Combo with BUL 17 MC and 15 others

560 terms by lacemontgomery

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McCall and Teresa enter into a contract for the distribution of McCall's produce to local restaurants for which Teresa agrees to pay. McCall transfers his right to payment under the contract to Midtown Bank. This transfer is

a. a delegation.
b. an assignment.
c. a novation.
d. prohibited.

b. an assignment.

Tanya attempts to free herself from the duties of her contract with Drew by telling Drew to find someone else to perform them. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. none of the choices.

d. none of the choices.

Fitch and Gert enter into a contract for the distribution of Fitch''s produce to local restaurants and wineries for which Fitch agrees to pay Gert. Gert transfers his right to payment under the contract to Honor Bank. This transfer is

a. a delegation.
b. an assignment.
c. an obligato.
d. prohibited.

b. an assignment.

Bret and Cory enter into a contract under which Bret agrees to sell his textbook to Cory for $60 at the end of the fall semester. Bret wants to transfer his right to payment for the book to Del. This transfer

a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.

b. may be oral or written.

Dwayne and Ewell enter into a contract for the design of an addition to Dwayne's house for which he agrees to pay Ewell. Ewell transfers his right to payment under the contract to Flex Construction Company. Flex is

a. a delegatee.
b. an assignee.
c. an obligee.
d. a prohibitee.

b. an assignee.

Nashville Harmonies Inc. and Taylor enter into a contract for Taylor to write six songs for which Nashville agrees to pay her. Taylor transfers her right to payment under the contract to Omni Entertainment Agency. In the transfer of rights, Taylor is

a. a delegator.
b. an assignor.
c. an obligor.
d. an alien.

b. an assignor.

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer

a. is prohibited.
b. may be oral or written.
c. must be implied.
d. must be in writing.

d. must be in writing.

Manny wants to transfer his right to buy $400 of pistachio nuts under a contract with Nila to Opie. To ensure that the transfer of the right is valid, Manny must

a. designate Opie as a "delegate."
b. file a notice of assignment in the public records.
c. tell Nila that he has no right and no liability under the contract.
d. none of the choices.

d. none of the choices.

Trudy and Uri enter into a contract for the sale of Trudy's house for which Uri agrees to pay her $250,000. Uri wants to transfer his right to the ownership of the house to Val, his niece. This transfer generally

a. cannot be prohibited.
b. cannot be allowed.
c. can be prevented.
d. can be circumvented.

a. cannot be prohibited.

A contract between Drill-Bit Sharpeners, Inc., and East Oil Mining Corporation contains a clause stating that any assignment is "void." This ordinarily prohibits

a. any assignment.
b. no assignment.
c. only an assignment of contract rights to personal services.
d. only an assignment that would change the obligor's risk.

a. any assignment.

Phaedra and Raul contract with Sheldon to transfer the ownership of their lake cottage to him. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. an alienation.

d. an alienation.

Commercial Shipping, Inc., and Dock Services Corporation enter into a contract under which Commercial agrees to pay Dock to load Commercial's trucks. Dock transfers its duty to load the trucks to East Harbor Transport Company. Dock is

a. a delegator.
b. an assignor.
c. a payor.
d. a righter.

a. a delegator.

Miley and Rico enter into a contract for the closing of a sale of Miley's recording studio. When Rico's schedule conflicts, he asks Oliver to perform his duties at the closing. This transfer of duties is

a. a delegation.
b. an assignment.
c. prohibited.
d. a negotiation.

a. a delegation.

Rural Development Corporation (RDC) and Sid enter into a contract for the clear-cutting of RDC's fifty-acre tract for which RDC agrees to pay Sid. Sid transfers his duty to log the tract under the contract to Timber Logging Company. Timber is

a. a delegatee.
b. an assignee.
c. an obligee.
d. a prohibitee.

a. a delegatee.

Floyd and Grady enter into a contract by which Floyd promises to deliver fer¬tilizer to Grady. Floyd subsequently transfers this duty to Hiram. Floyd is

a. a delegatee and an obligee.
b. a delegatee but not an obligee.
c. a delegator and an obligor.
d. a delegator but not an obligor.

c. a delegator and an obligor.

Reba and Sly enter into a contract by which Reba promises to deliver newly printed marketing brochures to Sly. Reba later transfers her duty under the contract to Troy. Reba is

a. a delegator and an obligor.
b. a delegator only.
c. an obligor only.
d. none of the choices.

a. a delegator and an obligor.

Parsley, a world-famous chef, signs a contract to give lessons in French cooking to Curry. Parsley wants to transfer his duties under the con¬tract to Relish, the operator of a hot dog concession. The transfer is

a. valid because the performance required is of a nonpersonal nature.
b. valid if Relish is a highly regarded vendor.
c. not valid because performance depends on Parsley's personal skills.
d. not valid if Curry does not hold Relish in high regard.

c. not valid because performance depends on Parsley's personal skills.

Ben and Ivy enter into a contract under which Ben agrees to cater Ivy's wedding in exchange for a cash down payment. The contract expressly prohibits any transfer of rights. A contract right may be transferred, however, if the transfer involves

a. a right to receive payment.
b. a right to Ben's services.
c. rights under Ivy's insurance policy against Ben's failing to perform.
d. a right whose transfer is otherwise expressly prohibited by statute.

a. a right to receive payment.

Jocasta contracts to provide lawn-mowing services to Kevin for $140 per month. Jocasta can¬not transfer this duty

a. under any circumstances.
b. without continuing to be potentially liable.
c. without Kevin's consent.
d. without paying Kevin at least one monthly fee.

b. without continuing to be potentially liable.

Fiorella and Midwest Agri-Ship, Inc., enter into a contract for Midwest to transport a silo of corn for which Fiorella agrees to pay Midwest. Due to schedule conflicts, Midwest contacts Hybrid Crop Transport Company, to which Midwest "assigns all rights under the contract." This transfer is

a. an assignment and a delegation.
b. an alienation and a negotiation.
c. an obligation and a cancelation.
d. prohibited.

a. an assignment and a delegation.

Joy and Kris enter into a contract for Kris to lay sod in Joy's yard for which she agrees to pay Kris. When Kris's schedule conflicts, she contacts Leza, to whom Kris "assigns all rights under the contract." Kris is

a. absolved of any liability under the contract.
b. in breach of the contract with Joy.
c. liable to Joy if Leza does not perform.
d. liable to Leza for inducing a prohibited contract.

c. liable to Joy if Leza does not perform.

Vernon contracts with Whitney to provide concierge services to Yerba Buena Hotel. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. a novation.

c. a third party beneficiary contract.

Lois takes out a life insurance policy with Mega Insurance Corporation that names her son, Nero, as the bene¬ficiary. This is

a. a delegation.
b. an assignment.
c. a third party incidental beneficiary contract.
d. a third party intended beneficiary contract.

d. a third party intended beneficiary contract.

Esther and Faisal agree that Esther will fix Faisal's car in exchange for his paying a preexisting debt owed by Esther to Gladys. Gladys is

a. an assignee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. a delegatee.

b. an intended beneficiary.

Jen is a third party beneficiary under a contract between Kyla and Leo. Kyla and Leo can modify or rescind their contract without Jen's consent

a. at any time.
b. at no time.
c. only after Jen's rights have vested.
d. only before Jen's rights have vested.

d. only before Jen's rights have vested.

Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. Halfway through the project, Bayside refuses to finish the job. The contract can be enforced against Bayside by

a. Clio only.
b. Clio or Dewey only.
c. Clio, Dewey, or Eagle only.
d. Clio, Dewey, Eagle, or Fresh Food.

b. Clio or Dewey only.

Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. Dewey is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.

d. an intended beneficiary.

Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. The value of Fresh Food's property will increase after Dewey's store is remodeled. Fresh Food is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.

c. an incidental beneficiary.

Bayside Construction Company enters into a contract with Clio to remodel Dewey's Home Store, using products from Eagle Building Supplies. Fresh Food Café is next to Dewey's Home Store. The remodeling is a gift from Clio to Dewey, Clio's nephew and the owner of Dewey's Home Store. Eagle will realize a profit from the sale of prod¬ucts to Bayside to remodel Dewey's store. Eagle is

a. a delegatee.
b. an assignee.
c. an incidental beneficiary.
d. an intended beneficiary.

c. an incidental beneficiary.

Dale signs a contract with Everbest Insurance Company that intentionally confers a benefit on Flo. Flo's rights under the contract will vest

a. automatically.
b. if she manifests assent to the contract or materially al¬ters her po¬si¬tion in justifiable reliance on it.
c. only if she manifests assent.
d. only if she materially alters her position in justifiable reliance.

b. if she manifests assent to the contract or materially al¬ters her po¬si¬tion in justifiable reliance on it.

Olivia contracts for the sale of this year's strawberry crop to Phoenix, with payment to go to Rural Cooperative Association. The contract reserves to Olivia and Phoenix the right to modify its terms. Rural Cooperative's right to payment is

a. not affected by the reservation.
b. subject to any change that Olivia and Phoenix make.
c. limited only if Rural Cooperative agrees to any changes.
d. terminated by the reservation.

b. subject to any change that Olivia and Phoenix make.

Heather and Genice agree that Genice can satisfy her debt to Heather by pay¬ing the money directly to Fava (to whom Heather owes a debt). The designation of this con¬tract as a third party benefi¬ciary contract is determined by the intent to benefit

a. all of the parties.
b. Heather only.
c. Genice only.
d. Fava only.

d. Fava only.

Xtra Finance Company is a creditor beneficiary in a deal that involves Yvon and Zack. Xtra, like most creditor beneficiaries, is

a. a donee beneficiary.
b. an incidental beneficiary.
c. an intended beneficiary.
d. none of the choices.

c. an intended beneficiary.

Linus and Marlena agree that Linus will fix Marlena's roof in exchange for $8,000. Linus spends half of the amount due under the contract to acquire the materials for the job from Natural Roofing Supplies. Natural Roofing is

a. a delegatee.
b. an intended beneficiary.
c. an incidental beneficiary.
d. an alien to the contract.

c. an incidental beneficiary.

George promises to repair Ford's boat dock in exchange for Efrem's promise to plant trees on George's property. This is

a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. an alienation.

c. a third party beneficiary contract.

Even-Flo Hydraulics enters into a contract to repair valves and fittings in Fiesta Company's plant. If Even-Flo breaches the contract, Fiesta can

a. do nothing but make a deal with .a different service provider.
b. do nothing but temporarily suspend operations and wait.
c. file a criminal complaint against Even-Flo.
d. sue Even-Flo for damages.

d. sue Even-Flo for damages.

Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee Stand chain. The next day, Damien tells Clarice that he has accepted a job in New York and cannot design her campaign. She files a suit against Damien. As compensatory damages, she can recover

a. $100,000.
b. $10,000.
c. $1,000.
d. $0.

b. $10,000.

Handy Hardware Store agrees to hire Ilsa for one year at a salary of $500 per week. When Handy cancels the contract, Ilsa spends $100 to obtain a similar job that pays $450 per week for a year. Ilsa is entitled to recover

a. the amount of the wages that Handy promised only.
b. the difference between the wages at the two jobs only.
c. the difference between the wages at the two jobs plus $100.
d. $100 only.

c. the difference between the wages at the two jobs plus $100.

Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer else¬where for $6,500. Pam's measure of damages is

a. $1,500 only.
b. $1,500 plus incidental damages.
c. incidental damages only.
d. $0.

b. $1,500 plus incidental damages.

Hybrid Corporation enters into a contract with Insure Service, Inc. (ISI), to obtain health insurance for Hybrid employees. If ISI breaches the contract and Hybrid is awarded compensatory damages, the purpose would be to

a. establish, as a matter of principle, that ISI acted wrongfully.
b. provide Hybrid with funds for a foreseeable loss beyond the contract.
c. provide Hybrid with funds for its loss of the bargain.
d. punish ISI and set an example to deter others from similar acts.

c. provide Hybrid with funds for its loss of the bargain.

Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside

a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.

c. the costs needed to complete construction.

Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development. If Estelle breaches the contract, Desmond's remedy would most likely be

a. a certain ratio of the amount that Estelle has in liquid funds.
b. a percentage of Estelle's unrealized profit.
c. the difference between the land's contract and market prices.
d. specific performance.

c. the difference between the land's contract and market prices.

Estelle enters into a contract to buy 132 acres from Desmond to subdivide and sell in quarter-acre lots for Country Acres, a residential development. If Desmond breaches the contract, Estelle's remedy would most likely be

a. a certain ratio of the amount that Desmond has in liquid funds.
b. a percentage of Desmond's unrealized profit.
c. the difference between the land's contract and market prices.
d. specific performance.

d. specific performance.

Development Associates (DA) agrees to buy five acres of land from Eastside Properties for $15,000. Eastside sells the acreage to Fealty Realty, and fails to go through with DA's deal on the agreed date, when the market price of the land is $17,000. DA may recover

a. $17,000.
b. $15,000.
c. $2,000.
d. $0.

c. $2,000

Mona contracts to repair a computer for NuData, Inc. (NDI). Mona knows that without the computer, NDI will lose a sale. Mona does not perform as promised. NDI files a suit against Mona. As consequential damages, NDI can recover

a. the cost of a new computer.
b. the difference between Mona's price and the actual cost of repair.
c. the loss of profit from the lost sale.
d. nothing.

c. the loss of profit from the lost sale.

Dobry Die & Mold, Inc., enters into a contract with Chet's Refitting Service to fix Dobry's precisely engineered molding equipment. If Chet's delays the repair for five days, knowing that Dobry will lose a certain percentage of profit for the delay, Dobry might be awarded consequential damages to

a. establish, as a matter of principle, that Chet's acted wrongfully.
b. provide Dobry with funds for a foreseeable loss beyond the contract.
c. provide Dobry with funds for its loss of the bargain.
d. punish Chet's and set an example to deter others from similar acts.

b. provide Dobry with funds for a foreseeable loss beyond the contract.

Rite Contractors, Inc., agrees to build a motel for Sleep Inn Corporation. The project proceeds according to plan, but before it is done, Sleep tells Rite to quit. Rite may recover

a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.

d. profits plus the costs incurred up to the time of the breach.

Lava Excavators, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Lava tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Lava can recover

a. $13,000.
b. $10,000.
c. $3,000.
d. $0.

b. $10,000.

Medical Centre enters into a contract with Local Motion Fitness Club for discounted memberships for the Centre's employees. If the Club breaches the contract and the Centre enters into a contract with KO Sports for the same service at a lower price, the Centre might be awarded nominal damages to

a. establish, as a matter of principle, that the Club acted wrongfully.
b. provide the Centre with funds for a foreseeable loss beyond the contract.
c. provide the Centre with funds for its loss of the bargain.
d. punish the Club and set an example to deter others from similar acts.

a. establish, as a matter of principle, that the Club acted wrongfully.

Pure Oil Company enters into a contract with QuikBilt, Inc., to construct an oil pipeline to withstand specific conditions. If QuikBilt fails to meet this standard, which is construed as a breach of contract and a breach of a duty of care, Pure might be awarded punitive damages to

a. establish, as a matter of principle, that QuikBilt acted wrongfully.
b. provide Pure with funds for a foreseeable loss beyond the contract.
c. provide Pure with funds for its loss of the bargain.
d. punish QuikBilt and deter others from similar acts.

d. punish QuikBilt and deter others from similar acts.

Office Accounting, Inc., hires Perry to repair a computer on site for $400, but Perry does not show up as agreed. Office Accounting hires Raul to do the job for $350. Office Accounting may recover from Perry

a. compensatory damages.
b. consequential damages.
c. nominal damages.
d. punitive damages.

c. nominal damages.

Bret contracts to work for City Construction Corporation (CCC) dur¬ing July for $4,500. On June 30, CCC cancels the contract. Bret declines a similar job with Downtown Builders, Inc., which would have paid $4,000. Bret files a suit against CCC. As compensatory damages, Bret can recover

a. $4,500.
b. $4,000.
c. $500.
d. $0.

c. $500.

Fashion Retail Center enters into a contract with Great Promotions, Inc., to provide Fashion with a plan to retool its merchandising strategy. If Great Promotions breaches the contract, Fashion has a duty to

a. reduce the damages that Fashion might otherwise suffer.
b. reduce the loss that Great Promotions might otherwise suffer.
c. punish Great Promotions and deter others from similar acts.
d. take no action.

a. reduce the damages that Fashion might otherwise suffer.

Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to

a. avoid reletting the premises to recover damages from Ray.
b. make reasonable efforts to relet the premises to mitigate dam¬ages.
c. relet the premises to recover damages from Ray.
d. sell the premises to recover damages from Ray.

b. make reasonable efforts to relet the premises to mitigate dam¬ages.

Kris contracts to work exclusively for Little Manufacturing Company during May for $5,000. On April 30, Little cancels the contract. Kris finds another job dur¬ing May but earns only $3,000. Kris files a suit against Little. As compen¬satory damages, Kris can recover

a. $3,000.
b. $2,000.
c. $1,000.
d. $0.

b. $2,000.

Earl holds 1,000 pounds of perishable fruit in storage for Fresh Food Corpo¬ration. Fresh Food does not pay for the storage. Earl sells the fruit to Green Grocers, Inc. This sale represents

a. a breach of contract.
b. a mitigation of damages.
c. rescission and restitution.
d. specific performance.

b. a mitigation of damages.

Rig Heli-Pads, Inc., enters into a contract to employ Scott as an on-site project manager for two years. If Rig breaches the contract, Scott has a duty to

a. do nothing.
b. reduce the damages that Scott might otherwise suffer.
c. rescind the contract with Rig.
d. punish Rig and set an example to deter others from similar acts.

b. reduce the damages that Scott might otherwise suffer.

Mikayla enters into a contract with Logan to provide surface material for Mikayla's tennis courts by April 1 for a tournament to begin May 1. The contract specifies an amount to be paid if the contract is breached. This is a liquidated damages clause if the amount is

a. an excessive estimate of the loss on a breach.
b. a reasonable estimate of the loss on a breach.
c. designed to penalize the breaching party.
d. intended to quickly provide cash to the nonbreaching party.

b. a reasonable estimate of the loss on a breach.

Drew contracts to sell a residential duplex to Evan. The contract pro¬vides that if Drew does not close the deal by September 15, he must pay Evan one-half of the contract price. This provision is not enforceable be¬cause it is

a. a liquidated damages clause.
b. a mitigation clause.
c. a nominal damages clause.
d. a penalty clause.

d. a penalty clause.

Home Delivery Corporation and Interstate Transport, Inc., sign an agree¬ment that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to esti¬mate but approximately $1,000." This is

a. a liquidated damages clause.
b. a mitigation of damages clause.
c. a nominal damages clause.
d. a penalty clause.

a. a liquidated damages clause.

Rural Utility, Inc., enters into a contract with Shovel Excavation Service to dig up, replace, and rebury Rural's cables in a certain location. Rural advances Shovel 10 percent of its cost. If the parties rescind the contract, Shovel's refund of the payment would be

a. a penalty.
b. liquidated damages.
c. restitution.
d. specific performance.

b. liquidated damages.

Lou and Mira want to rescind their contract under which Lou sold an MP3 player to Mira for $50. To rescind the contract

a. Lou must return the $50 and Mira must return the player.
b. Lou must return the $50 only.
c. Mira must return the player only.
d. the parties can keep the "benefits" of their bargain.

a. Lou must return the $50 and Mira must return the player.

Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek

a. damages.
b. reformation.
c. rescission.
d. specific performance.

d. specific performance.

Grady enters into a contract to buy 440 acres from Hollis to expand Grady's ranch. If Hollis breaches the contract, Grady's normal remedy would be

a. damages.
b. quasi contract.
c. reformation.
d. specific performance.

d. specific performance.

Dino hires Eve to perform at Dino's Club, but Eve later breaches the agreement to accept a higher-paying job at First Star Arena. Dino files a suit against Eve. The court will most likely

a. award damages to Dino.
b. cancel Dino and Eve's contract.
c. order Eve to perform the contract.
d. reform Dino and Eve's contract.

a. award damages to Dino.

Refined Commodities, Inc., agrees to deliver ten tons of sheet metal to Select Builders Corporation. The agreement states that delivery is to be within "3" days, although the parties intend "30" days. Refined cannot convince Select to amend the contract. Refined should seek

a. damages.
b. reformation.
c. rescission.
d. specific performance.

b. reformation.

Karson orally agrees to pay Jaime to plant and harvest a quarter of Karson's farm acreage for four corn-planting seasons. After Jaime prepares the land and plants the first crop, Karson says that their deal is off. Jaime can most likely recover

a. in quasi contract.
b. in reformation.
c. in restitution.
d. on the parties' existing contract.

a. in quasi contract.

A contract between E-Debits, Inc., and First Credit Corporation includes a provision excluding liability as a result of fraud. This provision is

a. enforceable because the parties are protected from liability.
b. enforceable because the parties consented to it.
c. enforceable if the parties have equal bargaining power.
d. not enforceable.

d. not enforceable.

Creekside Property Corporation enters into a contract with Downstream Management Associates to manage and maintain Creekside's apartment complex. Their contract provides that neither party can recover damages for a non-fraudulent or unintentional breach. This is

a. a limitation-of-liability clause.
b. an exculpatory clause.
c. an illegal clause.
d. a quasi contract.

a. a limitation-of-liability clause.

To avoid liability for intentional injuries, Vermont Power Corporation in¬cludes in its contracts an exculpatory clause. This is

a. enforceable if the other parties are protected from liability.
b. enforceable if the other parties consent to it.
c. enforceable if the other parties have equal bargaining power.
d. not enforceable.

d. not enforceable.

Lark enters into a contract to mine gravel in Milena's quarry, sell it, and share the profits on its sale with Milena. If the duties under this con¬tract are discharged like those under most contracts, the duties will be

a. repudiated.
b. breached.
c. performed.
d. rescinded.

c. performed

Dylan enters into a contract to manage the operations of Cash's account¬ing office for one year, renewable for subsequent one-year terms. If this contract is discharged like most contracts, it will be

a. canceled.
b. compromised.
c. altered.
d. performed.

d. performed.

Belle enters into a contract to subdivide and sell housing lots in Cole's hillside field if Dell City annexes the property within the next year. Belle's duty to perform is

a. absolute.
b. conditional.
c. illusional.
d. irresolute.

b. conditional.

Daphne agrees to buy Eduardo's Chef's Table restaurant on the condi¬tion that Financial Credit Company approves the financing. This ap¬proval is

a. a concurrent condition.
b. a condition precedent.
c. a condition subsequent.
d. a condition conjectural.

b. a condition precedent.

Tia signs a lease that states that any change in the zoning law that af¬fects the lease will cause its termination. Union City's zoning board adopts a new zoning classification that affects the lease. This adoption satis¬fies

a. no condition.
b. the condition precedent.
c. the concurrent condition.
d. the condition subsequent.

d. the condition subsequent.

Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his busi¬ness license. Yummy's duty to perform is

a. absolute.
b. conditional.
c. licentious.
d. operational.

b. conditional.

Jill contracts to sell Ken her MP3 player for $50. This contract will be fully discharged when Jill and Ken

a. agree to sign a bill of sale.
b. exchange the player for the $50.
c. sign a receipt.
d. shake hands and go their separate ways.

b. exchange the player for the $50.

Candy enters into a contract under which she agrees to pay Dino for a business survey and review of her competitors. Dino agrees to deliver the survey by July 1. Candy's offer, on July 1, to pay Dino is

a. complete.
b. substantial.
c. tender.
d. tough.

c. tender.

Eton and Fiona sign a contract by which Eton agrees to deliver a wash¬ing machine on July 31 in exchange for Fiona's promise to pay the $500 pur¬chase price on July 31. The delivery of the washing machine and the payment of $500 are ex¬amples of

a. conditions precedent.
b. concurrent conditions.
c. conditions subsequent.
d. speculative conditions.

b. concurrent conditions.

Lake Port Services enters into a contract to load Max's Great Lakes barges with the cargo that Max designates. Lake Port's offer to perform, when Lake Port is ready, willing, able to do so, is

a. tandem.
b. tonnage.
c. tender.
d. tinder.

c. tender.

Safe-T Guard Services enters into a contract to secure Taylor's Business Park from vandalism and theft between 6 P.M. and 6 A.M. nightly for six months. At the end of the term, if there has been no vandalism or theft in the Park, Safe-T's performance will have been

a. absolute.
b. complete.
c. conditional.
d. substantial.

b. complete.

Even-Bilt Construction contracts to build a warehouse for Discount Sales Mart. Even-Bilt completely performs. Discount Sales is entitled to

a. an accord.
b. rescission.
c. damages.
d. nothing more.

d. nothing more.

Red's Plumbing Service substantially performs its contract with Shady Grove Condominiums, Inc. Shady Grove is entitled to

a. damages.
b. nothing more.
c. repudiation.
d. alteration.

a. damages.

Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., which plans to open Eat Up Restaurant in that location. If BRI completes most of the work promised in the contract, its performance will be

a. absolute.
b. complete.
c. material.
d. substantial.

d. substantial.

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Kip's late attempt to fix the roof is most likely

a. a material breach.
b. complete performance.
c. excused by Lacy's refusal to make further payments.
d. substantial, but not complete, performance.

a. a material breach.

Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Lacy's refusal to make further payments is most likely

a. a material breach.
b. complete performance.
c. excused by Kip's failure to fix the roof.
d. substantial, but not complete, performance.

c. excused by Kip's failure to fix the roof.

Mutual Company enters into a contract to employ Neil as an investment man¬ager for two years. During the first year, Neil is often absent without explana¬tion and when present fails to adequately monitor and manage Mutual's investments. Neil's performance is most likely

a. a material breach.
b. a minor breach.
c. Mutual's breach.
d. no breach.

a. a material breach.

Mutual Company enters into a contract to employ Neil as an investment man¬ager for two years. During the first year, Neil is often absent without explana¬tion and when present fails to adequately monitor and manage Mutual's investments. With respect to Mutual's duties, Neil's per¬formance most likely

a. discharges Mutual from the contract.
b. has no effect on Mutual's performance.
c. increases Mutual's duties under the contract.
d. suspends Mutual's duty to perform.

a. discharges Mutual from the contract.

Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. Under the circumstances, with respect to damages, Chris can

a. bring an action immediately.
b. bring an action only after the contract's two-year term begins.
c. bring an action only after the contract's two-year term ends.
d. do nothing

a. bring an action immediately.

Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris. Bell's repudiation is most likely

a. a material breach.
b. a minor breach.
c. Chris's breach.
d. no breach.

a. a material breach.

Solid Toolmakers, Inc., contracts to sell its business to Titan Hardware Corpo¬ration. Before either party has performed, rescission of this con¬tract requires

a. a mutual agreement to rescind.
b. consideration.
c. performance by all of the parties.
d. an accord and satisfaction.

a. a mutual agreement to rescind.

Jane and Kelly want Lucy to replace Kelly as a party to their con¬tract. They can best accomplish this by

a. a mutual agreement to rescind.
b. an accord and satisfaction.
c. a novation.
d. an alteration of the contract.

c. a novation.

Quito contracts with Rewind Graphix, Inc., to pay $5,000 for its work on the animated film "Song." After Rewind performs, they sign an accord, in which Quito promises to pay $4,000 within ten days instead of $5,000 later. But Quito does not pay. Rewind can sue Quito

a. under no circumstances.
b. on the accord only.
c. on the accord or the original obligation.
d. on the original obligation only.

c. on the accord or the original obligation.

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. Through no fault of Eve's Farm & Garden, a fire de¬stroys the apples before they are delivered. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.

b. discharged.

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. Evelyn dies before the apples are delivered to Hill & Dale. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.

c. not affected.

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. A strike delays delivery of the apples by ten days. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.

d. suspended.

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. When bad weather destroys Eve's Farm & Garden's apple crop, the obliga¬tion to deliver apples to Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.

b. discharged.

Evelyn, who owns and operates Eve's Farm & Garden Company, agrees to sell Hill & Dale Produce, Inc., fifty bush¬els of apples. When the market price for apples exceeds the price in the contract with Hill & Dale, Evelyn decides not to deliver the apples. The contract with Hill & Dale is

a. breached.
b. discharged.
c. not affected.
d. suspended.

a. breached.

Clyde contracts with Deephole Excavation, Inc., to dig an agricultural pond on his farm. Deephole is to keep the excavated gravel in payment. Clyde's neighbor Earl challenges the dig as an illegal gravel pit. A court orders the digging to stop. Clyde's contract with Deephole is

a. breached.
b. discharged.
c. not affected.
d. suspended.

b. discharged.

Best Construction, Inc., contracts to build a store for Cheesy Pizza Company, with Cheesy's payment due on June 1. On June 1, Cheesy's bank is closed, and for this reason, Cheesy claims it cannot pay Best on time. In this situation

a. Cheesy's bank is in breach of contract.
b. Cheesy is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.

b. Cheesy is in breach of contract.

On April 1, OK Contractors, Inc., contracts to build a store for Lo-Cost Jewelers at a specific location in Metro City. On May 1, Metro changes its zoning laws to prohibit the construction of a commercial building at that location. When the store is not built, Lo-Cost files a suit against OK. In this situation

a. OK is in breach of contract.
b. Metro is in breach of contract.
c. the contract is discharged.
d. the contract is suspended

c. the contract is discharged.

Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract. Flo's estate

a. is discharged from any contractual liability.
b. must find a competent accountant to fulfill the contract.
c. must pay liquidated damages.
d. must refund any money paid to Flo on the contract.

a. is discharged from any contractual liability.

Blueberry Café signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 per¬cent. Blueberry's best argument for avoiding payment to County Credit is that

a. performance of the contract is commercially impracticable.
b. payment of the loan would force the debtor into bankruptcy.
c. the law has rendered performance of the contract illegal.
d. the specific subject matter of the contract has been destroyed.

c. the law has rendered performance of the contract illegal.

Sam contracts to harvest Tina's crop on August 1. Due to an unexpected regional fuel shortage, Sam cannot perform on the specified date. This

a. breaches the contract.
b. discharges the contract.
c. has no effect on the contract.
d. suspends the contract.

d. suspends the contract.

Frank agrees to lease an apart¬ment from Gena for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is can¬celed ten days before its date. Frank's con¬tract with Gena

a. is discharged.
b. is not affected.
c. is postponed until another event is scheduled.
d. must be performed immediately.

a. is discharged

Lyra induces Moe to enter into a contract for the sale of an apartment about which Lyra fraudulently misrepresents a number of material facts. Lyra tells Moe that her commission is 6 percent, but their signed, written contract states "12 percent." The Statute of Frauds governs

a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.

b. contracts that must be in writing to be enforceable.

Crestview Properties. Inc., and Deft Investment Corporation enter into a con¬tract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at

a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any price.

d. any price

Timber, Inc., and Wood Corporation enter into an oral contract for the sale of a lumber mill and the land on which it is situated from Timber to Wood. Under the Statute of Frauds, this contract is enforceable by

a. the seller.
b. the buyer.
c. any interested third party, such as the mortgagee or title company.
d. none of the choices.

d. none of the choices.

Stuffed Fauna, Inc., and Taxidermy Storage Company enter into a long-term lease for a warehouse. To be enforceable, the lease

a. must be in writ¬ing.
b. must be in writ¬ing only if the lease is valued at $500 or more.
c. must be in writing only if the lease is for longer than one year.
d. need not be in writing.

a. must be in writing.

Kirk Custodial Service and Green Energy Company enter into an oral contract under which Kirk agrees to provide custodial service for Green's facilities for two years. This contract is en¬forceable by

a. Kirk.
b. Green.
c. any interested third party, such as a janitorial supplies provider.
d. none of the choices.

d. none of the choices.

Garden & Yard Landscaping enters into an oral contract with Penelope under which she agrees to work on a Garden & Yard project on Valley Country Club's golf course for sixteen months. The con¬tract is enforceable by

a. Garden & Yard.
b. Penelope.
c. any interested third party, such as Valley Country Club.
d. none of the choices.
Q

d. none of the choices.

Cody and Debora enter into an oral contract under which Cody agrees to work on Debora's ranch for not less than ten days. This contract is enforce¬able by

a. Cody only.
b. Debora only.
c. either party.
d. neither party.

c. either party.

Ewald and First Star Company enter into an oral contract under which Ewald agrees to pro¬vide delivery service for First Star for nine months. This con¬tract is enforceable by

a. Ewald only.
b. either party.
c. First Star only.
d. neither party.

b. either party.

Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any per¬sonal benefit from the agreement. This contract is enforceable by

a. any party.
b. Jiffy only.
c. Jiffy or Kyle.
d. none of the parties.

d. none of the parties.

Natalie agrees to assume Orina's debt to Consumer Credit Corporation. Natalie does not get any personal benefit for the agreement. To be enforceable, the prom¬ise must be in writing if the debt is for

a. more than $500.
b. more than $5,000.
c. more than $50,000.
d. any amount.

d. any amount.

Fitch agrees to assume Gandy's debt to Hybrid Seed Corporation. Fitch does not get any personal benefit for the agreement. To be enforceable, the prom¬ise

a. must be in writ¬ing.
b. must be in writ¬ing only if the debt is valued at $500 or more.
c. must be in writing only if the debt will not be repaid within one year.
d. need not be in writing.

a. must be in writ¬ing.

Delta, Inc., agrees to assume a debt of Evenflo Company to First State Bank. The agreement is not in writing. To be enforceable, the promise must be for the benefit of

a. any party.
b. Delta.
c. Evenflo.
d. First State.

b. Delta.

Reel Graphics, Inc., agrees to assume a debt of Suave Marketing Company to Town Credit Union. This promise is for Reel's benefit. To be enforceable, the promise

a. must be in writ¬ing.
b. must be in writ¬ing only if the debt is valued at $500 or more.
c. must be in writing only if the debt will not be repaid within one year.
d. need not be in writing.

d. need not be in writing.

Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers

a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.

b. the apartment lease and the car purchase only.

Pablo and Melia enter into an oral contract for Pablo's sale to Melia of a laptop computer for $400. Assuming the terms can be proved, the con¬tract is enforceable by

a. the seller or the buyer.
b. the manufacturer of the laptop.
c. any third party who overheard the parties making the agreement.
d. none of the choices.

a. the seller or the buyer.

Lem buys a used MP3 player for $50 and a new laptop for $1,500, and signs a one-year employment contract for a $4,000 monthly salary to start at the beginning of the next month. The Statute of Frauds covers

a. the employment contract, and the laptop and MP3 purchases.
b. the employment contract and the laptop purchase only.
c. the employment contract only.
d. the laptop and MP3 purchases only.

b. the employment contract and the laptop purchase only.

Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $300 worth of digital music from E-Music.com. To be enforceable, the contract that must be in writing is the purchase of

a. the digital music, the MP3 player, and the speakers.
b. the MP3 player and the speakers only.
c. the MP3 player only.
d. the speakers only.

d. the speakers only.

Ollie buys a cup of coffee for $2, a magazine for $5, and a cellphone for $600. The requirement of a writing for the enforceability of a contract for a sale of goods at a certain price or more is governed by

a. the common law.
b. the parol evidence rule.
c. the parties' agreement.
d. the Uniform Commercial Code.

d. the Uniform Commercial Code.

Little's Video Store and Major TV Sales Corporation enter into an oral contract for Major's sale to Little's of eighteen DVD players for $80 each. After Little's takes possession of the players, but before it makes payment, this contract is

a. enforceable only if it is in writing.
b. enforceable only if it is oral.
c. enforceable whether it is oral or in writing.
d. not enforceable.

c. enforceable whether it is oral or in writing.

Beta Grocers orders by phone twenty cartons of canned beets from Carotene Food Packers, Inc. After ten cartons are delivered and accepted, Beta repudiates the contract. Carotene can enforce the contract to

a. any extent because the order was placed orally.
b. no extent because the order was placed orally.
c. the extent of the ten accepted cartons.
d. the extent of the twenty ordered cartons.

c. the extent of the ten accepted cartons.

Mei orally promises Nester that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by

a. the seller or the buyer.
b. the marina where the trawler is docked.
c. the state in which the trawler is located.
d. none of the choices.

d. none of the choices.

Nori files a suit against Mica to enforce an oral contract for the sale of lakeshore property that would otherwise be unenforceable under the Statute of Frauds. The court could enforce the deal if

a. Nori foreseeably and justifiably relied on Mica's promise to her detriment.
b. Mica denies the existence of any contract.
c. neither party has begun to perform.
d. the deal does not involve customized goods.

a. Nori foreseeably and justifiably relied on Mica's promise to her detriment.

Uri and Vicky orally agree on the sale of Uri's Nite Club to Vicky and note terms on a pair of the Club's napkins, which they both sign. A written memorandum evidencing an oral contract that would otherwise be unenforceable must contain

a. every term.
b. the essential terms.
c. the preliminary terms.
d. the qualitative terms.

b. the essential terms.

Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's letterhead stationery, which only Theo signs. This agreement is most likely enforceable against

a. neither Theo nor Uma.
b. Theo and Uma.
c. Theo only.
d. Uma only.

c. Theo only.

Chocolate Bites, Inc., and Delite Distribution, Inc., sign a written con¬tract for a sale of goods. To be enforceable, this written contract must include

a. a correct title, such as "Purchase Order" or "Sales Invoice."
b. a declaration of the subject matter.
c. a quantity term.
d. the parties' names.

c. a quantity term.

Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho's letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay. The transaction between Macho and NFC falls within the Statute of Frauds'

a. collateral-promise provision.
b. one-year rule.
c. sales-of-goods stipulation.
d. secondary-contracts section.

b. one-year rule.

Macho Marketing, Inc., and Nacho Food Corporation (NFC) discuss the terms of a contract. Macho faxes NFC a memo on Macho's letterhead that summarizes the items on which they agree, including a two-year term. NFC begins to perform, but Macho refuses to pay. NFC begins to perform, but Macro refuses to pay. Between Macho and NFC, the memo is

a. an oral contract.
b. a pre-contract.
c. a written contract.
d. no contract.

c. a written contract.

Chloe files a suit against Digital Consultants, Inc. (DCI), to enforce a con¬tract. The only written evidence of the contract is a memo in DCI's files written on DCI's let¬terhead and signed by a DCI officer. The con¬tract can be en¬forced if the memo includes

a. a correct title, such as "Chloe-DCI Contract."
b. all essential terms.
c. a statement of the consideration.
d. the parties' addresses.

b. all essential terms.

Sid induces Ty to enter into a contract for the sale of a warehouse about which Sid fraudulently misrepresents a number of material facts. Sid also tells Ty that his commission is 6 percent, but their signed, written contract states "12 percent." The parol evidence rule governs

a. contracts that are induced by fraud.
b. contracts that must be in writing to be enforceable.
c. the admissibility in court of oral evidence.
d. the reformation of oral and written statements into one contract.

c. the admissibility in court of oral evidence.

Kelly and Lucas sign a written contract for the sale of Kelly's Coffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. Lucas later disputes some of the provisions of the deal with Kelly. If the dispute results in litigation, a court will most likely exclude evidence that

a. buttresses the written terms.
b. contradicts the written terms.
c. duplicates the written terms.
d. reinforces the written terms.

b. contradicts the written terms.

Kelly and Lucas sign a written contract for the sale of Kelly's Coffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. The writing that Kelly and Lucas signed is

a. a completely integrated contract.
b. a conditionally integrated contract.
c. an agreeably integrated contract.
d. an obviously integrated contract.

a. a completely integrated contract.

Glen and Haj sign a written contract. Glen claims that the parties later orally agreed to modify the contract. Any oral modification is likely not enforceable if it falls under

a. the doctrine of promissory estoppel.
b. the "main purpose" exception.
c. the "partial performance" exception.
d. the Statute of Frauds.

d. the Statute of Frauds.

Ginamarie files a suit against Gaming Innovators Unlimited, Inc., to enforce a written con¬tract between the parties. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove

a. an orally agreed-on condition precedent.
b. terms discussed orally before the contract but not contained in it.
c. terms discussed orally at the time of the contract that contradict the written terms.
d. nothing.

a. an orally agreed-on condition precedent.

Odell and Poppy sign a contract for the sale of Odell's Pizza Parlor to Poppy. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Poppy will negotiate a final price. Poppy later disputes some of the provisions of the deal with Odell. If the dispute results in litigation, a court will most likely admit evidence of

a. ambiguous additional terms.
b. consistent additional terms.
c. contradictory additional terms.
d. fraudulent additional terms.

b. consistent additional terms.

Odell and Poppy sign a contract for the sale of Odell's Pizza Parlor to Poppy. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreement—Odell must first buy the building from Quin, after which Odell and Poppy will negotiate a final price. The writing that Odell and Poppy signed is

a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.

c. a partially integrated contract.

Lina, an employee of Manual Labor Industries (MLI), is injured in a work-related accident. Based on the diagnosis of Newt, a doctor, Lina accepts $50,000 from MLI and waives the right to future claims. Newt's diagnosis later proves to have been wrong. Newt's misdiagnosis is, in terms of its impact on Lina's agreement with MLI,

a. a mutual mistake of fact.

May is a stockbroker. Due to May's statements, Nora believes that the price of OK!, Inc., a widely traded stock, is going to in¬crease sub¬stantially. Nora buys 500 shares of OK! at $10 per share, but the price soon drops to $2. Nora can successfully recover

a. nothing.

Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Opal accepts the written offer. Opal's best argument in favor of enforcement of the contract is that

a. a bilateral mistake does not afford relief from a contract.
b. a mistake of value does not afford relief from a contract.
c. a unilateral mistake does not afford relief from a contract.
d. the price was below the prices of comparable devices.

c. a unilateral mistake does not afford relief from a contract.

Nano Corporation offers to sell a robotic device to Opal Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Opal accepts the written offer. Nano's best defense against enforcement of the contract is that Opal knew

a. a bilateral mistake supports the cancellation of a contract.
b. a mistake of value supports the cancellation of a contract.
c. a unilateral mistake supports the cancellation of a contract.
d. the price was below the prices of comparable devices.

d. the price was below the prices of comparable devices.

Dante, a popular performer, dies. His spouse Caitlin sells their house to Buck. Un¬known to Caitlin or Buck, in one of the closets is the mas¬ter recording of an unreleased album. With respect to this recording, Buck can

a. keep it because Caitlin should have known about it.
b. keep it because the sale of a house includes everything in it.
c. not keep it because there was no voluntary consent to its sale.
d. not keep it because the sale of a house includes nothing in it.

c. not keep it because there was no voluntary consent to its sale.

Metro City and Nu Hi-way Construction Company enter into a construction contract that includes six pages of detailed estimates. Later Metro, whose engineer compiled the figures, discovers that some numbers were added incorrectly, but Nu refuses to make changes. Metro may

a. not rescind the contract.
b. rescind the contract on the basis of fraud.
c. rescind the contract on the basis of mistake.
d. rescind the contract on the basis of economic duress.

c. rescind the contract on the basis of mistake.

Business Investment Company and Chic Properties, Inc., contract for the sale of a retail mall. A mutual mistake of fact will make it possible for ei¬ther party to rescind the contract

a. if the mistake of fact is immaterial.
b. if the mistake of fact is material.
c. under any circumstances.
d. under no circumstances.

b. if the mistake of fact is material.

Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. The parties' belief about the adjacency of the property is

a. a bilateral mistake.
b. a fraudulent misrepresentation.
c. a unilateral mistake.
d. unconscionable.

a. a bilateral mistake.

Grover contracts to sell two tracts of land to Hank. Both parties believe that the two tracts are adjacent, but in fact they are not. Grover is still willing to sell the land, but under these circumstances the deal would adversely affect Hank. Because of the parties' belief about the adjacency of the property, their contract is

a. unavoidable.
b. unconscionable.
c. unenforceable.
d. voidable.

d. voidable.

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