Contract law chapters 14,15,16 test
If performance of a contract is not substantial there is a material breach which excuses the non-breaching party from performance A. True B. False
A. True
Intent to deceive is an element of fraud. A. True B. False
A. True
Persuasion that induces a person to act according to the will of a dominant party is undue influence A. True B. False
A. True
The most common way to terminate contractual duties is by performance A. True B. False
A. True
The first element of proving fraud is to show that the innocent party is not easily fooled. A. True B. False
B. False
Security company enters into a contract with town apartments to deliver and install an alarm system for a certain price. Both parties perform the acts as promised. The contract A. Conditioned B. Terminated C. Executed D. Suspended
B. Terminated
Eugene, an accountant, convinces his client Faye to enter into a contract to invest her savings in Gathering, a non-existent social media site. There is clear and convincing evidence that Faye did not act out of her free will. This is A. Fraudulent Misrepresentation B. Undue influence C. Mistake D. Duress
B. Undue Influence
Car Lot's salesperson Dirk offers to sell Espy, who is twenty years old, a car. Dirk intentionally misrepresents the vehicle's use and repairs. In reliance, Espy buys the car. To prove fraud, Espy does _not_ have to show that A. Dick intentionally deceived Ernie B. Dick is misrepresented material facts C. Ernie is under twenty one D. Ernie justifiably relied on dicks misrepresentations
C. Ernie is under twenty one
One made by a third party to assume the debts or obligations of a primary party to a contract if that party does not perform
Collateral Promise
Concurrent Conditions
Conditions that must occur or be performed at the same time they are mutually dependent
Discharge by breach
Material Breach Anticipatory Breach
Discharge by agreement
Mutual Recession Novation Accord and Satisfaction
Undue Influence
Persuasion that is less than actual force but more than advice and that induces a person to act according to the will or purposes of the dominating party. This lacks voluntary consent and is voidable
A rule of contracts under which a court will not receive into evidence prior or contemporaneous external agreements that contradict the terms of the parties written contract
The Parol evidence rule
Performance
The fulfillment of one's duties under a contract—the normal way of discharging one's contractual obligations.
Anything less than complete performance is a material breach contract A. True B. False
True
The one year rule
Contracts that cannot, by their own terms, be performed within one year from the day after the contract is formed must be in writing to be enforceable.
Exceptions to the parol evidence rule
1. Contracts subsequently modified 2. Voidable or void contracts 3.Contracts containing ambiguous terms 4. Incomplete contracts 5. Prior dealing, course of performance, or usage of trade 6. Contracts subject to an orally agreed-on condition precedent 7. Contracts with an obvious or gross clerical
The following types of contracts that require a writing
1. contracts involving interests in land 2. contracts that cannot be their terms be performed within one year from the day after the date of formation 3. Collateral, or secondary, contracts, such as promises to answer for the debt or duty of another 4. Promises made in consideration of marriage 5. Under the Uniform Commercial Code, contracts for the sale of goods priced at $500 or more
Discharge by operation of law
1. material alteration of contract 2. statutes of limitations 3. bankruptcy 4. impossibility of performance
Condition Subsequent
A condition in a contract that if it occurs operates to terminate a partys absolute promise to perform
Condition Precedent
A condition in a contract that must be met before a partys promise becomes absolute
Bilateral Mistake
A mistake that occurs when both parties to a contract are mistaken about the same material fact.
Unilateral Mistake
A mistake that occurs when one party to a contract is mistaken as to a material fact
Condition
A qualification, provision, or clause in a contractual agreement, the occurrence or nonoccurrence of which creates, suspends, or terminates the obligations of the contracting parties.
Bottling Company enters into a contract with Chug's Brewery to provide certain bottling and delivery services. Before Bottling starts to work, the market price rises for the fuel for glass ovens. Bottling tells Chug's that due to the added cost it will not perform their deal. Bottling's contractual obligation to Chug's is A. Breached B. Discharged C. Rescinded D. Suspended
A. Breached
Moe threatens physical harm to force niki to contract to pay him for protecting her restaurant pasta plates, from vandalism. Most likely Niki may A. Rescind the contract or refuse to comply with its terms B. Do nothing once she has agreed to pay C. Recover from her insuerer for the cost D. Recover from the local police for their failure to protect her store
A. Rescind the contract or refuse to comply with its terms
Tender
An unconditional offer to perform an obligation by a person who is ready, willing, and able to do so.
Committed by one party making it unmistakably clear that he will not honor the contract
Anticipatory breach
Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit A. Must be filed within ten to twenty, depending on state law B. Can no longer be brought C. Can file within four years after kelly decides to sue D. Must be filed between four and five years after kelly decides to sue
B. Can no longer be brought
You fail to perform your side of the contract. Other party is discharged from performing.
Breach
Discharge by performance
Complete Substantial
Inez hires Josh to paint her portrait to her satisfaction for $4,000. When Josh finishes the portrait, Inez announces that she is not satisfied with it. Inez A. Must pay josh the contract price B. Must pay josh half of the contract C. Must pay josh only the cost of his material D. Does not have to pay josh
D. Does not have to pay josh
Bram, a salesperson for Cruisin' Motors, promises Dot a certain car will give her a "smooth ride." Bram offers a test drive, which Dot declines. She buys the car but soon realizes its suspension is in poor condition. Dot can rescind the contract on the ground of A. The salespersons fraudulent misrepresentation B. The car makers undue influence C. The buyers mistake D. None of the choices
D. none of the choices
Duress
Forcing a party to enter a contract under the fear of a threat for instance, the threat of violence of serious economic loss. The party forced to enter the contract can rescind the contract.
A state statute that requires certain types of contracts to be in writing to be enforceable
Statute of Frauds
A party that substantially performs its obligations will receive the full contract price, minus the value of any defects
Substantial Performance
Novation
Substitutes a third party for one of the original parties
Discharge
The termination of an obligation, such as occurs when the parties to a contract have fully performed their contractual obligations
UCC
Uniform commercial code
Knowledge of and genuine assent to the terms of a contract
Voluntary Consent
A statue of limitations, limits the amount of damages that the non-breaching party can obtain for a breach A. True B. False
B. False
Any contract can be discharged by agreement of the parties A. True B. False
A. True
Any contract can be discharged by agreement of the parties A. True B. False
A. True
Contractual obligations will be discharged when the specific subject matter of the contract is destroyed A. True B. False
A. True
Generally, a unilateral mistake does not give the mistaken party any right to relief from the contract. A. True B. False
A. True
Anticipatory breach
An action by a party indicating that the party will not perform a contractual obligation
Beryl enters into a contract with Clay for a guided tour of Deep Canyon. Clay represents that he is an experienced, knowledgeable guide, when in reality he has never been in the canyon. Most likely, Beryl A. Could exert duress to obtain a new guide B. Can rescind the deal based on fraudulent misrepresentation C. Might recover damages for the mistake D. Must comply with the contract because the representation is an opinion
B. Can rescind the deal based on fraudulent misrepresentation
East Bay Café orders seafood from Fresh Catch Company. Fresh places the goods at East's disposal. Fresh's performance under the contract is A. Conditional B. Complete C. Material D. Substantial
B. Complete
Subjective impossibility of performance can discharge a contract A. True B. False
False
When an anticipatory breach occurs it is treated as a material breach of a contract A. True B. False
True