BUS 300 Final: ch 6

Which of the following statements indicates a material breach of contract? A. A party falls beneath substantial performance and does not have a lawful excuse for that failure. B. Complete performance is not achieved because of minor deviations from the agreed-upon performance. C. Before performance is due, a party indicates by word or deed that she or he will not perform. D. A party performs that tasks and completes the contract.

A. A party falls beneath substantial performance and does not have a lawful excuse for that failure.

Which of the following kinds of contracts must be in writing to be enforceable? A. A contract to construct a building on one's own land B. Mutual exchange of marriage promises C. Promises that can be performed within a year D. A promise by an executor where the payment comes from his or her personal funds

D. A promise by an executor where the payment comes from his or her personal funds

_________ are agreements that are so thoroughly one-sided that fairness precludes enforcing them. A. Yellow dog contracts B. Quasi-contracts C. Voidable contracts D. Unconscionable contracts

D. Unconscionable contracts

Which of the following statements is true of the implied-in-law conditions? A. The court imposes these conditions on the contract to avoid unfairness. B. They are often prefaced by words such as when, if, and provided. C. They are derived by the court from the conduct of the parties and circumstances surrounding the bargain. D. The parties have no binding duties until the specified event occurs.

A. The court imposes these conditions on the contract to avoid unfairness.

Sometimes genuine assent is not secured and a contract may be rescinded because one of the parties is forced to agree, for fear of harm. The legal defense available in this situation is ______. A. duress B. undue influence C. fraud D. mistake

A. duress

_________ refers to the bargained-for legal value that one party agrees to pay or provide to secure the promise of another. A. Discharge B. Consideration C. Agreement D. Reformation

B. Consideration

Jim makes an agreement to play live music at Rusty's Tavern every Thursday night. Last Thursday, he had the flu and hence could not go to Rusty's. What can be concluded about the agreement with respect to Jim's conditions? A. His performance can be excused due to a condition precedent. B. His performance can be excused due to a condition subsequent. C. His absence should be penalized because personal service contracts are never excused. D. His absence should be penalized because there was a non material breach of contract.

B. His performance can be excused due to a condition subsequent.

Meg, who is on the lookout for a temporary security officer, approaches a security agency. The agency sends one of its reserve security officers to guard Meg's commercial building. Which of the following types of contracts does Meg enter into with the security agency? A. Bilateral contract B. Implied-in-fact contract C. Unilateral contract D. Quasi contract

B. Implied-in-fact contract

Which of the following is true of the Uniform Commercial Code (UCC)? A. It governs contracts for services B. It covers cars, clothing, and appliances C. It regulates transactions not involving the sale of goods.

B. It covers cars, clothing, and appliances

Which of the following is true of the conditions concurrent clause? A. Each performance is independent. B. It specifies that the parties are to perform their duties at the same time. C. An event must occur before the parties are obliged to perform. D. It excuses performance if a future event transpires.

B. It specifies that the parties are to perform their duties at the same time.

________is an equitable remedy that permits the court to rewrite a contract where is imperfectly expressed the parties' true intentions. A. Assignment B. Reformation C. Injunction D. Rescission

B. Reformation

Which of the following statements is true of incidental beneficiaries? A. Often a second party receives benefit from a contract. B. The benefit received was not the contracting parties' primary purpose or intent. C. The primary purpose in entering a contract is to make a gift to another. D. The beneficiary can sue the contracting party for payment.

B. The benefit received was not the contracting parties' primary purpose or intent.

A contract is labeled ________until all parties fully perform. A. anticipatory B. executory C. contributory D. declaratory

B. executory

The doctrine of ________ states that a promisor is stopped from denying the existence of a contract where a promisee has detrimentally relied on that promise. A. ultra vires B. promissory estoppel C. substantial performance D. promissory note

B. promissory estoppel

A person offers a $100 reward to anyone who finds his lost dog. This is an example of a(n)______ contract. A. bilateral B. unilateral C. express D. implied-in-fact

B. unilateral

Identify the clause that specifies that an event must occur before the parties to a contract are obliged to perform. A. An express conditions clause B. A conditions concurrent clause C. A conditions precedent clause D. An implied conditions clause

C. A conditions precedent clause

Which of the following is true of consideration? A. It is the universally accepted legal value that a party agrees to pay to another. B. It is always settled in terms of tangible goods. C. It consists of a legal detriment to the promisee that is bargained for by the promisor. D. It is received by a promisee from a promisor.

C. It consists of a legal detriment to the promisee that is bargained for by the promisor.

Which of the following refers to the term blue laws? A. They are laws forbidding the practice of certain professions without a license. B. They are laws forbidding usury. C. They are laws forbidding the conduct of certain kinds of business on Sundays. D. They are laws forbidding gambling.

C. They are laws forbidding the conduct of certain kinds of business on Sundays.

Which of the following exceptional circumstances admits parole evidence? A. To prove circumstances that would validate a written contract B. To delete terms from a complete written contract C. To explain ambiguities in a written contract D. To infer the terms of a contract in a one-sided manner

C. To explain ambiguities in a written contract

Intentional untruths constitute _______. A. misrepresentation B. falsification C. fraud D. mistake

C. fraud

A court order that may either require or forbid a party to perform a specified act is a(n) ________. A. rescission B. reformation C. injunction D. quasi-contract

C. injunction

When an offeror promises to keep an offer open for a specified period and, in return, the offeree pays consideration, the parties have created a(n)_____contract. A. voidable B. void C. option D. unenforceable

C. option

Problems of unconscionability often arise in situations in which: A. a contract to commit a crime or a tort is illegal and unenforceable. B. the contract, if enforced, would not be in the best interest of the public. C. the bargaining power of one of the parties is much superior to the other. D. a party participates in any potentially hazardous activity.

C. the bargaining power of one of the parties is much superior to the other.

Which of the following types of contracts refers to those entered by minors who have the option, under the law, of either disaffirming or fulfilling most contacts? A. Unenforceable contracts B. Void contracts C. Unconscionable contracts D. Voidable contracts

D. Voidable contracts

Legally enforceable contracts must exhibit _____, which means parties must have the legal ability to enter the contract; that is, they must be sane, sober, and of legal age. A. genuineness of an asset B. consideration C. legality D. capacity

D. capacity

When a promisee's primary purpose in entering a contract is to make a gift to another, that third party is a(n)______ of the contract. A. incidental beneficiary B. contingent beneficiary C. creditor beneficiary D. donee beneficiary

D. donee beneficiary

If a mentally incompetent person is unable to understand the purpose and effect of a contract but has not been legally adjudged insane, _______. A. the competent party has an absolute right to rescind the contract B. the contract would not be voidable at the option of the impaired party C. the contract would not be void at the option of the impaired party D. the impaired party would have to pay the reasonable value of any necessaries received under the contract

D. the impaired party would have to pay the reasonable value of any necessaries received under the contract

Skye, who is unaware of Nathan's mental incompetency, enters into an agreement with Nathan to paint her house. Skye does not know Nathan has been adjudged insane by a court of law and therefore is angry at him for not finishing the work on time. This agreement is an example of a(n)________contract. A. voidable B. option C. enforceable D. void

D. void