Written Contracts
Contracts that cannot be performed within __________ are unenforceable unless they are in writing.
A one month
B six months
C one year
D two years
C one year
Lawrence took out a life insurance policy in which his daughter, Madeline, is named as a beneficiary. Madeline is
A a promisor.
B an obligor.
C an intentional beneficiary.
D an incidental beneficiary.
C an intentional beneficiary.
M & E contracted to sell 500 music stands to Coda, Inc. M & E shipped the stands in accordance with the agreement. Coda paid for the stands as promised. The contract between M & E and Coda is discharged by
A full performance.
B agreement.
C rescission.
D accord and satisfaction.
A full performance.
Specific performance may be available for the breach of a contract to sell
A an original painting.
B 20 shares of Walmart stock.
C a Nintendo Wii video game system.
D a 2007 Mustang in mint condition.
A an original painting.
A severability provision
A rescinds the entire contract upon request of the party who drafted it.
B transfers benefits under a contract to another person.
C asks the court to delete the offending clause and enforce the rest of the contract.
D transfers the obligations of a contract to another party.
C asks the court to delete the offending clause and enforce the rest of the contract.
Which of the following would suffice for a signature on a writing under the Statute of Frauds?
A a stamped signature
B a handwritten signature
C a name keyed at the bottom of an e-mail
D Any of these would suffice. Judges define “signature” very broadly.
D Any of these would suffice. Judges define “signature” very broadly.
Martina hired Alexander to renovate her home and specifies that Alexander use Spiffy Painting for all the painting because of Spiffy's excellent reputation. In this case, Spiffy is a(n)
A creditor beneficiary.
B incidental beneficiary.
C intended beneficiary.
D debtor beneficiary.
B incidental beneficiary.
Teresa tells her son Noah that she will give him her car when she finds a new job, provided that he get all As in his classes this semester. Teresa's finding a new job is __________, and Noah's grades are __________.
A a condition precedent; a condition precedent
B a condition subsequent; not a condition
C not a condition; a condition precedent
D a condition subsequent; a condition subsequent
A a condition precedent; a condition precedent
A contract clause which specifies the amount of damages to be paid in the event of a breach is called
A a covenant of damages clause.
B a reliance interest of damages clause.
C a liquidated damages clause.
D an incidental damages clause.
C a liquidated damages clause.
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 reform the contract if it is clear that the mistake is not what the parties intended.
A legal right that an owner gives to another person to make some use of the owner's land is called
A a deed.
B a mortgage.
C an easement.
D a lease.
C an easement.
The status of a third party is determined by
A the type of contract.
B whether the third party gave consideration.
C the reasonable expectations of the third party.
D the intent of the contracting parties.
D the intent of the contracting parties.
Jackie hires Charles to lay new carpet in her bedroom. Charles does such a bad job, that the only way to fix the carpet is to start over and relay the carpet. Which of the following best describes this situation?
A This is substantial performance. Jackie must still pay something to Charles.
B This is a material breach. Jackie must still pay something to Charles.
C This is substantial performance. Jackie owes nothing to Charles.
D This is a material breach. Jackie owes nothing to Charles.
D This is a material breach. Jackie owes nothing to Charles.
If a court awards nominal damages, it will generally
A award compensatory damages as well.
B not make a determination as to whether there has been a breach of the contract.
C award punitive damages for the intentional breach of the contract.
D award a very small amount of money.
D award a very small amount of money.
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 deal with them up front before the relationship becomes strained.
Willis and Leslie orally agree to the sale of a parcel of land for $50,000: one-half payable now as a down payment; one-half payable in 30 days at the time of closing when the title will be transferred. The buyer, Willis, is to have possession immediately. Willis pays Leslie $25,000, takes possession of the land, and starts building a house. At the time of closing, Willis has made a substantial beginning on the house. However, Leslie refuses to transfer the title, claiming the oral contract is not enforceable. This contract is
A enforceable, because the Statute of Frauds does not apply to this interest in land.
B unenforceable, because there is no writing signed by Leslie.
C enforceable, because Willis has partially performed the oral contract and made improvements on the land.
D unenforceable, because the parol evidence rule applies
C enforceable, because Willis has partially performed the oral contract and made improvements on the land.
Molly and Craig are the original parties to a contract. Craig is obligated to design a Website for Molly. They subsequently make an agreement with Eric that Eric should take the place of Craig and assume all of Craig's rights and duties under the contract. The agreement releases Craig from his obligations under the contract. This agreement is
A a novation.
B an accord and satisfaction.
C an assignment.
D a nullification.
A a novation.
Linda agrees to buy Missy's Greyhound race dog for $2,000. Linda is to deliver the money and take possession of the dog the next morning. That night, running his best race ever, the dog runs away from Missy, never to be seen again. What will be the outcome in this case?
A Linda must give $2,000 for the dog, but only if the dog was insured.
B Linda must give $2,000 for the dog, but only if Missy can find a replacement dog within a reasonable time.
C Missy must find another dog for Linda or pay her $2,000.
D Linda does not have to pay for the dog; the contract duties are discharged.
D Linda does not have to pay for the dog; the contract duties are discharged.
Carlos is hired to paint a house for $700. Before he starts, the woman who hired Carlos tells him she does not want the job done after all. Carlos finds another house-painting job that afternoon, but it pays only $500. If Carlos sues the woman for damages and is awarded $200, that amount is an example of
Correct Answer
A direct damages.
B nominal damages.
C consequential damages.
D incidental damages.
A direct damages.
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 an integration clause
Which of the following types of contracts cannot be either contradicted or supplemented by evidence of prior agreements or expressions?
Correct Answer
A integrated contracts
B incomplete contracts
C ambiguous contracts
D implied contracts
A integrated contracts
Susan took out a life insurance policy on herself, paying all of the premium payments. She named her daughter, Jessica, as the beneficiary under the policy. Jessica has not given anything in consideration for the policy. Jessica is a(n)
A donee beneficiary who has rights to enforce the policy once Susan dies.
B creditor beneficiary who has rights to enforce the policy once Susan dies.
C incidental beneficiary because Jessica did not give any consideration for the policy and therefore cannot enforce the policy even when Susan dies.
D promisor in the contract with no enforcement rights.
A donee beneficiary who has rights to enforce the policy once Susan dies.
Dana hires Paris to paint a portrait of her poodle, "Mack." The painting is to be done to Dana's personal satisfaction. Upon completion of the painting, which of the following will be true?
A Dana may refuse to accept the painting if she really does not like it.
B Dana may refuse to accept the painting only if a reasonable person would not like it.
C Dana may refuse to accept the painting if she cannot afford to pay for it.
D Dana may not refuse to accept the painting.
A Dana may refuse to accept the painting if she really does not like it.
Bob, a house builder, contracts with Ollie to build a house on Ollie's lot. The total price of the construction is $100,000, $20,000 of which will be Bob's profit. After Bob has put $10,000 worth of materials into the house, Ollie wrongfully refuses to let him finish the house. If Bob sues for damages, he will be able to collect
A $10,000.
B $20,000.
C $30,000.
D $100,000.
C $30,000.
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 a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract