Question 1

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

Accepted Answer

A) True 
 B)False  False

Question 2

If each party's promises are listed separately in the contract,the are probably:

Accepted Answer

A) covenantal promises. 
B) conditional promises. 
C) reciprocal promises. 
D) material promises. 
A) covenantal promises. 
B) conditional promises. 
C) reciprocal promises. 
D) material promises. C

Question 3

A contract should have a descriptive title,which is generally in all capital letters,underlined and centered at the top of the page.

Accepted Answer

A) True 
 B)False  True

Question 4

When a party to a contract fails to fulfill all of her promises,she has breached the contract.What response does a court typically have for a breach?

Accepted Answer

Typically,a court would not impose sanct

Question 5

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 6

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 7

Because details can always be added later,it's better to not overwhelm a contract with specifics in the beginning.

Accepted Answer

A) True 
 B)False

Question 8

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

Accepted Answer

A) True 
 B)False

Question 9

A letter of intent is not likely to be enforceable unless:

Accepted Answer

A) there is a clearly stated start date for the contract. 
B) both parties agree on compensation. 
C) it is clear that both parties intended to be bound by the letter. 
D) conditions in the letter are met. 
A) there is a clearly stated start date for the contract. 
B) both parties agree on compensation. 
C) it is clear that both parties intended to be bound by the letter. 
D) conditions in the letter are met.

Question 10

Some contracting parties are intentionally vague in contract terms.

Accepted Answer

A) True 
 B)False

Question 11

Which of the following is NOT a standard provision frequently found in contracts?

Accepted Answer

A) choice of forum. 
B) choice of law. 
C) choice of compensation.. 
D) arbitration. 
A) choice of forum. 
B) choice of law. 
C) choice of compensation.. 
D) arbitration.

Question 12

If the subject of the contract includes issues that may be controversial,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 is 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 is 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 13

Which of the following is NOT one of the four focused steps in reading a contract?

Accepted Answer

A) Pre-reading. 
B) The first read. 
C) Re-write with a lawyer. 
D) The second read. 
A) Pre-reading. 
B) The first read. 
C) Re-write with a lawyer. 
D) The second read.

Question 14

One reason you may not need a written contract is:

Accepted Answer

A) you are dealing with a party you do not know well,so you need to remain flexible. 
B) you are buying land from a member of your family. 
C) the terms of the agreement are simple and the value of the transaction is small. 
D) you have negotiated enough that you both know what the other person intends. 
A) you are dealing with a party you do not know well,so you need to remain flexible. 
B) you are buying land from a member of your family. 
C) the terms of the agreement are simple and the value of the transaction is small. 
D) you have negotiated enough that you both know what the other person intends.

Question 15

Bob,a house builder,contracts with Ollie to build a house on Ollie's lot.Bob hires Rob to take his place as the builder on this contract.What has Bob done?

Accepted Answer

A) Subcontracted Rob. 
B) Breached the contract. 
C) Delegated his duties. 
D) Assigned his rights. 
A) Subcontracted Rob. 
B) Breached the contract. 
C) Delegated his duties. 
D) Assigned his rights.

Question 16

Which of the following is NOT one of the three ways to amend a written contract?

Accepted Answer

A) write and sign an amendment document. 
B) verbally agreeing to the changes and shaking hands on the deal. 
C) crossing out the mistakes and writing in the corrections. 
D) writing a totally new contract with the correct provisions. 
A) write and sign an amendment document. 
B) verbally agreeing to the changes and shaking hands on the deal. 
C) crossing out the mistakes and writing in the corrections. 
D) writing a totally new contract with the correct provisions.

Question 17

In a contract modification,the phrase,"charged with such amendment" means:

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 18

Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called:

Accepted Answer

A) boilerroom. 
B) boilerplate. 
C) boilerpot. 
D) boilertape. 
A) boilerroom. 
B) boilerplate. 
C) boilerpot. 
D) boilertape.

Question 19

Outline the parts of a typical contract.

Accepted Answer

The Structure of a Contract
a)

Question 20

Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage.The contract does not specify which insects are covered or how much damage is necessary to make a claim.The contract will probably be enforced in favor of:

Accepted Answer

A) Farmer Fran. 
B) Farmer's Fortune Insurance. 
C) Neither side,as it is ridiculous to try to insure against insects. 
D) Cannot determine...would have to go through litigation to decide. 
A) Farmer Fran. 
B) Farmer's Fortune Insurance. 
C) Neither side,as it is ridiculous to try to insure against insects. 
D) Cannot determine...would have to go through litigation to decide.

Exam 18: practical Contracts

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

If each party's promises are listed separately in the contract,the are probably:

A contract should have a descriptive title,which is generally in all capital letters,underlined and centered at the top of the page.

When a party to a contract fails to fulfill all of her promises,she has breached the contract.What response does a court typically have for a breach?

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

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

Because details can always be added later,it's better to not overwhelm a contract with specifics in the beginning.

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

A letter of intent is not likely to be enforceable unless:

Some contracting parties are intentionally vague in contract terms.

Which of the following is NOT a standard provision frequently found in contracts?

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

Which of the following is NOT one of the four focused steps in reading a contract?

One reason you may not need a written contract is:

Bob,a house builder,contracts with Ollie to build a house on Ollie's lot.Bob hires Rob to take his place as the builder on this contract.What has Bob done?

Which of the following is NOT one of the three ways to amend a written contract?

In a contract modification,the phrase,"charged with such amendment" means:

Standard provisions in a contract that are often listed under the heading "Miscellaneous" are called:

Outline the parts of a typical contract.

Farmer's Fortune Insurance has a contract with Farmer Fran to insure her crops against insect damage.The contract does not specify which insects are covered or how much damage is necessary to make a claim.The contract will probably be enforced in favor of:

Introduction to Law

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Common Law, Statutory Law, and Administrative Law

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Written Contracts

Third parties

Performance and Discharge

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Introduction to Sales

Ownership and Warranties

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Negotiable Instruments

Secured Transactions

Bankruptcy

Agency

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Starting a Business

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