BLaw test 4 T/F

The substantial performance standard is more lenient than the strict performance standard of judicial contract legal interpretation.

TRUE

The term Parol Evidence means that outside conversations cannot be used to add or modify a completely integrated contract.

TRUE

The term condition means an event that may affect a party's duty to perform under a contract.

TRUE

The traditional rule is that, when the consideration given by the adult party under a minor's contract has been lost, stolen, or dissipated, the minor can disaffirm without compensating the adult for the loss in any way.

TRUE

To encourage people to cancel illegal contracts, courts will allow a person who rescinds such a contract before any illegal act has been performed to recover any consideration that he has given.

TRUE

Under the Restatement (Second) of Contracts, intoxication will make a contract voidable if the other party has reason to know that the intoxicated person is so intoxicated that he/she cannot understand the transaction.

TRUE

Under the doctrine of unconscionability, the courts would refuse to grant the equitable remedy of specific performance for breach of contract if the contract is oppressively unfair.

TRUE

When a person owes an unconditional duty to another, then he/she must perform it unless the performance is excused.

TRUE

When a promisor's performance is an express condition of the promisee's duty to perform, that performance must meet a strict performance standard.

TRUE

Once a contract made by a minor has been effectively ratified, it cannot be affirmed.

FALSE

Ordinarily, contracts entered into by mentally impaired people are void, while contracts entered into by intoxicated people are voidable.

FALSE

Parol evidence can be used to contradict the terms of a partially integrated contract.

FALSE

A condition subsequent cannot be a valid reason for the discharge of a duty.

FALSE

A contract of adhesion is one that the courts will always enforce because of the strong public policy underlying such contract.

FALSE

A contract to commit a serious crime is a legal contract.

FALSE

A court will enforce a noncompetition clause even if its restraints are unduly burdensome either on the public or on the party whose ability to compete would be restrained.

FALSE

A minor has the right to recover property transferred to third parties. This includes even good faith purchasers.

FALSE

A mortgage does not have to be written.

FALSE

A noncompetition clause is also known as a "liability waiver."

FALSE

Andy contracts with Yvonne to produce an advertisement for a Fourth-of-July fundraising party. Yvonne does not produce the advertisement until July 6. Here, Yvonne's breach of the contract is not a material breach unless the contract explicitly stated that time is of the essence.

FALSE

Any contract that is deemed illegal is also a criminal violation.

FALSE

Article 2 of the UCC has no parol evidence rule.

FALSE

Bill contracts to build a building for Harvey. A few changes in the building code that were made after the contract was signed will increase Bill's costs in performing his duties. He is excused from performance under the contract.

FALSE

Courts provide remedy for the breach of illegal agreements.

FALSE

Courts will always enforce an exculpatory clause from a properly executed contract.

FALSE

Damages associated with the real harm that a plaintiff in a contract case suffered is referred to as punitive damages.

FALSE

Emancipation is a formal agreement in writing to terminate a parent's right to control a child and receive services from him.

FALSE

Generally, the age of majority for contracting purposes is 21 years.

FALSE

If there is no time specified in contract by the parties, then it is presumed that performance shall be completed whenever possible.

FALSE

In a contract for Adam to sell Carrie a steam boiler, Carrie's obligation to pay is conditioned upon her personal satisfaction with the boiler. Even though the boiler meets every mechanical test imaginable, Carrie refuses to pay because she just doesn't like the boiler for some reason. She is not obligated to pay, because the contract said that he must be personally satisfied, and a contract is a contract.

FALSE

In general, an employee who has been fired and who wants to sue for breach of contract need not do anything to limit or mitigate his damages, such as looking for another job. This would unfairly benefit an employer who has wrongfully breached a contract.

FALSE

In order to have any chance of being enforced, an illegal agreement must be indivisible.

FALSE

In order to satisfy the writing requirement of the statute of frauds, both parties must provide the entire agreement in writing.

FALSE

In the eyes of law, breach of any contract is of equal seriousness.

FALSE

Minors have the capacity to enter into contracts.

FALSE

Ms. White is contracted by Mr. Green to make her "world famous" apple pies. Ms. White has an accident, falls into a coma and the pies are not delivered to Mr. Green by the time stated in the contract. Ms. White will be considered in breach of her contract to Mr. Green.

FALSE

Public policy never changes and is constant for judges to rule on.

FALSE

Ratification has to be expressly made only in written form.

FALSE

Specific performance is almost never awarded in contracts for the sale of land.

FALSE

Statutes that require proof of character and skill and impose penalties for violation are considered to be revenue-raising in nature.

FALSE

The parol evidence rule blocks evidence of subsequent agreements that modify a completely integrated written contract.

FALSE

The statute of frauds covers all contracts that are for an indefinite period of time.

FALSE

The statute of frauds does not cover contracts in which marriage is the consideration.

FALSE

There cannot be subjective standards of personal taste and comfort when determining a promisee's performance.

FALSE

There is a requirement that all contracts be in writing.

FALSE

There is prescribed formal language that must be used to create an express condition as part of a contract.

FALSE

Under the theory that alcohol and drug use should not be rewarded, today most courts say that contracts made by intoxicated people are perfectly binding, no matter how severe the intoxication is.

FALSE

A contract made by a person who has been adjudicated to be insane and institutionalized or put under a guardian's care is void rather than voidable.

TRUE

A minor's contract for necessaries makes the minor liable for the reasonable value of the necessaries furnished to him.

TRUE

A person who at the time of the contract lacked capacity due to mental impairment can ratify the contract once he/she regains his/her normal mental faculties.

TRUE

A signature is sufficient to form the basis of authenticity of a written contract.

TRUE

According to the general rules of interpretation of contracts, ordinary words are given their general meanings and the technical ones are given their technical meaning.

TRUE

An accountant who substantially performs her duties to her client triggers the client's duty to pay the contract price, less any damages resulting from defects in her performance.

TRUE

An administrator makes an oral promise to pay the debts of the deceased. The debts amount to $60,000. This oral promise is enforceable.

TRUE

An agreement can be illegal even if no statute specifically states that such an agreement is illegal.

TRUE

An agreement that violates legislative and court-made rules and creates threat to public policy shall be denied enforcement on the ground of illegality.

TRUE

An agreement to divorce one's spouse is considered to be illegal.

TRUE

An exculpatory clause is a provision in a contract that purports to relieve one of the parties from tort liability.

TRUE

An individual who was intoxicated when they signed a contract can escape the contract.

TRUE

An oral contract within the UCC statute of frauds can be enforced without a writing only if it involves the sale of specially manufactured goods.

TRUE

Arthur and Brian have entered into a contract with an enforceable liquidated damages provision that states that Ben's recovery will be $10,000 in the event of Arthur's breach. Arthur breaches the contract. Ben loses $50,000 in consequential damages as a result. Ben's recovery is limited to $10,000.

TRUE

Capacity is the ability to enter into legal obligations.

TRUE

Even if both parties consent to an agreement, if a court finds the agreement illegal then it will not enforce it.

TRUE

For a noncompetition clause to be enforceable, the clause must serve a legitimate business purpose.

TRUE

If Grant promises to sell his regular season football tickets to Carson on condition that Indiana University wins the Rose Bowl, Indiana's winning the Rose Bowl is an express condition of Grant's duty to sell the tickets.

TRUE

If the parties make an agreement that is partly printed and partly handwritten, the handwritten provisions prevail over the printed provisions in case of a conflict between them.

TRUE

In general, ambiguities in a written agreement are resolved against the party who drafted the agreement.

TRUE

Minors are considered to lack capacity to contract.

TRUE

Mr. Blue wishes to sell his home to Mr. Green. The court will refuse to recognize and enforce the agreement between Mr. Blue and Mr. Green.

TRUE

Mr. Green contracts to repair his roof with Mr. Brown. Prior to the work starting a tornado destroys Mr. Green's home. Mr. Brown fails to perform the duty on the contract, but the court will not consider Mr. Brown in breach due to impossibility.

TRUE

Mr. Green signs a memorandum of understanding with Mr. Blue to by his widgets. Mr. Green signs the last page of the memorandum by writing his initials in cursive. A court will enforce the agreement between Mr. Green and Mr. Blue.

TRUE

Mr. Yellow agreed to pay the debt created by Mr. Blue in his contract to Mr. Green. This agreement is called a collateral contract.

TRUE

One example of procedural unconscionability is the use of "fine print" in stating a contractual provision.

TRUE

Ordinarily, an item is not considered to be a necessary if a parent or guardian already supplies the minor with similar items.

TRUE

Parol evidence can be used to resolve ambiguities in a completely integrated written contract.

TRUE

Pat promises to install granite countertops in the home at 123 Main Street that Bruce is purchasing "provided that the escrow on the sale of 123 Main Street closes." The close of escrow on the sale of 123 Main Street is a condition precedent to Pat's promise.

TRUE

Ratification makes a contract valid from its inception.

TRUE

Some courts allow promissory estoppel to bind parties to oral contracts that otherwise would be unenforceable under the statute of frauds.

TRUE

The Uniform Commercial Code (UCC) allows the court to modify or limit the enforcement of a provision in a contract that is found to be unconscionable.

TRUE

The origin of the policy against restrictions on competition in the market comes from common law.

TRUE

The statute of frauds applies exclusively to executory contracts.

TRUE