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