Question 1

A contract involving mutual mistake of value is ________.

Accepted Answer

A) rescindable 
B) ambiguous 
C) enforceable 
D) void 
A) rescindable 
B) ambiguous 
C) enforceable 
D) void

Question 2

Complete performance occurs when a party to a contract renders performance exactly as required by the contract.

Accepted Answer

A) True 
 B)False

Question 3

Jonas enters into an oral contract with Chelsea to lease his house to her for $100,000.Chelsea pays him $100,000 and moves in.A month later,Jonas learns that his state requires contracts for the lease of goods with payments of $1,000 or more to be in writing.Which of the following options does either party have?

Accepted Answer

A) Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. 
B) The contract cannot be rescinded by either party as it has already been executed. 
C) Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
D) Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
A) Jonas can evict Chelsea as the contract does not comply with the Statute of Frauds and is hence void. 
B) The contract cannot be rescinded by either party as it has already been executed. 
C) Chelsea can rescind the contract on the grounds of noncompliance with the Statute of Frauds. 
D) Jonas can rescind the contract on the grounds of noncompliance with the Statute of Frauds.

Question 4

As a part of a downsizing initiative,Richmond and Sons fired an employee before his employment contract lapsed.Is the employee responsible for mitigating damages? Explain.

Accepted Answer

If a contract has been breached,the law

Question 5

Which of the following statements is true of a breach of contract?

Accepted Answer

A) Strict performance by a party discharges that party's obligations under the contract. 
B) Inferior performance constitutes a minor breach of contract. 
C) Substantial performance constitutes a material breach. 
D) The most common remedy for a breach of contract is an award of equitable remedies. 
A) Strict performance by a party discharges that party's obligations under the contract. 
B) Inferior performance constitutes a minor breach of contract. 
C) Substantial performance constitutes a material breach. 
D) The most common remedy for a breach of contract is an award of equitable remedies.

Question 6

Which of the following is considered real property?

Accepted Answer

A) a fixture permanently affixed to a building 
B) fifty-one percent partnership in a firm 
C) a car 
D) diamond jewelry 
A) a fixture permanently affixed to a building 
B) fifty-one percent partnership in a firm 
C) a car 
D) diamond jewelry

Question 7

Which of the following is true of discharge by agreement?

Accepted Answer

A) A partially executed contract cannot be rescinded. 
B) Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one. 
C) A party is allowed to rescind a contract without the consent of the other party. 
D) Unilateral rescission is not regarded as a breach of contract. 
A) A partially executed contract cannot be rescinded. 
B) Mutual rescission requires parties to enter into a second agreement that expressly terminates the first one. 
C) A party is allowed to rescind a contract without the consent of the other party. 
D) Unilateral rescission is not regarded as a breach of contract.

Question 8

The ________ states that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Accepted Answer

The answer of The ________ states that agents' contracts to...

Question 9

Heather chooses to buy a scarf from Macy's and reads the price on the tag as $50.She uses her credit card to pay for the scarf,but only after the purchase does she notice that the price tag actually says $500.This is an instance of a(n)________.

Accepted Answer

A) bilateral mistake 
B) mutual mistake of value 
C) innocent misrepresentation 
D) unilateral mistake 
A) bilateral mistake 
B) mutual mistake of value 
C) innocent misrepresentation 
D) unilateral mistake

Question 10

A material fact is a fact that is irrelevant to the subject matter of a contract but pertains to the conduct of the parties.

Accepted Answer

A) True 
 B)False

Question 11

A(n)________ is a clause in a contract which stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Accepted Answer

merger cla

Question 12

Duress occurs when one person takes advantage of another person's mental,emotional,or physical weakness and unduly persuades that person to enter into a contract.

Accepted Answer

A) True 
 B)False

Question 13

An ambiguity in a contract may constitute a mutual mistake of a material fact.

Accepted Answer

A) True 
 B)False

Question 14

________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.

Accepted Answer

A) Condition precedent 
B) Condition subsequent 
C) Concurrent condition 
D) Implied condition 
A) Condition precedent 
B) Condition subsequent 
C) Concurrent condition 
D) Implied condition

Question 15

A contract cannot be rescinded if there has been a mutual mistake.

Accepted Answer

A) True 
 B)False

Question 16

The ________ states that if a written contract is a complete and final statement of the parties' agreement,any prior or contemporaneous oral or written statements that alter,contradict,or are in addition to the terms of the written contract are inadmissible in court regarding a dispute over the contract.

Accepted Answer

A) main purpose exception 
B) leading object exception 
C) parol evidence rule 
D) equal dignity rule 
A) main purpose exception 
B) leading object exception 
C) parol evidence rule 
D) equal dignity rule

Question 17

Distinguish between minor breach and material breach.

Accepted Answer

A minor breach occurs when a party rende

Question 18

A(n)________ is an unconditional promise to perform.

Accepted Answer

The answer of A(n)________ is an unconditional promise to perform....

Question 19

Distinguish between conditions and covenants.

Accepted Answer

A covenant is an unconditional promise t

Question 20

Which of the following is true of a unilateral mistake?

Accepted Answer

A) Only one mistake or ambiguity is present in the subject matter of entire contract. 
B) Out of several contracts drafted simultaneously between two parties,one has a mistake in its subject matter that does not concern the other contracts. 
C) Only one party is mistaken about a material fact regarding the subject matter of a contract. 
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract. 
A) Only one mistake or ambiguity is present in the subject matter of entire contract. 
B) Out of several contracts drafted simultaneously between two parties,one has a mistake in its subject matter that does not concern the other contracts. 
C) Only one party is mistaken about a material fact regarding the subject matter of a contract. 
D) A single mistake about a material fact in the subject matter of a contract appears several times in the contract.

Exam 10: Performance and Breach of Contracts

A contract involving mutual mistake of value is ________.

Complete performance occurs when a party to a contract renders performance exactly as required by the contract.

As a part of a downsizing initiative,Richmond and Sons fired an employee before his employment contract lapsed.Is the employee responsible for mitigating damages? Explain.

Which of the following statements is true of a breach of contract?

Which of the following is considered real property?

Which of the following is true of discharge by agreement?

The ________ states that agents' contracts to sell property covered by the Statute of Frauds must be in writing to be enforceable.

Heather chooses to buy a scarf from Macy's and reads the price on the tag as $50.She uses her credit card to pay for the scarf,but only after the purchase does she notice that the price tag actually says $500.This is an instance of a(n)________.

A material fact is a fact that is irrelevant to the subject matter of a contract but pertains to the conduct of the parties.

A(n)________ is a clause in a contract which stipulates that the contract is a complete integration and the exclusive expression of the parties' agreement.

Duress occurs when one person takes advantage of another person's mental,emotional,or physical weakness and unduly persuades that person to enter into a contract.

An ambiguity in a contract may constitute a mutual mistake of a material fact.

________ refers to a condition whose occurrence or nonoccurrence of a specific event automatically excuses the performance of an existing contractual duty to perform.

A contract cannot be rescinded if there has been a mutual mistake.

Distinguish between minor breach and material breach.

A(n)________ is an unconditional promise to perform.

Distinguish between conditions and covenants.

Which of the following is true of a unilateral mistake?

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