Question 1

A contract may have to be in writing to be enforceable even if its performance is possible within a year.

Accepted Answer

A) True 
 B)False  True

Question 2

Justifiable reliance on a misrepresentation is an element of fraud.

Accepted Answer

A) True 
 B)False  True

Question 3

Dale files a suit against Eve,alleging that she used fraud to induce him to enter into a con?tract with her.Proof of an injury is required

Accepted Answer

A) to recover damages. 
B) to rescind the contract. 
C) to undo Eve's influence. 
D) under no circumstances. 
A) to recover damages. 
B) to rescind the contract. 
C) to undo Eve's influence. 
D) under no circumstances. A

Question 4

A unilateral mistake of fact has no effect on the enforceability of a contract.

Accepted Answer

A) True 
 B)False

Question 5

Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.

Accepted Answer

A) True 
 B)False

Question 6

Stuffed Fauna,Inc. ,and Taxidermy Storage Company enter into a long-term lease for a warehouse.To be enforceable,the lease

Accepted Answer

A) must be in writ?ing. 
B) must be in writ?ing only if the lease is valued at $500 or more. 
C) must be in writing only if the lease is for longer than one year. 
D) need not be in writing. 
A) must be in writ?ing. 
B) must be in writ?ing only if the lease is valued at $500 or more. 
C) must be in writing only if the lease is for longer than one year. 
D) need not be in writing.

Question 7

An integrated contract is the final embodiment of the terms of an agreement.

Accepted Answer

A) True 
 B)False

Question 8

Reel Graphics,Inc. ,agrees to assume a debt of Suave Marketing Company to Town Credit Union.This promise is for Reel's benefit.To be enforceable,the promise

Accepted Answer

A) must be in writ?ing. 
B) must be in writ?ing only if the debt is valued at $500 or more. 
C) must be in writing only if the debt will not be repaid within one year. 
D) need not be in writing. 
A) must be in writ?ing. 
B) must be in writ?ing only if the debt is valued at $500 or more. 
C) must be in writing only if the debt will not be repaid within one year. 
D) need not be in writing.

Question 9

A prenuptial agreement does not have to be in writing to be enforceable.

Accepted Answer

A) True 
 B)False

Question 10

Fact Pattern 10-3 
Nano Corporation offers to sell a robotic device to Opal Assembly,Inc. ,but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500.Opal accepts the written offer.
-Refer to Fact Pattern 10-3.Opal's best argument in favor of enforcement of the contract is that

Accepted Answer

A) a bilateral mistake does not afford relief from a contract. 
B) a mistake of value does not afford relief from a contract. 
C) a unilateral mistake does not afford relief from a contract. 
D) the price was below the prices of comparable devices. 
A) a bilateral mistake does not afford relief from a contract. 
B) a mistake of value does not afford relief from a contract. 
C) a unilateral mistake does not afford relief from a contract. 
D) the price was below the prices of comparable devices.

Question 11

Don is an elderly man who lives with his nephew Evan.Don is depend?ent on Evan for care.Evan advises Don to "invest" in Evan's "profes?sional gambling" venture.Evan tells Don that he will no longer provide care unless Don makes this investment.Don liq?uidates his other investments,signs a contract with Evan,and gives him the funds.Can Don set aside this contract?

Accepted Answer

This situation describes undue influence

Question 12

Misrepresentation of a material fact cannot occur through words alone.

Accepted Answer

A) True 
 B)False

Question 13

To cancel a contract on the basis of a mistake,the mistake must be about a material fact.

Accepted Answer

A) True 
 B)False

Question 14

Mia orally promises Nick that she will buy his fishing trawler for $10,000.Before either party acts in reliance on this promise,under the doctrine of promissory estoppel,the transaction is enforceable by

Accepted Answer

A) either party. 
B) Mia only. 
C) neither party. 
D) Nick only. 
A) either party. 
B) Mia only. 
C) neither party. 
D) Nick only.

Question 15

Misrepresentation of a material fact can occur through conduct alone.

Accepted Answer

A) True 
 B)False

Question 16

Vern's Roofing Company and Weatherall Tiles,Inc. ,sign a written con?tract for a sale of goods.To be enforceable,this written contract must include

Accepted Answer

A) a correct title,such as "Purchase Order" or "Sales Invoice." 
B) a date,such "September 9,2009" or "09/09/09." 
C) a quantity term,such as "50 pallets" or "100 cartloads." 
D) the parties' cell phone numbers or e-mail addresses. 
A) a correct title,such as "Purchase Order" or "Sales Invoice." 
B) a date,such "September 9,2009" or "09/09/09." 
C) a quantity term,such as "50 pallets" or "100 cartloads." 
D) the parties' cell phone numbers or e-mail addresses.

Question 17

Fact Pattern 10-2 
Moore Properties,Inc. ,offers in writing to sell to New Development Corporation (NDC)a certain half-acre of land for "$112,000." After New Development signs the offer in acceptance and returns it,Moore discovers that the price should have been stated as "$121,000."
-Refer to Fact Pattern 10-2.The effect of Moore's misstatement of the price will most likely fall on

Accepted Answer

A) Moore and NDC,who must split the difference. 
B) Moore only. 
C) NDC only. 
D) neither Moore nor NDC. 
A) Moore and NDC,who must split the difference. 
B) Moore only. 
C) NDC only. 
D) neither Moore nor NDC.

Question 18

Misrepresentation of a material fact is an element of fraud.

Accepted Answer

A) True 
 B)False

Question 19

Honey Bee Company (HBC)enters into an oral contract with Ivan under which he agrees to clean HBC's offices for two years.This contract is en?forceable by

Accepted Answer

A) either party. 
B) HBC only. 
C) Ivan only. 
D) neither party. 
A) either party. 
B) HBC only. 
C) Ivan only. 
D) neither party.

Question 20

To be enforceable,a writing evidencing an oral contract that would otherwise be unenforceable must include every term.

Accepted Answer

A) True 
 B)False

Exam 10: Defenses to Contract Enforceability

A contract may have to be in writing to be enforceable even if its performance is possible within a year.

Justifiable reliance on a misrepresentation is an element of fraud.

Dale files a suit against Eve,alleging that she used fraud to induce him to enter into a con?tract with her.Proof of an injury is required

A unilateral mistake of fact has no effect on the enforceability of a contract.

Oral evidence of otherwise clear terms in a contract can be introduced at a trial to contradict those terms.

Stuffed Fauna,Inc. ,and Taxidermy Storage Company enter into a long-term lease for a warehouse.To be enforceable,the lease

An integrated contract is the final embodiment of the terms of an agreement.

Reel Graphics,Inc. ,agrees to assume a debt of Suave Marketing Company to Town Credit Union.This promise is for Reel's benefit.To be enforceable,the promise

A prenuptial agreement does not have to be in writing to be enforceable.

Misrepresentation of a material fact cannot occur through words alone.

To cancel a contract on the basis of a mistake,the mistake must be about a material fact.

Mia orally promises Nick that she will buy his fishing trawler for $10,000.Before either party acts in reliance on this promise,under the doctrine of promissory estoppel,the transaction is enforceable by

Misrepresentation of a material fact can occur through conduct alone.

Vern's Roofing Company and Weatherall Tiles,Inc. ,sign a written con?tract for a sale of goods.To be enforceable,this written contract must include

Misrepresentation of a material fact is an element of fraud.

Honey Bee Company (HBC)enters into an oral contract with Ivan under which he agrees to clean HBC's offices for two years.This contract is en?forceable by

To be enforceable,a writing evidencing an oral contract that would otherwise be unenforceable must include every term.

The Legal and Constitutional Environment of Business

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Ethics and Business Decision Making

Torts and Cyber Torts

Intellectual Property and Internet Law

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Nature and Classification

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Capacity and Legality

Third Party Rights and Discharge

Breach and Remedies

E-Contracts and E-Signatures

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Title and Risk of Loss

Performance Breach of Sales Lease Contracts

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Checks and Banking in the Digital Age

Security Interest in Personal Property

Creditors Rights and Bankruptcy

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Liability of Accountants Other Professionals

International Law in a Global Economy

Regulations, Contracts, and Discovery

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Contracts and Consumer Protection

Liability of Silverado Bank in Prestridge v. Bank of Jena for Forged Checks.

Sovereign Immunity and Bankruptcy Law

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Corporate Governance and Securities Law

Real Estate Law: Cases and Controversies

Corporate Ownership and Liability in Chilean Firms

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