Question 1

The first element of proving fraud is to show that the innocent party is not easily fooled.

Accepted Answer

A) True 
 B)False

Question 2

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

Accepted Answer

A) True 
 B)False

Question 3

A threat to exercise a legal right to sue someone ordinarily constitutes duress.

Accepted Answer

A) True 
 B)False

Question 4

Metro Holdings Inc.contracts to sell a commercial parking garage to New Property LLC.The contract provides that if Metro does not close the deal by a certain date,it must pay the buyer one-half of the value of the property.This provision is not enforceable if it is

Accepted Answer

A)  meant to pay for additional work in the event of damage. 
B)  a reasonable estimate of the loss on the breach. 
C)  designed to penalize Metro. 
D)  intended to quickly provide cash to New Property. 
A)  meant to pay for additional work in the event of damage. 
B)  a reasonable estimate of the loss on the breach. 
C)  designed to penalize Metro. 
D)  intended to quickly provide cash to New Property.

Question 5

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement,repair,or refund of the purchase price.With respect to this provision,on a customer's suit for breach,a court is most likely to

Accepted Answer

A)  enforce it. 
B)  reform it. 
C)  refuse to enforce it. 
D)  reallocate the risk expressed in it. 
A)  enforce it. 
B)  reform it. 
C)  refuse to enforce it. 
D)  reallocate the risk expressed in it.

Question 6

When the performance of a contract depends on the personal skill of the obligor,a delegation of the duty is prohibited.

Accepted Answer

A) True 
 B)False

Question 7

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Accepted Answer

A) True 
 B)False

Question 8

Because of the potential for punitive damages,plaintiffs are likely to include a claim for fraudulent misrepresentation in their contract disputes.

Accepted Answer

A) True 
 B)False

Question 9

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000.Bill transfers his duty under this contract to Dewey.With respect to the duties under the original contract,this transfer

Accepted Answer

A)  does not relieve Bill of the potential obligation to perform. 
B)  extinguishes Bill's obligation to perform. 
C)  is an invalid transfer of a non-transferable obligation. 
D)  requires a special form to constitute a valid transfer. 
A)  does not relieve Bill of the potential obligation to perform. 
B)  extinguishes Bill's obligation to perform. 
C)  is an invalid transfer of a non-transferable obligation. 
D)  requires a special form to constitute a valid transfer.

Question 10

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation.Under this contract,the intended beneficiary is

Accepted Answer

A)  Miranda. 
B)  New Credit. 
C)  Lyle. 
D)  any customer of Miranda's. 
A)  Miranda. 
B)  New Credit. 
C)  Lyle. 
D)  any customer of Miranda's.

Question 11

Beryl enters into a contract with Clay for a guided tour of Deep Canyon.Clay represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Most likely,Beryl

Accepted Answer

A)  could exert duress to obtain a new guide. 
B)  can rescind the deal based on fraudulent misrepresentation. 
C)  might recover damages for the mistake. 
D)  must comply with the contract because the representation is an opinion. 
A)  could exert duress to obtain a new guide. 
B)  can rescind the deal based on fraudulent misrepresentation. 
C)  might recover damages for the mistake. 
D)  must comply with the contract because the representation is an opinion.

Question 12

At an auction,Ben bids on a 1957 Chevy coupe,believing that it is worth more than the price asked.When the car proves to need more repairs than Ben estimated,and thus is worth less as is,Ben is

Accepted Answer

A)  still liable on the bid. 
B)  not liable on the bid because he underestimated the cost of repairs. 
C)  not liable on the bid because the auctioneer misrepresented the value. 
D)  not liable on the bid because the need for repair is not a material fact. 
A)  still liable on the bid. 
B)  not liable on the bid because he underestimated the cost of repairs. 
C)  not liable on the bid because the auctioneer misrepresented the value. 
D)  not liable on the bid because the need for repair is not a material fact.

The first element of proving fraud is to show that the innocent party is not easily fooled.

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

A threat to exercise a legal right to sue someone ordinarily constitutes duress.

Metro Holdings Inc.contracts to sell a commercial parking garage to New Property LLC.The contract provides that if Metro does not close the deal by a certain date,it must pay the buyer one-half of the value of the property.This provision is not enforceable if it is

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement,repair,or refund of the purchase price.With respect to this provision,on a customer's suit for breach,a court is most likely to

When the performance of a contract depends on the personal skill of the obligor,a delegation of the duty is prohibited.

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Because of the potential for punitive damages,plaintiffs are likely to include a claim for fraudulent misrepresentation in their contract disputes.

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000.Bill transfers his duty under this contract to Dewey.With respect to the duties under the original contract,this transfer

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation.Under this contract,the intended beneficiary is

Beryl enters into a contract with Clay for a guided tour of Deep Canyon.Clay represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Most likely,Beryl

At an auction,Ben bids on a 1957 Chevy coupe,believing that it is worth more than the price asked.When the car proves to need more repairs than Ben estimated,and thus is worth less as is,Ben is

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Ethics in Business

Business and the Constitution

Torts and Product Liability

Criminal Law and Cyber Crime

International and Space Law

Intellectual Property Rights

Internet Law, social Media, and Privacy

The Formation of Traditional and E-Contracts

Sales and Lease Law

Creditor-Debtor Relations and Bankruptcy

Agency Relationships

Employment, immigration, and Labor Law

Employment Discrimination

Business Organizations

Corporations

Investor Protection and Corporate Governance

Administrative Law

Consumer Protection

Environmental Law

Real and Personal Property

Antitrust Law and Promoting Competition

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Exam 11: Contract Performance, breach, and Remedies

The first element of proving fraud is to show that the innocent party is not easily fooled.

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

A threat to exercise a legal right to sue someone ordinarily constitutes duress.

Metro Holdings Inc.contracts to sell a commercial parking garage to New Property LLC.The contract provides that if Metro does not close the deal by a certain date,it must pay the buyer one-half of the value of the property.This provision is not enforceable if it is

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement,repair,or refund of the purchase price.With respect to this provision,on a customer's suit for breach,a court is most likely to

When the performance of a contract depends on the personal skill of the obligor,a delegation of the duty is prohibited.

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Because of the potential for punitive damages,plaintiffs are likely to include a claim for fraudulent misrepresentation in their contract disputes.

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000.Bill transfers his duty under this contract to Dewey.With respect to the duties under the original contract,this transfer

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation.Under this contract,the intended beneficiary is

Beryl enters into a contract with Clay for a guided tour of Deep Canyon.Clay represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Most likely,Beryl

At an auction,Ben bids on a 1957 Chevy coupe,believing that it is worth more than the price asked.When the car proves to need more repairs than Ben estimated,and thus is worth less as is,Ben is

Law and Legal Reasoning

Courts and Alternative Dispute Resolution

Ethics in Business

Business and the Constitution

Torts and Product Liability

Criminal Law and Cyber Crime

International and Space Law

Intellectual Property Rights

Internet Law, social Media, and Privacy

The Formation of Traditional and E-Contracts

Sales and Lease Law

Creditor-Debtor Relations and Bankruptcy

Agency Relationships

Employment, immigration, and Labor Law

Employment Discrimination

Business Organizations

Corporations

Investor Protection and Corporate Governance

Administrative Law

Consumer Protection

Environmental Law

Real and Personal Property

Antitrust Law and Promoting Competition

Filters