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Law
Q:
A novation requires the existence of a previous, valid obligation.
Q:
A novation occurs when there is a substitution, by agreement, of a new contract for an old one, with the rights under the old one being terminated.
Q:
Only personal contracts can be discharged by agreement of the parties.
Q:
When an anticipatory repudiation occurs, it is treated as a material breach of a contract.
Q:
Anticipatory repudiation discharges a contract.
Q:
Any breach allows the nonbreaching party to sue for damages.
Q:
Any breach excuses the nonbreaching party's duty to perform.
Q:
A party is entitled to cancel a contract based on the other party's material breach.
Q:
A material breach occurs when performance is substantial, but not complete.
Q:
A breach of contract occurs only when a party fails to perform all of his or her duties under a contract.
Q:
Performance that provides a party with most of the benefits of a contract, in spite of a deviation from the terms, is substantial performance.
Q:
In a transaction for the sale of a warehouse, Standard Storage Company tells Tri-County Investment Corporation that the office furniture is included. The contract says nothing about office furniture, but does state, "This document supersedes all oral promises relating to the sale." Is the furniture part of the sale? Why or why not?
Q:
Raconteur Data Analysis Corporation in Seattle, Washington, offers a job to Trista, who lives in Utah. Trista orally agrees to work for Raconteur for two years. She moves her family to Seattle and begins work. Three months later, she is fired for no stated cause. She files a suit against Raconteur for reinstatement or pay. Raconteur pleads the lack of a written contract. In whose favor is the court likely to rule, and why?
Q:
Ulrich files a suit against Vern to enforce a written contract. If the court finds that the parties intended the contract to be the final statement of their agreement, parol evidence can be admitted to prove
a. an orally agreed-on condition precedent.
b. terms discussed before the contract but not contained in it.
c. terms discussed at the time of the contract that contradict the written terms.
d. nothing.
Q:
Alain and Brie sign a contract for the sale of Alain's Coffee Caf to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementAlain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price.
The writing that Alain and Brie signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplemental integrated contract.
Q:
Alain and Brie sign a contract for the sale of Alain's Coffee Caf to Brie. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementAlain must first buy the building from Developed Commercial Properties, Inc., after which Alain and Brie will negotiate a price.
Brie later disputes some of the provisions of the deal with Alain. If the dispute results in litigation, a court will most likely admit evidence of additional terms that are
a. ambiguous.
b. consistent.
c. contradictory.
d. clear.
Q:
Hanson and Taylor sign a written contract for the transfer of Hanson's Foot & Ankle Clinic to Taylor. Hanson claims that the parties later orally agreed to modify it. Any oral modification is likely not enforceable if it falls under
a. the doctrine of promissory estoppel.
b. the "main purpose" rule.
c. the "partial performance" exception.
d. the Statute of Frauds.
Q:
Brenda induces Carmen to enter into a contract for the sale of a gas station and convenience store. Brenda tells Carmen that she is the sole owner, but their signed, written contract lists Brenda's parents as co-owners. 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 merging of oral and written statements into one contract.
Q:
Chloe files a suit against Digital Associates, Inc. (DAI), to enforce a contract. The only written evidence of the contract is a memo on DAI's letterhead as signed by a DAI officer in its files. The contract can be enforced if the memo includes
a. a correct title, such as "Chloe-DAI Contract."
b. all essential terms.
c. a statement of the consideration.
d. the parties' addresses.
Q:
Evermore Sports Gear Corporation and Trendy Goods, Inc., enter into a contract. To be enforceable, the contract must include
a. no particular signatures.
b. the signatures of all parties to the deal.
c. the signature of the party against whom enforcement is sought.
d. the signature of the party who is seeking enforcement.
Q:
Ranchland Properties and Prairie State Investments sign a written contract for a sale of land. In some states, to be enforceable, this contract must include
a. a correct title, such as "Land Transfer" or "Real Estate Agreement."
b. a declaration of the contract's purpose.
c. a statement of the source of financing.
d. a description of the land.
Q:
Hal's True Hardware Stores and Ideal Tools, 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 date, such as "October 2014" or "10/2014."
c. a quantity term, such as "50 hammers" or "100 boxes of assorted nails."
d. the parties' contact information.
Q:
Grain Farms, LLC, and Harvest-to-Market Truck & Transport Company sign a written contract that does not involve a sale of goods. To be enforceable, the writing must include
a. a correct title, such as "Shipment Contract."
b. all essential and nonessential terms.
c. a statement of the consideration.
d. a description of the parties' businesses.
Q:
Lucas orally agrees to sell his Mountain Spring Beverage Company to Natural Soft Drinks, Inc. Lucas notes the terms on a sheet of Mountain Spring stationery and signs it. This agreement is most likely enforceable against
a. no one.
b. Lucas and Natural Soft Drinks.
c. Lucas.
d. Natural Soft Drinks.
Q:
Benito orally promises Carolina that he will buy her modified 1968 Dodge Charger. For this promise to be enforceable under the doctrine of promissory estoppel,
a. the Charger must be considered a customized good.
b. Carolina must act in reliance on Benito's promise to her detriment.
c. Benito's promise must have been overheard by a third party.
d. there must be written evidence of the deal.
Q:
Commercial Decor, Inc., files a suit against Discount Mart Corporation, asking the court to enforce an oral contract between the parties under the doctrine of promissory estoppel. This doctrine applies in
a. all states.
b. no states.
c. one state.
d. some states.
Q:
Daisy files a suit against Elton to enforce an oral contract that would otherwise be unenforceable under the Statute of Frauds. The court could enforce such a contract if
a. Daisy foreseeably and justifiably relied on Elton's promise to her detriment.
b. Elton denies the existence of any contract.
c. neither party has begun to perform.
d. the deal does not involve customized goods.
Q:
Miranda orally promises Nicky that she will buy his fishing trawler for $20,000. If Nicky acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable by
a. either party.
b. Miranda only.
c. neither party.
d. Nicky only.
Q:
Veggie Grocers orders by phone twenty cartons of canned beets from Organic Food Packers, Inc. After ten cartons are delivered and accepted, Veggie repudiates the contract. Organic can enforce the contract to
a. any extent because the order was placed orally.
b. no extent because the order was placed orally.
c. the extent of the ten accepted cartons.
d. the extent of the twenty ordered cartons.
Q:
Valley Tack Shop signs a contract with Gary's Boots and Saddles for delivery of five saddles that cost $200 each. To be enforceable under the Statute of Frauds, the written contract must designate
a. the method of delivery.
b. the method of payment.
c. the quantity of saddles.
d. the seller.
Q:
Atlantic Applications, Inc., and Pacific Resale Company (PRC) enter into an oral contract for Atlantic's sale to PRC of six used forklifts for $1,900 each. Before PRC takes possession of the items, this contract is enforceable by
a. either party.
b. neither party.
c. Atlantic only.
d. PRC only.
Q:
Recycled Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more than
a. $5.
b. $15.
c. $50.
d. $500.
Q:
Dixie May enters into a contract to buy one hundred pounds of pecans from Margaret. The contract must be in writing if the pecans cost
a. $100.
b. $150.
c. $250.
d. $500.
Q:
Dick's Burgers n" Shakes enters into an oral contract with Restaurant Equipment Warehouse (REW) for REW's sale to Dick's of a single-spindle milkshake mixer for $300. Assuming the terms can be proved, the contract is enforceable by
a. the seller or the buyer.
b. the manufacturer of the mixer.
c. any third party with an interest in the deal, such as one of Dick's customers.
d. none of the choices.
Q:
Francine buys a new business-law textbook for $125 and a used car for $6,000. She also signs a one-year lease for an apartment for $700 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:
On Monday, Merlin buys a tablet for $500 from a Pads & Pods store. On Tuesday, he returns to the store and buys a GPS device for $200. On Wednesday, he downloads $100 worth of tunes from singsong.com. To be enforceable, the contract must be in writing for the purchase of
a. the tunes, the GPS device, and the tablet.
b. the GPS device and the tablet only.
c. the tablet only.
d. the tunes only.
Q:
Quest Holdings, Inc., orally contracts for a lease of its facilities to Ray to use for his Swamp & Bayou Fishing Camp. Ray pays part of the rent, takes possession, and improves the property for use by his enterprise. The contract is most likely enforceable by
a. Quest Holdings and Ray.
b. Quest Holdings but not Ray.
c. any interested third party, such as a Swamp & Bayou client.
d. no one.
Q:
Eleanora offers Flossy the amount of an investment in Flossy's start-up business venture if she marries Eleanora's son Glenn. This promise is enforceable
a. only if it is in writing.
b. only if the amount of the investment is more than $500.
c. only if Glenn agrees to marry Flossy.
d. under no circumstances.
Q:
Sharon agrees to assume a debt owed by Tom's Guitars Inc. to United Funds Bank. The agreement is not in writing. To be enforceable under the "main purpose" rule, the promise must be for the benefit of
a. any party.
b. Sharon.
c. Tom's Guitars.
d. United Funds.
Q:
Wild Rides Theme Park owes both RollercoasterRepair, Inc. and Hot Dog Harry money. RollercoasterRepair orally agrees to assume Wild Rides's debt to Hot Dog Harry to prevent Hot Dog Harry from filing suit against Wild Rides. This contract is enforceable by
a. none of these parties.
b. any of these parties.
c. Wild Rides only.
d. RollercoasterRepair only.
Q:
Julie orally agrees to assume Carlyle's debt to FunGames, Inc. Julie gets a substantial personal benefit from the agreementCarlyle agrees to work for Julie's landscaping service for six months. Julie's oral assumption of the debt is enforceable by
a. Julie or Carlyle only.
b. FunGames only.
c. any of the parties.
d. no one.
Q:
Ilsa and Jiffy Loan Company enter into an oral contract under which Ilsa agrees to pay Kyle's debt if he does not. Ilsa does not get any personal benefit from the agreement. This contract is enforceable by
a. any party.
b. Jiffy only.
c. Jiffy or Kyle.
d. none of the parties.
Q:
Marta buys a candy bar for $5 and signs a contract for delivery of fresh flowers to her mother's nursing home every week for the rest of her mother's life. She then enters into a contract to assume George's debt to FastCars Dealership. Marta receives no personal benefit from assuming George's debt. The Statute of Frauds covers
a. the candy purchase only.
b. the candy purchase and the delivery contract only.
c. the contract to assume George's debt only.
d. the contract to assume George's debt and the delivery contract only.
Q:
Big Dog Security Service, Inc. orally agrees to provide security services for NorthGate Mall for as long as NorthGate Mall requires them. This contract is enforceable by
a. Big Dog Security only.
b. NorthGate Mall only.
c. either party.
d. neither party.
Q:
Fiona and Dora enter into an oral contract under which Fiona agrees to work on Dora's farm for not less than one week. This contract is enforceable by
a. Fiona only.
b. Dora only.
c. either party.
d. neither party.
Q:
Jayne and Wilbur enter into an oral contract on May 1 under which Jayne agrees to deliver a collection of exotic wines by April 30 of the following year. This contract is enforceable by
a. Jayne only.
b. Wilbur only.
c. either party.
d. neither party.
Q:
Ted and Svetlana orally agree to several different oral contracts. The Statute of Frauds will bar enforcement of an oral contract for
a. a deal that will be performed within a year.
b. a primary obligation.
c. a sale of goods for $100.
d. a sale of land.
Q:
Selena buys a cell phone for $350 and an air hockey table 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 game table and phone purchases.
b. the employment contract and the game table purchase only.
c. the employment contract only.
d. the game table and phone purchases only.
Q:
An integrated contract is a contract with more than one subject or part.
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:
Oral evidence to "fill in the gaps" of a contract with incomplete terms can be introduced at a trial.
Q:
Parol evidence includes testimony about communications between the parties that are not contained in the contract itself.
Q:
Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to alter the contract.
Q:
To be enforceable as a contract, a writing must have been signed by the party who seeks to enforce it.
Q:
An oral contract may be enforceable if enforcing the promise is the only way to avoid injustice.
Q:
An oral contract may be enforceable if the person making the promise could foresee that the promisee would rely on the promise.
Q:
In some states, an otherwise unenforceable oral contract may be enforced under the doctrine of promissory estoppel.
Q:
An oral contract for a sale of goods for more than $5,000 is not enforceable even if the parties to it admit to its existence in court.
Q:
To be enforceable, a memorandum evidencing an oral contract that would otherwise be unenforceable must include the essential terms.
Q:
There are no exceptions to the writing requirement of the Statute of Frauds.
Q:
Courts may grant specific performance of an oral contract to transfer an interest in land that has been partially performed.
Q:
A contract for a sale of goods priced at $501 must be in writing to be enforceable.
Q:
Prenuptial agreements are agreements made during a wedding ceremony that define each partner's duties to one another during the marriage.
Q:
A prenuptial agreement must be in writing to be enforceable.
Q:
A party's oral agreement to pay another's debt is NOT enforceable if the party's main purpose is to derive a benefit for himself or herself.
Q:
A primary obligation is created when a party agrees to pay for something on the condition that a certain other party does not make the payment.
Q:
A collateral promise is one made by a third party to assume the debts or obligation of a primary party to a contract if the primary party does not perform.
Q:
A contract in which a party assumes a secondary obligation must be in writing to be enforceable.
Q:
Any collateral promise falls outside the Statute of Frauds and does not need to be in writing to be enforceable.
Q:
An agreement that includes an option to purchase real property must be in writing for the option to be enforced.
Q:
A contract for lifetime employment cannot not be performed within one year and so it 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, fixtures, such as buildings, growing crops and minerals, are treated as real property.
Q:
Under the Statute of Frauds, an oral contract for the transfer of a mortgage is enforceable.
Q:
An oral contract for a transfer of land is always enforceable.
Q:
A contract must be in writing to be enforceable if the contract makes performance possible within any definite period of time.
Q:
A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year.
Q:
The writing requirement under the Statute of Frauds means that an agreement must be a formal written contract.
Q:
Every state has a statute that stipulates what types of contracts must be in writing.