Exam 4: Enforcing Contractual Obligations

Joe,a student at the local college,had a one-year lease on a suite in a house owned by Sam.Sam sold that house to Jones without telling him about the lease.When Jones discovered Joe in the suite,he demanded that Joe leave.Explain the rights of the parties in terms of privity of contract.

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

Harry agreed to make a new violin for Ted at a particularly attractive price.Before he finished crafting it,however,an opportunity arose to work as a salesman for Joe's Fine Cars.Since it was clear that he could never make a living as a violin maker,Harry took the job and refused to finish the violin for Ted.Which of the following is the appropriate remedy in these circumstances?

What is the significance of an assignment qualifying as a statutory assignment?

Which of the following is true with respect to the law of negotiable instruments?

Mr.Zink hired Bruce Dorne to create a payroll program for his business.Bruce was to be paid $4000 for the program.When Bruce was halfway finished,a creditor to whom he owed $2000 pressed so hard for payment that Bruce assigned him $2000 of the contract price,an amount he felt he had earned already.The creditor,Mr.Pressing,gave written notice that very day to Mr.Zink.On these facts,which of the following is true? (Read each statement separately.)

Explain what remedies are available to the victim where misrepresentation becomes a term of the contract.

Indicate what must be present in order for an assignment to qualify as a statutory assignment.

The court will not allow the careless party to escape responsibility when a shared mistake is the result of the negligence of one of the parties.

With respect to having the court set aside a contract on the basis of undue influence,which of the following is false?

Distinguish between a cheque and a bill of exchange.

Privity of contract is a principle that holds that a contract can affect only the immediate parties to it.

Undue influence takes place when one person uses violence to force another to enter into a contract.

What is the effect of a court determining that undue influence has been present in a contractual relationship?

The effect of the doctrine of substantial performance is that:

For a contract to be frustrated,performance must be impossible.

Randal embezzled $6000 of his employer's money and then disappeared.The employer's accountant called at Randal's residence and discovered that his wife had a $3500 term deposit.When the accountant threatened to have her husband arrested and imprisoned if she did not agree to sign over the deposit,she assigned the term deposit to the employer to help to defray the loss from the embezzlement.If the wife were later to sue for return of the term deposit,what would be her grounds for avoiding the assignment?

Jenny went to the store and asked to see an AM-FM clock radio with a tape deck.The salesman brought out a clock radio that he said had all of the features that she wanted.After looking at the price tag and little else,Jenny said she would think about it.The salesman said that this was the most popular model sold,that they sold 1000 of them during the World Series alone,that it had the highest rating in Consumer Reports,and that he only had that one left.Jenny bought it.Later,she found out that all of the statements made to her by the salesman were false,including the one that the clock had all of the features she wanted,because it did not have an AM band.Which of the following is true?

Ellis agreed to paint Lee's house for a price of $1500.A month before the performance was due,Lee called and told Ellis that she had changed her mind and was going to have her house restuccoed instead.Ellis insisted that they had a contract and that he was going to paint the house anyway.Lee repeated that she was not going to go through with it,but Ellis insisted that the contract was still on.Before further steps could be taken by either party,Lee's house was destroyed by a freak airplane accident.Which one of the following statements describes the law applicable to these facts?

William enters into an agreement with Phyllis to advance $300 000 to Phyllis for the purchase of garage equipment.Phyllis agrees to give William a mortgage over her home as security for the advance of the money.The terms of the agreement contain an appraisal provision that the commitment to make the loan is subject to an appraisal of Phyllis' home of at least $350 000.The appraisal provision is known as: