. Based on condition subsequent, Alex will not be able to recover the remaining money. d. Based on the statute of limitations, Alex will not be able to recover the remaining money.

d. Based on the statute of limitations, Alex will not be able to recover the remaining money.

Elyse agreed to purchase a professional video camera from James for $750. James brought the camera to Elyse and she paid him. What type of contract would be best for this transaction? a. No contract would be necessary because an implied contract would exist. b. Because the sale price was less than $1,000 a verbal agreement is sufficient. c. No contract would be necessary because neither Elyse nor James is operating as a business d. Because the price was more than $500, a written contract is required.

d. Because the price was more than $500, a written contract is required.

Mr. Robertson signed up for a life insurance plan at work which required him to list a beneficiary. The contract stated that he could only change the beneficiary each year during the open window for changes which was December 1 thru 31st. Initially Mr. Robertson selected his wife Caroline as his beneficiary, but in June, they were divorced. A few days later, Mr. Robertson notified his employer in writing that he wanted to change the beneficiary to his son Harry. The employer made note of the change. In October, Mr. Robertson passed away and the insurance company paid the claim to Mr. Robertson's ex-wife Caroline. His son Harry sued. What is the likely outcome? a. Harry should receive the money because his father's intentions were in writing. b. Caroline should receive the money because the company failed to make the authorized change. c. Harry should receive the money because the money was assigned to him. d. Caroline should receive the money because Mr. Robertson did not make the changes within the specified time period.

d. Caroline should receive the money because Mr. Robertson did not make the changes within the specified time period.

Karolyn agreed to sell her recording business to Chelsey for $ 700,000 and terms were reached with a down payment and then installment payments based on a mortgage to be executed by Chelsey. A few weeks later, Chelsey informed Karolyn that she had found a smaller firm to purchase, but she was assigning her rights to buy Karolyn's company to her brother Kevin. Does Karolyn have to accept the assignment? a. Karolyn must accept the assignment because she already had a contract with Chelsey. b. Chelsey's assignment would be upheld, whether Karolyn accepts or not. c. Because Chelsey found a new buyer, the contract will continue with the assignment d. Chelsey cannot assign any rights to Kevin in this instance.

d. Chelsey cannot assign any rights to Kevin in this instance.

Lonnie is a landowner and has contracted with Drake Construction to perform routine construction services according to the blueprints that Lonnie has provided. Drake Construction then assigns the contract to BDS Developers. As a result of this assignment: a. Lonnie can bring suit based upon detrimental reliance. b. Drake Construction has no more rights or responsibilities with regard to the contract. c. Drake Construction has all of his rights under the contract, but he has no responsibility for the performance of the duties. d. Drake Construction no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform.

d. Drake Construction no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform.

Jennifer is the owner of Newport Fashions in a retail space that she rents from Eastern Properties. Jennifer noticed that the floor of the store is very slippery, especially when it is wet but did nothing to improve the situation. When Lauren, a customer, entered the store during a rain storm, she slipped on the tile which injured her leg. As a result, Lauren is suing Newport Fashions and Eastern Properties for the damages. Who is liable for Lauren's injuries? a. Eastern Properties is liable because they are the owners of the space and they installed the tile. b. No one is liable, the customer should have been more careful c. Both Eastern Properties and Newport Fashion are jointly liable. d. Newport Fashions is liable because they are in control of the property and should have kept the floor dry.

d. Newport Fashions is liable because they are in control of the property and should have kept the floor dry.

Karolyn bought a new dishwasher from a nationally known appliance store and paid them extra to install the dishwasher. Six months later, the floor in her kitchen began to rot and mildew was appearing in the cabinets around the dishwasher. Upon getting the floor and cabinets replaced, it was discovered that the dishwasher had been installed incorrectly causing a water leak which in turn caused the rotting & mildew. Karolyn sued the store for the repairs. The store claimed they are not responsible for the quality of the work, just that the dishwasher was installed. What would be the likely outcome? a. The store would not have to pay for the repairs, but would have to provide her with a new dishwasher. b. Karolyn would be required to pay for all the repairs because she should not have trusted that the install was done correctly. c. The store would not be required to pay for anything, they installed the dishwasher and there were no implied terms in the contract. d. The store would be required to pay for the repairs under the implied terms of the contract that the work was performed properly.

d. The store would be required to pay for the repairs under the implied terms of the contract that the work was performed properly.

A term of a lease required that the landlord provide exterminating services monthly to control rats and other pests. The landlord failed to do this despite numerous requests placed by the tenant, and the premises became overrun by rats. This may be considered: a. a breach of the covenant of quiet enjoyment. b. a physical eviction. c. active waste. d. a constructive eviction.

d. a constructive eviction.

Where, after a contract is made, a party's principal purpose is substantially frustrated without his fault by the occurrence of an event whose nonoccurrence was a basic assumption on which the contract was made, his remaining duties can be discharged by: a. commercial impracticability. b. commercial impossibility. c. economic frustration. d. frustration of purpose.

d. frustration of purpose.

In determining the meaning of an ambiguous contract the court will: a. ignore the issue of who drafted the contract. b. treat the parties equally in terms of strict interpretation. c. interpret the contract strictly against the person who failed to draft it. d. interpret the contract strictly against the person who drafted it.

d. interpret the contract strictly against the person who drafted it.

The amount that could reasonably have been avoided is deducted from the amount that would otherwise be recoverable as damages. This is known as the doctrine of: a. exemplary damages. b. nominal damages. c. damages for consequential loss. d. mitigation of damages.

d. mitigation of damages.

A(n) __________ is a substituted contract that involved an agreement among three parties to substitute a new promise for the existing promise or to replace the existing promisor with a new one. a. accord b. mutual rescission c. material alteration d. novation

d. novation

An injured party who rescinds a contract after having performed services may recover the reasonable value of the performance rendered as: a. foreseeability. b. certainty. c. mitigation. d. restitution.

d. restitution.

When a lease covers rooms or an apartment in a building, a destruction of the leased premises: __________. a. requires the landlord to repair or restore the property. b. temporarily suspends the tenant's obligation to pay rent. c. has no effect on the obligations of the tenant or the landlord. d. terminates the lease.

d. terminates the lease.

​Failure of a landlord to provide pest control as stated in the lease, despite numerous requests from tenants, is tantamount to: ___________. a. active waste. b. a physical eviction. c. a breach of the covenant of quiet enjoyment. d. a constructive eviction.

d. ​a constructive eviction.