Question 1

An unenforceable contract is a void contract.

Accepted Answer

A) True 
 B)False

Question 2

George owes Michael Moneybags $1000.Susan,George's sister,goes to Michael Moneybags and makes this statement: "If my brother is unable to pay,I shall make payment." Susan's statement is

Accepted Answer

A) a representation. 
B) a promise of guarantee. 
C) a promise of indemnity and a promise of guarantee. 
D) a promise of indemnity. 
E) a misrepresentation. 
A) a representation. 
B) a promise of guarantee. 
C) a promise of indemnity and a promise of guarantee. 
D) a promise of indemnity. 
E) a misrepresentation.

Question 3

From the point of view of risk management,what conclusion about the clarity of form of a contract would you suggest arises out of your reading of this chapter?

Accepted Answer

This chapter deals with problems in cont

Question 4

The parol evidence rule does not permit evidence of oral contracts entered into between the parties after they enter into a written agreement.

Accepted Answer

A) True 
 B)False

Question 5

What is a condition precedent?

Accepted Answer

A) an event that happens before a contract takes effect 
B) an event that is related to a contract and happens before a contract takes effect 
C) an unconditional undertaking given by a promisee to the promisor to perform an event before a contract takes effect 
D) any set of circumstances or events that the parties agree must be satisfied or must happen before their contract takes effect 
E) an undertaking,conditional on the execution of a contract between the parties,that a promisee makes to a promisor prior to entering into a contract 
A) an event that happens before a contract takes effect 
B) an event that is related to a contract and happens before a contract takes effect 
C) an unconditional undertaking given by a promisee to the promisor to perform an event before a contract takes effect 
D) any set of circumstances or events that the parties agree must be satisfied or must happen before their contract takes effect 
E) an undertaking,conditional on the execution of a contract between the parties,that a promisee makes to a promisor prior to entering into a contract

Question 6

A and B are negotiating a contract by faxes going back and forth between them.During their negotiations,they agree on the subject matter of the contract,the price,and the date of performance.However,both agree that once the negotiations are complete,a formal written contract will be prepared and signed.In this situation

Accepted Answer

A) one issue is whether the decision of A and B to put the negotiations into a formal written contract is a mere expression of their desire as to the manner in which the contract transaction will proceed. 
B) one issue is whether the negotiations contain all of the essential elements of a contract. 
C) one issue is whether the decision of A and B to put the agreement that arises out of the negotiations into a formal written contract is a term of the agreement. 
D) one issue is whether the decision of A and B to put the negotiations into a formal written contract is a condition precedent to the formation of a contract. 
E) none of the above 
A) one issue is whether the decision of A and B to put the negotiations into a formal written contract is a mere expression of their desire as to the manner in which the contract transaction will proceed. 
B) one issue is whether the negotiations contain all of the essential elements of a contract. 
C) one issue is whether the decision of A and B to put the agreement that arises out of the negotiations into a formal written contract is a term of the agreement. 
D) one issue is whether the decision of A and B to put the negotiations into a formal written contract is a condition precedent to the formation of a contract. 
E) none of the above

Question 7

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 8

A distinction must always be drawn between the substance of a contract and its

Accepted Answer

A) parties. 
B) benefits. 
C) principles. 
D) form. 
E) beneficiaries. 
A) parties. 
B) benefits. 
C) principles. 
D) form. 
E) beneficiaries.

Question 9

In the formation of a contract,the intention of the parties may be just as important as the essential elements of the contract.

Accepted Answer

A) True 
 B)False

Question 10

The doctrine of part performance as it relates to the Statute of Frauds means that

Accepted Answer

A) if the plaintiff can show that it has partly performed a contract,then the defendant will have to pay for the portion of the contract performed. 
B) a defendant who partly performs an oral contract is entitled to enforce the oral contract. 
C) if a plaintiff can show that he or she has partly performed an oral contract concerning land in reliance on the contract,the court will accept the part performance as evidence of the contract in place of the written contract. 
D) a plaintiff who partly performs an oral contract is entitled to rely on such performance as evidence of the contract. 
E) if a plaintiff can show that he or she has performed part of any oral contract,the court will accept such part performance as evidence of the contract in place of the written contract. 
A) if the plaintiff can show that it has partly performed a contract,then the defendant will have to pay for the portion of the contract performed. 
B) a defendant who partly performs an oral contract is entitled to enforce the oral contract. 
C) if a plaintiff can show that he or she has partly performed an oral contract concerning land in reliance on the contract,the court will accept the part performance as evidence of the contract in place of the written contract. 
D) a plaintiff who partly performs an oral contract is entitled to rely on such performance as evidence of the contract. 
E) if a plaintiff can show that he or she has performed part of any oral contract,the court will accept such part performance as evidence of the contract in place of the written contract.

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

What is the plain meaning approach to the interpretation of contracts? What are the limitations of this approach?

Accepted Answer

The plain meaning approach to the interp

Question 13

The Statute of Frauds requires that contracts with minors must be in writing.

Accepted Answer

A) True 
 B)False

Question 14

It is good business practice to 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 15

Under the Statute of Frauds,a "promise to answer for the miscarriage of another" has been interpreted to mean

Accepted Answer

A) a promise to pay for goods not paid for by a purchaser. 
B) a promise to pay for the injury caused by the tort of another. 
C) a promise to perform a contract that has been breached by another. 
D) a promise to pay for the injury caused by the tort of another and a promise to perform a contract that has been breached by another. 
E) a promise to settle a debt owed by another. 
A) a promise to pay for goods not paid for by a purchaser. 
B) a promise to pay for the injury caused by the tort of another. 
C) a promise to perform a contract that has been breached by another. 
D) a promise to pay for the injury caused by the tort of another and a promise to perform a contract that has been breached by another. 
E) a promise to settle a debt owed by another.

Question 16

A and B are negotiating a contract under which,if it is concluded,B will purchase A's land.A sends a fax to B stating,"I will sell you the 40 acres of land that I own at 1234 Concession Road 2,County of Simcoe for $100 000.00." B faxes the following response: "I can't pay $100 000.00.Will you take $92 000.00?" On receiving this fax,A responds by saying,"$92 000.00 is the lowest that I can go." After thinking about it for a time,B faxes back to A saying,"I'll pay the $92 000.00,but I want you to throw in your harvester machine." A then responds by fax,which says,"Done.But maybe we should put the agreement in writing." No further response is forthcoming from B and the agreement is never put into a formal written document.A few days later,B bumps into A and says,"I'm getting the money to pay you for your farm." To which A replies,"Oh,I changed my mind,and since we don't have written contract,the deal is off." In this situation,what will both A and B argue,and who is most likely to succeed?

Accepted Answer

A will argue that there is no formal wri

Question 17

A court will sometimes imply a term in a contract that it considers necessary to encourage good faith in contracting.

Accepted Answer

A) True 
 B)False

Question 18

When a contract is wholly oral,the first problem of the court is

Accepted Answer

A) to determine the liberal meaning of the words. 
B) to speak to the parties. 
C) to read the contract. 
D) to determine the dictionary meaning of the provisions. 
E) to determine what exactly the parties agreed to. 
A) to determine the liberal meaning of the words. 
B) to speak to the parties. 
C) to read the contract. 
D) to determine the dictionary meaning of the provisions. 
E) to determine what exactly the parties agreed to.

Question 19

An oral contract concerning land will always be unenforceable under the Statute of Frauds.

Accepted Answer

A) True 
 B)False

Question 20

What is the doctrine of part performance?

Accepted Answer

The doctrine of part performance is the

Exam 10: Writing and Interpretation

An unenforceable contract is a void contract.

George owes Michael Moneybags $1000.Susan,George's sister,goes to Michael Moneybags and makes this statement: "If my brother is unable to pay,I shall make payment." Susan's statement is

From the point of view of risk management,what conclusion about the clarity of form of a contract would you suggest arises out of your reading of this chapter?

The parol evidence rule does not permit evidence of oral contracts entered into between the parties after they enter into a written agreement.

What is a condition precedent?

Acceptance under the Sale of Goods Act means

A distinction must always be drawn between the substance of a contract and its

In the formation of a contract,the intention of the parties may be just as important as the essential elements of the contract.

The doctrine of part performance as it relates to the Statute of Frauds means that

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

What is the plain meaning approach to the interpretation of contracts? What are the limitations of this approach?

The Statute of Frauds requires that contracts with minors must be in writing.

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

Under the Statute of Frauds,a "promise to answer for the miscarriage of another" has been interpreted to mean

A court will sometimes imply a term in a contract that it considers necessary to encourage good faith in contracting.

When a contract is wholly oral,the first problem of the court is

An oral contract concerning land will always be unenforceable under the Statute of Frauds.

What is the doctrine of part performance?

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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