Question 1

The title of a contract should be:

Accepted Answer

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

Question 2

Some contracting parties are intentionally vague in contract terms.

Accepted Answer

A) True 
 B)False  True

Question 3

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. C

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

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

Accepted Answer

A) True 
 B)False

Question 6

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising.The contract was probably written by:

Accepted Answer

A)  The owner of A+ Modeling Agency. 
B)  Sandi. 
C)  A+ Modeling Agency's lawyer. 
D)  Sandi's lawyer. 
A)  The owner of A+ Modeling Agency. 
B)  Sandi. 
C)  A+ Modeling Agency's lawyer. 
D)  Sandi's lawyer.

Question 7

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.

Question 8

Ricardo has agreed to sell his family farm to Walter for a price of $450,000.Even though both sides agree on the terms,it is still worth the money for Ricardo to hire a lawyer to write the contract.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

Businesspeople are optimists - they beli

Question 10

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 11

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 12

Which of the following statements is incorrect concerning arbitration?

Accepted Answer

A)  The losing party in an arbitration can file an appeal in a District Appellate Court. 
B)  Arbitration is almost always cheaper and faster than litigation. 
C)  Arbitrators may be biased toward the "larger" party who may be a repeat client. 
D)  Parties to a contract cannot be forced to arbitrate unless the contract specifies it. 
A)  The losing party in an arbitration can file an appeal in a District Appellate Court. 
B)  Arbitration is almost always cheaper and faster than litigation. 
C)  Arbitrators may be biased toward the "larger" party who may be a repeat client. 
D)  Parties to a contract cannot be forced to arbitrate unless the contract specifies it.

Question 13

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

Accepted Answer

Pre-reading.Before you begin reading the

Question 14

Typos are almost always detrimental to the validity of a contract because they cause the contract to not reflect the true agreement of the parties.

Accepted Answer

A) True 
 B)False

Question 15

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 16

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 17

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

Accepted Answer

Vagueness occurs when the parties do not

Question 18

In determining whether parties intended to reduce their agreement to writing,which of the following factors would normally NOT be considered:

Accepted Answer

A)  whether the type of agreement is one that is normally put into writing. 
B)  the complexity of the agreement. 
C)  whether or not the terms are complete. 
D)  the amount of money involved in the agreement. 
A)  whether the type of agreement is one that is normally put into writing. 
B)  the complexity of the agreement. 
C)  whether or not the terms are complete. 
D)  the amount of money involved in the agreement.

Question 19

Ambiguities in contracts are always interpreted in favor of the side that wrote the contract,since they are the ones who know what the provision is supposed to mean.

Accepted Answer

A) True 
 B)False

Question 20

Rich and Archie sign an agreement in which Archie agrees to deliver ten cases of champagne in 5 days.The parties negotiated and meant to say in the written agreement,delivery in 50 days.If the evidence is clear that the two parties intended to agree to 50 days,the courts will probably apply the remedy of:

Accepted Answer

A)  reformation. 
B)  rescission. 
C)  restitution. 
D)  reliance. 
A)  reformation. 
B)  rescission. 
C)  restitution. 
D)  reliance.

Exam 19: Practical Contracts

The title of a contract should be:

Some contracting parties are intentionally vague in contract terms.

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

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?

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

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising.The contract was probably written by:

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:

Ricardo has agreed to sell his family farm to Walter for a price of $450,000.Even though both sides agree on the terms,it is still worth the money for Ricardo to hire a lawyer to write the contract.

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

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

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

Which of the following statements is incorrect concerning arbitration?

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

Typos are almost always detrimental to the validity of a contract because they cause the contract to not reflect the true agreement of the parties.

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

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

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

In determining whether parties intended to reduce their agreement to writing,which of the following factors would normally NOT be considered:

Ambiguities in contracts are always interpreted in favor of the side that wrote the contract,since they are the ones who know what the provision is supposed to mean.

Introduction To Law

Business Ethics And Social Responsibility

Dispute Resolution

Common Law,Statutory Law,And Administrative Law

Constitutional Law

Intentional Torts And Business Torts

Negligence And Strict Liability

Crime

International Law

Introduction To Contracts

Agreement

Consideration

Legality

Capacity And Consent

Written Contracts

Third Parties

Performance And Discharge

Remedies

Introduction To Sales

Ownership And Risk

Warranties And Product Liability

Performance And Remedies

Secured Transactions

Creating A Negotiable Instrument

Liability For Negotiable Instruments

Accountants' Liability

Agency Law

Employment Law

Labor Law

Starting A Business

Partnerships

Life And Death Of A Corporation

Corporate Management

Shareholders

Securities Regulation

Bankruptcy

Antitrust

Consumer Law

Environmental Law

Cyberlaw

Intellectual Property

Real Property And Tenant-landlord Law

Personal Property And Bailment

Planning For The Future: Wills,Trusts,And Insurance

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