blaw test 4 prt. 2
A signature is sufficient to form the basis of authenticity of a written contract.
True
A condition subsequent cannot be a valid reason for the discharge of a duty.
false
In order for an assignment to be valid, the assignee must give some consideration to the assignor
false
An accountant who substantially performs her duties to her client triggers the client's duty to pay the contract price, less any damages resulting from defects in her performance
true
The underlying purpose of the statute of frauds is to: A. prevent frauds in general. B. corroborate the existence of the oral contract. C. punish those who commit frauds. D. make fraud illegal.
B
A merger clause is also known as an: A. interpretation clause. B. interrogation clause. C. integration clause. D. instrumental clause.
C
A donee beneficiary of a contract can recover under that contract
true
. The relinquishment of rights by a party in a contract is called a(n) _____. A. waiver B. recission C. impossibility D. reliance interest
A
A contract that cannot be performed within one year from the day on which it comes into existence: A. is within the statute of frauds. B. need not be in writing. C. is called a unilateral contract. D. is essentially illegal.
A
A third party is categorized as a donee beneficiary when: A. the promisee's primary purpose in contracting is to make a gift of the agreed-on performance to the third party. B. the benefit derived by the third party was merely an unintended by-product of a contract that was created for the benefit of those who were parties to it. C. he/she is unable to establish that the contract was made with the intent to benefit him/her. D. the promisor's performance is intended to satisfy a legal duty that the promisee owes to the third party.
A
A written agreement was signed by two parties and it was intended to be their entire agreement. The parol evidence rule will prevent the admission of evidence that is offered to: A. prove the existence of a contemporaneous oral agreement that modifies the contract. B. prove the existence of a subsequent oral agreement that modifies the contract. C. explain the meaning of an ambiguity in the written contract. D. establish that fraud had been committed in the formation of the contract.
A
An obligor: A. owes a duty to perform under a contract. B. is owed a duty. C. is one to whom a right has been transferred. D. facilitates a contract
A
An uncertain future event, the occurrence of which is necessary for the existence of a contractual obligation is called: A. a condition precedent B. a condition subsequent C. a concurrent condition D. a constructive condition
A
Antiassignment clauses in contracts generally are: A. enforceable but read narrowly. B. enforceable but not covered by the UCC. C. unenforceable because they are unconscionable. D. unenforceable because they are void
A
Guy and Boyd make an oral contract whereby Guy agrees to sell Boyd, 480 widgets (goods) at a price of $480. Later, the parties want to modify the contract so that the price would become $520. This modification: A. must be in writing. B. must be oral because the first contract was oral. C. can be oral but need not be. D. is unenforceable because the first contract is unenforceable.
A
In a novation: A. the original obligor is completely discharged from his/her obligations under the contract. B. the original obligee is completely discharged from his/her obligations under the contract. C. the original obligor remains secondarily obligated. D. both the original obligee and the original obligor remain obligated.
A
In an assignment/delegation, which party remains secondarily liable on the obligation that has been delegated? A. Assignor/delegator B. Assignee/delegatee C. Third party D. Obligee
A
Jada owned an insurance policy in her life, on which she paid all the premiums. Shaun was named the beneficiary. Jada died and the insurance company refused to pay the insurance proceeds to Shaun. An action by Shaun against the insurance company for the insurance proceeds will be: A. successful because Shaun is a third-party donee beneficiary. B. successful because Shaun is a proper assignee of Jada's rights. C. unsuccessful because Shaun is not the owner of the policy. D. unsuccessful because Shaun did not pay any of the premiums
A
Jim's contract with Frank obligated Jim to pay Frank $10,000. Frank properly assigns the contract to Abel. At that time, Abel notifies Jim about the assignment. Jim, however, forgets and pays the $10,000 to Frank. By this time, Abel is screaming for his money. However, by then, Frank goes into bankruptcy. In this case: A. Jim is liable to Abel for $10,000. B. Abel is out of luck because Jim performed his obligation by paying Frank. C. Jim is liable to Abel not for the $10,000, but for his breach of the implied warranty that the assignor is solvent. D. Abel is out of luck because his notification was oral rather than written.
A
Mr. Blue is in a contract with Mr. Brown for the repair of Mr. Blue's roof for $9,000. Mr. Blue tells Mr. Brown that Ms. White will pay him the $9,000 for the work performed. Ms. White's role in the contract is called what? A. Delegation B. Assignment C. Incorporation D. Organizing
A
Mr. Green and Mr. Blue contract orally to transfer 500 widgets for $1000. Mr. Blue sends Mr. Green a receipt one week after the agreement. If Mr. Green now refuses to recognize the agreement a court will find what? A. That a memorandum of understanding was created by the receipt sent by Mr. Blue and an enforceable agreement exists B. That no agreement exists because there is no typed agreement according to the statute of frauds C. There is no enforceable agreement because the receipt was not sent at the same time as the agreement D. The agreement is not enforceable because the Secretary of State did not approve the agreement
A
Mr. Green contracts with Mr. Brown for $500 to landscape the home of Roy who is Mr. Green's son. What is Roy's status in the contract with Mr. Green and Mr. Brown? A. Donee beneficiary B. Incidental beneficiary C. Corporate beneficiary D. International beneficiary
A
Mr. Green contracts with Mr. Brown to repair his roof. Mr. Brown is about 75% done when the deadline of the contract occurs. Which legal standard would prevent Mr. Brown from being considered to be in breach of his agreement with Mr. Green? A. Substantial performance standard B. Strict performance standard C. Reasonable person standard D. Egg shell person standard
A
Mr. Green has a month to month lease for an apartment owned by Mr. Blue. The lease between Mr. Green and Mr. Blue is oral. How will the court handle the lease? A. The court will recognize and enforce the lease. B. The court due to the statute of frauds will not recognize or enforce the lease. C. The court will not recognize the lease unless there is a subtenant. D. The court will only recognize the lease if requested by the Secretary of State.
A
Nina has breached a contract between Milo and her, but not so materially. This means that Milo can: A. sue only for damages caused by the breach B. sue for damages for a total breach of the contract C. cancel the contract D. withhold his performance, even if the breach is remedied
A
On May 2, Kurtz Co. assigned its entire interest in a $70,000 account receivable due in 60 days from Long to City Bank for $65,000. On May 4, City notified Long of the assignment. On May 7, Long informed City that Kurtz had committed fraud in the transaction out of which the account receivable arose and that payment would not be made to City. If City commences an action against Long, and Long is able to prove that Kurtz acted fraudulently: A. Long will be able to successfully assert fraud as a defense. B. City will be entitled to collect $65,000, the amount paid for the assignment. C. City will be entitled to collect $70,000 since fraud in the inducement is a personal defense which was lost on May 2. D. City will be entitled to collect $70,000 since Long's allegation of fraud arose after notice of the assignment
A
Price signed a contract to sell Wyatt a parcel of land for $90,000. The entire sales price was payable at the closing. Price has decided to keep the land. If Wyatt commences an action against Price, what relief is Wyatt most likely to receive? A. Specific performance B. Compensatory damages and specific performance C. Punitive damages D. Compensatory damages and punitive damages
A
Someone who attempts to recover for breach of contract: A. can recover only for those losses that he can prove with reasonable certainty. B. can recover for all consequences of the breach, whether foreseeable or not. C. can only do so for consequential damages. D. has no duty to mitigate (or minimize) damages.
A
Subsequent agreements are treated in what way under the parol evidence rule? A. Subsequent agreements are admissible under the parol evidence rule B. Subsequent agreements are not admissible unless they were filed with a governmental agency C. Subsequent agreements are not admissible since they attempt to modify an integrated contract D. Subsequent agreements are not admissible unless that involve two international parties
A
The Uniform Commercial Code changed the traditional statute of frauds rule by making it: A. easier to satisfy that rule. B. mandatory to have contracts in writing. C. apply to service contracts only. D. apply to real estate contracts only
A
The equitable remedy of specific performance is most likely to be awarded by a court in which of the following circumstances? A. Sale of a Da Vinci original where the seller refuses to deliver B. Sale of a perfume bottle which the seller refuses to deliver C. A promisee's failure to perform at a charity event D. A promisee's failure to deliver a contract of employment
A
The legal remedy of _____ requires the defendant to pay the value of the benefits that the plaintiff has conferred on him. A. restitution B. waiver C. compensatory damages D. accord and satisfaction
A
The statute of frauds requires that: A. some contracts be evidenced by a writing. B. all contracts involving fraud must be void. C. all three-party contracts be collateral ones. D. there can be no secondary debts in a contract
A
The transfer of a right under a contract is called a(n): A. assignment. B. delegation. C. affidavit. D. bilateral contract.
A
Union Bank lent $200,000 to Wagner. Union required Wagner to obtain a life insurance policy naming Union as beneficiary. While the loan was outstanding, Wagner stopped paying the premiums on the policy. Union paid the premiums, adding the amounts paid to Wagner's loan. Wagner died and the insurance company refused to pay the policy proceeds to Union. Union may: A. recover the policy proceeds because it is a creditor beneficiary. B. recover the policy proceeds because it is an incidental beneficiary. C. not recover the policy proceeds because it is not in privity of contract with the insurance company. D. not recover the policy proceeds because one cannot claim insurance for oneself.
A
What Uniform Commercial Code (UCC) section indicates that it is presumed that an assignment includes a delegation under contract law? A. 2-210 B. 1-104 C. 7-344 D. 2-114
A
What is the term for a condition that is specified in the contract? A. Express condition B. Implied condition C. Corporate condition D. Bilateral condition
A
Where the parties to a contract wish to cancel their contract and be in the same position as they were prior to forming the contract, they should seek to obtain a(n) _____. A. rescission B. novation C. accord and satisfaction D. revocation
A
Which form of damages is intended to give the victim of the breach of contract the "benefit of the bargain"? A. Compensatory B. Punitive C. Nominal D. Liquidated
A
Which of the following allows a party who has materially breached a contract to recover the reasonable value of any benefits he has conferred on the promise? A. Quasi-contract B. Anticipatory repudiation C. Specific performance D. Accord and satisfaction
A
Which of the following is a uniform state law designed to remove "barriers to electronic commerce validating and effectuating electronic records and signatures"? A. Uniform Electronic Transactions Act (UETA) B. Electronic Signatures in Global and National Commerce Act (E-Sign) C. Electronic Communications Privacy Act (ECPA) D. Graham-Leach-Bliley Act (GLBA)
A
Which of the following is covered by the statute of frauds? A. A real estate mortgage B. A $300 contract for the sale of pencils C. A contract that can be performed within a week D. A $100 VCR repair
A
Which of the following is the starting point in calculating the compensatory damages that the plaintiff had the right to expect? A. Loss in value of performance B. Loss in value of the contract C. Time taken for the performance D. Delay from the expected time of performance
A
Why is the contract for the insurance of a building not covered within the real estate provision of the statute of frauds? A. It does not involve the transfer of interests in land. B. It involves a physical asset. C. It involves two or more parties. D. It need not be in writing.
A
With regard to an agreement for the sale of real estate, the statute of frauds: A. does not require that the agreement be signed by all parties. B. does not apply if the value of the real estate is less than $500. C. requires that the entire agreement be in a single writing. D. requires that the purchase price be equal to the value of the real estate
A
A bilateral contract is "taken out of the statute of frauds" when: A. it is completed within a year from the day of its existence. B. it is fully performed by at least one party. C. it is put in writing. D. it has strict rules of performance
B
A memorandum on the sale of goods that does not indicate the _____ of goods to be sold will not satisfy the UCC's writing requirement. A. quality B. quantity C. delivery D. cost
B
An oral contract for the sale of land that has been completely performed by the vendor: A. is part of the statute of frauds. B. can be enforced without any writing. C. needs to be signed by the parties. D. has to be testified by witnesses.
B
Apple assigns the same contract rights to Enzo, and then to Sam. Sam immediately notifies the obligor of the assignment to him; Enzo never notifies the obligor. When Sam notified the obligor, he did not know about the earlier assignment to Enzo. Sam will have the better right under the: A. "American rule." B. "English rule." C. Restatement (Second) of Contracts. D. common law
B
As a general rule, members of the public are held to be _____ of contracts entered into by their municipalities or other governmental units in the regular course of carrying on governmental functions. A. promisees B. incidental beneficiaries C. donee beneficiaries D. creditor beneficiaries
B
Denise contracts with Long Life Insurance Co., agreeing to pay premiums in return for which the company agrees to pay $500,000 to Denise's husband Barn when Denise dies. Barn is a(n): A. creditor beneficiary. B. donee beneficiary. C. incidental beneficiary. D. delegatee.
B
Edna is a leading brain surgeon in the United States. She enters into a contract to perform a complicated brain surgery on Ben. However, since Edna is very busy, she wants to assign this contract to a less experienced surgeon, Charles. This would be Charles's first operation of this type. Ben can object to this assignment and prevent it because the contract between Ben and Edna is a(n): A. contract for services to be performed in the future. B. contract involving personal skill. C. services contract. D. employment contract.
B
For which of the following contracts, is a party's subjective dissatisfaction sufficient to excuse his performance under a "personal satisfaction" clause in a contract? A. A contract to construct an intercontinental ballistic missile B. A contract to paint someone's portrait C. A contract to build a steam boiler D. A contract to rebuild an automobile engine
B
It is important to promptly notify the obligor that an assignment has occurred. Why? A. It is a necessary requirement for a valid assignment. B. The obligor might perform to the assignor rather than the assignee. C. The obligor's duty to perform is completely discharged. D. If the obligor neither knew nor had reason to know about the assignment, the obligor remains liable to the assignee
B
Justin agrees to start a life-size portrait of Julia beginning 2nd November. On the 28th of October he writes to Julia that due to unforeseeable circumstances he would not be able to perform his promise, Justin has used the doctrine of: A. accord and satisfaction. B. anticipatory repudiation. C. specific performance. D. quasi-contract
B
Maria and Joe entered into a contract for the sale of Maria's car. Delivery of the car and payment were to be made on March 1. Joe clarified that he needed the car so that he can commute between San Francisco and Oakland to his new job that is starting on March 2. Maria broke the contract and failed to deliver the car on March 1. Joe needed a car to commute so he rented a car at $30 per day for 20 days, which was the reasonable amount of time it took him to locate and buy another car. Joe sued Maria for his losses, including the $600 car rental. The $600 makes up the _____ damages. A. liquidated B. consequential C. punitive D. specific performance
B
Melanie owes $250 to Jessica. Jessica gifts the right to receive the money from Melanie to her daughter Kelly in writing. This assignment is: A. unenforceable since a beneficiary modification is prohibited. B. enforceable despite the lack of consideration. C. unenforceable because contractual rights cannot be assigned. D. enforceable because the gift is made in writing.
B
Mike has a three-year lease on the apartment he occupies. He has lived there one year. He now wants to leave and go to Aspen, Colorado to be a ski instructor. However, Mike's landlord will not release him from the lease, and threatens to sue him if he breaks his lease. Mike finds Paul to take over the last two years of the lease, but Mike is worried that Paul might cause damage or in other ways inflict loss and that he, Mike, might be held financially responsible. In order to assure Mike that he will be completely discharged from all obligations under his lease, Mike should attempt to bring about: A. an assignment. B. a novation. C. either an assignment or novation—it will not affect Mike's future liability. D. neither an assignment nor a novation—both will not accomplish Mike's objective.
B
Mr. Blue is in a contract with Mr. Brown for the repair of Mr. Blue's roof for $9,000. Mr. Brown has already performed the work, but contacts Mr. Blue that he should pay his cousin Joe Jr. the amount owed. Joe Jr.'s status under the contract is called what? A. Delegation B. Assignment C. Incorporation D. Organizing
B
On May 2, 1972, Mix, CPA, entered into an oral contract with Dell to provide certain accounting services to Dell. The contract was fully performed by both parties in 1974. On April 25, 1988, Dell commenced a breach of contract action against Mix claiming that Mix had improperly performed the accounting services. Mix's best defense to the action would likely be: A. Parol evidence rule B. Statute of limitations C. Statute of frauds D. Lack of consideration
B
Quick Corp. has $270,000 of outstanding accounts receivable. On March 10, 1988, Quick assigned a $30,000 account receivable due from Pine, one of Quick's customers, to Taft Bank for value. On March 30, Pine paid Quick the $30,000. On April 5, Taft notified Pine of the March 10 assignment from Quick to Taft. Who is Taft entitled to collect the $30,000 from? A. Either Quick Corp. or Pine B. Quick Corp. only C. Pine only D. Taft Bank cannot claim any money because it notified Quick Corp. too late
B
Roe promises to build a house for Crown for which, Crown agrees to pay him $10,000 when the house is complete. This example is related to the concept of: A. express condition. B. constructive condition. C. subsequent condition. D. implied condition.
B
Ted Nix purchased two acres of land from Sally Pine. Nix paid 15 percent at the closing and gave his note for the balance secured by a 30-year mortgage. Five years later, Nix found it increasingly difficult to make payments on the note and finally defaulted. Pine threatened to accelerate the loan and foreclose if Nix continued in default. Pine told Nix either to get the money or obtain an acceptable third party to assume the obligation. Nix offered the land to Quick Co. for $4,000 less than the equity Nix had in the property. This was acceptable to Pine and at the closing, Quick paid the arrearage, executed a new mortgage and note, and had title transferred to its name. Pine surrendered Nix's note and mortgage to him. The transaction in question is a(n): A. third-party beneficiary contract. B. novation. C. purchase of land subject to a mortgage. D. assignment and delegation
B
The Parol Evidence rule is relevant only in cases: A. that are oral in nature. B. where parties have expressed an agreement. C. of the sale of goods. D. subsequent modification do not have a suitable consideration
B
The appointment of another person to perform a duty under a contract is called a(n): A. assignment. B. delegation. C. affidavit. D. bilateral contract.
B
Under the _____, no writing is required where the guarantor makes a collateral promise for the main purpose of obtaining some personal economic advantage. A. parol evidence rule B. leading object rule C. collateral contract rule D. part performance rule
B
Ward is attempting to introduce oral evidence in an action relating to a written contract between Ward and Weaver. Weaver has pleaded the parol evidence rule. Ward will be prohibited from introducing parol evidence if it relates to: A. a modification made several days after the contract was executed. B. a change in the meaning of an unambiguous provision in the contract. C. fraud in the inducement. D. an obvious error in drafting
B
What is a remedy for a party that is in material breach of a contract but has incurred economic harm by already performing substantially for the contract? A. Liquidated damages B. Quasi-contract C. Bilateral contract D. Incorporation
B
What is an injunction? A. The awarding of compensatory damages B. A court's order requiring a person to do something C. The cancelation of a contract regarding real estate D. A lawsuit for damages brought by the nonbreaching party
B
What is the term for a condition that is not stated in the contract but is construed by the action of the parties? A. Express condition B. Implied-in-fact condition C. Corporate condition D. Bilateral condition
B
When a person whose duty is conditional leads the other party to rely on his noninsistence on the condition, the condition will be excused because of a(n) _____. A. waiver B. estoppel C. recission D. liability
B
When a promisee who has an existing claim agrees with the promisor that he will accept some performance different from that which was originally agreed on, both parties can use the remedy of: A. specific performance. B. accord and satisfaction. C. waiver. D. rescissions
B
Which form of damages involves a court ordering a party to a contract to perform his/her obligations under the contract? A. Quasi-contract B. Specific performance C. Rescission D. Promissory estoppel
B
Which of the following instances is sufficient reason to cause commercial impracticability? A. Increased cost B. War C. Collapse of market D. Shortage of good
B
Which of the following is admissible with respect to a partially integrated contract? A. Evidence that seeks to make the contract completely divisible. B. Evidence that resolves ambiguities in the contract. C. Evidence that the contract is unconditional on the happening of some event. D. Evidence that contradicts the contract's provisions.
B
Which statement about the statute of frauds is true? A. All contracts must be in writing in order to be enforced. B. Contracts for the sale of goods for $500 or more must be in writing in order to be enforced. C. Contracts for the sale of land for $500 or more must be in writing in order to be enforced. D. All employment contracts must be in writing in order to be enforced.
B
A contract may be enforced by a third-party beneficiary if that beneficiary: A. is an incidental beneficiary. B. is a witness to the contract. C. is the intended beneficiary. D. has given some consideration.
C
Al hires Bob to move his furniture to his new house. On the day of the move, Bob does not feel like moving furniture, so he asks his friend Chuck to move the furniture. Chuck decides to leave before completing the move in order to watch a football game on TV. Al has to delay his move and hire another mover at a higher price. Al wants to sue Bob to recover for his damages. Given these facts, Al will most likely: A. lose, because it was Chuck, not Bob, who failed to fulfill his duty to Al. B. win, because Bob's duty to Al was not delegable. C. win, because Bob is liable to Al. D. lose, because he failed to insist on Bob's performance
C
April and Brian entered into a completely integrated written contract. Before the written contract was completed, April made an oral statement to Brian regarding the terms of the contract. This statement was not contained in the written contract. Under the parol evidence rule, evidence of April's oral statement would be admissible if it were used to: A. create a completely new agreement. B. introduce an ambiguous term in the written contract. C. prove an additional term consistent with the written agreement. D. change the terms of the written contract.
C
Big Bank is a major creditor of Bonwill Department Store. After a major loss in profits due to poor holiday sales, Big Bank decides to help keep Bonwill from bankruptcy. Big bank orally promises Mary Tudor, a supplier to Bonwills, that it will guarantee Bonwill's payment for goods that Mary sells to Bonwill. Most likely, Big Bank's oral agreement: A. is unenforceable under the statute of frauds. B. is unenforceable because it is a collateral contract. C. is enforceable under the "main purpose" or "leading object" exception to the statute. D. is enforceable because a collateral contract is not covered under the statute of frauds
C
Bruce told Adam that he was selling his house in Syracuse, New York. Adam sent Bruce an email containing an offer of $300,000 for the house. Bruce responded via e-mail that he wanted $315,000 for the house. After further e-mails, the parties finally agreed on a sale with a price of $310,000. A series of e-mails contained the terms of the sale, and all included a salutation containing their typewritten names. However, Bruce later decided to sell the house to Marty for $325,000. Adam sued Bruce, claiming that Bruce breached their contract for the sale of the house. Most likely, Adam will: A. lose, because the contract does not meet the statute of frauds. B. lose under the parol evidence rule. C. win, because the essential terms of the contract were set forth in the signed e-mails. D. win, because of the partial performance exception to the statute of frauds.
C
Damages that are agreed upon at the time the contract is entered into are called _____. A. compensatory damages B. consequential damages C. liquidated damages D. mitigation of damages
C
For a third person to have the right to enforce a contract, he/she must necessarily prove that: A. he/she was the party to the contract. B. he/she had been given a promise. C. the contract was made to benefit him. D. the contract provides him/her incidental benefit.
C
In order to satisfy the statute of frauds, the parties' writing must be: A. signed by both parties. B. in legalese. C. signed by the "party to be charged." D. compressed into a single document.
C
King sent Foster, a real estate developer, a signed offer to sell a specified parcel of land to Foster for $200,000. King, an engineer, had inherited the land. Foster telephoned King the same day that he received his letter and accepted the offer. Which of the following statements concerning the contract is correct under the statute of frauds? A. No contract was formed because Foster did not sign the offer. B. No contract was formed because King is not a merchant. C. A contract was formed, although it would be enforceable only against King. D. A contract was formed but it is unenforceable.
C
Kyle promised to mow Heidi's lawn for $20 and clean Heidi's gutters for $50, but only mowed the lawn. Which of the following is true of Kyle? A. He is the nonbreaching party and can, therefore, sue Heidi. B. He cannot be sued by Heidi because he has performed one of the promises. C. He can recover the contract price for the activity he performed. D. He will be directed by the court to complete the entire contract for free.
C
On August 1, Neptune Fisheries contracted in writing with West Markets to deliver to West 3,000 pounds of lobsters at $4 a pound. Delivery of the lobsters was due October 1 with payment due November 1. On August 4, Neptune entered into a contract with Deep Sea Lobster Farms which provided as follows: "Neptune Fisheries assigns all the rights under the contract with West Markets dated August 1 to Deep Sea Lobster Farms." The best interpretation of the August 4 contract would be that it was: A. only an assignment of rights by Neptune. B. only a delegation of duties by Neptune. C. an assignment of rights and a delegation of duties by Neptune. D. an unenforceable third-party beneficiary contract.
C
Once an assignment occurs, the assignee acquires: A. greater obligations to fulfill the contract. B. greater rights than the assignor. C. same rights as the assignor had prior to assignment. D. no rights at all.
C
Rick tells Dan that Sue will inherit a mansion if she pays him back an old debt. Since Sue is unable to pay the debt, Dan offers to pay it provided that he gets the mansion from Rick. The agreement between Dan and Rick need not be in writing under the: A. collateral contract rule. B. parol evidence rule. C. leading object rule. D. part performance rule
C
Selena delegates her rights under a contract. The clause delegating her rights are termed: "All my rights under the contract are hereby effectively delegated to...." This language shows that the contract is of: A. delegation only. B. assignment only. C. assignment and delegation. D. a third-party beneficiary
C
Sklar, CPA, purchased from Wiz Corp. two computers. Sklar discovered material defects in the computers 10 months after taking delivery. Three years after discovering the defects, Sklar commenced an action for breach of warranty against Wiz. Wiz has raised the statute of limitations as a defense. The original contract between Wiz and Sklar contained a conspicuous clause providing that the statute of limitations for breach of warranty actions would be limited to 18 months. Under the circumstances, Sklar will: A. win because the action was commenced within the four-year period as measured from the date of delivery. B. win because the action was commenced within the four-year period as measured from the time he discovered the breach or should have discovered the breach. C. lose because the clause providing that the statute of limitations would be limited to 18 months is enforceable. D. lose because the statute of limitations is three years from the date of delivery with respect to written contracts.
C
Stacey wanted someone to paint her house. Jessica offered to do it for $300 while Nancy offered to do it for $250. A few days after Stacey entered into a contract with Nancy, the latter increased her fees to $400. By this time, Jessica was not interested in entering into a contract with Stacey anymore. Stacey can seek to be compensated on the basis of a _____. A. quasi-contract B. part performance C. reliance interest D. compensatory damages
C
Stella buys a car from Marble Sales for $10,000 on credit. Joel's daughter likes the car and so Joel buys the car from Stella. Joel also agrees to pay the balance due to Marble Sales, on behalf of Stella. Joel defaults. Marble Sales can bring a suit for breach of contract against: A. Stella only. B. Joel only. C. Stella and Joel. D. Joel and his daughter.
C
The Electronic Signatures in Global and National Commerce Act (E-Sign): A. invalidates agreements between parties conducting transactions by electronic means. B. states that electronic transactions on subjects covered by the statute of frauds require an additional writing. C. overrides state laws that are inconsistent with the UETA. D. creates barriers to e-commerce by invalidating electronic records and digital signatures
C
The statute of frauds was created in 1677 in what country? A. United States of America B. Germany C. England D. Russia
C
When is a person's duty to perform discharged on grounds of impossibility? A. When a substitute is available B. When there is a delay in the delivery of goods C. In the presence of supervening illegality D. A promisee's dissatisfaction with the performance
C
When the consideration given in exchange for the collateral promise is something the guarantor seeks primarily for his own benefit rather than for the benefit of the primary debtor, the contract: A. is the opposite of an original contract. B. is considered void. C. is outside the statute of frauds. D. needs to be in writing.
C
Which of the following characterizes assignability? A. An assignment is ineffective if it occurs in the present. B. Assignment is ineffective in the case of land rights. C. Assignment is ineffective when contrary to public policy. D. Assignment is mostly effective in the case of wage earners
C
Which of the following circumstances is a valid reason for the delay of a lawsuit once the statutory period is over? A. Illegality of the contract B. Change of mind of the nonbreaching party C. Minority of the nonbreaching party D. Addition of a third party
C
Which of the following is a condition subsequent? A. "I promise to do X if I succeed in getting a loan." B. "I promise to do X on the condition that the Cubs win the World Series." C. "I promise to do X unless Al Gore is elected President in 2000." D. "I promise to do X assuming that inflation stays below 3% in 1997."
C
Which of the following is also known as an implied-in-law condition since they are imposed by law rather than by agreement of the parties? A. Condition precedent B. Express condition C. Constructive condition D. Subsequent condition
C
Which of the following is subject to a "substantial performance" standard in the absence of an express condition? A. A promise to pay money B. A promise to deliver a deed C. A promise to build a house D. A promise to deliver some goods
C
Which of the following is true of assignments? A. Early common law recognized assignments. B. Contract rights have always been considered transferable. C. Article 2 of the UCC deals with assignments of rights. D. The laws regarding assignment have gradually become stricter
C
Which of the following is true of delegation? A. It requires special, formal language. B. It covers all duties stated in a contract. C. It is often confused with assignment. D. It automatically places all legal responsibilities on the delegatee.
C
Which of the following is true of the statute of frauds? A. It prevents the use of oral evidence to contradict the terms of a written contract. B. It applies to all contracts having consideration valued at $500 or more. C. It requires the independent promise to pay the debt of another to be in writing. D. It applies to all real estate leases.
C
Whose signatures are needed in order to satisfy the statute of frauds? A. Only the signatures of witnesses to the agreement are required. B. Only the signature of the party, attempting to enforce the contract, is required. C. Only the signature of the party against whom enforcement is being sought. D. Only the signature of the third party to the contract, the beneficiary, is required.
C
Winston contracts to sell a plot of land called Blackacre to Paris for $500,000. Winston breaches the contract and Paris sues him. Blackacre's reasonable market value at the time of the breach was $525,000. Paris can recover: A. nothing, for he hasn't really suffered any harm. B. nothing, because specific performance is his only remedy here. C. only $25,000. D. the entire $500,000
C
A fully "integrated" contract under the parol evidence rule is one that: A. is intended by the parties to include both goods and services. B. is intended by the parties to include several agreements. C. is intended by the parties to be a preliminary statement of their agreement. D. is intended by the parties to be the complete, final statement of their agreement.
D
A valid assignment always requires: A. consideration. B. writing. C. filing with a local court. D. an intention to assign.
D
Abel hired Carr to restore Abel's vintage car for $800. The terms of their oral agreement provided that Carr was to complete the work within 18 months. Actually, the work could be completed within one year. Can Abel insist that the work be completed within a year instead of the 18 months? A. No, because the agreement covers services with a value in excess of $500. B. No, because the agreement covers a time period in excess of one year. C. Yes, because personal service contracts are exempt from the statute of frauds. D. Yes, because the work can be completed within one year.
D
Adrienne had contracted to convey real estate to Rich. However Adrienne died before the conveyance is completed. What is the status of the parties? A. Adrienne is excused for nonperformance. B. Rich will be directed by the court to end the contract. C. Adrienne's performance was impossible. D. Rich can enforce the contract against Adrienne's estate.
D
Bing engaged Dill to perform personal services for $2,200 a month for a period of four months. The contract was entered into orally on July 1, 1984, and performance was to commence September 1, 1984. On August 10, Dill anticipatorily repudiated the contract. As a result, Bing: A. may not assign his rights to damages under the contract to a third party. B. can obtain specific performance. C. may not enforce the contract against Dill since the contract is oral. D. can immediately sue for a breach of contract.
D
Courts have held that a beneficiary's rights cannot be lost by modification or discharge. This is known as: A. assignment. B. dissociation. C. malfeasance. D. vesting.
D
Fiona owed Lutz $5,000. As the result of an unrelated transaction, Lutz owed Bing that same amount. The three parties signed an agreement that Fiona would pay Bing instead of Lutz and Lutz would be discharged from all liability. The agreement among the parties is: A. unenforceable for lack of consideration. B. voidable at Bing's option. C. an accord and satisfaction. D. a novation
D
If it is not indicated in the memorandum, where should the parties sign to make it enforceable? A. Right corner B. Left corner C. Bottom D. Any place on memorandum
D
Martha purchases a book from Just Books on credit and later sells the book to her friend, Christina. Christina in turn sells the book to David, who agrees to pay the balance to Just Books. Who is the creditor beneficiary in this exchange? A. Martha B. Christina C. David D. Just Books
D
Most states' statutes of frauds do not require land leases to be in writing unless they: A. involve more than two parties. B. are ancestral property. C. are going to be sold permanently. D. are for a year or more
D
On May 1, Dix and Wilk entered into an oral agreement by which Dix agreed to purchase a small parcel of land from Wilk for $450. Dix paid Wilk $100 as a deposit. The following day, Wilk received another offer to purchase the land for $650, the fair market value. Wilk immediately notified Dix that Wilk would not sell the land for $450. If Dix sues Wilk for specific performance, Dix will: A. prevail, because the amount of the contract was less than $500. B. prevail, because there was part performance. C. lose, because the fair market value of the land is over $500. D. lose, because the agreement was not in writing and signed by Wilk.
D
Performance under a contract must be within a reasonable time when: A. the value of the contract is high. B. one of the parties is a government agency. C. a specific time is implied in the contract. D. no time for performance is expressly stated in the contract
D
Rice contracted with Locke to build an oil refinery for Locke. The contract provided that Rice was to use United Pipe Fittings. Rice did not do so. United learned of the contract and, anticipating the order, manufactured additional fittings. United sued Locke and Rice. United is: A. entitled to recover from Rice only, because Rice breached the contract. B. entitled to recover from either Locke or Rice because it detrimentally relied on the contract. C. not entitled to recover because it is a donee beneficiary. D. not entitled to recover because it is an incidental beneficiary.
D
Sammy entered into an oral contract with Macaulay for sale of goods amounting to $900. Sammy paid the amount. But Macaulay refused to deliver the goods. Sammy thus suffered serious losses because of Macaulay's breach of contract. Sammy sued Macaulay. At the same time Macaulay took the defense under statute of frauds. Under which principle is Sammy protected? A. Tortious liability B. Vicarious liability C. Part performance D. Promissory estoppel
D
Sean made an oral promise to sell a piece of land to Sean. Sean took a huge loan from the bank by mortgaging everything he had. After taking almost half the money from Manny, Sean decides that he wants to sell the land to Jason who is offering a higher price for the property. Which of the following doctrines can Manny take recourse to in order to implement his oral contract with Sean? A. Integration B. Subsequent agreement C. Confirmatory memorandum D. Part performance
D
Smith and Benson make an oral contract for the sale of some land at a price of $500,000. After paying Smith $400,000 of the purchase price, Benson takes possession of the land. One month later, Smith wants to boot Benson off the land. His argument is that the parties' oral agreement is unenforceable under the statute of frauds. Which of the following is most correct? A. Smith is correct, because the contract is for an amount greater than $500. B. Smith is correct, because this is an oral contract for the sale of real estate. C. Smith is incorrect, because the contract is for an indefinite period of time. D. Smith is incorrect, because Benson paid part of the purchase price and took possession.
D
The "confirmatory memorandum" exception to the UCC's statute of frauds provision: A. requires that the memorandum be signed by the party to be bound. B. requires that the memorandum be sent within ten days after the contract is made. C. applies even though the memorandum does not satisfy the UCC's writing requirement. D. requires that both parties to the contract be merchants.
D
The effect of a valid delegation of duties is that it: A. discharges the delegator from any further liability. B. is an automatic novation. C. discharges the obligee from any further liability. D. appoints the delegatee to perform the delegator's duty to the obligee
D
The marriage provision in the statute of frauds is inapplicable in agreements that involve: A. post-nuptial promises. B. oral one-sided promises of marriage. C. mutual promises to marry. D. pre-nuptial promises
D
What is the law's main purpose in imposing the implied covenant of good faith and fair dealing? A. Providing adequate remedial measures to injured parties B. Punishing the breaching parties in a contract C. Encouraging litigation regarding breach of contracts D. Encouraging ethical behaviour in contracts
D
What is the term for "performs the duty under a proper delegation"? A. Obligor B. Obligee C. Delegator D. Delegatee
D
Which form of damages can have the effect of reducing the liability of the party guilty of a breach of contract? A. Incidental damages B. Consequential damages C. Liquidated damages D. Mitigated damages
D
Which of the following are also called special damages? A. Nominal damages B. Liquidated damages C. Punitive damages D. Consequential damages
D
Which of the following characterizes the statute of limitation? A. The time period fixed by the statute of limitations is uniform throughout the states. B. The recording of the contract stops the running of the statute of limitations. C. The time period fixed by the statute of limitations begins when the contract is recorded. D. The time period for oral contracts is different from that of written ones.
D
Which of the following is NOT one of the implied warranties that the assignor gives to the assignee? A. That the obligor has capacity to contract. B. That the contract is not voidable for any reason known to the assignor. C. That the assignor has good title to the rights assigned. D. That the obligor is solvent
D
Which of the following is a type of substituted contract in which the obligee agrees to discharge the original obligor and to substitute a new obligor in his/her place? A. Assignment B. Delegation C. Certification D. Novation
D
Which of the following is true of the materiality of breach? A. Courts generally adopt strict standards to determine materiality. B. The magnitude of the breach is of relatively less importance. C. There is a no concern about compensating the nonbreaching party. D. The timing of the breach is generally taken into consideration
D
Which of the following is true regarding the statute of frauds' writing requirement? A. The writing must be contained in one document. B. The writing must be signed by both parties. C. The writing must be signed by the buyer. D. The writing must indicate the parties' identities.
D
Which of the following promises is subject to a "strict performance" standard? Assume that performance of the promise is not an express condition of the promisee's duty to perform. A. A promise to build a road B. A promise to paint a house C. A promise to destroy a building D. A promise to deliver a deed
D
Which of the following transfers will generally be valid without the consent of the other parties? A. The assignment by the lessee of a lease contract where rent is a percentage of sales. B. The assignment by a purchaser of goods of the right to buy on credit without giving security. C. The assignment by an architect of a contract to design a building. D. The assignment by a patent holder of the right to receive royalties.
D
With regard to an assignment, the person to whom the right has been transferred is called the: A. obligor. B. obligee. C. assignor. D. assignee.
D
A delegator can be discharged from his/her obligation to perform his/her duty to the original promisee by a contract of novation.
false
A mortgage does not have to be written
false
All contract rights are assignable.
false
An assignee can notify the obligor of the assignment at any point of time that he/she desires
false
Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party. Yvonne does not produce the advertisement until July 6. Here, Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence
false
Anne induces Ben's consent to contract under duress. Anne later assigns her rights under the contract to Carl. Ben may assert the doctrine of duress against Anne as a ground for avoiding the contract.
false
Antiassignment clauses in contracts are not enforceable
false
Article 2 of the UCC has no parol evidence rule.
false
Bill contracts to build a building for Harvey. A few changes in the building code that were made after the contract was signed will increase Bill's costs in performing his duties. He is excused from performance under the contract
false
Damages associated with the real harm that a plaintiff in a contract case suffered is referred to as punitive damages.
false
If there is no time specified in contract by the parties, then it is presumed that performance shall be completed whenever possible.
false
In a contract for Adam to sell Carrie a steam boiler, Carrie's obligation to pay is conditioned upon her personal satisfaction with the boiler. Even though the boiler meets every mechanical test imaginable, Carrie refuses to pay because she just doesn't like the boiler for some reason. She is not obligated to pay, because the contract said that he must be personally satisfied, and a contract is a contract
false
In general, an employee who has been fired and who wants to sue for breach of contract need not do anything to limit or mitigate his damages, such as looking for another job. This would unfairly benefit an employer who has wrongfully breached a contract.
false
In order to satisfy the writing requirement of the statute of frauds, both parties must provide the entire agreement in writing.
false
In the eyes of law, breach of any contract is of equal seriousness.
false
Ms. White is contracted by Mr. Green to make her "world famous" apple pies. Ms. White has an accident, falls into a coma and the pies are not delivered to Mr. Green by the time stated in the contract. Ms. White will be considered in breach of her contract to Mr. Green
false
Once a party properly delegates a duty to the delegatee, that party is relieved of any obligation to perform the duty.
false
Parol evidence can be used to contradict the terms of a partially integrated contract.
false
Specific performance is almost never awarded in contracts for the sale of land.
false
The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.
false
The person who receives a right under a contract has obtained a delegation.
false
The power to delegate under a contract is universal right and parties may not restrict the power to delegate in the contract.
false
The statute of frauds does not cover contracts in which marriage is the consideration.
false
There cannot be subjective standards of personal taste and comfort when determining a promisee's performance.
false
There is a requirement that all contracts be in writing.
false
There is prescribed formal language that must be used to create an express condition as part of a contract.
false
the statute of frauds covers all contracts that are for an indefinite period of time.
false
According to the general rules of interpretation of contracts, ordinary words are given their general meanings and the technical ones are given their technical meaning.
true
An administrator makes an oral promise to pay the debts of the deceased. The debts amount to $60,000. This oral promise is enforceable.
true
An incidental beneficiary of a contract cannot recover under that contract
true
An oral contract within the UCC statute of frauds can be enforced without a writing only if it involves the sale of specially manufactured goods
true
Arthur and Brian have entered into a contract with an enforceable liquidated damages provision that states that Ben's recovery will be $10,000 in the event of Arthur's breach. Arthur breaches the contract. Ben loses $50,000 in consequential damages as a result. Ben's recovery is limited to $10,000.
true
If Grant promises to sell his regular season football tickets to Carson on condition that Indiana University wins the Rose Bowl, Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.
true
If the parties make an agreement that is partly printed and partly handwritten, the handwritten provisions prevail over the printed provisions in case of a conflict between them.
true
In general, ambiguities in a written agreement are resolved against the party who drafted the agreement
true
Josh acquires beneficiary rights under a contract between Sunny and James. Any modification to that contract which discharges Josh of his rights under the contract will not be enforceable by the court
true
Most states have passed statutes prohibiting or regulating a wage earner's assignment of future wages.
true
Mr. Blue wishes to sell his home to Mr. Green. The court will refuse to recognize and enforce the agreement between Mr. Blue and Mr. Green.
true
Mr. Green contracts to repair his roof with Mr. Brown. Prior to the work starting a tornado destroys Mr. Green's home. Mr. Brown fails to perform the duty on the contract, but the court will not consider Mr. Brown in breach due to impossibility
true
Mr. Green signs a memorandum of understanding with Mr. Blue to by his widgets. Mr. Green signs the last page of the memorandum by writing his initials in cursive. A court will enforce the agreement between Mr. Green and Mr. Blue.
true
Mr. Yellow agreed to pay the debt created by Mr. Blue in his contract to Mr. Green. This agreement is called a collateral contract.
true
Parol evidence can be used to resolve ambiguities in a completely integrated written contract
true
Pat promises to install granite countertops in the home at 123 Main Street that Bruce is purchasing "provided that the escrow on the sale of 123 Main Street closes." The close of escrow on the sale of 123 Main Street is a condition precedent to Pat's promise
true
Some courts allow promissory estoppel to bind parties to oral contracts that otherwise would be unenforceable under the statute of frauds.
true
The assignor impliedly warrants to the assignee that the obligor has capacity to contract.
true
The sources of assignment law today are the common law of contracts and provisions of the UCC
true
The statute of frauds applies exclusively to executory contracts
true
The substantial performance standard is more lenient than the strict performance standard of judicial contract legal interpretation
true
The term Parol Evidence means that outside conversations cannot be used to add or modify a completely integrated contract.
true
The term condition means an event that may affect a party's duty to perform under a contract.
true
The term for an individual outside of a contract but who is envisioned to be benefited by a contract is a third-party beneficiary.
true
The transfer of a right under a contract is called assignment.
true
Under the "American rule" governing successive assignments, the first assignee in time has the superior right.
true
Unless specific language indicates otherwise then an assignment of a right will be interpreted to include a delegation of duty under a contract.
true
When a person owes an unconditional duty to another, then he/she must perform it unless the performance is excused.
true
When a promisor's performance is an express condition of the promisee's duty to perform, that performance must meet a strict performance standard
true
Deborah owes a debt to Casey. Sean contracts with Deborah to pay her debt to Casey. Casey is a creditor beneficiary of the contract between Sean and Deborah.
true