Question 1

Nate works as a sales representative.His employment contract specifies that he cannot work for a competitor for a period of two years from employment.This is an example of

Accepted Answer

A) vagueness. 
B) extortion. 
C) ambiguity. 
D) duress. 
A) vagueness. 
B) extortion. 
C) ambiguity. 
D) duress. C

Question 2

Which of the following is one of the four steps in reading a contract?

Accepted Answer

A) What-ifs 
B) Scan for typos 
C) Re-write with a lawyer 
D) Final approval 
A) What-ifs 
B) Scan for typos 
C) Re-write with a lawyer 
D) Final approval A

Question 3

Which of the following guidelines applies to writing the title of a contract?

Accepted Answer

A) It should be written in general terms, like "Memorandum of Agreement." 
B) It should be written like a sentence, with only the first letter capitalized. 
C) It should be brief with no more than five words. 
D) It should be descriptive of the agreement, and typed in all capital letters. 
A) It should be written in general terms, like "Memorandum of Agreement." 
B) It should be written like a sentence, with only the first letter capitalized. 
C) It should be brief with no more than five words. 
D) It should be descriptive of the agreement, and typed in all capital letters. D

Question 4

When a party to a contract fails to fulfill all of her promises,she has breached the contract.What will a court look at in responding to a breach of contract?

Accepted Answer

Typically,a court would not impose sanct

Question 5

In a contract modification,the phrase "charged with such amendment" refers to

Accepted Answer

A) the party who suggested the change. 
B) the party who will benefit from the change. 
C) the party who will be adversely affected by the change. 
D) the party who did NOT suggest the change. 
A) the party who suggested the change. 
B) the party who will benefit from the change. 
C) the party who will be adversely affected by the change. 
D) the party who did NOT suggest the change.

Question 6

In the case of scrivener's errors,a court will usually

Accepted Answer

A) reform the contract if it is clear that the mistake is not what the parties intended. 
B) instruct the parties to rewrite the contract without the errors. 
C) enforce the contract as written. 
D) throw out the contract completely. 
A) reform the contract if it is clear that the mistake is not what the parties intended. 
B) instruct the parties to rewrite the contract without the errors. 
C) enforce the contract as written. 
D) throw out the contract completely.

Question 7

When one party to a contract fails to perform as promised,it is called

Accepted Answer

A) litigation. 
B) breach. 
C) liquidated damages. 
D) bad faith. 
A) litigation. 
B) breach. 
C) liquidated damages. 
D) bad faith.

Question 8

Outline the focused,multi-step process recommended for reading a contract before you agree to it.

Accepted Answer

Pre-reading.Before you begin read

Question 9

Compare and contrast the perspectives of a lawyer and a business client when approaching the negotiation of a contract.

Accepted Answer

Businesspeople are optimists - they beli

Question 10

You should hire a lawyer to review any legal papers you have to sign,especially such papers as lease agreements or car purchases.

Accepted Answer

A) True 
 B)False

Question 11

An honest effort to meet both the spirit and letter of the contract is termed

Accepted Answer

A) reasonable circumstances. 
B) sole discretion. 
C) honest representation. 
D) good faith. 
A) reasonable circumstances. 
B) sole discretion. 
C) honest representation. 
D) good faith.

Question 12

Any ambiguity in a contract is interpreted against the party who drafted the contract.

Accepted Answer

A) True 
 B)False

Question 13

In business law,a lawyer's primary job is to represent the client in contract litigation.

Accepted Answer

A) True 
 B)False

Question 14

Which of the following is a standard provision frequently found in contracts?

Accepted Answer

A) choice of forum 
B) understanding 
C) choice of compensation 
D) mediation 
A) choice of forum 
B) understanding 
C) choice of compensation 
D) mediation

Question 15

Emily runs a children's clothing boutique which takes in local homemade items on a consignment basis.Her standard form contract indicates that Emily has the right to put items on sale without prior approval,but does not specify what effect the sale has on the consignor's payment percentage.Her intent is to keep the same profit she would have had without the sale.She is using ambiguity in her contract to increase her sales and profit.

Accepted Answer

A) True 
 B)False

Question 16

Define and compare the terms "vagueness" and "ambiguity."

Accepted Answer

Vagueness occurs when the parties do not

Question 17

Some contracting parties are intentionally vague in contract terms.

Accepted Answer

A) True 
 B)False

Question 18

If the subject of the contract includes issues that may be controversial or "touchy," it is best to

Accepted Answer

A) keep lawyers out of the negotiation, so relationships are not strained. 
B) deal with them up front before the relationship becomes strained. 
C) deal with them one at a time, as the problems arise. 
D) state your position up front and stand firm when the other party objects. 
A) keep lawyers out of the negotiation, so relationships are not strained. 
B) deal with them up front before the relationship becomes strained. 
C) deal with them one at a time, as the problems arise. 
D) state your position up front and stand firm when the other party objects.

Question 19

Identify and explain at least four situations where a written contract is either necessary or recommended.

Accepted Answer

There are times when you should definite

Question 20

Statements of fact about the past and present are called

Accepted Answer

A) provisions and terms. 
B) promises and covenants. 
C) representations and warranties. 
D) damages and remedies. 
A) provisions and terms. 
B) promises and covenants. 
C) representations and warranties. 
D) damages and remedies.

Exam 20: Practical Contracts

Nate works as a sales representative.His employment contract specifies that he cannot work for a competitor for a period of two years from employment.This is an example of

Which of the following is one of the four steps in reading a contract?

Which of the following guidelines applies to writing the title of a contract?

When a party to a contract fails to fulfill all of her promises,she has breached the contract.What will a court look at in responding to a breach of contract?

In a contract modification,the phrase "charged with such amendment" refers to

In the case of scrivener's errors,a court will usually

When one party to a contract fails to perform as promised,it is called

Outline the focused,multi-step process recommended for reading a contract before you agree to it.

Compare and contrast the perspectives of a lawyer and a business client when approaching the negotiation of a contract.

You should hire a lawyer to review any legal papers you have to sign,especially such papers as lease agreements or car purchases.

An honest effort to meet both the spirit and letter of the contract is termed

Any ambiguity in a contract is interpreted against the party who drafted the contract.

In business law,a lawyer's primary job is to represent the client in contract litigation.

Which of the following is a standard provision frequently found in contracts?

Define and compare the terms "vagueness" and "ambiguity."

Some contracting parties are intentionally vague in contract terms.

If the subject of the contract includes issues that may be controversial or "touchy," it is best to

Identify and explain at least four situations where a written contract is either necessary or recommended.

Statements of fact about the past and present are called

Introduction to Law

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Introduction to Contracts

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Introduction to Sales

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Creating a Negotiable Instrument

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