Question 1

________ are debts incurred in an initial contract.

Accepted Answer

A) Secondary obligations 
B) Primary obligations 
C) Novation agreements 
D) Collateral promises 
E) Suretyship promises 
A) Secondary obligations 
B) Primary obligations 
C) Novation agreements 
D) Collateral promises 
E) Suretyship promises

Question 2

Maurice is excited because a developer plans a subdivision full of high-priced homes that will adjoin his property.Maurice is so pleased that he puts in a new swimming pool to celebrate.Maurice believes that the subdivision will significantly increase the value of his property.The developer,however,changes his mind and decides not to develop the subdivision.Maurice is angry and asks if he can sue the developer,particularly since he can establish reliance.What would you tell Maurice,and why? Discuss whether you agree with the law on this issue,and why or why not.

Accepted Answer

Maurice cannot sue the developer because

Question 3

At what point are assignments valid?

Accepted Answer

A) Immediately,regardless of notice 
B) One day (twenty-four hours)after the assignment is made 
C) Two days (forty-eight hours)after the assignment is made 
D) One day (twenty-four hours)after notice of the assignment is given 
E) Three days (seventy-two hours)after notice of the assignment is given 
A) Immediately,regardless of notice 
B) One day (twenty-four hours)after the assignment is made 
C) Two days (forty-eight hours)after the assignment is made 
D) One day (twenty-four hours)after notice of the assignment is given 
E) Three days (seventy-two hours)after notice of the assignment is given

Question 4

Bill contracts with Judy to wash her car and then delegates the duty to Paul.Paul fails to wash the car.Which of the following is true regarding Bill's duty to Judy,if any?

Accepted Answer

A) Bill has no duty to Judy so long as she did not expressly object to the delegation. 
B) Bill has no duty to Judy,regardless of whether she objected to the delegation. 
C) Bill continues to be contractually bound to Judy to ensure that her car gets washed. 
D) Bill continues to be contractually bound to Judy to ensure that her car gets washed,but only if the contract expressly prohibited delegation. 
E) Bill continues to be contractually bound to Judy to ensure that her car gets washed,unless he already paid Paul for the job. 
A) Bill has no duty to Judy so long as she did not expressly object to the delegation. 
B) Bill has no duty to Judy,regardless of whether she objected to the delegation. 
C) Bill continues to be contractually bound to Judy to ensure that her car gets washed. 
D) Bill continues to be contractually bound to Judy to ensure that her car gets washed,but only if the contract expressly prohibited delegation. 
E) Bill continues to be contractually bound to Judy to ensure that her car gets washed,unless he already paid Paul for the job.

Question 5

Which of the following is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights?

Accepted Answer

A) An incidental beneficiary may sue to enforce incidental contractual rights so long as those rights have vested. 
B) An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a creditor beneficiary. 
C) An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a donee beneficiary. 
D) An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a second-party beneficiary. 
E) An incidental beneficiary cannot sue to enforce a contract that provides incidental benefits. 
A) An incidental beneficiary may sue to enforce incidental contractual rights so long as those rights have vested. 
B) An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a creditor beneficiary. 
C) An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a donee beneficiary. 
D) An incidental beneficiary may sue to enforce incidental contractual rights only if the incidental beneficiary is also a second-party beneficiary. 
E) An incidental beneficiary cannot sue to enforce a contract that provides incidental benefits.

Question 6

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?

Accepted Answer

A) Assignment 
B) Rescission 
C) Delegation 
D) Novation 
E) Accord and satisfaction 
A) Assignment 
B) Rescission 
C) Delegation 
D) Novation 
E) Accord and satisfaction

Question 7

In ________,the English Parliament passed the Act for the Prevention of Frauds and Perjuries.

Accepted Answer

A) 1555 
B) 1677 
C) 1770 
D) 1776 
E) 1865 
A) 1555 
B) 1677 
C) 1770 
D) 1776 
E) 1865

Question 8

Oral contracts for ________ goods are enforceable even if they normally would have to be in writing.

Accepted Answer

A) retail 
B) wholesale 
C) collateral 
D) consumer 
E) customized 
A) retail 
B) wholesale 
C) collateral 
D) consumer 
E) customized

Question 9

The party who receives the rights of another party in a contract is called a delegatee.

Accepted Answer

A) True 
 B)False

Question 10

Which of the following was the result on appeal in the Shelby's,Inc.v.Sierra Bravo,Inc.case referenced in the textbook involving the issue of whether an agreement to deposit debris and soil on land comes within the statute of frauds?

Accepted Answer

A) The court ruled that the agreement did not involve an interest in land and did not come within the statute of frauds. 
B) The court ruled that the agreement did involve an interest in land,that it therefore came within the statute of frauds,and that an oral agreement was not sufficient. 
C) The court ruled that the agreement did not involve an interest in land but,nevertheless,applied the statute of frauds in order to prevent injustice. 
D) The court ruled that the agreement was within the statute of frauds but that an oral agreement was sufficient. 
E) The court ruled that based on longstanding judicial precedent within the state of Missouri,including a recent decision by the Missouri Supreme Court,the statute of frauds does not apply to contracts for the sale of land. 
A) The court ruled that the agreement did not involve an interest in land and did not come within the statute of frauds. 
B) The court ruled that the agreement did involve an interest in land,that it therefore came within the statute of frauds,and that an oral agreement was not sufficient. 
C) The court ruled that the agreement did not involve an interest in land but,nevertheless,applied the statute of frauds in order to prevent injustice. 
D) The court ruled that the agreement was within the statute of frauds but that an oral agreement was sufficient. 
E) The court ruled that based on longstanding judicial precedent within the state of Missouri,including a recent decision by the Missouri Supreme Court,the statute of frauds does not apply to contracts for the sale of land.

Question 11

Whenever a written agreement under the statute of frauds contains a serious and obvious typographical error,parol evidence is inadmissible to correct the error.

Accepted Answer

A) True 
 B)False

Question 12

All states except ________ adhere to the admission exception to the statute of frauds.

Accepted Answer

A) Hawaii and Alaska 
B) Louisiana and New York 
C) Louisiana and California 
D) Kentucky and Florida 
E) North Carolina and Montana 
A) Hawaii and Alaska 
B) Louisiana and New York 
C) Louisiana and California 
D) Kentucky and Florida 
E) North Carolina and Montana

Question 13

Which of the following is a contractual party who agrees to do something for the other party?

Accepted Answer

A) Obligor 
B) Obligee 
C) Assignor 
D) Assignee 
E) Delegator 
A) Obligor 
B) Obligee 
C) Assignor 
D) Assignee 
E) Delegator

Question 14

Which of the following is a false statement regarding the statute of frauds and an interest in land?

Accepted Answer

A) The statute is intended to prevent oral claims to the existence of a contract for the sale of land. 
B) The statute requires a writing as evidence of a contract to sell land. 
C) Anything attached to land,such as trees or buildings,is considered real property under the statute of frauds. 
D) Mortgages of land are within the statute of frauds. 
E) Leases of land are not within the statute of frauds. 
A) The statute is intended to prevent oral claims to the existence of a contract for the sale of land. 
B) The statute requires a writing as evidence of a contract to sell land. 
C) Anything attached to land,such as trees or buildings,is considered real property under the statute of frauds. 
D) Mortgages of land are within the statute of frauds. 
E) Leases of land are not within the statute of frauds.

Question 15

Third-Party Woes.Trudy owed Sam $40 for a book she purchased from him.Trudy mowed Betty's yard for $40 and agreed with Betty that Betty would pay Sam for the book.Sam is not initially aware of the agreement.Betty pays no one.Trudy also mowed Bob's yard for $40 in return for Bob's agreement to give the payment to Sally representing Trudy's birthday present to Sally.Bob later refuses to do so saying that promises to give gifts are not enforceable.He then moves out of town.Trudy tells both Sam and Sally that she is broke,that Sam needs to get his $40 for the book from Betty,and that Sally is owed $40 from Bob for her birthday present.Which of the following would be the likely result if Sam sues Trudy for the $40 she owes him for the book?

Accepted Answer

A) Sam will win because Trudy cannot avoid her obligations through a delegation. 
B) Sam will win but only because he was not aware of the assignment. 
C) Sam will win but only because the contract was for an amount under $1,000. 
D) Sam will win only if Betty cannot be found for service of process. 
E) Trudy will win because she delegated the duty of payment to Betty. 
A) Sam will win because Trudy cannot avoid her obligations through a delegation. 
B) Sam will win but only because he was not aware of the assignment. 
C) Sam will win but only because the contract was for an amount under $1,000. 
D) Sam will win only if Betty cannot be found for service of process. 
E) Trudy will win because she delegated the duty of payment to Betty.

Question 16

Which of the following is a false statement regarding the main-purpose rule as it relates to a promise to pay someone else's debt?

Accepted Answer

A) The main-purpose rule is an exception to the general rule that a promise to pay someone else's debt needs to be in writing. 
B) If the main purpose for incurring a secondary obligation is to obtain a personal benefit,the promise does not need to be in writing. 
C) If the main purpose for incurring a primary obligation is to obtain a personal benefit,the promise does not fall within the statute of frauds and must be in writing. 
D) The main-purpose rule assumes that a party attempting to achieve a personal benefit will not back out of the agreement; thus,there is no need for a written record of the agreement. 
E) The court's job is to use the context surrounding the agreement to determine the third party's main purpose for entering the agreement. 
A) The main-purpose rule is an exception to the general rule that a promise to pay someone else's debt needs to be in writing. 
B) If the main purpose for incurring a secondary obligation is to obtain a personal benefit,the promise does not need to be in writing. 
C) If the main purpose for incurring a primary obligation is to obtain a personal benefit,the promise does not fall within the statute of frauds and must be in writing. 
D) The main-purpose rule assumes that a party attempting to achieve a personal benefit will not back out of the agreement; thus,there is no need for a written record of the agreement. 
E) The court's job is to use the context surrounding the agreement to determine the third party's main purpose for entering the agreement.

Question 17

Define "donee beneficiary," and give an example of a donee beneficiary contract.

Accepted Answer

Donee beneficiaries are third parties wh

Question 18

Define what an assignment is and list and discuss two reasons why notice of assignment should be given to the obligor.

Accepted Answer

An assignment occurs when a party to a c

Question 19

Define the term "admission" as it relates to the applicability of the statute of frauds writing requirement.Discuss the advantages and disadvantages of the law regarding admissions,and set forth your reasoned opinion as to whether the law should recognize an admission.

Accepted Answer

As with most legal rules,there are certa

Question 20

Which of the following is a duty that typically cannot be delegated to a third party?

Accepted Answer

A) Mowing a yard 
B) Payment of money owed 
C) Delivering goods 
D) Painting a house 
E) Painting a portrait 
A) Mowing a yard 
B) Payment of money owed 
C) Delivering goods 
D) Painting a house 
E) Painting a portrait

Exam 13: Contracts in Writing and Third-Party Contracts

________ are debts incurred in an initial contract.

At what point are assignments valid?

Bill contracts with Judy to wash her car and then delegates the duty to Paul.Paul fails to wash the car.Which of the following is true regarding Bill's duty to Judy,if any?

Which of the following is true regarding the rights of an incidental beneficiary to a contract to sue to recover incidental rights?

Which of the following occurs when a party to a contract transfers her rights to a contract to a third party?

In ________,the English Parliament passed the Act for the Prevention of Frauds and Perjuries.

Oral contracts for ________ goods are enforceable even if they normally would have to be in writing.

The party who receives the rights of another party in a contract is called a delegatee.

Which of the following was the result on appeal in the Shelby's,Inc.v.Sierra Bravo,Inc.case referenced in the textbook involving the issue of whether an agreement to deposit debris and soil on land comes within the statute of frauds?

Whenever a written agreement under the statute of frauds contains a serious and obvious typographical error,parol evidence is inadmissible to correct the error.

All states except ________ adhere to the admission exception to the statute of frauds.

Which of the following is a contractual party who agrees to do something for the other party?

Which of the following is a false statement regarding the statute of frauds and an interest in land?

Which of the following is a false statement regarding the main-purpose rule as it relates to a promise to pay someone else's debt?

Define "donee beneficiary," and give an example of a donee beneficiary contract.

Define what an assignment is and list and discuss two reasons why notice of assignment should be given to the obligor.

Define the term "admission" as it relates to the applicability of the statute of frauds writing requirement.Discuss the advantages and disadvantages of the law regarding admissions,and set forth your reasoned opinion as to whether the law should recognize an admission.

Which of the following is a duty that typically cannot be delegated to a third party?

An Introduction to the Fundamentals of Dynamic Business Law

Business Ethics and Social Responsibility

The Uslegal System and Alternative Dispute Resolution

Administrative Law

Constitutional Law

Criminal Law and Business

Tort Law

Real, Personal, and Intellectual Property

Introduction to Contracts and Agreement

Consideration

Capacity and Legality

Reality of Assent

Discharge and Remedies

Formation and Performance of Sales and Lease Contracts

Sales and Lease Contracts: Performance, Warranties, and Remedies

Negotiable Instruments: Negotiability and Transferability

Holder in Due Course, Liability, and Defenses

Secured Transactions and Bankruptcy

Agency and Liability to Third Parties

Forms of Business Organization

Corporations: Formation and Organization

Securities Regulation

Employment and Discrimination Law

Consumer Law

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