Question 1

With regard to the law governing privity of contract and assignment, which of the following is true?

Accepted Answer

A)  A statutory assignment is more difficult to enforce than an equitable assignment. 
B)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
C)  Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract. 
D)  Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
E)  An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer. 
A)  A statutory assignment is more difficult to enforce than an equitable assignment. 
B)  A party to a contract for services can assign both his contractual obligations and his contractual rights. 
C)  Novation refers to the modifications of the privity of contract rule since it allows a stranger to the contract to receive benefits from the contract. 
D)  Assignments are modifications of the privity of contract rule since they allow ending the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
E)  An employee sent by his employer to do a routine job for one of the employer's customers is not in a contractual relationship with the customer.

Question 2

Where one person transfers his rights to benefits under a contractual relationship to a third party, this is an example of ________.

Accepted Answer

The answer of Where one person transfers his rights to...

Question 3

Explain what is meant by the parol evidence rule.

Accepted Answer

Parol is the principle that co

Question 4

When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?

Accepted Answer

A)  The court will find that there is no contract because there is no meeting of the minds. 
B)  Non est factum 
C)  Caveat emptor 
D)  The most reasonable interpretation of the terms 
E)  The equitable remedy of rectification 
A)  The court will find that there is no contract because there is no meeting of the minds. 
B)  Non est factum 
C)  Caveat emptor 
D)  The most reasonable interpretation of the terms 
E)  The equitable remedy of rectification

Question 5

"Misrepresentation involves a misleading statement of fact, not opinion." Discuss the accuracy of that statement.

Accepted Answer

Misrepresentation ca

Question 6

When Gary went into Computer Heaven, Ltd. to get a better manual for the program he was trying to master, he was caught by a demonstration of a computer created by StarSystem Inc. He was fascinated by its performance. The salesman, Ross, told Gary that he should have this machine; that "it was the last computer, no other will ever be better"; that "UBC, Simon Fraser University, and BCIT just ordered over 1000 of them"; that he only had "a few left and the demand is so great it will take almost a year for the next shipment to arrive." When Gary said he needed a computer with at least 1 terabyte of hard drive space, Ross said this model had 2.5 terabytes. Gary was persuaded and contracted for it. Later Gary learned that every statement made by the salesman Ross was untrue, including the statement about the memory capacity. The model only had 400 gigabytes. On these facts, which of the following is true?

Accepted Answer

A)  Gary could be awarded the equitable remedy of rescission even if Ross, the salesman, honestly believed everything he said was true. 
B)  Only if Ross, the salesman, knew that all the statements he made were False could Gary get a remedy. 
C)  Merely the exaggerated claim "it was the last computer, no other will ever be better" is enough, according to the case law, to allow Gary to get out of the contract. 
D)  Statements that induced Gary to contract, but that are not the terms of the contract, are not significant enough for the courts to award a remedy by case law or by statute. 
E)  Such misrepresentations could only result in contractual remedies, legal or equitable, but not in tort remedies. 
A)  Gary could be awarded the equitable remedy of rescission even if Ross, the salesman, honestly believed everything he said was true. 
B)  Only if Ross, the salesman, knew that all the statements he made were False could Gary get a remedy. 
C)  Merely the exaggerated claim "it was the last computer, no other will ever be better" is enough, according to the case law, to allow Gary to get out of the contract. 
D)  Statements that induced Gary to contract, but that are not the terms of the contract, are not significant enough for the courts to award a remedy by case law or by statute. 
E)  Such misrepresentations could only result in contractual remedies, legal or equitable, but not in tort remedies.

Question 7

Fraudulent misrepresentation is intentionally misleading another person into a contract.

Accepted Answer

A) True 
 B)False

Question 8

Which of the following is an example of duress?

Accepted Answer

A)  Joe refuses to sell Harry his car unless Harry offers him more money. 
B)  Joe, knowing of Harry's financial situation, refuses to sell him his car. 
C)  Joe counteroffers Harry's original offer. 
D)  Joe wants to purchase Smith's car from him, and Smith sells it to someone else. 
E)  Joe threatens to smash Harry's car if Harry won't sell it to him. 
A)  Joe refuses to sell Harry his car unless Harry offers him more money. 
B)  Joe, knowing of Harry's financial situation, refuses to sell him his car. 
C)  Joe counteroffers Harry's original offer. 
D)  Joe wants to purchase Smith's car from him, and Smith sells it to someone else. 
E)  Joe threatens to smash Harry's car if Harry won't sell it to him.

Question 9

Novation is the term used when a new party is substituted for an original party to the contract.

Accepted Answer

A) True 
 B)False

Question 10

Discuss the principle of caveat emptor and how it relates to misrepresentation in contract law.

Accepted Answer

The answer here will likely be shorter,

Question 11

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

Accepted Answer

A)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract. 
B)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burned. 
C)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school. 
D)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake. 
E)  Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable. 
A)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract. 
B)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burned. 
C)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school. 
D)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake. 
E)  Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable.

Question 12

Kassem was a real estate agent with his own firm. Because his agency was new in a competitive field, he hired the company of Barrett and Barrett Ltd. to advise on an advertising strategy and to design ads for the newspaper and for brochures. Jack Barrett, senior employee, was handling the market research, and the employee Armstrong was doing the illustrations. When the work was complete, the ads went to press. Unfortunately, after the printing, it was discovered that in all the ads and in every brochure "Kassem" was spelled "Kassim." Armstrong had made the mistake in his copy. On these facts, which of the following is true?

Accepted Answer

A)  For breach of contract, Kassem could successfully sue only the company, Barrett and Barrett Ltd. 
B)  Kassem can choose to sue either the company or its employee Armstrong for breach of contract, but not both. 
C)  Kassem can sue both the company and its employee Armstrong for breach of contract, since they were both connected with the job. 
D)  If the company did not pay Armstrong, Armstrong could sue Kassem for his pay because Armstrong did do work for Kassem. 
E)  Kassem's only recourse is against Armstrong, the employee who made the mistake. 
A)  For breach of contract, Kassem could successfully sue only the company, Barrett and Barrett Ltd. 
B)  Kassem can choose to sue either the company or its employee Armstrong for breach of contract, but not both. 
C)  Kassem can sue both the company and its employee Armstrong for breach of contract, since they were both connected with the job. 
D)  If the company did not pay Armstrong, Armstrong could sue Kassem for his pay because Armstrong did do work for Kassem. 
E)  Kassem's only recourse is against Armstrong, the employee who made the mistake.

Question 13

Able Company contracted to sell to Baker Company 400 barrels of chemical C for $12,000. Able Company assigned the entire $12,000 in writing to Mr. Long, who sent a letter informing Baker Company of the assignment and directing Baker Company to forward money to him instead of Able Company. Unknown to both companies, at the time of the contract the ship carrying the chemical had sunk and all cargo was lost. Which of the following is true?

Accepted Answer

A)  Mr. Long, the assignee, will receive $12,000 from Baker Company. 
B)  The assignment to Mr. Long would fail to be a statutory assignment. 
C)  Mr. Long will receive nothing from Baker Company because nothing is owed to Able company. 
D)  Mr. Long will receive part payment. 
E)  Since Able Company has breached the contract, it must pay compensation for the damages of both Baker Company and Mr. Long. 
A)  Mr. Long, the assignee, will receive $12,000 from Baker Company. 
B)  The assignment to Mr. Long would fail to be a statutory assignment. 
C)  Mr. Long will receive nothing from Baker Company because nothing is owed to Able company. 
D)  Mr. Long will receive part payment. 
E)  Since Able Company has breached the contract, it must pay compensation for the damages of both Baker Company and Mr. Long.

Question 14

Negotiable instruments can sometimes convey better rights than existed between the original parties.

Accepted Answer

A) True 
 B)False

Question 15

Tong hired Hocaloski to design an ad for her business. Hocaloski gave the job to Peppar, her employee. After the ad was run, it was noticed that Peppar had made a serious error. He gave the wrong address and phone number for the business. On these facts, which of the following is true?

Accepted Answer

A)  For breach of contract, Tong could successfully sue only Hocaloski. 
B)  Tong can sue either Hocaloski or Peppar for breach of contract, but not both of them. 
C)  Tong can sue both Hocaloski and Peppar for breach of contract, since they are both connected with the job. 
D)  If Hocaloski did not pay Peppar, Peppar could sue Tong for his pay because Peppar did do work for Tong. 
E)  Only Peppar is liable since he made the mistake. 
A)  For breach of contract, Tong could successfully sue only Hocaloski. 
B)  Tong can sue either Hocaloski or Peppar for breach of contract, but not both of them. 
C)  Tong can sue both Hocaloski and Peppar for breach of contract, since they are both connected with the job. 
D)  If Hocaloski did not pay Peppar, Peppar could sue Tong for his pay because Peppar did do work for Tong. 
E)  Only Peppar is liable since he made the mistake.

Question 16

Damages as a remedy will not be available in which of the following situations?

Accepted Answer

A)  Jones, although being careful, makes an innocent misrepresentation persuading Smith to enter a contract with him. 
B)  Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him. 
C)  Jones makes a negligent misstatement, persuading Smith to enter a contract with him. 
D)  A False statement made by Jones becomes a term of the contract. 
E)  Jones makes an intentional misrepresentation of fact in order to get Smith to sign the agreement. 
A)  Jones, although being careful, makes an innocent misrepresentation persuading Smith to enter a contract with him. 
B)  Jones makes a fraudulent misrepresentation, persuading Smith to enter a contract with him. 
C)  Jones makes a negligent misstatement, persuading Smith to enter a contract with him. 
D)  A False statement made by Jones becomes a term of the contract. 
E)  Jones makes an intentional misrepresentation of fact in order to get Smith to sign the agreement.

Question 17

A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

Accepted Answer

A)  Mistake 
B)  Illegality of object 
C)  Rescission 
D)  Non est factum 
E)  Rectification 
A)  Mistake 
B)  Illegality of object 
C)  Rescission 
D)  Non est factum 
E)  Rectification

Question 18

The equitable remedy of rectification is granted by the courts in which of the following situations?

Accepted Answer

A)  The parties to a contract disagree as to the meaning of a term in their contract. 
B)  The seller made a fraudulent misrepresentation that induced the buyer to buy. 
C)  The seller of goods has made an innocent misrepresentation that persuaded the buyer to buy. 
D)  A person buys something that he later learns he already owned. 
E)  Because of a mistake, a written document does not include a corrected term to which the parties had orally agreed. 
A)  The parties to a contract disagree as to the meaning of a term in their contract. 
B)  The seller made a fraudulent misrepresentation that induced the buyer to buy. 
C)  The seller of goods has made an innocent misrepresentation that persuaded the buyer to buy. 
D)  A person buys something that he later learns he already owned. 
E)  Because of a mistake, a written document does not include a corrected term to which the parties had orally agreed.

Question 19

Sam agreed to buy property from Joe to build a store of a certain design. Joe, the vendor, was aware of the design and knew that an easement across the back of the property would prevent such a building being erected, but said nothing. Sam purchased the property, later discovered the easement, and learned that Joe knew about it. He sued for misrepresentation. Discuss the likely outcome.

Accepted Answer

Sam will lose. Joe was under no obligati

Question 20

The threat of violence makes a contract voidable.

Accepted Answer

A) True 
 B)False

With regard to the law governing privity of contract and assignment, which of the following is true?

Where one person transfers his rights to benefits under a contractual relationship to a third party, this is an example of ________.

Explain what is meant by the parol evidence rule.

When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?

"Misrepresentation involves a misleading statement of fact, not opinion." Discuss the accuracy of that statement.

Fraudulent misrepresentation is intentionally misleading another person into a contract.

Which of the following is an example of duress?

Novation is the term used when a new party is substituted for an original party to the contract.

Discuss the principle of caveat emptor and how it relates to misrepresentation in contract law.

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

Negotiable instruments can sometimes convey better rights than existed between the original parties.

Tong hired Hocaloski to design an ad for her business. Hocaloski gave the job to Peppar, her employee. After the ad was run, it was noticed that Peppar had made a serious error. He gave the wrong address and phone number for the business. On these facts, which of the following is true?

Damages as a remedy will not be available in which of the following situations?

A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

The equitable remedy of rectification is granted by the courts in which of the following situations?

The threat of violence makes a contract voidable.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters

Exam 8: Factors Affecting the Contractual Relationship

With regard to the law governing privity of contract and assignment, which of the following is true?

Where one person transfers his rights to benefits under a contractual relationship to a third party, this is an example of ________.

Explain what is meant by the parol evidence rule.

When two parties are involved in a misunderstanding as to the meaning of a term of the contract, which of the following is usually applied by the court to settle the matter?

"Misrepresentation involves a misleading statement of fact, not opinion." Discuss the accuracy of that statement.

Fraudulent misrepresentation is intentionally misleading another person into a contract.

Which of the following is an example of duress?

Novation is the term used when a new party is substituted for an original party to the contract.

Discuss the principle of caveat emptor and how it relates to misrepresentation in contract law.

In which of the following would the court find that the contract is void (i.e., not a binding agreement)?

Negotiable instruments can sometimes convey better rights than existed between the original parties.

Tong hired Hocaloski to design an ad for her business. Hocaloski gave the job to Peppar, her employee. After the ad was run, it was noticed that Peppar had made a serious error. He gave the wrong address and phone number for the business. On these facts, which of the following is true?

Damages as a remedy will not be available in which of the following situations?

A and B entered into a contract for the purchase and sale of three grams of cocaine. B delivered the goods, but A didn't pay. If B sued for payment, the court would not enforce the contract because of which of the following?

The equitable remedy of rectification is granted by the courts in which of the following situations?

The threat of violence makes a contract voidable.

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputes: the Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contract: Consensus and Consideration

The Elements of a Contract: Capacity, Legality, and Intention

The End of the Contractual Relationship

Agency and Partnership

Corporations

Employment

Intellectual Property

Real and Personal Property and Protection of the Environment

Priority of Creditors

Sales and Consumer Protection

Filters