Q&A Hero

Q: Xavier enters into a contract to operate a Yummy Yogurt franchise, which Yummy agrees to support as long as Xavier maintains his business license. Yummy's duty to perform is A.absolute. B.conditional. C.licentious. D.operational.

Q: 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.

Q: Lon enters into a contract to mine limestone in Mica's quarry, sell it, and share the profits on its sale with Mica. If the duties under this contract are discharged like those under most contracts, the duties will be A.assigned. B.breached. C.performed. D.rescinded.

Q: Ron makes a contract with Stu that indirectly benefits Tim, although neither Ron nor Stu intended that result. Tim is A.a delegatee. B.an assignee. C.an incidental beneficiary. D.an intended beneficiary.

Q: 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.

Q: Dina and Elle agree that Elle can satisfy a preexisting debt owed to Dina by paying the money directly to Fava. The designation of this contract as a third party beneficiary contract is determined by the intent to benefit A.Dina, Elle, and Fava. B.Dina only. C.Elle only. D.Fava only.

Q: Nick and Roberta contract for the sale of computer equipment, reserving the right to alter a particular provision in the contract. The rights of any third party beneficiary of that contract are A.not affected by the reservation. B.limited to the extent of the reservation. C.limited only if the beneficiary agrees to the reservation. D.none of the choices.

Q: 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.

Q: Waterfront Hotels Corporation in Boston offers a job to Carol, who lives in Denver. Carol orally agrees to work for Waterfront for two years. She moves her family to Boston and begins work. Three months later, she is fired for no stated cause. She files a suit against the employer for reinstatement or pay. Waterfront pleads the lack of a written contract. In whose favor is the court likely to rule, and why?

Q: Multi Investments, Inc., offers to buy Nano Toy Corporation. On May 1, Nano provides copies of its financial statements for the previous year, showing an inventory of $10 million. On May 15, Nano discovers that the previous year's inventory is overstated by $5 million, but does not inform Multi. On June 1, Multi, relying on the financial statements, buys Nano. On June 10, the buyer discovers the inventory overstatement. Can Multi succeed in a suit against Nano for fraud?

Q: Fact Pattern 10-4 Kelly and Lucas sign a written contract for the sale of Kelly's Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. Refer to Fact Pattern 10-4. 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.

Q: Fact Pattern 10-4 Kelly and Lucas sign a written contract for the sale of Kelly's Koffee Kiosk to Lucas. The parties intend their written contract to be a final statement of the terms of their agreement. Refer to Fact Pattern 10-4. 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.

Q: Fact Pattern 10-3 Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. 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 Paula will negotiate a final price. Refer to Fact Pattern 10-3. The writing that Odell and Paula signed is A.a completely integrated contract. B.a conditionally integrated contract. C.a partially integrated contract. D.a supplementally integrated contract.

Q: Fact Pattern 10-3 Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. 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 Paula will negotiate a final price. Refer to Fact Pattern 10-3. Paula 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.

Q: Glen and Hadley 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.

Q: 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.

Q: Consumer Goods, Inc., and Delta Distribution, Inc., sign a written contract 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.

Q: 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 stationery, which includes the Center's letterhead but which neither party signs. This agreement is most likely enforceable against A.neither Theo nor Uma. B.Theo and Uma. C.Theo only. D.Uma only.

Q: Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro faxes NFC a memo on Macro's letterhead that summarizes the items on which they agree. NFC begins to perform, but Macro refuses to pay. Between Macro and NFC, the memo is A.an oral contract. B.a pre-contract. C.a written contract. D.no contract.

Q: 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.

Q: Nina and Owen enter into an oral contract for Nina's sale to Owen of a laser printer for $400. Before Owen takes possession of the printer, the contract is enforceable by A.either party. B.Nina only. C.neither party. D.Owen only.

Q: 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.

Q: Ollie buys a cup of coffee for $2, a magazine for $5, and a boombox for $600. The requirement of a writing for the enforceability of a contract for a sale of goods at, or for more than, a certain price is governed by A.the common law. B.the parol evidence rule. C.the parties' agreement. D.the Uniform Commercial Code.

Q: 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.

Q: Clay buys an MP3 player for $200 and a pair of stereo speakers for $600 from a Discount City store, and downloads $196 worth of digital music from eMusic.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.

Q: Delta, Inc., agrees to assume a debt of Excel 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.Excel. D.First State.

Q: Randy and Beach Biz Company enter into an oral contract under which Randy agrees to clean Beach Biz's office for two years. This contract is enforceable by A.Randy only. B.Beach Biz only. C.either party. D.neither party.

Q: Capital Properties. Inc., and Broadview Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at A.$50. B.$500. C.$5,000. D.any price.

Q: Lara induces Moe to enter into a contract for the sale of an apartment about which Lara fraudulently misrepresents a number of material facts. Lara 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 merging of oral and written statements into one contract.

Q: Gary threatens physical harm to force Hugh to sell his business, Imported Goods, Inc., to Gary for a below-market price. This is A.duress. B.fraud. C.puffery. D.undue influence.

Q: Mary induces Nick to sign a contract by placing a gun to Nick's head. The contract is void A.only if the contract has an illegal purpose. B.only if the terms are unfair to Nick. C.under any circumstances. D.only if the gun was loaded.

Q: Steven, who is Bertha's guardian, convinces her to buy a certain parcel of land from Christy at a greatly inflated price. Steven may be liable for A.duress. B.fraud. C.puffery. D.undue influence.

Q: Don, a salesperson for Excel Autos, promises Fern that a certain car will give her a "smooth ride." Don offers a test drive, which Fern declines. She buys the car but soon realizes that its suspension is in poor condition. Fern A.can rescind the contract on the ground of fraud. B.can rescind the contract on the ground of misrepresentation. C.can rescind the contract on the ground of mistake. D.was not defrauded.

Q: In selling software to Payroll Services Corporation, Ray tells Payroll's purchasing agent that the software is "almost human." This is A.fraud. B.duress. C.puffery. D.undue influence.

Q: Olin convinces Pia, who has no artistic ability, that Pia has considerable talent and induces Pia to pay Olin $10,000 for art lessons. When Pia realizes the truth, she files a suit against Olin. Pia is most likely to recover on the basis of A.fraud. B.mistake. C.undue influence. D.none of the choices.

Q: Joy induces Kelly to enter into a contract for the purchase of a condominium about which Joy knowingly misrepresents a number of material features. When Kelly discovers the truth, Kelly can A.enforce the contract and seek damages. B.enforce the contract but not seek damages. C.neither enforce the contract nor seek damages. D.seek damages but not enforce the contract.

Q: Gina induces Hugh to enter into a contract for the purchase of a condominium about which Gina knowingly misrepresents a number of material features. When Hugh discovers the truth, he can 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 undue influence.

Q: Used Car Lot's salesperson Vic offers to sell Will, who is twenty years of age, a car about which Vic intentionally misrepresents several material facts. In reliance on the misrepresentations, Will buys the car. To prove fraud in this transaction, Will would not have to show that A.Vic intentionally deceived Will. B.Vic misrepresented several material facts. C.Will is under twenty-one years of age. D.Will justifiably relied on Vic's misrepresentations.

Q: Ralph offers to sell Sophie, who is seventeen years of age, a car about which Ralph intentionally misrepresents several material facts. In reliance on the misrepresentations, Sophie buys the car. To prove fraud in this transaction, Sophie would have to show that A.Ralph intentionally deceived Sophie. B.Ralph made statements that were obviously exaggerated. C.Sophie does not know anything about cars. D.Sophie is under eighteen years of age.

Q: Fact Pattern 10-2 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. Refer to Fact Pattern 10-2. Because of the parties' belief about the adjacency of the property, their contract is A.unavoidable. B.unconscionable. C.unenforceable. D.voidable.

Q: Fact Pattern 10-2 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. Refer to Fact Pattern 10-2. The parties' belief about the adjacency of the property is A.a bilateral mistake. B.a fraudulent misrepresentation. C.a unilateral mistake. D.unconscionable.

Q: Fact Pattern 10-1 Moore Properties, Inc., offers in writing to sell to Lawn Acres Development Corporation a certain half-acre of land for "$112,000." After Lawn Acres signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000." Refer to Fact Pattern 10-1. Moore's misstatement of the price is A.a bilateral mistake. B.a fraudulent misrepresentation. C.a unilateral mistake. D.unconscionable.

Q: Fact Pattern 10-1 Moore Properties, Inc., offers in writing to sell to Lawn Acres Development Corporation a certain half-acre of land for "$112,000." After Lawn Acres signs the offer in acceptance and returns it, Moore discovers that the price should have been stated as "$121,000." Refer to Fact Pattern 10-1. The effect of Moore's misstatement of the price will most likely fall on A.Moore and Lawn Acres, who must split the difference. B.Moore only. C.Lawn Acres only. D.neither Moore nor Lawn Acres.

Q: Hillside Homes, Inc., and Ideal Builders, Inc., enter into a construction contract that includes six pages of detailed calculations. Later Hillside, whose project manager compiled the figures, discovers that some numbers were multiplied incorrectly, but Ideal refuses to make changes. A court would most likely A.allow the parties to rescind the contract. B.award damages to Hillside for the mistakes. C.award damages to Ideal for the mistakes. D.enforce the contract without requiring changes.

Q: May is a stockbroker. Due to May's statements, Nora believes that the price of OK Goods, Inc. (OKGI), a widely traded stock, is going to increase substantially. Nora buys 500 shares of OKGI at $10 per share, but the price soon drops to $2. 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.

Q: An integrated contract is a contract with more than one subject or part.

Q: An integrated contract is the final embodiment of the terms of an agreement.

Q: Oral evidence of the meaning of a contract with incomplete terms can be introduced at a trial.

Q: Oral evidence of the modification of a contract after its making can be introduced at a trial.

Q: Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.

Q: To be enforceable, a writing evidencing an oral contract that would otherwise be unenforceable must be signed by the party who seeks to enforce it.

Q: To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include all essential terms.

Q: An oral contract for a sale of land may be enforceable if the contract has been partially performed.

Q: To be enforceable, a contract for a sale of goods priced at $50 or more must be in writing.

Q: A party's oral agreement to pay another's debt is never enforceable.

Q: All collateral promises must be in writing to be enforceable.

Q: A contract must be in writing to be enforceable unless its performance is impossible within one year.

Q: A contract may have to be in writing to be enforceable even if its performance is possible within a year.

Q: A contract involving a sale is the only contract relating to an interest in land that must be in writing to be enforceable.

Q: A contract involving property of any kind must be in writing to be enforceable.

Q: Under the Statute of Frauds, all contracts induced by fraud must be in writing to be enforceable.

Q: Under the Statute of Frauds, all written contracts are enforceable.

Q: Under the Statute of Frauds, oral contracts are void.

Q: Forcing someone to enter into a contract through fear created by threats is undue influence.

Q: A contract entered into under duress is voidable.

Q: To rescind a contract for fraud, a plaintiff must prove an injury.

Q: Reliance on a misrepresentation is justified if the misrepresentation is an obviously extravagant statement.

Q: Intent to deceive is an element of fraud.

Q: Scienter exists if a party makes a statement that he or she does not believe is TRUE.

Q: Misrepresentation of a material fact cannot occur through conduct alone.

Q: Misrepresentation of an opinion is an element of fraud.

Q: Misrepresentation of a material fact can occur through words alone.

Q: To recover for fraud, a plaintiff must be under twenty-one years of age.

Q: An innocent party may seek damages for a fraudulent contract.

Q: An innocent party can enforce a fraudulent contract.

Q: All mistakes of fact are material.

Q: A bilateral mistake is a mutual misunderstanding.

Q: If a price quotation contains a mistake in the adding of a number of figures, the contract may not be enforceable.

Q: A mistake of fact can only be bilateral.

Q: Overestimating the value of an object is a mistake for which a court will normally provide relief.