BUA340-01 Exam #3, Part II: Ch.'s 13-16
Tyler entered into a contract with Leah to provide supplies for her business. What form can the writing of the contract take? Choose 3 answer choices. A. A check B. An invoice C. Several separate documents written over time D. An email
A. A check B. An invoice D. An email
For which of the following contracts would a court be likely to grant a remedy of specific performance? Select 2 answers. A. A contract for the sale of land B. A contract for the sale of a Picasso painting C. A contract for the sale of 100 plain white shirts D. A contract for the painting of a portrait
A. A contract for the sale of land B. A contract for the sale of a Picasso painting
What are the types of situations that may qualify as grounds for discharge due to impossibility? Choose 3 answers. A. A party to a personal contract dies or becomes incapacitated B. The subject matter of the contract becomes illegal. C. The price of the subject matter of the contract more than doubles. D. The specific subject matter of the contract is destroyed.
A. A party to a personal contract dies or becomes incapacitated B. The subject matter of the contract becomes illegal. D. The specific subject matter of the contract is destroyed.
What must be included in a contract to satisfy the requirement that it be in writing? Choose 3 answers. A. Consideration to be paid must be defined in the contract. B. All of the parties to the contract must be named in the writing. C. The subject matter of the contract must be identified. D. Both parties to the contract must have signed the writing.
A. Consideration to be paid must be defined in the contract. B. All of the parties to the contract must be named in the writing. C. The subject matter of the contract must be identified.
What legal limitations are imposed on parties to assignments and delegations? Choose 3 answers. A. Contracts that are for a service that depends on a particular skill or talent may not be delegated. B. A contract cannot prevent an assignment of the right to receive funds. C. A valid delegation of duties relieves the delegator from the obligation to perform. D. The assignee obtains only the rights that the assignor has under the contract.
A. Contracts that are for a service that depends on a particular skill or talent may not be delegated. B. A contract cannot prevent an assignment of the right to receive funds. D. The assignee obtains only the rights that the assignor has under the contract.
Which of the following third-party beneficiaries have the right to enforce a contract? Choose 2 answers. A. Creditor beneficiary B. Donee beneficiary C. Unintended beneficiary D. Incidental beneficiary
A. Creditor beneficiary B. Donee beneficiary
Which of the following elements are required to show fraudulent misrepresentation in a contract? (Select all the apply.) A. Damages B. Misrepresentation of any fact. C. Scienter D. Latent defect E. Justifiable reliance on the fact by the innocent party F. Misrepresentation of a material fact
A. Damages C. Scienter E. Justifiable reliance on the fact by the innocent party F. Misrepresentation of a material fact
Logan agrees to deliver fifty pounds of crab claws to Dominique by May 15. Dominique needs the crab claws for a wedding party that Dominique is catering on May 16, so time is of the essence of the contract. Logan contacts Dominique on May 15 and tells Dominique that the earliest Logan can deliver the crab claws is on May 17. Dominique cancels the order and quickly makes other arrangements for the wedding party she is catering. Logan then demands payment from Dominique for the full contract price, and Dominique refuses. If Logan sues Dominique for damages under the contract: A. Dominique will not have to pay because Logan breached the contract. B. Dominique will have to pay Logan the difference between what Logan was charging for the crab claws and what Dominique eventually paid. C. Dominique will have to pay, but Logan must deliver the crab claws. D. Dominique will have to pay or be in breach of contract.
A. Dominique will not have to pay because Logan breached the contract.
Evan offers to sell his 2016 John Deere Tractor to Jorge for $30,000. Jorge accepts and promises to meet Evan on Saturday to make the exchange. On Thursday, a fire on Evan's farm totally destroys the tractor. Jorge is upset, because the price of the tractor was really good, and he knows he cannot get another one for that price. If Jorge sues Evan for breach of contract, the likely result will be that: A. Evan's performance under the contract will be excused due to impossibility of performance. B. Evan will have to pay Jorge the difference between the sales price of the tractor and the price Jorge must pay to find a replacement. C. Evan must find a replacement tractor for Jorge, because the court is likely to award specific performance as a remedy. D. Evan's performance under the contract will be excused due to material alteration.
A. Evan's performance under the contract will be excused due to impossibility of performance.
What evidence outside of the written contract is a party allowed to present? Choose 2 answers choices. A. Evidence to prove agreement on an essential element of the contract B. Evidence showing an agreement that is different from the contract that the parties agreed to before the contract was signed C. Verbal negotiations leading to the signing of the contract D. Evidence showing a change to the contract after it is signed
A. Evidence to prove agreement on an essential element of the contract D. Evidence showing a change to the contract after it is signed
What must a party show to win a substantial performance lawsuit? Choose 2 answer choices. A. He or she acted in good faith. B. The breach caused no monetary damages. C. The breach was not intentional. D. There were no deviations from the contractual requirements.
A. He or she acted in good faith. C. The breach was not intentional.
What rights does a third-party beneficiary to a contract hold in regard to that contract? A. If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee. B. The third party has no rights because the third party does not have privity of contract. C. The third party has all the rights of the primary parties to the contract. D. If the third party is an incidental beneficiary, the third party has the right to become an intended beneficiary.
A. If the third party is an intended beneficiary of the contract, the third party has the right to sue either the promisor or the promisee.
Bryan owns Snow Country, a business that leases out snow cone stands. Kaylee agrees to lease one of the snow cone stands for $500 per month. Kaylee and Bryan sign a written contract that states the monthly lease amount is $5,000. When Kaylee refuses to pay the $5000 for the first month's rent, Bryan sues for breach of contract. If Kaylee tries to introduce evidence in court that shows that the amount stated in the written contract is incorrect: A. Kaylee will be allowed to introduce the evidence under the parol evidence rule. B. Kaylee will not be allowed to introduce the evidence under the parol evidence rule. C. Kaylee will only be allowed to introduce evidence under the parol evidence rule if Bryan agrees to allow it. D. Kaylee will not be allowed to introduce the evidence because oral testimony can never be introduced in court to dispute a written contract.
A. Kaylee will be allowed to introduce the evidence under the parol evidence rule.
Anwah runs an antique store that specializes in paintings and other types of artwork. Lionel visits Anwah's antique store and discovers a beautiful old painting in a gilded frame. Lionel is excited because it looks like a painting by Gomez that he saw in his art review class that is worth $5,000. Lionel asks Anwah to confirm that the painting is indeed a Gomez original. Anwah smiles and winks at him. Lionel purchases the painting from Anway for $1,500. When Lionel takes the painting to an art dealer, he discovers that the painting is not a Gomez original and is only worth $20. If Lionel tries to rescind the contract with Anwah: A. Lionel will be able to successfully rescind the contract because Anwah committed fraud. B. Lionel will be able to successfully rescind the contract because the painting was not worth as much as Lionel believed it was worth. C. Lionel will not be able to rescind the contract because Anwah did not state that the painting was indeed a Gomez original. D. Lionel will not be able to rescind the contract because a mistake of value is a not a defense to a contract.
A. Lionel will be able to successfully rescind the contract because Anwah committed fraud.
Will a valid delegation relieve the delegator from the contract? A. No, an obligee can sue either the delegatee or the delegator for non-performance. B. Yes, a delegator will never be liable after a valid delegation. C. No, but the delegator will only be liable in the event of a gross-breach. D. Yes, unless the delegator fails to notify the obligee of the delegation.
A. No, an obligee can sue either the delegatee or the delegator for non-performance.
Will a mistake in value of the subject of the contract allow a contract to be rescinded? A. No, even if both parties were mistaken. B. No, if only one party was mistaken. C. Yes, if both parties were mistaken. D. Yes, but only if the contract is for less than $250.
A. No, even if both parties were mistaken.
Kellen is selling a vehicle which has been previously been in an accident and which shows obvious damage. If he does not tell the buyer about the accident, has he committed fraudulent misrepresentation? A. No, if the buyer does not ask about the vehicle history. B. Yes, because the vehicle history is a material fact. C. No, because it would be inappropriate and not justifiable for a buyer to rely on any of his representations. D. Yes, even though the damage is obvious.
A. No, if buyer does not ask about the vehicle history.
What are the differences between legal and equitable remedies? Choose 2 answers choices. A. One is monetary. B. One attempts to assist one party and penalize or restrict the other party. C. Both attempt to reform the contract. D. One requires actions instead of damages.
A. One is monetary. D. One requires actions instead of damages.
What is required for a writing to be legally sufficient to form a contract? Choose 2 answer choices. A. The UCC requires that the quantity be included. B. The writing must be signed by both parties at the end of the document C. The UCC requires that the price be included D. The writing must provide evidence of agreement.
A. The UCC requires that the quantity be included. D. The writing must provide evidence of agreement.
Which of the following elements are required for ALL intended beneficiaries? A. The contracting parties were aware of the third-parties existence and position at the time of making the contract. B. One of the contracting parties owed a duty to the third-party. C. One of the contracting parties was making a gift to the third-party. D. One of the contracting parties is a donee.
A. The contracting parties were aware of the third-parties existence and position at the time of making the contract.
What is the result if parties agree to a contract orally, but it is a contract that must be in writing under the statute of frauds? Choose 2 answer choices. A. The parties can complete the contract. B. The contract is illegal. C. The contract is void. D. The contract is voidable.
A. The parties can complete the contract. D. The contract is voidable.
When a contract duty is legally delegated, must the obligee accept performance from the delegatee? A. Yes and the delegatee is obligated to perform as the delegator would have. B. Yes but the delgatee is not obligated to perform as the delgator would have. C. No but the delegatee must still perform fully. D. No but the delgatee should offer performance in the same manner as the delegator would have.
A. Yes and the delegatee is obligated to perform as the delegator would have.
What type of condition specifies an event that must happen before a person is obligated to perform the duties specified in the contract? A. a condition precedent B. a condition concurrent C. a condition specific D. a condition subsequent
A. a condition precedent
A donee beneficiary is: A. a third-party intended beneficiary of a contract who is not a creditor. B. a third-party incidental beneficiary of a contract who is not a creditor. C. a third-party incidental beneficiary of a contract who is also a creditor. D. a third-party intended beneficiary of a contract who is also a creditor.
A. a third-party intended beneficiary of a contract who is not a creditor.
What is the most common way that duties under a contract are discharged? A. by performance B. by proving undue influence C. breach D. frustration of purpose
A. by performance
Which of these types of contracts must be in writing under the requirements of the Statute of Frauds? Choose 3 answers. A. contracts for the sales of land B. promises made in consideration of marriage C. collateral promises to pay the debt of another person D. contracts for the sale of goods priced at $1,000 or more
A. contracts for the sales of land B. promises made in consideration of marriage C. collateral promises to pay the debt of another person
What is the standard to which most personal satisfaction contracts must adhere? Choose 2 answers. A. satisfaction of the receiving party (buyer) B. satisfaction of the performing party (seller) C. satisfaction of an expert third party D. satisfaction of a reasonable person
A. satisfaction of the receiving party (buyer) D. satisfaction of a reasonable person
Assuming there is no contract language prohibiting delegations, which of the following acts could likely be delegated? Choose 2 answers. A. the mowing of grass in a residential neighborhood to another landscaper B. painting a portrait to a lesser experienced artist C. painting the exterior of a house to another house painter D. the building of a new courthouse for the city of another contractor
A. the mowing of grass in a residential neighborhood to another landscaper C. painting the exterior of a house to another house painter
If Ramona changes her will at age 58 to leave the bulk of her fortune to her home health care nurse instead of her children, what factor will the courts consider in judging whether or not her will is valid? A. undue influence B. duress C. fraudulent misrepresentation D. mistake
A. undue influence
What are the possible remedies for a contract formed under duress? Choose 3 answer choices. A. Enforce the contract. B. Allow duress as a defense for breach of contract. C. Make the contract voidable. D. Rescind the contract.
B. Allow duress as a defense for breach of contract. C. Make the contract voidable. D. Rescind the contract.
WILL BE ON EXAM: Donna is the beneficiary on a life insurance policy for her mother. However, after a falling out, her mother changes the beneficiary on the policy to Donna's cousin. Donna's mother dies and Donna wants to sue the insurance company for non-payment on the policy. Why will she not be successful? A. She was never an intended beneficiary. B. Her rights as an intended beneficiary never vested. C. She was an incidental beneficiary. D. She is barred by a statute of limitations.
B. Her rights as an intended beneficiary never vested.
Which is NOT an exception to the parol evidence rule? A. Jayden has evidence that he and Jayden agreed to move back the boat delivery date from the original date in the contract when Jayden discovered a hole and Jignesh agreed to repair it before delivery. B. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden. C. Jayden has evidence that Jignesh misrepresented portions of the deal they made and would like to present this evidence to terminate the contract. D. Jayden wants to present evidence that Jignesh agreed to deliver the boat to Jayden before Memorial Day of next year, but the contract incorrectly states the delivery will take place before Memorial Day 2098.
B. Jayden wants to present evidence that Jignesh verbally promised he would include the trailer with the boat he sold to Jayden.
Elvis agrees to provide guitar lessons to Angela's niece for three months for $600. Angela decides her niece really is not interested in guitar lessons, and assigns her rights under the contract to Jose, so Jose can use the lessons for his daughter. When Jose contacts Elvis to set up the first guitar lesson for his daughter: A. Elvis will be obligated to provide guitar lessons to both Jose's daughter and Angela's daughter. B. Jose cannot enforce the contract against Elvis because the contract is for personal services. C. Elvis will be obligated to provide guitar lessons to Jose's daughter because this is a valid assignment. D. Jose cannot enforce the contract against Elvis, because contracts are not assignable unless they contain a clause making them assignable.
B. Jose cannot enforce the contract against Elvis because the contract is for personal services.
Midwest Life Insurance sells a life insurance policy to Thiago. Under the terms of the contract between Thiago and Midwest Life, Thiago will pay $75 per month for the policy, and, upon Thiago's death, Midwest Life will pay $100,000 to Laurelei. Four years later, Thiago dies, and Midwest refuses to pay under the terms of the policy. The party entitled to sue Midwest for its failure to honor the terms of the contract is: A. Thiago's executor, because the only party to the contract with Midwest is Thiago, and Thiago is deceased. B. Laurelei, because she is a donee beneficiary. C. Laurelei, because she is a creditor beneficiary. D. Laurelei, because she is an incidental beneficiary.
B. Laurelei, because she is a donee beneficiary.
In which of the following scenarios is a court likely to order reformation of a contract? Select 3 answers. A. Non-performance by one party B. Mutual mistake by the parties C. Fraud by one of the parties D. Clerical error in the contract
B. Mutual mistake by the parties C. Fraud by one of the parties D. Clerical error in the contract
Daphne contracts with Speedy Builders Inc. to construct a six-foot fence around her yard. Daphne's neighbor Rando is delighted because Daphne's fence will border the north side of his property. This means he can enclose the rest of his property for a much lower price. Before construction begins, however, Speedy Builders receives an offer for another, more lucrative project, and refuses to perform the contract with Daphne. Who can sue Speedy Builders for breach of contract? A. Both Daphne and Rando must join in a suit against Speedy Builders. B. Only Daphne can sue. C. Either Daphne or Rando can sue. D. Only Rando can sue.
B. Only Daphne can sue.
What must a plaintiff prove to show duress in the formation of a contract? Choose 2 answer choices. A. The defendant intended to harm the plaintiff. B. The defendant committed a wrongful or illegal act. C. The plaintiff was incapable of voluntarily agreeing to the contract. D. The plaintiff was injured or feared he or she would be injured.
B. The defendant committed a wrongful or illegal act. C. The plaintiff was incapable of voluntarily agreeing to the contract.
What are the legal differences between a material breach and an immaterial breach of contract? Choose 2 answer choices. A. The dollar amount of damages B. The level of the performance of the contractual obligations C. Whether a party has announced repudiation of the contract D. Whether the court will discharge the contract
B. The level of the performance of the contractual obligations D. Whether the court will discharge the contract
What factors must be present to prove fraudulent misrepresentation in a contract? Choose 3 answers. A. The defrauding party must have exerted undue influence on the innocent party. B. There has been an intent to deceive. C. A misrepresentation of a material fact has occurred. D. The innocent party has justifiably relied on the misrepresentation.
B. There has been an intent to deceive. C. A misrepresentation of a material fact has occurred. D. The innocent party has justifiably relied on the misrepresentation.
Frank purchases a $100,000 life insurance policy from Mutual of Omaha Insurance Co. The insured party is Frank's wife Cheryl. Frank lists Cheryl's daughter Katy as the beneficiary on the policy. Two years later, Cheryl dies, and Katy tries to collect on the insurance policy. Mutual of Omaha refuses to pay. Can Katy sue Mutual of Omaha to enforce the contract? A. No, Katy cannot sue Mutual of Omaha because Katy is an intended beneficiary. B. Yes, Katy can sue Mutual of Omaha because Katy is a donee beneficiary. C. Yes, Katy can sue Mutual of Omaha because Katy is an incidental beneficiary. D. No, only Frank can sue Mutual of Omaha because he is the promisee in the contract.
B. Yes, Katy can sue Mutual of Omaha because Katy is a donee beneficiary.
Rafael tells his friends that he wants to sell his party barge for $30,000. Rafael has some flyers made up with a picture of the party barge, a description of the features, and the price. Andre obtains one of the flyers and contacts Rafael about purchasing the party barge. Rafael draws up a contract and mistakenly lists the price of the party barge at $20,000 instead of $30,000. Rafael and Andre both sign the contract. When Andre brings $20,000 to purchase the party barge, Rafael discovers his mistake. Will Rafael be able to rescind the contract? A. No, Rafael cannot rescind the contract because it was a unilateral mistake. B. Yes, Rafael can rescind the contract even though it was a unilateral mistake. C. Yes, Rafael can rescind the contract even though it was a mutual mistake. D. No, Rafael cannot rescind the contract because it was a mutual mistake.
B. Yes, Rafael can rescind the contract even though it was a unilateral mistake.
WILL BE ON EXAM: A person was selling a home built in the 1950s. Under state law the seller was obligated to provide the buyer with a lead paint disclosure pamphlet. The seller stapled the pamphlet to the document labeled "Sales Contract" along with another document labeled "Notice of Latent Defects." Do these two additional documents qualify as a writing under the Statute of Frauds? A. No, only the sales contract is a writing. B. Yes, because they are affixed together. C. No, only the sales contract and the statutorily required pamphlet is a writing. D. No, only the sales contract and the notice of latent defects is a writing.
B. Yes, because they are affixed together.
May a writing consist of multiple separate documents? A. No, all elements of an agreement must be memorialized in one document. B. Yes, if they are attached together in some manner. C. No, except for signature pages which there may be multiple copies. D. Yes, even if the documents are not attached or connected in any way.
B. Yes, if they are attached together in some manner.
WILL BE ON EXAM: An elderly man lives with and is totally dependent on his nephew. The nephew tells his uncle that if he does not transfer $50,000 to him within one day, the nephew will no longer care for him. The uncle agrees. Can the uncle later set aside this contract? A. Yes, it was made under duress. B. Yes, it is the result of undue influence. C. No, because he had mental capacity. D. No, because there was no threat of force.
B. Yes, it is the result of undue influence.
You own a lawn care service. A new customer calls and asks that you mow and weed eat her lawn. You tell her the price will be $150 and she agrees. You show up while she is at work and get the lawn mowed and the weed eating done by the time she gets home. Unfortunately, when she gets home, you discover that you have serviced the lawn of your customer's next-door neighbor instead of hers! Do you think you have any chance of getting any money from the neighbor for the services you have provided? A. Yes, the neighbor will have to pay you the contract price because you performed the work. B. Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work. C. No, but you can collect the money from your new customer. D. No, because you did not have a contract with the neighbor.
B. Yes, the neighbor will have to pay you a reasonable price (not necessarily the contract price) for the work.
Which of the following is an intended beneficiary to a contract? A. a spouse of a beneficiary of an insurance contract B. a beneficiary of an insurance contract C. a person whose residential property value goes up as the result of a city's agreement with a commercial land developer D. the owner of a pizzeria who sells more pizza due to a convention being held nearby
B. a beneficiary of an insurance contract
Which of the following is an equitable remedy for breach of contract? A. payment of the cost of cover for items not delivered on time B. an order for specific performance C. compensatory damages for having to hire extra help to correct nonconforming goods D. punitive damages when a seller has repeatedly shipped unsafe goods
B. an order for specific performance
In January, Victor contracted with Delrita to cater a Cinco de Mayo (May 5th raised to the th power) party for 500 of his closest friends. Neither of them anticipated that their entire state would be under stay-at-home orders on May 5 due to a global pandemic. Under what principle may Victor cancel his contract with Delrita? A. time is of the essence B. frustration of purpose C. commercial impossibility D. statute of limitations
B. frustration of purpose
A party normally cannot present any evidence of which of the following if that evidence contradicts or varies the terms of the written contract? Choose 3 answers. A. conditions that must be fulfilled before the contract becomes enforceable B. oral agreements that happened at the same time as contract formation C. negotiations prior to contract formation D. agreements prior to contract formation
B. oral agreements that happened at the same time as contract formation C. negotiations prior to contract formation D. agreements prior to contract formation
What is the term for evidence of communication between parties to a contract that is not included in the contract? A. prior dealing B. parol evidence C. promissory estoppel D. incomplete contracts
B. parol evidence
What remedies are available in the case of a unilateral mistake in making a contract? Choose 2 answers. A. punitive damages B. rescission C. reformation D. enforcement
B. rescission C. reformation
An assignment is the transfer of: A. rights and duties. B. rights. C. personal obligations. D. duties.
B. rights.
A quantum meruit remedy is equivalent to: A. a reliance interest. B. the reasonable value of the agreement. C. an expectation interest. D. an equitable remedy.
B. the reasonable value of the agreement.
In determining whether a third-party is an intended or incidental beneficiary, a court may consider: (Choose 2 answers) A. whether the third party received any benefit from the contract. B. whether the party is able to control any details of the performance. C. whether the party is directly named in any party of the contract. D. the length of the contract performance before a benefit would be reached by the party.
B. whether the party is able to control any details of the performance. C. whether the party is directly named in any party of the contract.
What is the difference between a material breach and an immaterial breach? A. A material breach is one for which remedies are not spelled out in the contract, while remedies for an immaterial breach are specified. B. A material breach is one that affects more than 50% of the product of the contract. C. A material breach results in damages to non-breaching party, while an immaterial breach is minor. D. A material breach is one that makes the contract commercially impracticable for the non-breaching party.
C. A material breach results in damages to non-breaching party, while an immaterial breach is minor.
Why is a court unlikely to grant a remedy for specific performance when a contract for personal services is breached? A. Because people to perform personal services are easily found in the market place. B. Because no personal service is unique. C. Because it is tantamount to court ordered involuntary servitude. D. Because monetary damages will always be fair and equitable.
C. Because it is tantamount to court ordered involuntary servitude.
Which mistake is likely to be voidable? A. Mistake of Value B. A prediction mistake C. Bilateral mistake D. Unilateral mistake
C. Bilateral mistake
Which of these contract would be enforceable, despite the existence of a mistake? Choose 2 answer choices. A. Christopher agrees to sell his washer and dryer to Ella. Christopher overhears Ella telling her friend that she is happy she is getting such a great deal on a new washer and dryer, although Christopher knows he has used them for a year, but he does not correct her. B. Christopher agrees to sell his washer and dryer to Ella. He bought them at a yard sale and the sellers told him they were new. Ella believes they are new as well and, as a result, pays a higher price. When Ella encounters problems, a friend shows her parts that are worn. C. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead electricity, but she is incorrect. D. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use.
C. Christopher agrees to sell his washer and dryer to Ella. Ella thinks the dryer uses gas instead electricity, but she is incorrect. D. Christopher agrees to sell his washer and dryer to Ella in "as is" condition. Ella thinks the set is in excellent condition and is willing to take a chance on buying it. Neither works after a few weeks of use.
Otto orally agrees to install three wells for Green Space Energy over the next eighteen months. When the three wells are completed, Green Space Energy will pay Otto $10,000. After the first well is completed, Green Space Energy tells Otto that it does not want any more wells. Green Space Energy refuses to pay Otto for the first well, claiming that the contract was not in writing and, therefore, not enforceable. If Otto sues Green Space Energy to enforce the contract: A. Green Space Energy will not have to pay Otto anything because the contract was for real estate. B. Green Space Energy will not have to pay Otto anything, because the contract could not be completed within one year. C. Green Space Energy will have to pay Otto a reasonable price for the one well that was installed. D. Green Space Energy will have to pay Otto the full contract price because Green Space Energy breached the contract.
C. Green Space Energy will have to pay Otto a reasonable price for the one well that was installed.
Which of the following may sue on a contract, to which they are not a party? A. Both incidental and intended beneficiaries B. Incidental beneficiaries C. Intended beneficiaries D. Neither intended or incidental beneficiaries
C. Intended beneficiaries
You collect antiques and regularly travel the country looking for good deals. In your wanderings, you find an old fiddle and offer the owner $5. The owner accepts, and you take your treasure home. After you get the fiddle home and do your research on it, you discover the fiddle is actually worth $5,000. What a find! What do you think would happen if the owner tried to cancel the contract and get the fiddle back? A. Mutual mistake is not a valid defense to a contract, so the owner could not get his fiddle back. B. Mistake of value is a valid defense to a contract, so the owner could get his fiddle back. C. Mistake of value is not a valid defense to a contract, so the owner could not get his fiddle back. D. Mutual mistake is a valid defense to a contract, so the owner could get his fiddle back.
C. Mistake of value is not a valid defense to a contract, so the owner could get his fiddle back.
Would one party's mistaken belief about the law governing a contract be enough to rescind the contract? A. Yes, because it is a mistake about the law. B. No, because a mistake about the law is not factual. C. No, because it is unilateral and concerns the law. D. Yes, even if the other party had no knowledge about the mistake.
C. No, because it is unilateral and concerns the law.
WILL BE ON EXAM: Sam owns many horses, one of which needs new horseshoes. She contacts a local farrier (a person who specializes in shoeing horses) which has an outstanding reputation in the horse community, and he agrees to do the job for $150. However, he decides to take a vacation and delegate his duties to shoeing all the horses for that week to an apprentice who is also highly skilled. Will the delegation be effective without Sam's consent? A. Yes, because the apprentice is performing the same services and they are not personal in nature. B. Yes, because delegations never need the consent of the other original party. C. No, because the contract is for personal performance. D. No, because services cannot be delegated.
C. No, because the contract is for personal performance.
Which of the following is a contract right that may be assigned? A. The right to receive future worker's compensation benefits B. The right to insure a property C. Payment of $500 D. The right to receive house cleaning services
C. Payment of $500
Fred and Wilma enter into a contract for horse riding lessons. Fred accidentally types the price for lessons to be $4.00 each instead of $44.00 each. Wilma wishes to enforce the contract at $4.00 per lesson. Which remedy would be most effective? A. Specific performance B. Injunction C. Reformation D. Rescission
C. Reformation
You are surfing the internet and find a new computer game that looks pretty cool. The website asks you to read through the conditions associated with the use of the game and then click to agree to the terms. You click on the "I agree" button without reading any of the terms and then download and start using the game. The game turns out to be a lot of fun, so you make copies of it and share it with your friends. What do you think might happen if the game company accuses you of violating the terms of the agreement, because one of those terms says you cannot make copies of the game? A. The company wouldn't be happy about it, but there is nothing they can do. B. The company couldn't do anything, because you didn't know that sharing the game was against the rules, because you didn't actually read the terms of the agreement. C. The company could probably sue you for violating the agreement. D. The company couldn't do anything, because you don't have a written contract with the company.
C. The company could probably sue you for violating the agreement.
What is the result of a contract in which both parties are wrong about a material fact of the contract? A. The contract must be nullified and renegotiated. B. The contract is enforceable by both parties as both parties assumed the risk in making the contract. C. The contract is voidable. D. The contract is void.
C. The contract is voidable.
What is the test for whether a contract is governed by the Statute of Frauds because of the one-year rule? A. The contract must be able to be performed in less than one year. B. The contract start date must be more than one year from the date of signing. C. The contract must be objectively impossible to perform within one year. D. The contract must be unlikely to be performable in less than one year.
C. The contract must be objectively impossible to perform within one year.
In what situation could a party enforce strict performance? A. When one of the parties did not act in good faith B. When the parties specifically agree to it in the contract C. When the requirement is reasonable D. The plaintiff received sufficient benefit and the difference can be compensated with monetary
C. When the requirement is reasonable
A partially integrated contract means: A. the parties have failed to memorialize any of the terms of their agreement in writing. B. the parties agree to allow evidence of inconsistency as evidence in litigation. C. a contract contains only some terms, to which the parties agree but not others. D. the parties agree to allow evidence of contradictory side agreements as evidence in litigation.
C. a contract contains only some terms, to which the parties agree but not others.
Third-party beneficiaries are those who: A. are in privity of contract and benefit from it. B. are a party to a contract but do not benefit from it. C. are not party to a contract but benefit from it. D. are not a party to a contract and do not benefit from it.
C. are not a party to a contract but benefit from it.
In a contract where there was a bilateral mistake of fact: A. both parties misunderstood the value of the subject of the contract. B. one party misunderstood a word or term in the contract. C. both parties misunderstood a word or term in the contract. D. one party misunderstood the value of the subject of the contract.
C. both parties misunderstood a word or term in the contract.
Harold offers to sell Emma his farmland in Bryson County. After discussing the sale at length in front of their friends Nicole and Jackson, Harold and Emma orally agree on a price of $120,000 for the land. The next day, Emma goes to the bank and withdraws $120,000 to pay Harold for the land. When Emma presents the $120,000 to Harold, Harold tells Emma he was just joking and does not wish to sell the land. Emma tries to enforce the deal, and Harold continues to refuse by saying that the deal was not in writing, and, therefore, it is unenforceable. The contract between Harold and Emma for the sale of the land: A. is not enforceable because of the theory of promissory estoppel. B. is enforceable because it complies with the statute of frauds. C. is not enforceable because it violates the statute of frauds. D. is enforceable, because there are witnesses to the deal.
C. is not enforceable because it violates the statute of frauds.
Under the Uniform Commercial Code (UCC), which term in a written contract for the sale of goods is essential? A. the place of delivery or assumption of possession B. the price per item or the total price C. quantity of items being purchased D. the date of delivery
C. quantity of items being purchased
What is the primary purpose of the Statute of Frauds? A. defining who may testify in a dispute over a contract B. ensuring that all details of a contract are well defined C. requiring written evidence of agreements concerning important transactions D. preventing fraudulent behavior in the formation of contracts
C. requiring written evidence of agreements concerning important transactions
What is the term for when a party to a contract performs his duties exactly according to the terms of the contract? A. substantial performance B. specific performance C. strict performance D. perfect performance
C. strict performance
A misrepresentation of fact may occur in a contract, by silence, when: (Choose 2 answer) A. when the buyer is unsophisticated B. when the seller knows there is an obvious defect in a product C. the seller knows of a serious problem that the buyer is unlikely able to discover D. a party is under a duty to speak (such as a professional from whom the other party is seeking an opinion)
C. the seller knows of a serious problem that the buyer is unlikely able to discover D. a party is under a duty to speak (such as a professional from whom the other party is seeking an opinion)
Which of the following may constitute duress? Choose 2 answers. A. threatening to sue someone B. threatening to boycott a company C. threatening to physically harm someone D. threatening to financially harm someone
C. threatening to physically harm someone D. threatening to financially harm someone
Huseyin and Ashish are negotiating the details of a new garage that Ashish plans to build on Huseyin's property. They agree on the building specs, the delivery date, and a price of $25,000. Ashish draws up the contract and sends it to Huseyin to sign. Huseyin reviews the contract and notices the price is listed as $2,500 instead of $25,000. Elated at the unbelievably low price, Huseyin quickly signs the contract and sends it back to Ashish, who signs it as well. If Ashish later tries to rescind the contract due to the mistaken price: A. Ashish will be successful, because the parties made a mutual mistake. B. Ashish will not be successful, because parol evidence is not admissible to disprove the terms of a written contract. C. Ashish will not be successful, because a unilateral mistake is not a basis to rescind a contract. D. Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of.
D. Ashish will be successful, because it is a mathematical mistake that Huseyin was aware of.
Danny hires Evelyn to install a swimming pool at Danny's home for $40,000, to be completed by June 1. Evelyn completes the job on time. When Danny inspects the pool, he discovers that Evelyn used a vinyl lining, and the contract called for a fiberglass lining. Danny refuses to pay Evelyn, stating that Evelyn breached the contract because the contract was not completed according to the specifications stated in the contract. If Evelyn sues Danny for the contract price: A. Evelyn will probably receive restitution for any expenses she has incurred. B. Evelyn will probably receive the full contract price. C. Evelyn will receive nothing because performance under the contract was not complete. D. Evelyn will probably receive the contract price less the cost to replace the pool liner with a fiberglass liner.
D. Evelyn will probably receive the contract price less the cost to replace the pool liner with a fiberglass liner.
Selma wants to buy Matilda's house. Selma has been admiring the house for a long time and has asked Matilda repeatedly to sell the house to her, but Matilda has always refused. Finally, Selma tells Matilda that if Matilda does not sell Selma the house, Selma will kill Matilda's daughter. Afraid for her daughter's life, Matilda signs the contract to sell the house to Selma. If Matilda later tries to rescind the contract: A. Matilda may not rescind the contract because it has all the elements of a valid contract. B. Matilda may rescind the contract on the grounds of undue influence. C. Matilda may rescind the contract on the grounds of unconscionability. D. Matilda may rescind the contract on the grounds that she signed the contract under duress.
D. Matilda may rescind the contract on the grounds that she signed the contract under duress.
WILL BE ON EXAM: An agreement between two parties in which the parties agree that one party no longer needs to perform and instead a third party will act in their place, is called a: A. Accord. B. Satisfaction. C. Rescission. D. Novation.
D. Novation.
What is an exception to the statute of frauds? A. Contracts under the UCC B. Collateral Promises C. Contracts dealing with land D. Promissory Estoppel
D. Promissory Estoppel
How is substantial performance involved with the classification of material breaches versus immaterial breaches? A. Substantial performance can occur with either a material or an immaterial breach. B. Anticipatory repudiation determines the status of substantial performance. C. Substantial performance involves a material breach. D. Substantial performance involves an immaterial breach.
D. Substantial performance involves an immaterial breach.
WILL BE ON EXAM: Shin contracts with A1 Plumbing to fix a clogged kitchen sink. As it turns out, there is a large blockage in one of the pipes leading out of the house, which is causing water to back up all the way to the kitchen which will required digging up the pipes outside. The plumber tells Shin that it will be thousands of dollars to fix as opposed to the $150 initially quoted. Shin claims they have a written contract for A1 Plumbing to "fix the kitchen sink backup" for $150 and will not pay a penny more. Can A1 be discharged from performance? A. No, the contract is in writing and is unambiguous. B. No, because A1 Plumbing could have foreseen a bigger issue being the cause of the problem. C. Yes, because of impossibility of performance. D. Yes, because of commercial impracticability.
D. Yes, because of commercial impracticability.
Your partner wants to make sure you are well taken care of financially in the event they die, and so takes out a life insurance policy on themselves with Liberty Life, Co., naming you as beneficiary on the policy. Unfortunately, tragedy strikes and your partner dies. However, the life insurance company refuses to pay you on the policy. Do you have the right to sue them since you were not a party to the contract? A. Yes, because your partner owed you a legal duty. B. No, because you were not a party to the contract. C. No, because you do not have standing to bring a claim. D. Yes, because you are an intended beneficiary of the contract.
D. Yes, because you are an intended beneficiary of the contract.
Reformation of a contract is considered: A. a legal remedy. B. a legal and an equitable remedy. C. a quasi-remedy. D. an equitable remedy.
D. an equitable remedy.
Reginald hires Sophia to deliver pizzas for his restaurant. All goes well at first. But one night, Sophia decides to go to a concert instead of delivering pizzas. She delegates her delivery tasks to Rosemary, who accepts the delegation and agrees to deliver the pizzas. However, instead of delivering the pizzas, Rosemary takes the pizzas home to her family. At the end of the evening, Reginald has many unhappy customers, and wants to sue for breach of contract to recover the income he lost for the evening. Reginald should be able to sue: A. Rosemary only. B. neither Sophia nor Rosemary. C. Sophia only. D. both Sophia and Rosemary.
D. both Sophia and Rosemary.
Jayden is restoring a house for Jane when Hurricane Emma hits and washes out the foundations of the house. The cost for restoration has just increased by 400%. Under what principle may Jayden's obligations be excused? A. impossibility B. insurable interest C. statute of limitations D. commercial impracticability
D. commercial impracticability
Forcing a party to agree to the terms of contract through the use of threats or blackmail is called: A. adhesion. B. undue influence. C. usury. D. duress.
D. duress.
Ralph and Lydia plan to be married soon, so Ralph drafts a prenuptial agreement for them. Lydia reviews the prenuptial agreement and decides that everything looks fine. Lydia signs the prenuptial agreement electronically using Adobe E-Signature. After Ralph and Lydia have been married for two years, Ralph sues Lydia for divorce. Ralph wants to enforce the terms of the prenuptial agreement, but Lydia objects. Lydia's best argument for invalidating the prenuptial agreement is that: A. nothing; Lydia has no defense to the prenuptial agreement. B. e-signatures can only be used in shrinkwrap agreements. C. e-signatures cannot be used on legally enforceable contracts. D. e-signatures cannot be used on prenuptial agreements.
D. e-signatures cannot be used on prenuptial agreements.
When a contract has been assigned, what rights does the original contract holder (assignor) still have? A. The right to reimbursement B. The right to indemnification C. All the rights the assignor originally held D. none
D. none
Landscape Supply agrees to provide Delta Lawn Service eight pallets of sod for the price of $260 per pallet. The agreement contains the following provision: "This Agreement may not be amended or modified except by an instrument in writing signed by the party to be charged with such amendment or modification." Delta decides it now needs 160 pallets of sod, and Landscape is willing to reduce the price to $255 per pallet because of the increased amount. Delta and Landscape can accomplish this change to the contract by: A. crossing out the incorrect language and replacing it by hand with the correct terms or rewriting the entire contract to include the changed provisions. B. crossing out the incorrect language and replacing it by hand with the correct terms only. C. signing an amendment or rewriting the entire contract to include the changed provisions only. D. signing an amendment, crossing out incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
D. signing an amendment, crossing out incorrect language and replacing it by hand with the correct terms, or rewriting the entire contract to include the changed provisions.
Dora has been in a nursing home for three years and rarely has visitors. Vanita works at the nursing home and regularly takes care of Dora. Vanita and Dora have become very close, and Dora depends on Vanita to help her with decisions about her finances. Just before Dora dies, Vanita and Dora enter into a contract to sell Dora's family home to Vanita for $20,000. The home is worth $100,000. If Dora's children try to void the contract between Vanita and Dora: A. the children will not be successful in voiding the contract, because there is valid consideration and the contract is in writing. B. the children may be able to void the contract based on fraud. C. the children may be able to void the contract based on illegality. D. the children may be able to void the contract based on undue influence.
D. the children may be able to void the contract based on undue influence.
Alvin's Department Store agrees over the telephone to purchase $1,000 worth of blankets from Blanket Emporium. Blanket Emporium sends an invoice for the blankets before shipping them, and Alvin's Department Store refuses to go forward with the deal, saying their deal is not a valid contract. The oral agreement between Blanket Emporium and Alvin's Department Store for the purchase of $1,000 worth of blankets: A. does not violate the statute of frauds, and is, therefore, enforceable. B. does not violate the statute of frauds because it can be completed within one year. C. does not violate the statute of frauds because it is not for the sale of real estate. D. violates the statute of frauds, and is, therefore, unenforceable.
D. violates the statute of frauds, and is, therefore, unenforceable.
What type of contract is created by an agreement that is oral when it is required by the Statute of Frauds to be in writing? A. fraudulent B. quasi C. void D. voidable
D. voidable
Marla offers to sell Kennedy her property on Lake of the Ozarks for $90,000. Marla drafts a written agreement that contains the property description and price, and has places for both Kennedy and Marla to sign. Marla sends the agreement to Kennedy to review. Kennedy signs the agreement and sends it back to Marla, who never signs it. Marla then has second thoughts about the deal and refuses to complete the transaction. If Kennedy tries to enforce the contract against Marla, Kennedy: A. will be successful, even though Marla never signed the agreement. B. will be unsuccessful, because Kennedy signed the agreement. C. will be successful, because Kennedy signed the agreement. D. will be unsuccessful, because Marla never signed the agreement.
D. will be unsuccessful, because Marla never signed the agreement.
