Question 1

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 2

The form of contract includes

Accepted Answer

A) contracts whose terms are entirely in writing in several documents. 
B) contracts whose terms are entirely oral. 
C) contracts whose terms are entirely in writing in one document. 
D) contracts whose terms are both oral and in writing. 
E) all of the above 
A) contracts whose terms are entirely in writing in several documents. 
B) contracts whose terms are entirely oral. 
C) contracts whose terms are entirely in writing in one document. 
D) contracts whose terms are both oral and in writing. 
E) all of the above

Question 3

When a contract is subject to a condition precedent and the condition is not satisfied,the contract ceases to exist.Explain.

Accepted Answer

A condition precedent is an event that t

Question 4

Generally speaking,in what three situations will the question of the applicability of the Statute of Frauds arise?

Accepted Answer

The three situations are where the contr

Question 5

Under the Statute of Frauds,a promise of indemnity and a promise of guarantee must be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 6

A collateral contract is

Accepted Answer

A) an unenforceable agreement that is related to another written agreement. 
B) a separate agreement between the parties included in a written contract. 
C) an agreement between parties to a contract that precedes another written agreement. 
D) a separate agreement between the parties made at the same time as a main agreement between the parties,but not included in the written document. 
E) a void agreement that is related to another written agreement. 
A) an unenforceable agreement that is related to another written agreement. 
B) a separate agreement between the parties included in a written contract. 
C) an agreement between parties to a contract that precedes another written agreement. 
D) a separate agreement between the parties made at the same time as a main agreement between the parties,but not included in the written document. 
E) a void agreement that is related to another written agreement.

Question 7

A written document can contain both a guarantee and an indemnity.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is TRUE with regard to a contract that has to be in writing?

Accepted Answer

A) If the contract is handwritten,it must be in ink. 
B) All implied terms must be carefully identified. 
C) If the contract is a guarantee,consideration must be identified. 
D) The parties must meet to discuss the terms. 
E) The contract does not have to be wholly within a single document.Several written notes may be taken together to satisfy the Statute of Frauds. 
A) If the contract is handwritten,it must be in ink. 
B) All implied terms must be carefully identified. 
C) If the contract is a guarantee,consideration must be identified. 
D) The parties must meet to discuss the terms. 
E) The contract does not have to be wholly within a single document.Several written notes may be taken together to satisfy the Statute of Frauds.

Question 9

The consideration for a main contract can be a collateral contract.

Accepted Answer

A) True 
 B)False

Question 10

Why would the Statute of Frauds apply to an agreement to lease an apartment but not to a contract to renovate an apartment?

Accepted Answer

The Statute of Frauds applies

Question 11

To determine the ordinary meaning of words in a contract,the court will consider

Accepted Answer

A) what the intention of the parties was. 
B) what the parties said during their negotiations. 
C) what the dictionary says. 
D) what is usual business practice. 
E) all of the above 
A) what the intention of the parties was. 
B) what the parties said during their negotiations. 
C) what the dictionary says. 
D) what is usual business practice. 
E) all of the above

Question 12

At common law,once the terms of a contract are determined,it is irrelevant that it is only a verbal contract.

Accepted Answer

A) True 
 B)False

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

Explain how courts choose between conflicting testimony.

Accepted Answer

Since a court is reluctant to accept the

Question 15

Happy Go Lucky Company (HGLC)enters into an oral employment agreement with Albert under which Albert becomes the managing director of HGLC for a period of two years.The employment agreement provides that both Albert and HGLC have the right to terminate the contract on six months' notice to the other.After working for the company for eight months,HGLC gives Albert two months' notice of termination.In this situation

Accepted Answer

A) the Statute of Frauds does not apply because the essential terms of the contract are present,so Albert can enforce the term that he be given six months' notice. 
B) the Statute of Frauds applies,because there has not been part performance by Albert,so Albert cannot enforce the term that he be given six months' notice. 
C) the Statute of Frauds does not apply,because the contract is one for an indefinite period,so Albert can enforce the term that he be given six months' notice. 
D) the Statute of Frauds applies,because the contract extends over a period of more than a year,so Albert cannot enforce the term that he be given six months' notice. 
E) none of the above 
A) the Statute of Frauds does not apply because the essential terms of the contract are present,so Albert can enforce the term that he be given six months' notice. 
B) the Statute of Frauds applies,because there has not been part performance by Albert,so Albert cannot enforce the term that he be given six months' notice. 
C) the Statute of Frauds does not apply,because the contract is one for an indefinite period,so Albert can enforce the term that he be given six months' notice. 
D) the Statute of Frauds applies,because the contract extends over a period of more than a year,so Albert cannot enforce the term that he be given six months' notice. 
E) none of the above

Question 16

When we say that a contract is unenforceable under the Statute of Frauds,we mean that there never was a contract at all.

Accepted Answer

A) True 
 B)False

Question 17

A agrees to paint B's house.B then says to A,"If you paint my house,I'll give you $500.00." In this situation

Accepted Answer

A) the first agreement does not include the price,but the second agreement does. 
B) together,the promise to pay and the first agreement to paint form one whole contract. 
C) the entering into the main contract is the consideration for the collateral contract. 
D) the promise to pay $500.00 is collateral to the first agreement to paint. 
E) all of the above 
A) the first agreement does not include the price,but the second agreement does. 
B) together,the promise to pay and the first agreement to paint form one whole contract. 
C) the entering into the main contract is the consideration for the collateral contract. 
D) the promise to pay $500.00 is collateral to the first agreement to paint. 
E) all of the above

Question 18

Allen was negotiating to rent a flat in Bob's house.During the negotiations,Allen told Bob that if he took the flat,he would have use of two basement rooms for the storage of his surplus furniture and also the use of the garden.Subsequently,a written agreement was drawn up for the lease of the flat that made no reference to either the storage rooms or the garden.In this case

Accepted Answer

A) because the negotiations were not included in the contract,Allen will get the flat,not the storage rooms or garden. 
B) because of the parol evidence rule,Allen cannot give evidence of the use of the storage rooms and garden as being part of the contract. 
C) although the parol evidence rule applies,the contract being partly oral and partly written,Allen can give evidence about the storage rooms,but not the garden. 
D) although the parol evidence rule applies,the contract being partly written and partly oral,Allen can provide evidence of the oral part of the contract about the storage rooms and garden. 
E) none of the above 
A) because the negotiations were not included in the contract,Allen will get the flat,not the storage rooms or garden. 
B) because of the parol evidence rule,Allen cannot give evidence of the use of the storage rooms and garden as being part of the contract. 
C) although the parol evidence rule applies,the contract being partly oral and partly written,Allen can give evidence about the storage rooms,but not the garden. 
D) although the parol evidence rule applies,the contract being partly written and partly oral,Allen can provide evidence of the oral part of the contract about the storage rooms and garden. 
E) none of the above

Question 19

Evidence regarding certain oral terms that were discussed between the parties to a contract that has been reduced to writing

Accepted Answer

A) cannot be introduced into court because of the rule of express terms. 
B) cannot be introduced into court because there were no prior dealings between the parties. 
C) cannot be introduced into court because of the parol evidence rule. 
D) cannot be introduced into court because of the rule regarding consideration. 
E) cannot be introduced into court because of the rule of implied terms. 
A) cannot be introduced into court because of the rule of express terms. 
B) cannot be introduced into court because there were no prior dealings between the parties. 
C) cannot be introduced into court because of the parol evidence rule. 
D) cannot be introduced into court because of the rule regarding consideration. 
E) cannot be introduced into court because of the rule of implied terms.

Question 20

What are some of the primary goals of a court in interpreting a contract?

Accepted Answer

There are number of goals of the courts

Exam 10: Writing and Interpretation

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

The form of contract includes

When a contract is subject to a condition precedent and the condition is not satisfied,the contract ceases to exist.Explain.

Generally speaking,in what three situations will the question of the applicability of the Statute of Frauds arise?

Under the Statute of Frauds,a promise of indemnity and a promise of guarantee must be in writing to be enforceable.

A collateral contract is

A written document can contain both a guarantee and an indemnity.

Which of the following is TRUE with regard to a contract that has to be in writing?

The consideration for a main contract can be a collateral contract.

Why would the Statute of Frauds apply to an agreement to lease an apartment but not to a contract to renovate an apartment?

To determine the ordinary meaning of words in a contract,the court will consider

At common law,once the terms of a contract are determined,it is irrelevant that it is only a verbal contract.

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

Explain how courts choose between conflicting testimony.

When we say that a contract is unenforceable under the Statute of Frauds,we mean that there never was a contract at all.

A agrees to paint B's house.B then says to A,"If you paint my house,I'll give you $500.00." In this situation

Evidence regarding certain oral terms that were discussed between the parties to a contract that has been reduced to writing

What are some of the primary goals of a court in interpreting a contract?

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

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