Question 1

If the subject of the contract includes issues that may be controversial or "touchy," 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 becomes 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 becomes 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 2

When a party to a contract fails to fulfill all of her promises,she has breached the contract.What will a court look at in responding to a breach of contract?

Accepted Answer

Typically,a court would not impose sanct

Question 3

Nate works as a sales representative.His employment contract specifies that he cannot work for a competitor for a period of two years from employment.This is an example of

Accepted Answer

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

Question 4

A+ Modeling Agency signs a contract with Sandi to do a photo shoot for the local used car dealer's advertising.The contract was most likely 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 5

When a provision to a contract is accidentally unclear,it is called

Accepted Answer

A) vagueness. 
B) a scrivener's error. 
C) ambiguity. 
D) a typo. 
A) vagueness. 
B) a scrivener's error. 
C) ambiguity. 
D) a typo.

Question 6

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

Accepted Answer

Vagueness occurs when the parties do not

Question 7

Emily runs a children's clothing boutique that 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

Question 8

A severability provision

Accepted Answer

A) rescinds the entire contract upon request of the party who drafted it. 
B) transfers benefits under a contract to another person. 
C) asks the court to delete the offending clause and enforce the rest of the contract. 
D) transfers the obligations of a contract to another party. 
A) rescinds the entire contract upon request of the party who drafted it. 
B) transfers benefits under a contract to another person. 
C) asks the court to delete the offending clause and enforce the rest of the contract. 
D) transfers the obligations of a contract to another party.

Question 9

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 10

In which of the following situations is it likely that you may NOT need a written contract?

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 with the other party 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 with the other party enough that you both know what the other person intends.

Question 11

In a contract modification,the phrase "charged with such amendment" refers to

Accepted Answer

A) the party who suggested the change. 
B) the party who will benefit from the change. 
C) the party who will be adversely affected by the change. 
D) the party who did NOT suggest the change. 
A) the party who suggested the change. 
B) the party who will benefit from the change. 
C) the party who will be adversely affected by the change. 
D) the party who did NOT suggest the change.

Question 12

"Scrivener's error" is another (fancier)name for a typo.

Accepted Answer

A) True 
 B)False

Question 13

Contracts must use formal terminology such as "whereas" and "heretofore" in order to be legal.

Accepted Answer

A) True 
 B)False

Question 14

An agreement should definitely be in writing if you do not have an ongoing relationship with the other party.

Accepted Answer

A) True 
 B)False

Question 15

Which of the following is a standard provision frequently found in contracts?

Accepted Answer

A) choice of forum 
B) understanding 
C) choice of compensation 
D) mediation 
A) choice of forum 
B) understanding 
C) choice of compensation 
D) mediation

Question 16

Ralph is a professional football player.He signs a valid contract with the Miami Dolphins.Later,he claims that he was also promised free use of the Dolphins' 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 17

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

Accepted Answer

A) True 
 B)False

Question 18

Which of the following is one of the four steps in reading a contract?

Accepted Answer

A) What-ifs 
B) Scan for typos 
C) Re-write with a lawyer 
D) Final approval 
A) What-ifs 
B) Scan for typos 
C) Re-write with a lawyer 
D) Final approval

Question 19

In the case of a typo, a court will reform a contract if there is clear and convincing evidence that the alleged mistake does not actually reflect the true intent of the parties.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is the best example of a contract title?

Accepted Answer

A) AGREEMENT 
B) LEASE AGREEMENT 
C) LEASE AGREEMENT BETWEEN ALISON ALBRIGHT AND KEYSTONE PROPERTIES 
D) CONTRACT BETWEEN LESSOR AND LESSEE 
A) AGREEMENT 
B) LEASE AGREEMENT 
C) LEASE AGREEMENT BETWEEN ALISON ALBRIGHT AND KEYSTONE PROPERTIES 
D) CONTRACT BETWEEN LESSOR AND LESSEE

Exam 20: Practical Contracts

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

When a party to a contract fails to fulfill all of her promises,she has breached the contract.What will a court look at in responding to a breach of contract?

Nate works as a sales representative.His employment contract specifies that he cannot work for a competitor for a period of two years from employment.This is an example of

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

When a provision to a contract is accidentally unclear,it is called

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

A severability provision

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

In which of the following situations is it likely that you may NOT need a written contract?

In a contract modification,the phrase "charged with such amendment" refers to

"Scrivener's error" is another (fancier)name for a typo.

Contracts must use formal terminology such as "whereas" and "heretofore" in order to be legal.

An agreement should definitely be in writing if you do not have an ongoing relationship with the other party.

Which of the following is a standard provision frequently found in contracts?

Ralph is a professional football player.He signs a valid contract with the Miami Dolphins.Later,he claims that he was also promised free use of the Dolphins' 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?

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

Which of the following is one of the four steps in reading a contract?

In the case of a typo, a court will reform a contract if there is clear and convincing evidence that the alleged mistake does not actually reflect the true intent of the parties.

Which of the following is the best example of a contract title?

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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