QuestionQuestion 1Ann promises to give Carlos $50 if he promises to sell her a business law bo

01 May QuestionQuestion 1Ann promises to give Carlos $50 if he promises to sell her a business law bo

Question
Question 1
Ann promises to give Carlos $50 if he promises to sell her a business law book. This is an example of a[n] ______ contract.

Unilateral

Bilateral

Void

Conditional
5 points

Question 2
A(n) ________ is any agreement to accept performance that is different from what is called for in the contract.

accord and satisfaction

anticipatory repudiation

frustration of purpose

mutual rescission
5 points

Question 3
Which of the following is a technique by which a new party is substituted for one of the old parties, and a new contract is written (with the consent of all old and new parties) to effect the desired change?

Novation

Substitution

Formal change

Verified change
5 points

Question 4
Alice typically mows her own lawn whereas her neighbor pays to have her yard mown by ABC Law Service. Alice notices one day that an apparently new employee of ABC is mowing Alice’s yard by mistake. She says nothing. When the employee asks for payment, Alice refuses on the basis that the yard mowing was a mistake and that she has no contract with ABC. Which of the following is true regarding whether ABC could recover against Alice?

ABC likely has no rights against Alice.

ABC could recover against Alice based on breach of contract.

ABC could likely recover on a theory of quantum meruit.

ABC could likely recover against Alice based on a negligence theory.
5 points

Question 5
Which of the following is true regarding acceptance?

In the absence of a provision in an offer regarding how acceptance is to be made, acceptance is effective upon dispatch into a mailbox.

Acceptance is never effective until it is received.

An offeror may not by law specify that an offer can be accepted only by facsimile to a stated fax number and that the acceptance is not effective until actually received.

An offeror may revoke an offer so long as the revocation is made before an acceptance is received.
5 points

Question 6
Conditions ________ occur when the mutual duties of performance are to take place simultaneously.

precedent

concurrent

subsequent

consequential
5 points

Question 7
Hester offers to sell her house to Frank for $250,000. Frank says that he would like to think about it, and Hester says that is fine. The next day, Martha, Hester’s friend, says that she will give Hester $240,000 for the house. Hester really likes Martha more than Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank walking up her driveway. She immediately opens the window and yells “I revoke the offer on the house” before Frank says anything. Frank replies that he accepts the offer and expects to purchase the home. Frank tells Hester that while he has not yet taken steps to sell his own home or get a loan, he feels confident that there will be no problem with those matters and he is a ready, willing, and able buyer. Which of the following is true regarding the offer to Frank assuming Hester’s revocation was ineffective?

The offer was probably still open the next day because a reasonable length of time would not have expired.

The offer would have terminated because Frank did not provide any consideration to leave it open.

By operation of law, it would have terminated at midnight on the day it was made.

By operation of law, it would still have been open because it would not have terminated until midnight on the day after it was made.
5 points

Question 8
As a birthday gift, Ben’s uncle promised Ben that he would pay Ben’s business school tuition for the next semester. In reliance on that promise, Ben quit his part time job at a fast food restaurant. When the tuition bill became due, Ben’s uncle told Ben that he was sorry but that he would not be able to pay the tuition because he just built a new swimming pool at his house, and funds were running short. Ben asks you if there is any basis upon which he could win in litigation against his uncle. Which of the following would be the best advice?

That Ben should sue for breach of contract because an offer, acceptance, and consideration are all present.

That Ben should sue for breach of contract because an offer and acceptance are present, and his reliance would substitute for consideration.

That Ben should sue based on promissory estoppel.

That Ben should hurry and try to get his job back because there is no basis upon which he would have a viable case.
5 points

Question 9
To which of the following does the statute of frauds apply?

A promise to pay the debt of another person.

A contract that cannot be performed within the space of six months.

Any contract of employment.

Any contract involving commerce.
5 points

Question 10
Which of the following is a type of conditional promise?

Condition concurrent

Condition subsequent

Condition illusory

Both a condition concurrent and a condition subsequent
5 points

Question 11
If a new law of general application indirectly affects a government contract, making the government’s performance impossible, the ________ will protect the government in a subsequent suit for breach of contract.

sovereign acts doctrine

discretionary acts doctrine

ministerial acts theory

legislatively enacted principle
5 points

Question 12
Contract law is based on which of the following?

Case law

Statutes

Tradition

All the responses are correct
5 points

Question 13
Liquidated damages are damages that

punish the breaching party

fluctuate with the market conditions

are agreed upon

none of the above
5 points

Question 14
An agreement between two parties that provides that the buyer will buy all of a particular product from a particular seller is called a[n] ______.

illusory promise

requirements contract

output contract

fulfillment contract
5 points

Question 15
Helen tells her nephew, Bernard, that she will pay him $100 if he will stop smoking for six months. Helen was hopeful that if Bernard stopped smoking for six months, he could stop altogether. Bernard stops smoking for six months but then resumed his smoking. Helen will not pay him. She says that the type of promise she made cannot constitute a binding contract and that, furthermore, it was at least implied that he would stop smoking for good. Can Bernard legally collect $100 from Helen?

No, because under the law his stopping smoking was not adequate consideration.

No, because it was implied that he would stop smoking for good, and he only quit for six months.

Yes, because his stopping smoking for six months, as agreed, was adequate consideration for the contract.

Yes, because stopping smoking was good for his health even if he only did it for six months.
5 points

Question 16
Commercial transactions involving the sale of goods, movable personal property, are governed by which of the following?

Article 2 of the Uniform Commercial Code

Articles 1-3 of the Uniform Sale of Goods Code

Article 1 of the Federal Sales Code

Article 1 of the Uniform Credit Code
5 points

Question 17
Under the doctrine of ________, a court may invalidate an agreement if one party had sufficient influence and power over the other as to make genuine assent impossible.

fraud

mistake

undue influence

detrimental reliance
5 points

Question 18
Hester offers to sell her house to Frank for $250,000. Frank says that he would like to think about it, and Hester says that is fine. The next day, Martha, Hester’s friend, says that she will give Hester $240,000 for the house. Hester really likes Martha more than Frank and signs a contract to sell the house to Martha. Later that day Hester sees Frank walking up her driveway. She immediately opens the window and yells “I revoke the offer on the house” before Frank says anything. Frank replies that he accepts the offer and expects to purchase the home. Frank tells Hester that while he has not yet taken steps to sell his own home or get a loan, he feels confident that there will be no problem with those matters and he is a ready, willing, and able buyer. Which of the following is true regarding whether Hester’s attempted revocation was effective?

It was effective because Hester had left the offer open the amount of time required by law regardless of whether she revoked before Frank could accept.

It was effective because Hester issued the revocation before Frank could accept.

It was ineffective because the amount paid by Martha was less than the offer to Frank.

It was ineffective because Hester attempted the revocation at too early a point in time.
5 points

Question 19
________ damages compensate a party for losses that occur as a foreseeable result of the breach.

Quantum meruit

Reliance

Restitution

Consequential
5 points

Question 20
A third party beneficiary is someone who is not

a legal and recognized type of beneficiary.

intended to benefit from the contract.

a party to the original contract.

intended to enforce the contract.