Question 1

If the offeree accepts an offer through performance requested, unilateral contract is formed.

Accepted Answer

A) True 
 B)False

Question 2

The party who makes an offer can require the acceptance to be communicated in a very specific way or the acceptance is not good.

Accepted Answer

A) True 
 B)False

Question 3

A promise to do something or to refrain from doing some specific thing is a:

Accepted Answer

A)   proposal
B)   suggestion
C)   legal promise
D)   bid
E)   none of the other choices are correct

Question 4

To transfer contractual duties to a third party is:

Accepted Answer

A)   assignment
B)   delegation
C)   repudiation
D)   beneficiary
E)   none of the other choices

Question 5

Some contracts must be in writing and signed to be enforceable. Contracts that are covered by the statute of frauds include:

Accepted Answer

A)   contracts for the sale of land
B)   promises to pay the debts of another person
C)   contracts that cannot be finished within a year
D)   promises made in consideration of marriage
E)   all of the other choices

Question 6

In violation of their contract, a partner quits a partnership and goes into competition with her old partner. The old partner may ask the court for:

Accepted Answer

A)   compensatory damages requiring her to return to work with her old partner
B)   special nominal damages
C)   special damages under the rule of Hadley v. Baxendale
D)   liquidated damages in compensation for the breach
E)   none of the other choices are appropriate

Question 7

A ____ to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to act, or refraining from doing some act.

Accepted Answer

A)   legal detriment
B)   legal right
C)   conscious detriment
D)   neutral benefit
E)   none of the other choices are correct

Question 8

Which of the following is usually not a requirement for a contract to be valid?

Accepted Answer

A)   offer and acceptance
B)   purpose of contract must be legal
C)   contractual capacity
D)   all of the other choices are required
E)   none of the other choices are required

Question 9

Restitution is a form of damages granted by courts to allow parties to recover for profits lost that would have been earned had a contract been fulfilled.

Accepted Answer

A) True 
 B)False

Question 10

A ____ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.

Accepted Answer

A)   bilateral mistake
B)   unilateral mistake
C)   known mistake
D)   consolidated mistake
E)   voidable mistake

Question 11

____ is an effort by a party to induce another party to enter into a contract based on false information.

Accepted Answer

A)   fraud
B)   duress
C)   exculpatory behavior
D)   dominance
E)   none of the other choices are correct

Question 12

In Deschamps v. Treasure State Trailer Court, Ltd. where Deschamps was sued after he bought a mobile home trailer park and then stopped making payments on it because he claimed the seller told him the water system was in good condition when in fact it required $400,000 of repairs, the supreme court of Montana held that:

Accepted Answer

A)   Deschamps had to make the full payment because his claims of reliance on verbal information were barred under the parol evidence rule
B)   Deschamps did not have to make the full payment because his claims of reliance on verbal information were barred under the parol evidence rule
C)   Deschamps should not have to make the full payment because there was a lack of agreement in the contract
D)   Deschamps should not have to make the full payment because there was a lack of consideration in the contract
E)   the original contract was void

Question 13

Restitution is an equitable remedy that may be used to prevent unjust enrichment when one party accepts benefits provided by another that were not under contract.

Accepted Answer

A) True 
 B)False

Question 14

Fact Pattern 10-1
Lulene makes the best lemon meringue pies in Mississippi. So Ellen, who owns Ellen's Old Fashion Cafe, contracts with Lulene to buy 50 pies per week at the price of $5.00 per pie.
Although Lulene took a class in business law, she forgot to get her agreement with Ellen in writing. Lulene and Ellen agreed during a chat. Lulene said: "I will supply you with lemon meringue pies for however long you want them at $5.00 per pie." Ellen said: "That's great, I'll take them." Both women were pleased.
Soon Lulene had a problem. Between a hurricane in Florida and brush fires in California, the price of lemons increased by 200%. Now, instead of the $5.00 per pie price she intended to charge Ellen, she feels she must charge $7.00 per pie to make a little profit.
Lulene calls Ellen with the bad news and Ellen has a fit. She tells Lulene that's too bad, but the deal is off. Lulene says, "That's what you think!" and goes to see Amanda, her attorney.
-Refer to Fact Pattern 10-1. Assume that Ellen says to Lulene that she would like blueberry pies rather than lemon pies. Assume that Lulene agrees to this and states that she will supply Ellen with all the blueberry pies she needs. This is known as:

Accepted Answer

A)   a rescission
B)   a restitution
C)   a material breach
D)   substantial performance
E)   accord and satisfaction

Question 15

A(n)  ____ is an order by the court that requires a party to perform or to refrain from performing certain acts.

Accepted Answer

A)   injunction
B)   restitution
C)   quasi contract
D)   remedy
E)   specific performance

Question 16

If you anticipate that the other party to a contract will breach the contract, you must wait until the breach occurs before taking an alternative course of action or you will have breached the contract.

Accepted Answer

A) True 
 B)False

Question 17

A contract that violates state or federal statutory law is:

Accepted Answer

A)   illegal, but enforceable
B)   illegal and unenforceable
C)   legal, but unenforceable
D)   legal and enforceable
E)   subject to a variety of fines and extra regulations

Question 18

An exculpatory agreement:

Accepted Answer

A)   is the offeree's initial expression of agreement before a contract is formalized in writing
B)   releases one party from the consequences brought about by wrongful acts or negligence
C)   is a form of counteroffer whereby the offeree accepts part and rejects part of a contract
D)   is an agreement that has not been fully performed by either party
E)   none of the other choices

Question 19

Without consideration:

Accepted Answer

A)   only the offeree can enforce the promise or agreement
B)   only the offeror can enforce the promise or agreement
C)   neither party can enforce the promise or agreement
D)   both parties can enforce the promise or agreement
E)   only a court can enforce the promise or agreement

Question 20

An offer is made by an offeree.

Accepted Answer

A) True 
 B)False

Exam 10: Contracts

Restitution is an equitable remedy that may be used to prevent unjust enrichment when one party accepts benefits provided by another that were not under contract.

Correct Answer
verified

A promise to do something or to refrain from doing some specific thing is a:

Correct Answer
verified

Restitution is a form of damages granted by courts to allow parties to recover for profits lost that would have been earned had a contract been fulfilled.

Correct Answer
verified

Correct Answer
verified

In violation of their contract, a partner quits a partnership and goes into competition with her old partner. The old partner may ask the court for:

Correct Answer
verified

Some contracts must be in writing and signed to be enforceable. Contracts that are covered by the statute of frauds include:

Correct Answer
verified

____ is an effort by a party to induce another party to enter into a contract based on false information.

Correct Answer
verified

The party who makes an offer can require the acceptance to be communicated in a very specific way or the acceptance is not good.

Correct Answer
verified

To transfer contractual duties to a third party is:

Correct Answer
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An exculpatory agreement:

Correct Answer
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A ____ to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to act, or refraining from doing some act.

Correct Answer
verified

A contract that violates state or federal statutory law is:

Correct Answer
verified

An offer is made by an offeree.

Correct Answer
verified

If the offeree accepts an offer through performance requested, unilateral contract is formed.

Correct Answer
verified

Correct Answer
verified

A ____ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.

Correct Answer
verified

If you anticipate that the other party to a contract will breach the contract, you must wait until the breach occurs before taking an alternative course of action or you will have breached the contract.

Correct Answer
verified

Which of the following is usually not a requirement for a contract to be valid?

Correct Answer
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Without consideration:

Correct Answer
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A(n) ____ is an order by the court that requires a party to perform or to refrain from performing certain acts.

Correct Answer
verified

Exam 10: Contracts

Restitution is an equitable remedy that may be used to prevent unjust enrichment when one party accepts benefits provided by another that were not under contract.

Correct AnswerverifiedShow Answer

A promise to do something or to refrain from doing some specific thing is a:

Correct AnswerverifiedShow Answer

Restitution is a form of damages granted by courts to allow parties to recover for profits lost that would have been earned had a contract been fulfilled.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

In violation of their contract, a partner quits a partnership and goes into competition with her old partner. The old partner may ask the court for:

Correct AnswerverifiedShow Answer

Some contracts must be in writing and signed to be enforceable. Contracts that are covered by the statute of frauds include:

Correct AnswerverifiedShow Answer

____ is an effort by a party to induce another party to enter into a contract based on false information.

Correct AnswerverifiedShow Answer

The party who makes an offer can require the acceptance to be communicated in a very specific way or the acceptance is not good.

Correct AnswerverifiedShow Answer

To transfer contractual duties to a third party is:

Correct AnswerverifiedShow Answer

An exculpatory agreement:

Correct AnswerverifiedShow Answer

A ____ to the promisor exists when the promisor acquires some legal right through the promisee's act, promise to act, or refraining from doing some act.

Correct AnswerverifiedShow Answer

A contract that violates state or federal statutory law is:

Correct AnswerverifiedShow Answer

An offer is made by an offeree.

Correct AnswerverifiedShow Answer

If the offeree accepts an offer through performance requested, unilateral contract is formed.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A ____ occurs when one party to a contract enters into it with false information or accidentally makes an error in a significant matter.

Correct AnswerverifiedShow Answer

If you anticipate that the other party to a contract will breach the contract, you must wait until the breach occurs before taking an alternative course of action or you will have breached the contract.

Correct AnswerverifiedShow Answer

Which of the following is usually not a requirement for a contract to be valid?

Correct AnswerverifiedShow Answer

Without consideration:

Correct AnswerverifiedShow Answer

A(n) ____ is an order by the court that requires a party to perform or to refrain from performing certain acts.

Correct AnswerverifiedShow Answer

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