Q&A Hero

Q: Lisa did not deliver goods in 1992 as her contract with Jozell required but Jozell took no legal action for fifteen years and then sued Lisa for breach of contract. Discuss the suit.

Q: Roxta Biscuits and Seven Eleven Supermarkets enter a contract where the biscuit-making company will supply 1000 biscuit packs a day at $50 each to the supermarket chain for the next six months. However, Roxta Biscuits stops their supplies to the supermarkets mid-way claiming that the prices of each biscuit pack, due to inflation, are $80. Seven Eleven Supermarkets sues Roxta saying that it has to oblige by the contract signed. Evaluate the case.

Q: Alphonse owes huge debts to many creditors. A month before filing for bankruptcy, he distributes all of his assets among his creditors. Discuss the case.

Q: Martin entered into a written contract to sell Anna his football card collection for $10,000 payable in five installments. Martin then orally told Cathy that she could collect the proceeds of his sale. Discuss Cathy's legal rights.

Q: _____ occurs when one party makes false statements or commits some sort of false action that causes another party to rely on those falsehoods then experience an injury or loss as a result. A. Abandonment of contractual obligation B. Fraudulent misrepresentation C. Anticipatory breach D. Constructive breach of contract

Q: Which of the following is an equitable remedy under contract law? A. Injunction B. Monetary damages C. Human servitude D. Specific damages

Q: The City of Newburyport contracted with Ace Paint Contractors for the repainting of a steel bridge. The contract specifically called for the use of a particular brand of paint called Nopeel Paint. It was later discovered that Ace used another brand of paint. Discuss the situation if Nopeel Paint decides to bring a lawsuit against Ace Paint Contractors.

Q: _____ occurs when a party to a contract either expresses or clearly implies an intention not to perform the contract, even before being required to act. A. Frustration-of-purpose B. Abandonment of contractual obligations C. Commercial impracticability D. Anticipatory breach

Q: Better Houses, Inc. has been contracted to build an addition on the Joyners' house. It built half of the addition and then unexpectedly announced that it was not going to finish the job. Such a desertion of work is called: A. a constructive breach of contract. B. substantial performance. C. abandonment of contractual obligations. D. a repudiation of contract.

Q: Which of the following is true of consequential damages? A. They result from a breach due to special circumstances that exist with a particular contract. B. They are the sum of money equal to the real financial loss suffered by the injured party. C. They cover any expenses paid out by the innocent party to prevent further loss. D. They are awarded as a measure of punishment for the defendant's wrongful acts.

Q: Time Zone sells to Gary for $4000 a designer jeweled watch which has a real gold band. Later Gary finds that the band is just polished with golden color and the watch does not have any real jewels and could be bought in the local store for $20. Gary can sue Time Zone for: A. consequential damages. B. exemplary damages. C. nominal damages. D. speculative damages.

Q: Tom and Nancy enter into a written contract for the sale of a dollhouse that Tom will custom-make. In the contract, they agree that Nancy will pay $350 if she breaks the contract. This sum of money is known as: A. mitigation of damages. B. speculative damages. C. equitable remedy. D. liquidated damages.

Q: Which of the following is true of time for performance? A. When there is nothing to indicate in the contract that time is of importance, the court will allow additional time. B. Time period cannot be enforced simply by including the phrase "time is of the essence" written contract. C. When the time for performance is not stated in the contract, the contract must be performed within a reasonable time. D. When there is something special about the contract that indicates time is essential, additional time is allowed.

Q: Which of the following is true of satisfactory performance? A. It is either an express or implied condition of every contract. B. It exists when parties fully accomplish every term, condition, and promise to which they agreed. C. It exists when a party executes all the terms, except minor details that do not affect the contract's real intent. D. It terminates an agreement, freeing the parties of any further obligation or liability.

Q: _____ occurs when a party, in good faith, executes all promised terms and conditions with the exception of minor details that do not affect the real intent of their agreement. A. Complete performance B. Satisfactory performance C. Partial performance D. Substantial performance

Q: Joe pays for his food at the drive-thru window as he receives it. The payment and the receipt are _____ conditions. A. precedent B. concurrent C. subsequent D. spontaneous

Q: Which of the following discharge by agreements requires that both the parties return to the other any consideration already received or pay for any services or materials already rendered? A. Termination by waiver B. Novation C. Mutual rescission D. General release

Q: _____ is a new agreement resulting from a bona fide dispute between the parties as to the terms of their original agreement. A. Mutual rescission B. Accord and satisfaction C. Novation D. Termination by waiver

Q: Aspen assigns his right to receive payment from Donna to Henry. Later Aspen assigns this same right to Doris. Doris gives notice to Donna on May 1 and Henry gives notice to Donna on May 2. Which of the following is most likely to be the court's ruling? A. Since Henry was the first assignee, he will be given the superior right to claim Aspen's benefits. B. Since Doris was the first to notify Donna, she will be given the right to claim the assigned benefits. C. Henry and Doris are joint assignees and will be given equal rights to claim the assigned benefits from Donna. D. Donna will be required to pay to Aspen, who in turn will be asked to make respective payments to Doris and Henry.

Q: Henry borrows money from Commerce Bank to purchase a house. However, he moves to another city to attend graduate school and so sells the house to Maria. Henry wants to be released from his payment obligations to Commerce Bank. Which of the following would release Henry from his liability to Commerce Bank? A. A delegation of the payment obligation by Henry to Maria is will release Henry from liability. B. The sale of the house by Henry to Maria involuntarily releases his payment obligation. C. A delegation of the payment obligation to Maria along with a written notice to Commerce Bank can release Henry from the liability. D. A novation in which Commerce Bank agrees to substitute Maria for Henry will release Henry.

Q: John must repair Gladys' motorcycle, but when he becomes ill he transfers that responsibility to Clark. The transfer to Clark is: A. an assignment. B. a delegation. C. a novation. D. a conveyance.

Q: Morey and Sheryl enter into a contract in which Morey agrees to pay Sheryl $40 to collect his mail while he is on a month-long vacation. Sheryl then delegates the duty to her son Greg. In this assignment, Sheryl is: A. the assignor. B. the obligor. C. the assignee. D. the obligee.

Q: Jo is duly notified that her mortgage with Fund All Savings has been transferred to Big Loan Co. and that she should henceforth pay Big Loan Co. Jo continues to pay Fund All Savings and Big Loan Co. sues Jo for nonpayment. Which of the following is most likely to be the court's judgment? A. Jo is not liable to Big Loan Co. since she has already paid to Fund All Savings. B. Jo is liable to Fund All Savings and to Big Loan Co. since her mortgage has been transferred. C. Jo is liable to Fund All Savings since her mortgage was processed by them. D. Jo is liable to Big Loan Co. since she received a notice from them about the assignment.

Q: An anticipatory breach occurs when a party to a contract expresses or clearly implies an intention not to perform to contract after being required to act.

Q: Quantum meruit damages are in an amount considered to be reasonable in return for the benefits one party derived through the quasi-contract relationship.

Q: Under law, court-issued injunctions are typically temporary can never be permanent.

Q: Claudia contracts with Friendly Paving Co. to install a new driveway. To pay for this work, Claudia transfers to Friendly Paving Co. her right to receive payment from Clifford for a loan she made him. Friendly Paving Co. is the: A. creditor beneficiary. B. donee beneficiary. C. executor. D. fiduciary.

Q: Which of the following beneficiaries have no enforceable legal rights? A. Donee beneficiary B. Incidental beneficiary C. Creditor beneficiary D. Insurance benefiicary

Q: Miko and Gina enter into a written contract. If Miko assigns her part of the agreement to Teresa and Teresa tells Gina of the assignment, Miko is bound by an implied warranty that Gina will respect the assignment.

Q: Sue is selling her home to Ben and wants to be released from her mortgage obligation to Bigger Bank. Sue, Ben, and Bigger Bank may enter a novation.

Q: If a time for performance is not stated in the contract, then the contract must be performed immediately.

Q: The satisfactory performance by a car dealer of a contract for the purchase of a new car would be judged by an objective standard.

Q: Promising to pay when goods are delivered is an example of a condition precedent.

Q: Stella contracts to purchase Wilma's horse for $10,000. The horse dies soon after the contract is signed. Stella is still obligated to pay for the horse.

Q: When an assignment occurs, the assignee assumes the contractual obligations previously held by the assignor.

Q: Jackie's mortgage payment to Commerce Bank was due on June 1. On May 31, Jackie received a notice that her mortgage had been assigned to Brown Investments. Jackie is allowed a reasonable time to verify that an assignment has been truly made.

Q: Two parties are associated with any assignment.

Q: A fraudulent conveyance is a transfer of property with the intent to defraud creditors.

Q: As a measure of protection against subsequent assignments, the assignee should give notice of the assignment to the obligor.

Q: If due notice has been given and the obligor makes payment to the assignor, the obligor is excused from making payment to the assignee.

Q: An individual who is affected by a contract but who is not one of the contracting parties is known as a third party.

Q: If Ann is named as a donee beneficiary on Carl's life insurance policy, Ann cannot sue the insurance company if it fails to pay her when Carl dies.

Q: An incidental beneficiary can legally enforce the contract made by those in privity of contract.

Q: A transfer of a contract right is called a delegation.

Q: Jackson transfers his business accounts receivable to Friendly Finance Co. This is an assignment.

Q: The standard construction rule is the most fundamental guideline involved in the interpretation of written contracts.

Q: Under the parol evidence rule, evidence of oral statements made before signing a written agreement is admissible in court to change the terms of a written agreement.

Q: Oral evidence cannot be used to clarify terms that are obscure in a written contract.

Q: Charles only has a photocopy of his written contract with Jenny, and not the original. The photocopy is not acceptable evidence in a trial concerning the contract.

Q: Jennifer orally contracts to purchase a television for $450. This contract is legally unenforceable.

Q: The administrator of an estate is a person named by the court.

Q: The person to whom a cosigner makes a promise is the obligee.

Q: A contract of lease should not only be in writing but must also be presented to the court for it to be enforceable.

Q: Sean gives an oral promise to Oscar to sell his old house. Oscar, relying on Sean's promise, puts on a new roof and paints it. Oscar cannot enforce this oral contract.

Q: Late one evening Charles and Henry are discussing the purchase and sale of $2,500 of coffee shop equipment after entrepreneurship class. They are in the classroom when Henry writes their agreement on the classroom whiteboard and both Henry and Charles sign it on the whiteboard. Discuss if this whiteboard document is sufficient to provide a binding written agreement.

Q: Bernadette contracts in writing to sell Emily a flatbed trailer so that Emily's son can use the trailer as the base of a homecoming parade float on October 17. Bernadette knows all about the parade, but the written contract only requires Bernadette to deliver the Trailer "in October" and Bernadette uses the trailer for her projects until October 20 when she tenders delivery to Emily. Emily refuses the trailer and refuses to pay the contract price since her son no longer needs it. Discuss in detail what evidence is admissible in a suit by Bernadette against Emily for breach of contract.

Q: McDougal Constructions and Espinosa entered a contract to build the latter a two-storey house. However, after the company began its constructions, Espinosa decided that she wanted a terrace garden, making the house a three-storey. McDougal indicated the additional costs to Espinosa and completed the job including the terrace garden - neither of which was in writing or included in the original contract. Espinosa paid McDougal the original amount but did not pay the extra amount for the third storey. Discuss if the court will admit an oral testimony of the McDougal's to the original contract.

Q: Kay uses the symbol *' as her signature. In a written contract Kay's name is written, but on the signature line for Kay's name only the * that Kay made appears. Discuss whether or not * binds Kay to the contract.

Q: Most oral contracts are invalid.

Q: If the terms of a contract make it impossible to complete the agreement within one year, the contract must be in writing.

Q: On September 1, Isabel contracts with Ned to sing at Ned's restaurant starting on October 1 and ending on October 15 of the following year. Discuss if this contract must be written and signed to be legally enforceable.

Q: In June, the Daniels contracted with Twining to build a stone path leading from the road to their vacation home. They asked him to complete the job within 11 months. Explain whether Twining and the Daniels must enter into a written agreement for such a contract to be enforceable.

Q: The Nerd's Club orally gives an order to T-Shirts R Us Inc. for T-shirts worth $600. The T-shirts have the date and location of the Nerd's Club's annual party printed on them. Discuss in detail whether or not this oral order is enforceable once the T-shirts have been made.

Q: Jones orally agreed to sell his fax machine to McKay for $475. He tried later to back out of the deal on the grounds that the oral agreement was unenforceable. Discuss the case.

Q: Emilio takes his unconscious friend Tod to the hospital. However, the hospital will admit Tod only if someone can promise to pay Tod's medical bills. Emilio orally promises to do so, and the hospital admits Tod. Discuss in detail whether or not this statement is legally binding on Emilio and/or Tod.

Q: Joseph, an ex-manager, dies and his daughter Samantha is made executor of his estate. Joseph's creditors assert that Samantha must personally pay Joseph's debts because she is his daughter and executor of his estate. Analyze.

Q: Which of the following is true of "click" fraud? A. The click-on process functions only in online contracts and not for online advertisements. B. Clicks are proven ways to gauge interest in the advertiser's service or product. C. One problem that arises in this area is verifying the identity of the "clicker." D. The click-on process functions only for online advertisements and not for online contracts.

Q: Which of the following statements about the Fair and Accurate Credit Transactions Act is true? A. It establishes the same type of legal parity between electronic records and paper records. B. It is a federal act designed to deal with problems associated with cyber-commerce. C. Receipts cannot display credit card expiration dates. D. It is an amendment to the Fair Credit Rating Act.

Q: Celebrity Shelly Dunkle, wishing to spend a few undisturbed days by herself, checks into a resort hotel. She reserves a suite under the name of Barbi and stamps the initials B.I. into the hotel register. She also orders room service and signs all hotel bills with those same initials. Which of the following statements is true? A. Because Shelly has not signed her real initials, she cannot be held liable for the cost of the suite and all other bills she rings up under the initials B.I. B. Because Shelly has not signed her real initials, the hotel management cannot prove that any contractual agreement took place between them. C. Because the initials B.I. constitute Shelly's legal signature, she is legally obligated to pay for the cost of the suite as well as for other bills that she signs using those initials. D. Because Shelly did not sign her real name both parties must split payments for all bills signed with the initials B.I.

Q: Rocco breaks both his hands in a motorcycle accident. When he wants to make a contract with Iago, Rocco is physically unable to sign the contract due to his broken hands. What is best for Rocco and Iago to do? A. Rocco may select someone to sign on his behalf. B. Have an elected public official sign for Rocco. C. Have Iago sign for himself and Rocco. D. Rocco should wait until he himself is able to sign.

Q: Which of the following is true of using facsimile signatures in contracts? A. A facsimile signature violates the best evidence rule and is unacceptable even if the contract validates it. B. The law decrees the use of facsimile signatures of public officials as a fraud. C. The law allows the use of facsimile signatures and contracts in place of original ones. D. The use of facsimile signatures of public officials is allowed when certain requirements are followed.

Q: According to the standard construction rule: A. whenever an ambiguous term, clause, or line is found in a prewritten contract, that ambiguity is interpreted against the party who wrote the contract. B. evidence of oral statements made before signing a written agreement is usually not admissible in court to contradict the terms of a written agreement. C. the courts generally accept as evidence only the original document not a copy. D. when a party appoints an agent to negotiate an agreement that must be in writing, the appointment of the agent must also be in writing.

Q: Catherine and Jacob have a written contract to buy and sell "100 cases of widgets." After signing the contract they orally agree to modify the contract to "1,000 cases of widgets." If they are in litigation concerning the amount of widgets involved in the contract, can evidence of the oral change be introduced into evidence? A. No, since this violates the parol evidence rule. B. Yes, since both signed the original contract. C. Yes, since this is an exception to the parol evidence rule. D. No, since this violates the best evidence rule.

Q: A long-term written sales contract between Alder, Inc. and Zenith, Inc. provides for cash payments to be made by Zenith, Inc., the buyer, on the first of the month. Zenith has been using a wire transfer payment method, but Alder asserts that Zenith is in breach of contract since it has not received payment in cash. Which of the following is true of this case? A. Zenith cannot introduce oral evidence in court since it violates the parol evidence rule. B. Zenith can introduce evidence of the payment under the exception to the parol evidence rule. C. Zenith violated the best evidence rule, hence cannot produce evidence in court. D. Zenith can prove that since wire transfer and cash are identical, the payment is made to Alder.

Q: Brogan, aged 16, enters into a written contract with Willy, to sell his horse to Willy. Later Brogan seeks to be released from the contract and wants to offer in court oral testimony concerning his age. The admission of this testimony is governed by: A. the standard construction rule. B. the best evidence rule. C. the equal dignities rule. D. the parol evidence rule.

Q: Under the ____, the courts generally accept into evidence only the original of a writing, not a copy. A. best evidence rule B. parol evidence rule C. standard construction rule D. equal dignities rule

Q: Vega appoints Ancel, a real estate broker, to negotiate the sale of her home. Which legal rule requires that this agreement be written? A. Parol evidence rule B. Best evidence rule C. Standard construction rule D. Equal dignities rule

Q: Uncle Rodrick was deeply in debt when he died. His niece Evangeline became the administrator of his estate. She orally promised Rodrick's creditors that she would personally pay his debts if they would not publicize the fact that Rodrick died in debt. When Evangeline was unable to pay the debts, the creditors sued her. Will the creditors be legally able to collect from Evangeline? A. Yes, since there was a bargained-for exchange. B. No, since Evangeline was not Rodrick's child. C. Yes, since Evangeline made a guaranty of payment. D. No, since her promise was not written and signed.

Q: Sagan is borrowing money from Big Bank and his friend Leda, who works for Graille Systems, signs the loan agreement promising to pay the debt if Sagan does not. Who is the obligee? A. Sagan B. Leda C. Graille Systems D. Big Bank

Q: Gabriel applies for a home loan and, Mark signs the agreement promising to pay off the debt in case Gabriel fails to do so. In this case Mark is: A. the cosigner. B. the oblige. C. the obligor. D. the assignor.