LEGS 3010 Exam 3

True or False: Discharge by operation of the law occurs when a party fails to substantially perform his obligations, thereby justifying that the non-breaching party be discharged from the contract

False (Discharge by material breach)

True or False: Express conditions are implied in the contract

False (explicitly stated)

True or False: A breach occurs when a party completely performs their obligations under the contract

False (fails to perform their obligations)

True or False: Quasi-contracts are sometimes called expressed-in-law contracts

False (implied-in-law contracts)

True or False: Concealment involves the past hiding of the truth about a material fact

False (involves active hiding)

True or False: A contract needs to be in writing to be enforceable if it can be performed possibly in a year

False (it does not need a writing)

True or False: Persons suffering from a mental illness or deficiency may have full legal capacity to enter into a binding contract in all cases

False (may have full, limited, or no legal capacity depending on the nature and extent of their mental deficiency)

True or False: For purposes determining capacity, intoxicated persons include those under the influence of alcohol only

False (or drugs)

True or False: Past consideration is consideration

False (past consideration is no consideration at all)

True or False: The court consider adequacy of consideration in every case

False (the court seldom considers adequacy)

True or False: There is dispute between the parties in a liquidated debt

False (there is no dispute)

True or False: an innocent misrepresentation is a false statement about a fact material to an agreement that the person who made the statement believed to be false

False (they believed to be true)

True or False: The courts tend to be sympathetic to intoxicants

False (they tend to be unsympathetic)

True or False: Prenuptial agreement is an agreement involving one party

False (two parties)

True or False: A void contract is one that contains all the legal elements of a contract

False (valid)

Primary obligations are debts entered into in an initial contract

True

True or False: A contract is voidable if one or both parties can either withdraw from the contract or enforce it

True

True or False: A debt must be unliquidated for an accord and satisfaction to be enforceable along with two other requirements

True

True or False: Another name for incapacity is incompetence

True

True or False: Another word for rescinded is canceled

True

True or False: For a promise to be enforced by the courts, there must be consideration

True

True or False: If one party has no way of knowing that the other was intoxicated at the time the agreement was made, and the agreement is a fair one, it will be upheld by most courts

True

True or False: The circumstances in which the statute of frauds applies include: marriage, year, land, executor, goods, suretyship (MY LEGS)

True

True or False: The main purpose rule says if the main purpose for incurring a secondary obligation is to obtain personal benefit, the promise not fall within the statute and need not be in writing

True

True or False: The two types of impossibility include objective and subjective

True

True or False: There are 3 conditions that must be met for the courts to find an implies contract

True

True or False: To understand the requirement for a finding of a fraudulent misrepresentation, you must first find an intent to deceive and a false statement about a past or existing fact that is material to the contract

True

True or False: Unilateral contract are a promise exchanged for an act

True

True or False: discharge by performance is when parties discharge their obligations by doing what they respectively agreed to do under the terms of the contract

True

True or False: negligent misrepresentation results when the party making the statement would have know the truth about the fact haad he used reasonable care to discover or reveal it

True

What type of condition includes when an event that must occur or an action that must be taken before a party's duty arises a. condition precedent b. condition subsequent c. concurrent conditions

a. condition precedent

_______ is what a person will receive in return for performing a contract obligation a. consideration b. contract c. compensation d. promise

a. consideration

What is a promise or set of promises for the breach of which the law gives a remedy or the performance of which the law in some way recognizes a duty? (or a set of legally enforceable promises) a. contract b. agreement c. offer d. acceptance

a. contract

What occurs when a minor's parents or legal guardians give up their right to legal control over the minor a. incapacity b. emancipation c. capacity d. disaffirming a contract

b. emancipation

A contract that arises not from words of agreement but from the conduct of the parties is a ______ contract. a. express b. implied c. oral d. applied

b. implied

What is an example of a contract containing a condition precedent a. lawsuit b. insurance contract c. housing contract d. auto contract

b. insurance contract

In a bilateral contract a promisor makes _____ and the promisee makes ______. a. promise, act b. promise, promise c. act, promise d. act, act

b. promise, promise

Mistakes can be all of the following except a. unilateral b. mutual c. ambiguous

c. ambiguous

Which of the following is not a method of discharging a contract a. discharge by conditions b. discharge by performance c. discharge by dispute d. discharge by mutual agreement

c. discharge by dispute

What occurs when, after reaching the age of majority, the person states, either orally or in writing, that he or she intends to be bound by the contract entered as a minor a. implied ratification b. emancipation c. express ratification d. disaffirmance of the contract

c. express ratification

Which circumstance in which the statute of fraud applies means contracts for the sale of goods totaling more than $500 a. year b. land c. goods d. suretyship

c. goods

These are all exceptions to the preexisting-duty rule EXCEPT a. unforeseen circumstances b. additional work c. illusory promise d. UCC- sale of goods

c. illusory promise

_____ is defined as situation in which a party appears to commit to something but really has not committed to anything. It is not a promise and thus not consideration. a. consideration b. promissory estoppel c. illusory promise d. past consideration

c. illusory promise

The 3 I's of Incapacity include all but which of the following a. infancy b. insanity c. intolerable d. intoxication

c. intolerable

In what kind of a breach is the non-breaching party discharged from their obligations under the contract a. complete b. substantial c. material d. implied

c. material

An untruthful assertion by one of the parties about a material fact is a ______. a. error b. mistake c. misrepresentation d. emancipation

c. misrepresentation

Promises to pay a debt that are within the statute of fraud include all except a. secondary promise b. collateral promise c. prenuptial promise d. surety promise

c. prenuptial promise

Which of the following is not a main purpose of statute of frauds a. ease contractual negotiations b. prevent unreliable oral evidence c. punish those that committed fraud d. prevent parties from entering into contracts that they do not agree with

c. punish those that committed fraud

A contract for a necessary is a contract that supplies the minor with the basic necessities of life, generally thought of as all but what a. food b. clothing c. school d. shelter

c. school

All of the following are conditions that must be met for a promissory estoppel EXCEPT a. one party makes a promise knowing the other party will rely on it b. the other party does rely on the promise c. the other party does not rely on the promise d. the only way to avoid injustice is to enforce the promise

c. the other party does not rely on the promise

All of the following conditions would permit a court to invalidate a contract on ground of unilateral mistake Except a. one party made a mistake about a material fact b. the mistake was cause by a clerical error c. two parties kept important information d. the mistake was so serious that the contract is unconscionable

c. two parties kept important information

Which of the following is a defense to a contract? a. lack of genuine assent b. lack of proper form c. lack of consideration d. a and b

d. a and b

Once sober, an intoxicant has the ability to ____ the contract a. ratify b. disaffirm c. dispute d. a or b

d. a or b

For a mutual mistake to interfere with legal consent, it must involve a. a basic assumption about the subject matter of the contract b. a material effect on the agreement c. an adverse effect on a party that did not agree to bear the risk of mistake at the time of the agreement d. all of the above

d. all of the above

What is considered part of land under the statute of frauds a. soil itself on the land b. anything attached to the land c. trees and and buildings on the land d. all of the above

d. all of the above

When is a prenuptial agreement made a. when a child wants to be emancipated b. when making a promise to pay a party back c. when signing a contract d. before marriage

d. before marriage

Which type of contract is common defined as a promise in exchange for another promise? a. unilateral b. formal c. disclosed d. bilateral

d. bilateral

What are the two primary types of performance a. complete and express b. express and implied c. substantial and implied d. complete and substantial

d. complete and substantial

Which of the following is not one of the four elements of an agreement? a. consideration b. contractual capacity c. agreement d. three parties involved e. legal object

d. three parties involved

All of the following are a major obstacle to genuine assent EXCEPT a. mistake b. misrepresentation c. undue influence d. duress e. all of these are examples

e. all of these are examples