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50 terms

Review Test 3

TRUE OR FALSE: If a price quotation contains a mistake in the adding of a number of figures, it may not be enforceable
TRUE OR FALSE: An adult may disaffirm a contract entered into with a minor
TRUE OR FALSE: Inadequate consideration may indicate fraud, duress or undue influence
TRUE OR FALSE: To fulfill a personal service contract, the performance must personally satisfy the party to whom the performance is owed
TRUE OR FALSE: Concurrent conditions occur only when the parties to a contract are required to perform their respective duties simultaneously
TRUE OR FALSE: A party's oral agreement to pay another's debt is enforceable under any circumstances
TRUE OR FALSE: Reliance on a non-expert's statement of opinion will not normally entitle a party to relief for fraudulent misrepresentation
TRUE OR FALSE: A covenant not to compete that is part of an employment contract will generally be struck down
TRUE OR FALSE: An oral contract within the Statute of Fraud's is enforceable ONLY if the party against whom enforcement is sought admits to it in court
TRUE OR FALSE: A condition precedent must be met before a party's performance can be required
TRUE OR FALSE: Two parties can mutually agree to rescind a contract unless it is executory
TRUE OR FALSE: A minor's failure to perform an executory contract within a reasonable time after reaching the age of majority implies disaffirmances
TRUE OR FALSE: Performance that provides a party with the essential benefits of a contract, in spite of any deviation from the terms, is substantial performance
TRUE OR FALSE: To serve as a basis for an action for fraudulent misrepresentation, a misleading statement must be consciously false
TRUE OR FALSE: A contract with an unlicensed professional is always enforceable to some extent
TRUE OR FALSE: When both parties are mistaken as to the same material fact, neither party can rescind the contract
TRUE OR FALSE: A legal guardian can enter into legally binding contracts on behalf of a mentally incompetent person
TRUE OR FALSE: Extraordinary difficulties that were unforeseen at the time a contract was formed do not justify a demand for additionally compensation
TRUE OR FALSE: A promise by one party to pay another to refrain from an act is enforceable
TRUE OR FALSE: A prenuptial agreement does not have to be in writing to be enforceable
TRUE OR FALSE: An innocent party is discharged when the other party alters a written contract without consent
TRUE OR FALSE: A contract entered into under duress is enforceable
TRUE OR FALSE: A promise to pay for an act that has already occurred is enforceable
TRUE OR FALSE: A promise to do what one already has a legal duty to do is act consideration
TRUE OR FALSE: An exculpatory clause in an employment contract is always enforceable.
Jill is fifteen. In most states, Jill would be considered a minor because she is under the age of
(A) Sixteen
(B) Eighteen
(C) Twenty
(D) Twenty-one
Dale files a suit against Eve, alleging her fraud in entering into a contract with him. Proof of an injury is required
(A) to recover damages
(B) to rescind the contract
(C) to undo Eve's influence
(D) under no circumstances
Protective Finishes, Inc. (PFI), agrees to paint Quinn's house using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discount paint. This is most likely
(A) a complete excuse for Quinn's refusal to pay
(B) a material breach
(C) complete performance
(D) substantial performance
George and Holly disagree as to the exact amount one owes the other. They form a new agreement that, on fulfillment, will discharge the prior obligation. This is
(A) a covenant to use
(B) an accord and satisfaction
(C) a release
(D) promissory estoppel
While intoxicated, Tim contracts to buy a bicycle for double its normal price. The contract is
(A) enforceable even if Tim did not understand its legal consequences
(B) enforceable only if Tim understood its legal consequences
(C) unenforceable because if obviously favors the other party
(D) unenforceable under any circumstances
Glen owns two all-terrain vehicles (ATVs), worth $1,000 and $500, respectively. Holly agrees to buy "Glen's ATV" for $750. Glen believes, in good faith, he is selling the $500 ATV. Holly believes, in good faith, she is buying the $1000 ATV. In this situation
(A) Glen is entitled to $750 for the $500 ATV
(B) Holly is entitled to the $1000 ATV for $750
(C) Holly must buy both ATVs for $1500
(D) there is no contract
Cody and Dora enter into an oral contract under which Cody agrees to work on Dora's farm for not less than one week. This contract is enforceable by
(A) Cody only
(B) Dora only
(C) either party
(D) neither party
Edie borrows $1000 from First State Bank. Glen orally promises First State he will repay the loan if Edie does not. Glen does not get any personal benefit for the promise. Glen's promise 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
Ann is injured in an accident caused by Bob. Bob agrees to pay Ann $2500 if she agrees to release Bob from further liability. Ann agrees. If Ann's damages ultimately exceed $2500 Ann can
(A) collect the balance from Bob in a breach-of-contract suit
(B) collect the balance from Bob in a tort suit
(C) collect the balance from Bob on the ground of unforeseen difficulties
(D) not collect the balance from Bob
Don agrees to buy Ed's Bicycle Store on the condition First State Bank approves the financing. Approval by First State Bank is
(A) a concurrent condition
(B) a condition precedent
(C) a condition subsequent
(D) a solvent condition
Applied Service Company files a suit against Best Sales Corporation to enforce a written contract. Parol evidence will be admitted to prove
(A) anything that varies the written terms
(B) fraud, misrepresentation or mistake
(C) only CONTEMPORANEOUS negotiations that vary the written terms
(D) only PRIOR agreements that vary the written terms
Allen, who is Beth's guardian, convinces to buy a certain parcel of land from Chris at a greatly inflated price. Allen may be liable to
(A) duress
(B) fraud
(C) puffery
(D) undue influence
Quinn promises to sell his recreational vehicle (RV) to Sid, who builds a structure behind his house in which to keep it. Quinn's attempt to renege on the promise is
(A) effective if Quinn did not ask Sid to build anything
(B) effective if Quinn wants to sell the RV to someone else
(C) not effective if Sid cannot obtain a similar RV for a simlar price elsewhere
(D) not effective is Sid is held to have detrimentally relied on the promise
Britney is a real estate broker licensed only in California. Britney conclues a sale in Nevada. She can successfully sue to
(A) collect the commission only
(B) keep the commission only if it has already been paid
(C) collect or keep the commission
(D) none of the above
Lora, a sales representative, files a suit against Macro Corporation, claiming that Macro made an oral promise to Lora, on which she relied to her detriment. The court can enforce the promise under
(A) the doctrine of promissory estoppel
(B) the "main purpose" exception
(C) the parol evidence rule
(D) the Statute of Frauds
Commercial Builders, Inc. (CBI) contracts to build an office building for Downtown Corporation. CBI substantially performs. Downtown is entitled to
(A) damages
(B) rescission
(C) specific performance
(D) nothing more
Pacific Applications, Inc., and Quality Resale Company (QRC) enter into an oral contract for Pacific's sale to QRC of six used forklifts for $1900 each. Before QRC takes possession of the items, this contract is enforceable by
(A) either party
(B) neither party
(C) Pacific only
(D) QRC only
A contract between Lou and Mike requires a transfer of stolen goods for counterfeit currency. This contract is
(A) enforceable
(B) void
(C) voidable at the option of either party
(D) voidable at the option of the party having less bargaining power
Alan promises to pay Beth $500 to install a pump in his factory. Beth completes the installations. The act of installing the pump
(A) imposes a moral obligation on Alan to pay Beth
(B) imposes no obligation upon Alan unless he is satisfied with the job
(C) is not sufficient consideration because it is not goods or money
(D) is the consideration that creates Alan's obligation to pay Beth
May is a stockbroker. Due to May's statements, Nora believes the price of OK Goods, Inc. (OKGI), a widely traded stock, is going to increase substantially. Nora buys 500 shares in OKGI at $10 per share, but the price soon drops to $2 per share. Nora can successfully recover
(A) nothing
(B) the amount of the purchase price
(C) the amount of the purchase price plus the expected increase
(D) the amount of the purchase price plus the unexpected decrease
Ray, an agent for Standard Products, Inc., engages in fraud to obtain consent of Troy, a representative for United Business Company, to an expensive, one-sided contract. This constract is
(A) not voluntary because the transaction lacks "mutual assent"
(B) not voluntary because without business there is no "social contract"
(C) voluntary because both parties are "sophisticated and knowing"
(D) voluntary because both parties have the "freedom to contract"
General Contractors (GC) and Holly enter into an oral contract under which Holly agrees to work on a GC project for sixteen months. This contract is enforceable by
(A) either party
(B) GC only
(C) Holly only
(D) neither party
Ruth contracts to provide Stan with fifty hours of telepathic personal coaching. Before the contract is fulfilled, their state legislature passes a law making telepathic personal coaching illegal. This law will
(A) discharge the contract
(B) fulfill the contract
(C) not affect the contract
(D) require immediate performance of the contract
Betty, a minor, signs a contract to buy an SUV by misrepresenting her age to be twenty-one. In most states, Betty may
(A) disaffirm the contract
(B) disaffirm the contract only if she first makes full payment
(C) disaffirm the contract only if she returns the SUV in original condition
(D) not disaffirm the contract
Milo files a suit against National Corporation under the doctrine of promissory estoppel. Milo must show
(A) Milo justifiably refused to fulfill a promise to National
(B) Milo justifiably relied on National's promise to his detriment
(C) National justifiably refused to fulfill a promise to Milo
(D) National justifiably relied on Milo's promise to its detriment