Question 1

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 2

The legal term for a promise in a contract is "provision."

Accepted Answer

A) True 
 B)False

Question 3

A force majeure event is:

Accepted Answer

A)  anything that makes the contract unprofitable for either party. 
B)  a natural disaster that claims human life or leads to the declaration of a state of emergency. 
C)  a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with the contract. 
D)  any happening that fulfills one of the conditions in the contract, making it enforceable. 
A)  anything that makes the contract unprofitable for either party. 
B)  a natural disaster that claims human life or leads to the declaration of a state of emergency. 
C)  a disruptive, unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with the contract. 
D)  any happening that fulfills one of the conditions in the contract, making it enforceable.

Question 4

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.

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

It is unethical to use your lawyer as an excuse for a provision of a contract,such as,"My lawyer insists that I have a liquidated damages clause..."

Accepted Answer

A) True 
 B)False

Question 7

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 8

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 9

Nate works as a carnival barker.His employment contract specifies that he can be fired if he "loses his voice." This is an example of:

Accepted Answer

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

Question 10

If you have an established relationship with a buyer,you can sell small tracts of land without a written contract.

Accepted Answer

A) True 
 B)False

Question 11

Statements of facts 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.

Question 12

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

Question 13

Ralph is a professional football player.He signs a valid contract with the Jets.Later,he claims that he was also promised free use of the Jets' private jet,but this was not in the contract.What type of clause in his contract would prevent him from flying away with this claim?

Accepted Answer

A)  A complete agreement clause. 
B)  A "no additional terms" clause. 
C)  An integration clause. 
D)  A severability clause. 
A)  A complete agreement clause. 
B)  A "no additional terms" clause. 
C)  An integration clause. 
D)  A severability clause.

Question 14

When a party to a contract intentionally makes the terms of a contract unclear,it is called:

Accepted Answer

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

Question 15

Contracts must begin with the word,"whereas" in order to be legal.

Accepted Answer

A) True 
 B)False

Question 16

Which statement is true about definitions in a contract?

Accepted Answer

A)  All ambiguous terms must be defined. 
B)  Definitions must be grouped together in a separate section of the contract. 
C)  Definitions must be located on the same page where the term is first used. 
D)  The parties to the contract may be defined with shorter designations than their actual names. 
A)  All ambiguous terms must be defined. 
B)  Definitions must be grouped together in a separate section of the contract. 
C)  Definitions must be located on the same page where the term is first used. 
D)  The parties to the contract may be defined with shorter designations than their actual names.

Question 17

Which of the following is generally NOT in the introductory paragraph of a contract?

Accepted Answer

A)  The date of contracting. 
B)  The location of contracting. 
C)  The parties to the contract. 
D)  The nature of the contract. 
A)  The date of contracting. 
B)  The location of contracting. 
C)  The parties to the contract. 
D)  The nature of the contract.

Question 18

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 19

In the case of scrivener's errors (commonly known as typos),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 20

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

Exam 19: Practical Contracts

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?

The legal term for a promise in a contract is "provision."

A force majeure event is:

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

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

It is unethical to use your lawyer as an excuse for a provision of a contract,such as,"My lawyer insists that I have a liquidated damages clause..."

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

One reason you may not need a written contract is:

Nate works as a carnival barker.His employment contract specifies that he can be fired if he "loses his voice." This is an example of:

If you have an established relationship with a buyer,you can sell small tracts of land without a written contract.

Statements of facts about the past and present are called:

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

Ralph is a professional football player.He signs a valid contract with the Jets.Later,he claims that he was also promised free use of the Jets' private jet,but this was not in the contract.What type of clause in his contract would prevent him from flying away with this claim?

When a party to a contract intentionally makes the terms of a contract unclear,it is called:

Contracts must begin with the word,"whereas" in order to be legal.

Which statement is true about definitions in a contract?

Which of the following is generally NOT in the introductory paragraph of a contract?

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

In the case of scrivener's errors (commonly known as typos),a court will usually:

Introduction To Law

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Common Law,Statutory Law,And Administrative Law

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Intentional Torts And Business Torts

Negligence And Strict Liability

Crime

International Law

Introduction To Contracts

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Written Contracts

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Performance And Discharge

Remedies

Introduction To Sales

Ownership And Risk

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Secured Transactions

Creating A Negotiable Instrument

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Planning For The Future: Wills,Trusts,And Insurance

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