Law 531 Week 5 Practice Test
Unit 5 Practice Test
1. All contracts involving interests in land must be in writing to be enforceable –T
2. A contract that by its own terms cannot be performed within a year must be in writing to be enforceable -T
3. All promises must be in writing to be enforceable -F
4. There are no exceptions to the Statute of Frauds -F
5. The rights under a contract for personal service normally can be assigned - F
6. A contract that contains a clause prohibiting its assignment will usually prevent it from being assigned-T
7. An intended beneficiary can sue directly to enforce a promisor's promise -T
8. A promise to pay in exchange for a promise of performance becomes an absolute duty when the agreement is formed -F
9. When one party substantially performs his or her duties under a contract, the other party is required to fully perform -F
10. A contract is …show more content…
substantially performed when performance creates substantially the same benefits as those promised in the contract -T
11. Any breach excuses the nonbreaching party's duty to perform –F
12. Damages are designed to compensate a nonbreaching party for the loss of the bargain -T
13. A remedy is the means employed to enforce a right or to redress an injury -T
14. Compensatory damages are foreseeable damages that arise from a party's breach of a contract -F 15. A party seeking to recover compensatory damages may also be entitled to recover incidental damages -T
16. Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable -T
17. To date, most courts have applied traditional contract law principles to contracts formed in the online environment -T
18. A contract, to be enforced, may require the signature of the party against whom enforcement is sought -T
19. State e-signature laws are uniform. -F
20. Ace Properties. Inc., and Dandy Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at - $50, $500, or $5,000. Pg294
21. Timber, Inc., and United Corporation enter into an oral contract for a sale of a lumber mill. Under the Statute of Frauds, before United takes possession, this contract is enforceable by - neither party.
22. Andy and Business Company (BC) enter into an oral contract under which Andy agrees to clean BC's office for two years. This contract is enforceable by - neither party.
23.
Ann and Burt sign a contract in which Ann agrees to paint Burt's house for $2,000. They agree later that Burt will pay Ann's supplier, City Paint Store, the $2,000 directly. City Paint Store is - an assignee
24. National Steel, Inc., and Overland Transport Company enter into a contract. Superior Oil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of - privity.pg309
25. Peg's transfer of rights under her contract with Quinn to Rob is - an assignment.
26. Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is - a condition precedent.
27. Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint. This is most likely - substantial performance
28. Eagle Products, Inc., breaches its contract with Federated Stores Company. Federated files a suit to recover compensatory damages, which are normally assessed to - compensate a nonbreaching party for the loss of a
bargain
29. Carol pays Dick $10,000 for Dick to design an advertising campaign for Carol's health club. The next day, Dick tells Carol that he has accepted a job in New York and cannot design the campaign. Carol files a suit against Dick. As compensatory damages, Carol can recover - $10,000. 30. Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam's measure of damages is - $1,500 plus incidental damages.
31. International Inventory, Inc., does business online. Contracts may be formed online for the purpose of -licensing and sales of goods and services.
32. Delta Services, Inc., and E-Products Corporation negotiate a software license. This is - a right to use the software.
33. Define "Statue of Frauds" –The statute of frauds is a law in every state which requires that certain documents be in writing, such as real property titles and transfers, leases for more than a year, wills and some types of contracts. The purpose of the law is to protect against false claims for payment from contracts that were not agreed upon. Specific requirements vary by state and different statutes may apply to different transactions.
34. Explain the "Parole Evidence Rule" - The parol evidence rule existed for several reasons. Its existence is to safeguard the terms of a contract. The rule helps to secure the originality of the written document. The parol evidence rule states that, if an agreement between two parties is made in writing, the parties may not present evidence in court of any oral or implied agreement that contradicts what is written down.
35. Define "Specific Performance" - the performance of a contractual duty, as ordered in cases where damages would not be adequate remedy. - A remedy in the event of breach of contract, whereby the Court orders a party found in breach of his/her contractual obligations to perform their specific duty as set out in the contract.
1. All contracts involving interests in land must be in writing to be enforceable –T
2. A contract that by its own terms cannot be performed within a year must be in writing to be enforceable -T
3. All promises must be in writing to be enforceable -F
4. There are no exceptions to the Statute of Frauds -F
5. The rights under a contract for personal service normally can be assigned - F
6. A contract that contains a clause prohibiting its assignment will usually prevent it from being assigned-T
7. An intended beneficiary can sue directly to enforce a promisor's promise -T
8. A promise to pay in exchange for a promise of performance becomes an absolute duty when the agreement is formed -F
9. When one party substantially performs his or her duties under a contract, the other party is required to fully perform -F
10. A contract is …show more content…
substantially performed when performance creates substantially the same benefits as those promised in the contract -T
11. Any breach excuses the nonbreaching party's duty to perform –F
12. Damages are designed to compensate a nonbreaching party for the loss of the bargain -T
13. A remedy is the means employed to enforce a right or to redress an injury -T
14. Compensatory damages are foreseeable damages that arise from a party's breach of a contract -F 15. A party seeking to recover compensatory damages may also be entitled to recover incidental damages -T
16. Recovery under quasi contract may be used when one party partially performs under a contract that is unenforceable -T
17. To date, most courts have applied traditional contract law principles to contracts formed in the online environment -T
18. A contract, to be enforced, may require the signature of the party against whom enforcement is sought -T
19. State e-signature laws are uniform. -F
20. Ace Properties. Inc., and Dandy Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued at - $50, $500, or $5,000. Pg294
21. Timber, Inc., and United Corporation enter into an oral contract for a sale of a lumber mill. Under the Statute of Frauds, before United takes possession, this contract is enforceable by - neither party.
22. Andy and Business Company (BC) enter into an oral contract under which Andy agrees to clean BC's office for two years. This contract is enforceable by - neither party.
23.
Ann and Burt sign a contract in which Ann agrees to paint Burt's house for $2,000. They agree later that Burt will pay Ann's supplier, City Paint Store, the $2,000 directly. City Paint Store is - an assignee
24. National Steel, Inc., and Overland Transport Company enter into a contract. Superior Oil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle of - privity.pg309
25. Peg's transfer of rights under her contract with Quinn to Rob is - an assignment.
26. Don agrees to buy Ed's Bicycle Store on the condition that First State Bank approves the financing. This approval is - a condition precedent.
27. Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint. This is most likely - substantial performance
28. Eagle Products, Inc., breaches its contract with Federated Stores Company. Federated files a suit to recover compensatory damages, which are normally assessed to - compensate a nonbreaching party for the loss of a
bargain
29. Carol pays Dick $10,000 for Dick to design an advertising campaign for Carol's health club. The next day, Dick tells Carol that he has accepted a job in New York and cannot design the campaign. Carol files a suit against Dick. As compensatory damages, Carol can recover - $10,000. 30. Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam's measure of damages is - $1,500 plus incidental damages.
31. International Inventory, Inc., does business online. Contracts may be formed online for the purpose of -licensing and sales of goods and services.
32. Delta Services, Inc., and E-Products Corporation negotiate a software license. This is - a right to use the software.
33. Define "Statue of Frauds" –The statute of frauds is a law in every state which requires that certain documents be in writing, such as real property titles and transfers, leases for more than a year, wills and some types of contracts. The purpose of the law is to protect against false claims for payment from contracts that were not agreed upon. Specific requirements vary by state and different statutes may apply to different transactions.
34. Explain the "Parole Evidence Rule" - The parol evidence rule existed for several reasons. Its existence is to safeguard the terms of a contract. The rule helps to secure the originality of the written document. The parol evidence rule states that, if an agreement between two parties is made in writing, the parties may not present evidence in court of any oral or implied agreement that contradicts what is written down.
35. Define "Specific Performance" - the performance of a contractual duty, as ordered in cases where damages would not be adequate remedy. - A remedy in the event of breach of contract, whereby the Court orders a party found in breach of his/her contractual obligations to perform their specific duty as set out in the contract.