Deck 13: Practical Contracts

Question 1

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

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

Answer 1

C

Question 2

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

Answer 2

True

Question 3

A contract's title need not be descriptive; the title "AGREEMENT" is sufficient.

Answer 3

False

Question 4

Lawyers prefer to negotiate touchy subjects as they arise rather than address them at the beginning of a relationship.

Question 5

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

Question 6

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?

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 7

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.

Question 8

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

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

Question 9

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

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

Question 10

Some contracting parties are intentionally vague in contract terms.

Question 11

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

Question 12

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

Question 13

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

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 14

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

Question 15

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

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 16

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.

Question 17

Provisions that a party agrees to perform only if the other side also does what it promised are called

A)choice of forum provisions.
B)conditional promises.
C)reciprocal promises.
D)riders.

Question 18

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.

Question 19

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..."

Question 20

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

Question 21

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

A)boilerroom.
B)boilerplate.
C)boilerpot.
D)boilertape.

Question 22

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

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

Question 23

What is a force majeure event?

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 24

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

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

Question 25

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

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 26

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

Question 27

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

Question 28

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?

A)a complete agreement clause
B)a "no additional terms" clause
C)an integration clause
D)a severability clause

Question 29

A severability provision

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 30

Which of the following generally is NOT in the introductory paragraph of a 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 31

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

Question 32

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

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

Question 33

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?

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

Question 34

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

A)the owner of A+ Modeling Agency.
B)Sandi.
C)A+ Modeling Agency's lawyer.
D)Sandi's lawyer.