Accounting
Anthropology
Archaeology
Art History
Banking
Biology & Life Science
Business
Business Communication
Business Development
Business Ethics
Business Law
Chemistry
Communication
Computer Science
Counseling
Criminal Law
Curriculum & Instruction
Design
Earth Science
Economic
Education
Engineering
Finance
History & Theory
Humanities
Human Resource
International Business
Investments & Securities
Journalism
Law
Management
Marketing
Medicine
Medicine & Health Science
Nursing
Philosophy
Physic
Psychology
Real Estate
Science
Social Science
Sociology
Special Education
Speech
Visual Arts
Business Law
Q:
Jonas enters into an oral contract with Chelsea to lease his house to her for $100,000. Chelsea pays him $100,000 and moves in. A month later, Jonas learns that his state requires contracts for the lease of goods with payments of $1,000 or more to be in writing. Which of the following options does either party have?
A) Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void.
B) The contract cannot be rescinded by either party as it has already been executed.
C) Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds.
D) Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds.
Q:
Which of the following does Section 2A-201(1) of the Uniform Commercial Code state?
A) All lease contracts must be in writing.
B) Lease contracts involving payments of $1,000 or more must be in writing.
C) All sales contracts must be in writing.
D) Sales contracts involving payments of $500 or more must be in writing.
Q:
________ says that if a written contract is a complete and final statement of the parties' agreement, any prior or contemporaneous oral or written statements that alter, contradict, or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.
A) Main purpose exception
B) Leading object exception
C) Parol evidence rule
D) Promissory estoppel
Q:
A party who owes a duty of performance under a contract is called the ________.
A) obligor
B) assignor
C) assignee
D) oblige
Q:
In order to prove fraud, which of these elements must be shown?
A) The innocent party knew the wrongdoer.
B) The innocent party was the one who detected fraud.
C) The wrongdoer assumed a false identity.
D) The innocent party relied on the wrongdoer's representation.
Q:
________ is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.
A) Scienter
B) Duress
C) Battery
D) Assault
Q:
Which of the following scenarios makes Tim liable for undue influence?
A) He uses a false identity, borrows $10,000 from Kelly, and disappears with the money.
B) He threatens to kill Carlos if Carlos does not sign a contract that transfers all his property to Tim.
C) He takes advantage of his grandmother's illness and persuades her to sign a will leaving all her property to him.
D) He threatens to bring a lawsuit against Carlos if Carlos does not make him a partner in his firm.
Q:
Which of the following is considered "real property"?
A) a fixture permanently affixed to a building
B) fifty-one percent partnership in a firm
C) a car
D) diamond jewelry
Q:
The doctrine of ________ allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if it has been partially performed and performance is necessary to avoid injustice.
A) part performance
B) undue performance
C) equitable performance
D) promissory estoppel
Q:
Which of the following is true of a unilateral mistake?
A) Only one mistake or ambiguity is present in the subject matter of the entire contract.
B) Out of several contracts drafted simultaneously between two parties, one has a mistake in its subject matter that does not concern the other contracts.
C) Only one party is mistaken about a material fact regarding the subject matter of a contract.
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract.
Q:
Heather chooses to buy a scarf at Macy's and reads the price on the tag as $50. She uses her credit card to pay for the scarf and post-purchase, she notices that the price tag actually says $500. This is an instance of a(n) ________.
A) bilateral mistake
B) mutual mistake of value
C) innocent misrepresentation
D) unilateral mistake
Q:
A contract involving mutual mistake of value is ________.
A) rescindable
B) voidable
C) non-rescindable
D) void
Q:
________ is an event that occurs when one person consciously decides to induce another person to rely and act on a misrepresentation.
A) Fraudulent misrepresentation
B) Unilateral mistake
C) Bilateral mistake
D) Erroneous misrepresentation
Q:
The agreement whereby the parties agree to accept something different in satisfaction of the original contract is called restitution.
Q:
Substantial performance of a contract constitutes material breach.
Q:
If a modification of the lease contract increases the lease payment to $1,000 or more, the modification has to be in writing to be enforceable.
Q:
The signature of the person who is enforcing the contract is necessary.
Q:
Parol evidence rule stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.
Q:
A covenant is an unconditional promise to perform.
Q:
Unilateral rescission of a contract constitutes a breach of that contract.
Q:
Duress only occurs where a threat involves physical harm.
Q:
Duress occurs when one person takes advantage of another person's mental, emotional, or physical weakness and unduly persuades that person to enter into a contract.
Q:
Trees, crops, minerals and timber are not considered real property and are thus barred from being included in contracts involving interests in real property.
Q:
The doctrine of part performance allows the court to order an oral contract for the sale of land or transfer of another interest in real property to be specifically performed if performance is necessary to avoid injustice.
Q:
According to the equal dignity rule, agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.
Q:
The one-year rule states that an executory contract that cannot be performed by its own terms within one year of its formation must be in writing.
Q:
If Johnny made an oral contract with Peter to sell Peter his truck for $15,000, Johnny's eventual refusal to sell the truck is considered breach of contract.
Q:
The measure of damages awarded to the innocent party for fraud is the difference between the value of the property as represented and the actual value of the property.
Q:
Duress is a situation in which one party threatens to do a wrongful act unless the other party enters into a contract.
Q:
The term "scienter" refers to the knowledge that a representation is false or that it was made without sufficient knowledge of the truth.
Q:
A misrepresentation is considered fraud even if it is made without intent to deceive another party.
Q:
A material fact is a fact that is irrelevant to the subject matter of a contract but pertains to the conduct of the parties.
Q:
An ambiguity in a contract may constitute a mutual mistake of a material fact.
Q:
If there has been a mutual mistake, the contract cannot be rescinded.
Q:
A unilateral mistake occurs if both parties know the object of the contract but are mistaken as to its value.
Q:
Intentional misrepresentation is considered fraud.
Q:
To be actionable as fraud, the misrepresentation must have been the sole factor in inducing the innocent party to enter into the contract.
Q:
Which of the following elements must be established to create an implied-in-fact contract?
A) The plaintiff provided the property or services gratuitously.
B) The defendant accepted the property or services offered by the plaintiff as a fee for an illegal activity.
C) The plaintiff made the defendant sign the contract and then changed its terms, calling the new terms "previously implied".
D) The defendant was given an opportunity to reject the property or services provided by the plaintiff but failed to do so.
Q:
Which of the following statements is true of the doctrine of quasi-contract?
A) Agreement between parties to a quasi-contract has been inferred from their conduct.
B) It is an equitable doctrine intended to prevent unjust enrichment.
C) It applies only where there is an enforceable contract between the parties.
D) It allows a court to award monetary damages to a defendant because no actual contract existed between the parties.
Q:
A unilateral mistake is a mistake in which only one party is mistaken about a material fact regarding the subject matter of a contract.
Q:
Which of the following is true of enforcing a contract?
A) A contract is only considered valid if it is enforceable by both parties.
B) Parties may voluntarily perform a contract that is unenforceable.
C) In an unenforceable contract, at least one party has the option to void his or her contractual obligations.
D) Void contracts are enforceable in cases involving mutual mistakes.
Q:
An oral agreement to purchase a neighbor's bicycle is a(n) ________ contract.
A) void
B) voidable
C) implied
D) express
Q:
If a contract is required to be in writing under the Statute of Frauds but is not, the contract is ________.
A) voidable
B) void
C) unenforceable
D) valid
Q:
Contracts that have been fully performed by one side but not by the other are classified as ________ contracts.
A) void
B) voidable
C) executory
D) executed
Q:
Elizabeth signs a contract to purchase a new car from Spadace Motors. She has not yet paid for the car and Spadace Motors has not yet delivered the car to Elizabeth. This is an example of a(n) ________ contract.
A) unenforceable
B) executory
C) void
D) executed
Q:
What is recognizance?
A) a sealed document that contains a formal contract whose contents are known to both parties and the referee who supervised its signing
B) a party's acknowledgement in court that he or she will pay a specified sum of money if a certain event occurs
C) a party's acknowledgement in court that he or she is not liable to pay any money if a certain event occurs
D) a sealed document that contains an informal contract whose contents are known only to the parties
Q:
Which of the following is a necessary condition for a contract to be considered valid?
A) It can be voided by both parties.
B) It can be voided by one of the parties.
C) It is enforceable by both the parties.
D) It is enforceable by at least one of the parties.
Q:
Ben was talking to Harry who was drunk. Harry agreed to give his car to Ben as a token of friendship. Once sober, Harry asks Ben to return his car. This contract is considered ________.
A) valid
B) voidable
C) void
D) unenforceable
Q:
An offeror uses blackmail to make an offeree sign a contract that involves the sale of the offeree's house. The contract is ________.
A) unenforceable
B) valid
C) void
D) voidable
Q:
A contract is ________ if the offeror's offer can be accepted only by the performance of an act by the offeree.
A) executed
B) executory
C) unilateral
D) bilateral
Q:
Yvonne finds a carpenter to do some repairs for her house and tells him that if he finishes the job within Saturday, she would pay him $1,000. This offer creates a(n) ________ contract.
A) executed
B) unilateral
C) executory
D) bilateral
Q:
Martha contacts a bakery to get a cake for her son's birthday party. She tells the baker that she will pay him $150 for the cake if he delivers the cake on Friday evening. If the baker does not deliver the cake on Friday evening, which of the following will hold true?
A) Martha can sue the baker but cannot recover damages.
B) Martha can sue the baker to recover $150 in damages.
C) Martha cannot sue the baker.
D) The baker has to give $150 plus cost of the replacement cake to Martha as he entered into a verbal contract with her.
Q:
Alan tells Sherry that he will pay her $5,000 if she runs the Boston Marathon. Once Sherry starts running the marathon, Alan, legally, ________.
A) can revoke the contract as informal verbal agreements are not binding
B) can reduce the money on offer
C) can only increase the money on offer
D) cannot revoke the contract
Q:
Which of the following is an informal contract?
A) recognizance
B) lease
C) bank draft
D) check
Q:
An unconscionable contract cannot be enforced even if the unconscionable clause is removed from it.
Q:
The UCITA is a law common to all states and does not require state legislatures to adopt it as a statute for the state.
Q:
Which of the following is an acceptable consideration for a contract?
A) penalty
B) arrest
C) sentence
D) money
Q:
Two brothers, Sam and Jim, were fighting over the division of their ancestral property. After ten years of legal battle, a frustrated Sam contacted a powerful politician who subjected Jim to extreme duress to make him sign a contract of assent in favor of Sam. When Jim takes this contract to court, the contract will be declared ________.
A) voidable
B) enforceable
C) conditionally enforceable
D) unenforceable
Q:
A contract is ________ if the offeror's promise is answered with the offeree's promise of acceptance.
A) executory contract
B) executed contract
C) unilateral contract
D) bilateral contract
Q:
Windsor, the owner of Windsor's Sandwiches contacts a new supplier Gary. He tells Gary that he will pay him $375 if Gary delivers 20 pounds of cheese the following morning. Gary promises to make the delivery as requested by Windsor. This creates a ________ contract between them.
A) bilateral
B) unilateral
C) executory
D) implied-in-law
Q:
An exculpatory clause that results from superior bargaining power is usually found to be void.
Q:
A person who has dealt with an insane person need not place that insane person in status quo once the contract is voided.
Q:
A person who is insane but not adjudged insane cannot void a contract he or she has entered into.
Q:
A person who disaffirms a contract based on intoxication must be returned to status quo.
Q:
The intoxicated person is not legally obligated to return consideration, received under the contract, to the competent party.
Q:
A contract is considered to be supported by legal value if the promisee receives a legal benefit.
Q:
Illusory promises require both parties to perform their contractual obligations.
Q:
Preexisting duty promise is unenforceable because of the introduction of a new consideration.
Q:
A new promise can include a past consideration for it to be enforceable.
Q:
The infancy doctrine binds an adult to the minor's decision on a contract.
Q:
The infancy doctrine gives adults the right to disaffirm contracts entered with minors.
Q:
Any contract entered into by a person who has been adjudged insane is void.
Q:
A counteroffer is considered a rejection of the original offer.
Q:
An option contract is terminated upon the death of the offeror.
Q:
To meet the mirror image rule, the offeree must accept the terms of the offer without modification.
Q:
Under the mailbox rule, an acceptance is only effective when it is received.
Q:
A promise is something of legal value given in exchange of a consideration.
Q:
To create an implied-in-fact contract, it must be established that the plaintiff provided the property or services gratuitously.
Q:
An implied-in-law contract is a contract in which agreement between parties has been inferred from their conduct.
Q:
Unless otherwise expressly stated, an auction is considered an auction without reserve.