Question 1

Which of the following is NOT a usual source of implied terms?

Accepted Answer

A) terms that are reasonably necessary,in accordance with the expectation of the parties,to promote business efficacy 
B) long-established customs in particular types of trades 
C) long-established customs in particular types of transactions 
D) what the parties discussed prior to entering the contract 
E) none of the above 
A) terms that are reasonably necessary,in accordance with the expectation of the parties,to promote business efficacy 
B) long-established customs in particular types of trades 
C) long-established customs in particular types of transactions 
D) what the parties discussed prior to entering the contract 
E) none of the above

Question 2

Is not implying terms in a contract contrary to the rule that the function of the court is not to write or rewrite the contract for the parties?

Accepted Answer

By implying terms in a contract,the cour

Question 3

Which of the following is NOT true?

Accepted Answer

A) The parol evidence rule does not affect the interpretation of express terms already in a contract. 
B) Implied terms usually result from long-established customs. 
C) When parties deal expressly with a matter in a contract,a court is not precluded from finding an implied term on the same matter. 
D) The parol evidence rule does not exclude evidence of an oral agreement that the parties may each after they have entered into the written agreement. 
E) The courts will admit evidence of an oral understanding about a condition precedent even when the written contract specifies that the rights of the parties are governed exclusively by the written contract. 
A) The parol evidence rule does not affect the interpretation of express terms already in a contract. 
B) Implied terms usually result from long-established customs. 
C) When parties deal expressly with a matter in a contract,a court is not precluded from finding an implied term on the same matter. 
D) The parol evidence rule does not exclude evidence of an oral agreement that the parties may each after they have entered into the written agreement. 
E) The courts will admit evidence of an oral understanding about a condition precedent even when the written contract specifies that the rights of the parties are governed exclusively by the written contract.

Question 4

An implied term is

Accepted Answer

A) a term that the court will ask the jury to consider implying in the contract. 
B) a term that the promisor intended to include in the contract. 
C) an express term that is removed from the contract. 
D) a term that the parties advise the court can be implied into the contract. 
E) a term that is not included in the contract but which the parties,as reasonable persons,would have included had they thought about it. 
A) a term that the court will ask the jury to consider implying in the contract. 
B) a term that the promisor intended to include in the contract. 
C) an express term that is removed from the contract. 
D) a term that the parties advise the court can be implied into the contract. 
E) a term that is not included in the contract but which the parties,as reasonable persons,would have included had they thought about it.

Question 5

It is good business practice of have a written record of a contract because

Accepted Answer

A) provisions of long-term contracts will not have to be committed to memory. 
B) many disputes can be avoided by keeping an accurate record. 
C) a written record is more accurate than human memory. 
D) human memory is fallible. 
E) all of the above 
A) provisions of long-term contracts will not have to be committed to memory. 
B) many disputes can be avoided by keeping an accurate record. 
C) a written record is more accurate than human memory. 
D) human memory is fallible. 
E) all of the above

Question 6

Acceptance under the Sale of Goods Act means

Accepted Answer

A) an unconditional willingness to enter into an agreement with the seller on terms specified. 
B) conduct by the buyer to accept the offer made by the seller. 
C) accepting the goods. 
D) accepting the terms of the contract of sale. 
E) any conduct by the buyer in relation to the goods that amounts to a recognition of the existence of a contract. 
A) an unconditional willingness to enter into an agreement with the seller on terms specified. 
B) conduct by the buyer to accept the offer made by the seller. 
C) accepting the goods. 
D) accepting the terms of the contract of sale. 
E) any conduct by the buyer in relation to the goods that amounts to a recognition of the existence of a contract.

Question 7

Use the fact situation in Q15 to answer the related question that follows. Review Fact Situations 1 and 2.What is the difference between them?

Accepted Answer

A) In Fact Situation 1,John's performance is strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is not strictly referable to Dick's farm. 
B) In Fact Situation 1,the essential terms of the agreement are not present,but they are present in Fact Situation 2. 
C) In Fact Situation 1,John's performance is not strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is strictly referable to Dick's farm. 
D) In Fact Situation 1,all of the essential terms of the agreement are present,but they are not present in Fact Situation 2. 
E) There is no difference between the two fact situations. 
A) In Fact Situation 1,John's performance is strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is not strictly referable to Dick's farm. 
B) In Fact Situation 1,the essential terms of the agreement are not present,but they are present in Fact Situation 2. 
C) In Fact Situation 1,John's performance is not strictly referable to 121 Thornton Lane,while in Fact Situation 2,Gus's performance is strictly referable to Dick's farm. 
D) In Fact Situation 1,all of the essential terms of the agreement are present,but they are not present in Fact Situation 2. 
E) There is no difference between the two fact situations.

Question 8

Generally speaking,the parol evidence rule is hard and inflexible.

Accepted Answer

A) True 
 B)False

Question 9

Which of the following is NOT true?

Accepted Answer

A) The parol evidence rule does not affect the interpretation of express words already in a contract. 
B) The parol evidence rule does not prevent evidence of oral contracts entered into after the written contract. 
C) The parol evidence rule permits evidence of oral contracts entered into after the parties entered the written contract. 
D) The parol evidence rule excludes evidence of oral contracts entered into after the parties entered into a written contract. 
E) The parol evidence rule excludes terms that were discussed before entering into a contract but were not included in the contract. 
A) The parol evidence rule does not affect the interpretation of express words already in a contract. 
B) The parol evidence rule does not prevent evidence of oral contracts entered into after the written contract. 
C) The parol evidence rule permits evidence of oral contracts entered into after the parties entered the written contract. 
D) The parol evidence rule excludes evidence of oral contracts entered into after the parties entered into a written contract. 
E) The parol evidence rule excludes terms that were discussed before entering into a contract but were not included in the contract.

Question 10

As far as managing legal risks,what strategies can contracting parties adopt to reduce the risk of encountering disputes with respect to the interpretation of the contract?

Accepted Answer

The parties should take care in preparin

Question 11

A guarantee to be enforceable must be in writing;however,a promise of indemnity does not have to be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 12

When a person goes to court to have a provision of a contract interpreted,the court will

Accepted Answer

A) ask a jury to determine the meaning of the words. 
B) assign its own meaning to the words. 
C) seek the most reasonable meaning that can be attributed to the words in the circumstances. 
D) examine the facts of the situation and then ask the parties what they meant. 
E) determine the meaning of the words by asking the parties what they meant. 
A) ask a jury to determine the meaning of the words. 
B) assign its own meaning to the words. 
C) seek the most reasonable meaning that can be attributed to the words in the circumstances. 
D) examine the facts of the situation and then ask the parties what they meant. 
E) determine the meaning of the words by asking the parties what they meant.

Question 13

A enters into an oral contract under which A is to sell his land to B,and B gives A a deposit of $100 000.00.B now changes his mind and wants his deposit back from A.In an action by B to recover the deposit,

Accepted Answer

A) A can raise the validity of the agreement as a defence to B's action. 
B) A cannot use the validity of the agreement as a defence to B's action. 
C) A cannot use the validity of the agreement as a defence to B's action because the agreement is unenforceable. 
D) B cannot sue A at all because the contract is unenforceable to B's action. 
E) none of the above 
A) A can raise the validity of the agreement as a defence to B's action. 
B) A cannot use the validity of the agreement as a defence to B's action. 
C) A cannot use the validity of the agreement as a defence to B's action because the agreement is unenforceable. 
D) B cannot sue A at all because the contract is unenforceable to B's action. 
E) none of the above

Question 14

The substance of a contract may have a variety of

Accepted Answer

A) statutes. 
B) forms. 
C) parties. 
D) attributes. 
E) beneficiaries. 
A) statutes. 
B) forms. 
C) parties. 
D) attributes. 
E) beneficiaries.

Question 15

The best way to ensure that terms advantageous to a business are enforceable against a consumer is to use a detailed standard form contract that meets the requirements of consumer protection legislation.

Accepted Answer

A) True 
 B)False

Question 16

What are the essential elements of a written memorandum?

Accepted Answer

They are the parties

Question 17

An oral contract determined to be unenforceable pursuant to the Statute of Frauds is void.

Accepted Answer

A) True 
 B)False

Question 18

The dictionary meaning of a word does not always clarify its meaning.Explain.

Accepted Answer

One of the approaches to interpretation

Question 19

The parol evidence rule excludes evidence about the formation of a contract.

Accepted Answer

A) True 
 B)False

Question 20

Consumer protection statutes address the form and content of consumer contracts relating to goods only.

Accepted Answer

A) True 
 B)False

Exam 10: Writing and Interpretation

Which of the following is NOT a usual source of implied terms?

Is not implying terms in a contract contrary to the rule that the function of the court is not to write or rewrite the contract for the parties?

Which of the following is NOT true?

An implied term is

It is good business practice of have a written record of a contract because

Acceptance under the Sale of Goods Act means

Use the fact situation in Q15 to answer the related question that follows. Review Fact Situations 1 and 2.What is the difference between them?

Generally speaking,the parol evidence rule is hard and inflexible.

Which of the following is NOT true?

As far as managing legal risks,what strategies can contracting parties adopt to reduce the risk of encountering disputes with respect to the interpretation of the contract?

A guarantee to be enforceable must be in writing;however,a promise of indemnity does not have to be in writing to be enforceable.

When a person goes to court to have a provision of a contract interpreted,the court will

A enters into an oral contract under which A is to sell his land to B,and B gives A a deposit of $100 000.00.B now changes his mind and wants his deposit back from A.In an action by B to recover the deposit,

The substance of a contract may have a variety of

The best way to ensure that terms advantageous to a business are enforceable against a consumer is to use a detailed standard form contract that meets the requirements of consumer protection legislation.

What are the essential elements of a written memorandum?

An oral contract determined to be unenforceable pursuant to the Statute of Frauds is void.

The dictionary meaning of a word does not always clarify its meaning.Explain.

The parol evidence rule excludes evidence about the formation of a contract.

Consumer protection statutes address the form and content of consumer contracts relating to goods only.

Law, society, and Business

The Machinery of Justice

Government Regulation of Business

The Law of Torts

Professional Liability: the Legal Challenges

Formation of a Contract: Offer and Acceptance

Formation of a Contract: Consideration and Intention

Formation of a Contract: Capacity to Contract and Legality of Object

Grounds Upon Which a Contract May Be Set Aside: Mistake and Misrepresentation

Privity of Contract and the Assignment of Contractual Rights

The Discharge of Contracts

Breach of Contract and Its Remedies

Sale of Goods and Consumer Contracts

Bailment and Leasing

Insurance and Guarantee

Agency and Franchising

The Contract of Employment

Negotiable Instruments

Intellectual Property

Interests in Land and Their Transfer

Landlord and Tenant

Mortgages of Land and Real Estate Transactions

Sole Proprietorships and Partnerships

The Nature of a Corporation and Its Formation

Corporate Governance: the Internal Affairs of Corporations

Corporate Governance: External Responsibilities

Secured Transactions

Creditors Rights

International Business Transactions

Electronic Commerce

Privacy

Filters