Question 1

Some contracting parties are intentionally vague in contract terms.

Accepted Answer

A) True 
 B)False  True

Question 2

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

Accepted Answer

There are times when you should definitely sign a written agreement:
​a.The Statute of Frauds requires it.
b.The deal is crucial to your life or the life of your business.
c.The terms are complex. 
d.You do not have an ongoing relationship with the other party.

Question 3

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

Accepted Answer

A) True 
 B)False  False

Question 4

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 5

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 6

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

Accepted Answer

A) by writing and signing an amendment (or rider) 
B) by verbally agreeing to the changes and shaking hands on the deal 
C) by crossing out the mistakes and writing in the corrections 
D) by writing a totally new contract with the correct provisions 
A) by writing and signing an amendment (or rider) 
B) by verbally agreeing to the changes and shaking hands on the deal 
C) by crossing out the mistakes and writing in the corrections 
D) by writing a totally new contract with the correct provisions

Question 7

Two parties are debating whether or not to put their contract into writing.In making their determination,which of the following factors would normally NOT be considered?

Accepted Answer

A) whether or not the agreement falls within the Statute of Frauds 
B) the complexity of the agreement 
C) the length of time covered by the agreement 
D) the relationship between the two parties 
A) whether or not the agreement falls within the Statute of Frauds 
B) the complexity of the agreement 
C) the length of time covered by the agreement 
D) the relationship between the two parties

Question 8

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

Accepted Answer

Businesspeople are optimists - they beli

Question 9

Any ambiguity in a contract is interpreted against the party who drafted the contract.

Accepted Answer

A) True 
 B)False

Question 10

Bob,a house painter,contracts with Ollie to paint a rental house that Ollie owns.Bob hires Rob to take his place as the painter on this contract.What has Bob done?

Accepted Answer

A) made a scrivener's error 
B) severed the contract 
C) delegated his duties 
D) assigned his rights 
A) made a scrivener's error 
B) severed the contract 
C) delegated his duties 
D) assigned his rights

Question 11

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

Accepted Answer

A) True 
 B)False

Question 12

In the case of scrivener's errors,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 13

Which of the following guidelines applies to writing the title of a contract?

Accepted Answer

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

Question 14

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

Accepted Answer

A) the date of the contract 
B) the covenants of the contract 
C) the parties to the contract 
D) the nature of the contract 
A) the date of the contract 
B) the covenants of the contract 
C) the parties to the contract 
D) the nature of the contract

Question 15

An honest effort to meet both the spirit and letter of the contract is termed

Accepted Answer

A) reasonable circumstances. 
B) sole discretion. 
C) honest representation. 
D) good faith. 
A) reasonable circumstances. 
B) sole discretion. 
C) honest representation. 
D) good faith.

Question 16

What is a force majeure event?

Accepted Answer

A) any action that makes the contract unprofitable for either party 
B) any finding in a contract that shows a provision was deliberately left unclear 
C) a disruptive,unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract 
D) any happening that fulfills one of the conditions in the contract,making it enforceable 
A) any action that makes the contract unprofitable for either party 
B) any finding in a contract that shows a provision was deliberately left unclear 
C) a disruptive,unexpected occurrence for which neither party is to blame that prevents one or both parties from complying with a contract 
D) any happening that fulfills one of the conditions in the contract,making it enforceable

Question 17

Ambiguities in contracts are always interpreted in favor of the party who wrote the contract,since he or she is the one who knows what the provision is supposed to mean.

Accepted Answer

A) True 
 B)False

Question 18

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

Accepted Answer

A) reform the contract. 
B) rescind the contract. 
C) issue a warranty. 
D) issue a covenant. 
A) reform the contract. 
B) rescind the contract. 
C) issue a warranty. 
D) issue a covenant.

Question 19

Outline the parts of a typical contract.

Accepted Answer

The structure of a contract is

Question 20

Marsha and Antonio make a contract in which Marsha agrees to sell Antonio an expensive and rare piece of art.In the contract,Marsha states that she has the authority to enter into an agreement with Antonio,that she owns the piece of art,and that the art is authentic and not a forgery.These statements are examples of

Accepted Answer

A) covenants. 
B) representations and warranties. 
C) choice of law provisions. 
D) riders. 
A) covenants. 
B) representations and warranties. 
C) choice of law provisions. 
D) riders.

Exam 20: Practical Contracts

Some contracting parties are intentionally vague in contract terms.

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

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

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..."

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

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

Two parties are debating whether or not to put their contract into writing.In making their determination,which of the following factors would normally NOT be considered?

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

Any ambiguity in a contract is interpreted against the party who drafted the contract.

Bob,a house painter,contracts with Ollie to paint a rental house that Ollie owns.Bob hires Rob to take his place as the painter on this contract.What has Bob done?

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

In the case of scrivener's errors,a court will usually

Which of the following guidelines applies to writing the title of a contract?

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

An honest effort to meet both the spirit and letter of the contract is termed

What is a force majeure event?

Ambiguities in contracts are always interpreted in favor of the party who wrote the contract,since he or she is the one who knows what the provision is supposed to mean.

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

Outline the parts of a typical contract.

Introduction to Law

Ethics and Corporate Social Responsibility

International Law

Common Law, Statutory Law, and Administrative Law

Constitutional Law

Dispute Resolution

Crime

Intentional Torts and Business Torts

Negligence, Strict Liability, and Product Liability

Privacy and Internet Law

Introduction to Contracts

Agreement: Offers and Acceptances

Consideration

Legality

Voidable Contracts: Capacity and Consent

Written Contracts

Third Parties

Contract Termination

Remedies

Introduction to Sales

Ownership, Risk and Warranties

Performance and Remedies

Secured Transactions

Creating a Negotiable Instrument

Liability for Negotiable Instruments

Accountants Liability

Agency Law

Employment and Labor Law

Employment Discrimination

Starting a Business: Llcs and Other Options

Partnerships

Life and Death of a Corporation

Management Duties

Shareholder Rights

Bankruptcy

Securities Regulation

Antitrust

Consumer Protection

Environmental Law

Intellectual Property

Real Property and Landlord Tenant Law

Personal Property and Bailment

Planning for the Future: Wills, Trusts and Insurance

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