Study questions: Unit 3 Contracts and the UCC; Chap 13
10. "Scrivener's error" is another (fancier) name for a typo. a. True b. False
True
5. Any ambiguity in a contract is interpreted against the party who drafted the contract. a. True b. False
True
7. Some contracting parties are intentionally vague in contract terms. a. True b. False
True
9. In the case of a typo, a court will reform a contract if there is clear and convincing evidence that the alleged mistake does not actually reflect the true intent of the parties. a. True b. False
True
17. If the subject of the contract includes issues that may be controversial or "touchy," it is best to a. keep lawyers out of the negotiation, so relationships are not strained. b. deal with them up front before the relationship becomes strained. c. deal with them one at a time, as the problems arise. d. state your position up front and stand firm when the other party objects.
b
30. Which of the following is generally NOT in the introductory paragraph of a contract? a. The date of the contract b. The covenants of the contract c. The parties to the contract d. The nature of the contract
b
31. An honest effort to meet both the spirit and letter of the contract is termed a. reasonable circumstances. b. sole discretion. c. honest representation. d. good faith.
d
18. When one party to a contract fails to perform as promised, it is called a. litigation. b. breach. c. liquidated damages. d. bad faith.
B
21. Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called a. boilerroom. b. boilerplate. c. boilerpot. d. boilertape.
B
19. Contract provisions that are enforceable independently are referred to as a. covenantal promises. b. conditional promises. c. reciprocal promises. d. material promises.
C
25. 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. A complete agreement clause b. A "no additional terms" clause c. An integration clause d. A severability clause
C
1. If you have an established relationship with a buyer, you can sell small tracts of land without a written contract. a. True b. False
False
11. Contracts must use formal terminology such as "whereas" and "heretofore" in order to be legal. a. True b. False
False
12. A contract's title need not be descriptive; the title "AGREEMENT" is sufficient. a. True b. False
False
13. The legal term for a promise in a contract is "provision." a. True b. False
False
2. In business law, a lawyer's primary job is to represent the client in contract litigation. a. True b. False
False
3. Lawyers prefer to negotiate touchy subjects as they arise rather than address them at the beginning of a relationship. a. True b. False
False
4. It is unethical to use your lawyer as an excuse for a provision of a contract, such as, "My lawyer insists that I have a liquidated damages clause..." a. True b. False
False
6. Emily runs a children's clothing boutique which takes in local homemade items on a consignment basis. Her standard form contract indicates that Emily has the right to put items on sale without prior approval, but does not specify what effect the sale has on the consignor's payment percentage. Her intent is to keep the same profit she would have had without the sale. She is using ambiguity in her contract to increase her sales and profit. a. True b. False
False
8. Ambiguities in contracts are always interpreted in favor of the side that wrote the contract, since they are the ones who know what the provision is supposed to mean. a. True b. False
False
14. When a party to a contract intentionally makes the terms of a contract unclear, it is called a. vagueness. b. duress. c. ambiguity. d. a mistake.
a
16. In the case of scrivener's errors, a court will usually a. reform the contract if it is clear that the mistake is not what the parties intended. b. instruct the parties to rewrite the contract without the errors. c. enforce the contract as written. d. throw out the contract completely.
a
22. 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
28. 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. reform the contract. b. rescind the contract. c. issue a warranty. d. issue a covenant.
a
15. 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. whether or not the agreement falls within the Statute of Frauds b. the complexity of the agreement c. the length of time covered by the agreement d. the relationship between the two parties
c
20. Statements of fact about the past and present are called a. provisions and terms. b. promises and covenants. c. representations and warranties. d. damages and remedies.
c
23. In a contract modification, the phrase "charged with such amendment" refers to a. the party who suggested the change. b. the party who will benefit from the change. c. the party who will be adversely affected by the change. d. the party who did NOT suggest the change.
c
24. Bob, a house painter, contracts with Ollie to paint a rental house which Ollie owns. Bob hires Rob to take his place as the painter on this contract. What has Bob done? a. Made a scrivener's error b. Severed the contract c. Delegated his duties d. Assigned his rights
c
26. What is a force majeure event? a. any action that makes the contract unprofitable for either party b. any finding in a contract that shows a provision was deliberately left unclear c. a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract d. any happening that fulfills one of the conditions in the contract, making it enforceable
c
27. 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. c. A+ Modeling Agency's lawyer. d. Sandi's lawyer.
c
29. When a provision in a contract is unclear by accident, it is a case of a. vagueness. b. mistake. c. ambiguity. d. condition.
c