Q&A Hero

Q: _____ damages are awarded by the court to the plaintiff for a breach of contract which causes no financial injury to the plaintiff. A. Specific B. Consequential C. Nominal D. Liquidated E. Compensatory

Q: Ian owes $5000 to Shirley, which is payable in five instalments at an interest. However, after two instalments, Ian offers to pay Shirley the entire debt to avoid paying the interest. Which of the following will take place if Shirley announces that Ian does not have to pay the debt in further instalments? A. Waiver B. Negotiation C. Release D. Arbitration E. Rescission

Q: Kent and Turner get into an argument over the money Turner had loaned Kent. They decide to allow Erika, their friend and a professor, to make a decision. Turner and Kent agree to abide by whatever decision Erika makes. This is an example of _____. A. a negotiated settlement B. compensatory damage C. arbitration D. specific performance E. a rescission

Q: _____ are court-awarded damages to put the plaintiff in the same position as if the contract had been performed. A. Nominal damages B. Consequential damages C. Liquidated damages D. Compensatory damages E. Specific damages

Q: Daniel's failure to deliver ice-cream makers and waffle makers on time, resulted in a two-week delay in the opening of Sheena's new ice-cream parlor. Sheena incurred a heavy loss since she had to pay the rent for those two weeks, as well as salaries to the personnel hired. Which of the following damages can Sheena claim from Daniel for breach of contract? A. Liquidated damages B. Consequential damages C. Compensatory damages D. Nominal damages E. Negotiated damages

Q: Which of the following is true of a waiver? A. It occurs when a party announces the other party does not have to perform as promised. B. It occurs before a contracting party fails to perform. C. It can take the form of a negotiated contract. D. It is bargained for and is supported by consideration. E. It occurs after a contracting party fails to perform.

Q: Jessica hires Bob Builders to construct a house for her. The contract specifies that grade A+ carpeting is to be installed on the entire second floor. Bob accidentally installs grade A shag carpeting instead. Few people except for carpeting experts can tell the difference. Jessica, however, refuses to pay for the construction citing that Bob has breached the contract. Which of the following is true of this situation? A. This would likely be considered complete performance and Jessica will have to pay the contractor. B. Jessica can claim a breach of contract and refuse to pay for the construction of the house. C. This will be considered a substantial performance and Jessica would be entitled to monetary damages. D. Jessica has materially breached the contract by refusing to pay Bob's, and hence cannot sue Bob's for the carpeting. E. The court is likely to declare that Bob's has breached the contract, and will ask Jessica to pay half the cost decided as per contract.

Q: Alan's Saddles makes high level seats for racing bicycles and sells to many of the top bicycle manufacturers. There are eight available sources of the type of rubber that Alan's uses; however, Alan's has always dealt with a company in the Republic of Anaerobia exclusively due to their reasonable cost. Porter's company has a contract with Alan's for 10,000 seats. Porter has just received a letter from Alan's explaining that due to turmoil in Anaerobia, their supplier cannot export their product so Alan's cannot complete the contract. Which of the following is true of this situation? A. Alan's can get out of the contract based on impossibility of performance. B. Alan's can get out of the contract based on commercial impracticality since they can't be forced to buy from suppliers they have not dealt with before. C. Porter can sue for breach since the raw materials are reasonably available from another source, and Alan's cannot be discharged due to impracticality. D. Porter can sue for specific performance if the seats are typical of all bicycle seats and not special or unique in any way. E. Porter can rightfully file a lawsuit, and Alan's will be liable to pay Porter damages for nonperformance.

Q: Great year Tires orders 50 tons of rubber from a Bill, a rubber broker. The broker has a number of rubber plantations that it can deal with but does almost all of its business with Ritchie's Rubber Farm. The delivery of the rubber is due on September 1st. On August 1st, a fire destroys Ritchie's Rubber Farm. A. Bill's performance is excused due to impossibility of performance. B. Bill's performance is excused due to commercial impracticality. C. Bill's performance will not be excused if obtaining rubber from another plantation is reasonable and possible. D. Bill's performance will not be excused if he can get the rubber from another source even if a higher cost cuts his profit margin. E. Bill's performance will be excused even if Great year proves that rubber from other plantations is reasonably available.

Q: When a party intentionally relinquishes a right to enforce a contract, it is called a/an _____. A. agreement B. waiver C. breach D. disclaimer E. release

Q: A _____ exists when a party announces that the other party does not have to perform as promised. A. release B. waiver C. surrender D. breach E. condition

Q: An offer to perform one's required duties under a contract is called a: A. conditional performance. B. qualified performance. C. substantial performance. D. tender of performance. E. complete performance.

Q: _____ is a level of performance below what is reasonably acceptable. A. Breach of contract B. Material breach C. Complete performance D. Substantial performance E. Quantitative performance

Q: Finishing the construction of a home two days after the contract called for completion (no injury occurs) most likely will be considered: A. significant performance. B. implied performance. C. breach of contract. D. substantial performance. E. material breach.

Q: If performance of a party to a contract only slightly deviates from contract requirements, this will be considered: A. complete performance. B. substantial performance. C. breach of contract. D. waiver of performance. E. divisibility of performance

Q: In a _____, the seller must put the goods in the possession of a carrier and contract with that carrier for their transportation. A. destination contract B. tender of performance C. seller's contract D. shipment contract E. tender of deliver

Q: In a situation where a buyer and seller have not mentioned details about delivery, which of the following can be applied? A. The seller will have to personally deliver the goods to the buyer. B. The seller will have to ship the goods, assuming the risks of damages that take place in transit. C. The buyer and the seller will have to enter into another contract stating the details of the delivery of the goods. D. The buyer will have to make arrangements to pick up the goods at the location the seller designates. E. The contract will be held as a void contract by the court, since it contains indefinite, unclear terms.

Q: Which of the following is true of the assumption of risks during delivery of goods? A. The seller is always responsible for shipping the goods to the buyer. B. The seller is liable for any damages incurred to the goods during shipment. C. The buyer is liable for damages incurred to the goods during shipment. D. The buyer is responsible for damages to goods when the seller is about to transfer for shipment. E. The buyer assumes the risk of loss till he/she receives the goods, as per destination contracts.

Q: If a contract contains a condition subsequent it means that: A. performance must be completely done according to contract specifications or the contract is breached. B. performance will be excused upon the happening of some specified future event. C. impossibility of performance will not be an acceptable excuse for nonperformance. D. performance will not be excused due to an unexpected event in the future. E. performance will be due upon the happening of some specified future event.

Q: Most of our every day purchases involve: A. implied concurrent conditions. B. express conditions precedent. C. express conditions subsequent. D. implied conditions precedent. E. implied conditions subsequent

Q: _____ is a legal term referring to the transfer of possession from the seller to the buyer. A. Performance B. Condition C. Delivery D. Waiver E. Release

Q: Which of the following is an exception to the parol evidence rule? A. Evidence of oral agreement that merely explains the meaning of written terms without changing them. B. Evidence of oral agreements made at the time of the written contract. C. Evidence of oral agreements made before signing a written contract. D. Evidence of oral modifications arising after the parties have made the written contract. E. Evidence of oral agreements that changes the meaning of written terms.

Q: If a contract contains a condition precedent it means that: A. performance will be due upon the happening of some specified future event. B. performance will be excused upon the happening of some specified future event. C. performance must be completely done according to contract specifications or the contract is breached. D. impossibility of performance will not be an acceptable excuse for nonperformance. E. performance will be due upon the simultaneous duty to perform of the parties.

Q: Shareholders of corporations and members of LLCs are protected from tort liability that exceeds the amount of their investment.

Q: If a word of a term in a written contract has _____, particular to the industry to which the parties belong, the court will give the term or word that meaning. A. ambiguous terms B. a handwritten term C. business banter D. a trade usage E. common words

Q: Which of the following is true in cases where only one party drafts the contracts, which contain terms that appear vague and ambiguous to the other party? A. The court will give the terms the meaning as per trade usage. B. The court will reject the non-drafting party's attempt to reinterpret the terms after the contract has been signed. C. The court will declare the drafting party's behavior as a tort due to intentional ambiguity of terms. D. The court will interpret the terms as they mean in the common language. E. The court will interpret the ambiguous and vague terms against the party that drafts them.

Q: Which of the following states that parties to a written contract may not introduce oral evidence to change written terms? A. The statute of frauds B. Concurrent conditions C. The parol evidence rule D. Conditions subsequent E. Conditions precedent

Q: A partner in a trading partnership, such as an accounting or other service firm, has no implied power to borrow money. In the latter case, such authority must be actual before the firm will be bound.

Q: Any time an employee is liable for tortious acts in the scope of employment, the employer is also liable.

Q: An employee who is on a frolic or detour is no longer acting for the employer.

Q: If it is established in court that an employer warned the employee against the tortious behavior, the employer will not be held liable for the employee's actions.

Q: Jimmy, a cashier at Maker Stores, gets into a heated argument with a customer over which party will win the upcoming elections, which results in a fight. Maker Stores is liable for Jimmy's tortious actions.

Q: An employer who must pay for an employee's tort under respondeat superior may legally sue the employee for reimbursement.

Q: Rescission is a court-awarded damage arising from unusual losses which the parties knew would result from breach of the contract.

Q: Liquidated damages can simplify disputes when a breach occurs.

Q: A principal interacts with someone (or some organization) for the purpose of obtaining an agent's assistance.

Q: Apparent authority can be inferred from the acts of an agent who holds a position of authority or who had actual authority in previous situations.

Q: Releases usually occur after a contracting party fails to perform.

Q: An employment contract is an example of divisibility of performance.

Q: Increased difficulty of performance or reduced profitability will constitute valid grounds for claiming impossibility of performance.

Q: Under the UCC a party to a sale-of-goods contract receives discharge from performance because of commercial impracticability.

Q: Sheena is a week late in paying her rent. She requests her landlord to not charge her the late payment fees, and the landlord agrees. This is an example of a waiver.

Q: Material breach represents a less-than-complete performance.

Q: Homer hired Bob Builders Pvt. Ltd to construct his house. They signed a contract, which stated that Bob Builders would complete the work by April 4th 2012, and Homer would pay them in full. Homer has the right to deny them payments if they miss the date.

Q: When parties fail to provide details, the law states the buyer's payment is a condition that must be satisfied after the seller has performed his/her duty to deliver.

Q: Once the seller transfers the goods to the shipper, the burden of damages in transit also rests with him/her.

Q: If a contract is silent as to delivery, there is a presumption that the buyer is responsible for picking up the goods at the seller's location.

Q: One party's tender of performance may satisfy a required condition leading to the other party's duty to perform.

Q: Without permission, a duty that involves skill, character, or training cannot be delegated. Explain why.

Q: A party to a contract is discharged when that party is relieved from all further responsibility of performance.

Q: If something must take place in future, before a party has a duty to perform, it is a condition subsequent.

Q: A contracting party has no duty to perform prior to a condition precedent being satisfied.

Q: Paying for the items purchased at a store, as the store delivers the items is an example of implied concurrent conditions of performance.

Q: Hume hired a security services agency to guard his warehouse. The arrangement of the security was such that Jim's house, located next to Hume's warehouse, was also protected. On one day, the security personnel don't show up, and Jim's house is burglarized. Jim files a lawsuit against the security services agency. Discuss the case.

Q: Mark entered into a written contract to sell Dobby his music collection for $10,000 payable in five installments. Mark then sells Cathy the right to collect the proceeds of his sale. Discuss Cathy's legal rights.

Q: Vanessa has assigned Leslie her rights to collect payments from Laura. Later, Vanessa assigned the same rights to collect her payments from Laura to Danielle. Discuss the legality of the case, and which assignee can claim rights to payments from Laura.

Q: What is a novation?

Q: Discuss how undue influence creates voidable contracts.

Q: Stephanie hires Tommy to renovate her farm house and repair some minor damages for $1,000. Tommy informs her that it will take him at least 6 months to complete the work. Discuss whether the parties in question have to enter into a written agreement for such a contract to be enforceable.

Q: Jacob and Janice enter into an oral contract, stating that Janice will sell her house to Jacob. Jacob makes the part payment to Janice as per the contract. During the time that Janice is vacating the house, Jacob hires a contractor to build a fence around the backyard to ensure security. However, Janice revokes her offer saying that a third party is paying a higher price for the house, and her offer to Jacob was not in written form. Jacob, who has spent $5,000 on the fencing, decides to sue Janice. Analyze the case.

Q: Explain the doctrine of promissory estoppel.

Q: Steve, 17, intentionally misrepresents his age while buying a TV set from Rainbow Electronics. His father discovers this and forces Steve to return the television set and get back the money. Steve visits Rainbow Electronics and disaffirms the contract to buy the television set. Analyze the case.

Q: Hailey and Ellen met with an auto accident, as a result of Ellen's over speeding. Hailey has suffered injuries, and due to an aftershock and trauma, cannot remember' what caused the accident. Ellen, who has suffered injuries herself, takes advantage of the situation and convinces Hailey that the accident was no one's fault. They sign a contract agreeing that neither will sue the other for damages. Analyze the case if the contract is challenged in court.

Q: What is a covenant not to compete and under what conditions are they valid?

Q: Kaylie and Josh visit Alice Jewels to buy a diamond engagement ring. The jeweler presents them a zircon ring and intentionally calls it a diamond. Kaylie loves the ring and Josh buys it, happy about gifting Kaylie a diamond ring. However, they later discover it is a zircon. Analyze on what grounds Josh can sue the jeweler.

Q: Ptomaine is a chef who has opened a new restaurant. He agrees with Bob, a baker, that Bob will deliver 10 dozen hamburger and hotdog buns each morning at 6:00 a.m. as long as he doesn't call to cancel the next morning's delivery by 6:00 p.m. the evening before. This goes on for about ten days when Ptomaine realizes at 10:00 p.m. one evening that he has a surplus of buns. At 6:00 a.m. the next morning he refuses to accept the morning delivery. Discuss, with reference to common law, whether a contract exists.

Q: Ray Contractors have agreed to build Yen's house for $25,000 in two years. However, six months after the work began, Ray Contractors demand an additional $5,000 from Yen to complete the work. Yen agrees, but when the work was completed, Yen pays Ray Contractors only $20,000. Ray decides to sue Yen. Analyze the case.

Q: Sherry Shoe Company sends an offer by fax to Hulk Retailers to sell 100,000 pairs of shoes at $150 each, and mentions that it will hold the offer open for Hulk for two months. Four months after receiving Sherry's offer, Hulk faxes an acceptance. However, at this time Sherry has already entered a contract with another retailer. Discuss the situation.

Q: Adam applied for a loan of $80,000, to purchase land from Chad. Chad makes an oral promise to Adam that he will allow Adam a period two months to accept his offer. Chad refuses to give this promise in writing. Discuss how Adam can ensure that the owner does not sell the land to another buyer in two months.

Q: Explain the mailbox rule.

Q: Sam goes to a supermarket and fills his cart with food items, pushing it up to a checkout line. Discuss the type of contract Sam and the supermarket have.

Q: What are the five essential elements of a valid contract?

Q: Kevin has been offered the position of vice-president by the Earnest Group Pvt. Ltd. at their head office in Washington D.C. Earnest Group has also offered to provide Kevin and his family with a house, and an annual salary of $100,000. Kevin replied stating that he would accept the offer if the company would pay him an annual salary of $150,000, and relocation expenses. Analyze the agreements between the parties.

Q: Canary offers in writing to sell her ranch to Erik for $150,000. A week later, when Erik is about to mail his acceptance, Canary dies in an auto accident. Canary's heir informs Erik that she is no longer interested in selling the ranch. Erik decides to move to court, stating that the offer cannot be revoked since he had already accepted the offer and was about to mail it. Analyze the case and discuss what the court is likely to rule?

Q: Sarrah agrees to sell her house to Tiffany for $300,000. Tiffany replies that she will be glad to buy the house at $300,000, and asked if the price included the furniture. Sarrah replied that the furniture was not included. Tiffany agreed to pay $300,000, but Sarrah demanded $350,000, stating that Tiffany's counteroffer terminated the earlier offer. Discuss the case.

Q: If an assignor assigns the same rights to two different assignees: A. the assignee who first received the assignment has priority in receiving payment from the obligor. B. the assignee who first notifies the obligor of the assignment has priority in receiving payment from the obligor. C. the obligor must pay both assignees equal amounts but no more than what would have been paid had there only been one assignment. D. the assignment becomes void and the original contract remains in force. E. the original contract and the assignments, thereafter, will be declared void since assigning the same rights to two assignees is illegal.

Q: Hans is notified that her mortgage with Omer Bank has been transferred to Grate Loan Co. However, Hans made his mortgage payments in full one day before receiving the notice. Omer Bank, however, argues that at the time of the assignment, Hans had not made the mortgage payment, and hence has to make payments to Grate Loan Co. Which of the following is true of this situation? A. Hans is not liable to Grate Loan Co. since he has already paid to Omer Bank. B. Hans is liable to Grate Loan Co. since his mortgage has been transferred. C. Hans is not liable to Grate Loan Co. due to the rule of mirror image. D. Hans is liable to Grate Loan Co. since they sent him the notification of the assignment. E. Hans is liable to Grate Loan Co. since he was an obligor to Omer Bank at the time of the assignment.

Q: Daniel purchases a house through Adelaide Loan Co. However, he moves to another city for work and sells the house to Christopher. Daniel wants to be released from his payment obligations to Adelaide Loan Co. Which of the following would release Daniel from this liability? A. An oral delegation of the payment obligation by Daniel to Christopher will release Daniel from liability. B. The sale of the house by Daniel to Christopher involuntarily releases his payment obligation. C. A delegation of the payment obligation to Christopher along with a written notice to Adelaide Loan Co. can release Daniel from liability. D. A novation in which Adelaide Loan Co. agrees to substitute Christopher for Daniel will release Daniel. E. An assignment where Daniel transfers his rights to Christopher will release Daniel from all his liabilities.

Q: Appy hires Tring Painters to paint her living room. She selects deluxe paints that cost her $200 in total. However, as the painters begin their work, Appy notices that they are mistakenly using washable finesse paints, which would cost her $500 in total. When the work is done, Appy refuses to pay Tring Painters the $500, saying she wanted paints that would cost $200. Analyze the rights of the parties in this case.

Q: Allan promises to pay $400 to Waker if he can steal the next day's test paper from their professor. That night, Waker steals the paper and brings it to Allan. Allan, who is now worried about being caught, tells Waker he does not want the test paper and refuses to pay him the $400. Has Allan breached the contract between him and Waker?