Homework: Chapter 20

Bob, a house painter, contracts with Ollie to paint a rental house that Ollie owns. Bob hires Rob to take his place as the painter on this contract. What has Bob done? a. severed the contract b. delegated his duties c. assigned his rights d. made a scrivener's error

b

Marsha and Antonio make a contract in which Marsha agrees to sell Antonio an expensive and rare piece of art. In the contract, Marsha states that she has the authority to enter into an agreement with Antonio, that she owns the piece of art, and that the art is authentic and not a forgery. These statements are examples of a. riders. b. representations and warranties. c. choice of law provisions. d. covenants.

b

Nate works as a sales representative. His employment contract specifies that he cannot work for a competitor for a period of two years from employment. This is an example of a. extortion. b. ambiguity. c. vagueness. d. duress.

b

Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called a. boilerroom. b. boilerplate. c. boilertape. d. boilerpot.

b

T/F: "Scrivener's error" is another (fancier) name for a typo.

true

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising. The contract was most likely written by a. the owner of A+ Modeling Agency. b. Sandi's lawyer. c. Sandi. d. A+ Modeling Agency's lawyer.

d

An honest effort to meet both the spirit and letter of the contract is termed a. sole discretion. b. honest representation. c. reasonable circumstances. d. good faith.

d

In which of the following situations is it likely that you may NOT need a written contract? a. You are buying land from a member of your family. b. You have negotiated with the other party enough that you both know what the other person intends. c. You are dealing with a party you do not know well, so you need to remain flexible. d. The terms of the agreement are simple and the value of the transaction is small.

d

Which of the following is the best example of a contract title? a. LEASE AGREEMENT b. AGREEMENT c. CONTRACT BETWEEN LESSOR AND LESSEE d. LEASE AGREEMENT BETWEEN ALISON ALBRIGHT AND KEYSTONE PROPERTIES

d

A severability provision a. asks the court to delete the offending clause and enforce the rest of the contract. b. transfers the obligations of a contract to another party. c. transfers benefits under a contract to another person. d. rescinds the entire contract upon request of the party who drafted it.

a

If the subject of the contract includes issues that may be controversial or "touchy," it is best to a. deal with them up front before the relationship becomes strained. b. deal with them one at a time, as the problems arise. c. state your position up front and stand firm when the other party objects. d. keep lawyers out of the negotiation, so relationships are not strained.

a

In a contract modification, the phrase "charged with such amendment" refers to a. the party who will be adversely affected by the change. b. the party who did NOT suggest the change. c. the party who suggested the change. d. the party who will benefit from the change.

a

Ralph is a professional football player. He signs a valid contract with the Miami Dolphins. Later, he claims that he was also promised free use of the Dolphins' private jet, but this was not in the contract. What type of clause in his contract would prevent him from flying away with this claim? a. an integration clause b. a "no additional terms" clause c. a severability clause d. a complete agreement clause

a

Two parties are debating whether or not to put their contract into writing. In making their determination, which of the following factors would normally NOT be considered? a. the length of time covered by the agreement b. the relationship between the two parties c. whether or not the agreement falls within the Statute of Frauds d. the complexity of the agreement

a

Which of the following generally is NOT in the introductory paragraph of a contract? a. the covenants of the contract b. the date of the contract c. the nature of the contract d. the parties to the contract

a

Which of the following is a standard provision frequently found in contracts? a. choice of forum b. understanding c. choice of compensation d. mediation

a

Which of the following is one of the four steps in reading a contract? a. What-ifs b. Final approval c. Scan for typos d. Re-write with a lawyer

a

What is a force majeure event? a. any finding in a contract that shows a provision was deliberately left unclear b. a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract c. any action that makes the contract unprofitable for either party d. any happening that fulfills one of the conditions in the contract, making it enforceable

b

When a provision to a contract is accidentally unclear, it is called a. a typo. b. ambiguity. c. a scrivener's error. d. vagueness.

b

Which of the following guidelines applies to writing the title of a contract? a. It should be written in general terms, like "Memorandum of Agreement." b. It should be descriptive of the agreement and typed in all capital letters. c. It should be brief with no more than five words. d. It should be written like a sentence, with only the first letter capitalized.

b

Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage. The contract does not specify which insects are covered or how much damage is necessary to make a claim. The contract will probably be enforced in favor of a. Farmer's Fortune Insurance. b. Neither side, as it is ridiculous to try to insure against insects. c. Farmer Fran. d. Cannot determine... would have to go through litigation to decide.

c

In the case of scrivener's errors, a court will usually a. throw out the contract completely. b. enforce the contract as written. c. reform the contract if it is clear that the mistake is not what the parties intended. d. instruct the parties to rewrite the contract without the errors.

c

Provisions that a party agrees to perform only if the other side also does what it promised are called a. reciprocal promises. b. riders. c. conditional promises. d. choice of forum provisions.

c

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days. The parties negotiated and meant to say in the written agreement, delivery in 50 days. If the evidence is clear that the two parties intended to agree to 50 days, the courts will probably a. issue a warranty. b. issue a covenant. c. reform the contract. d. rescind the contract.

c

Which of the following is NOT one of the three ways to amend a written contract? a. by writing a totally new contract with the correct provisions b. by crossing out the mistakes and writing in the corrections c. by verbally agreeing to the changes and shaking hands on the deal d. by writing and signing an amendment (or rider)

c