Deck 11: Contracts

Question 1

Following throat surgery, Julie Andrews lost her five-octave singing voice. Because of her illness she was able to withdraw from her singing contracts without penalty but not her acting or directing contracts. This defense of breach of contract is known as:

A) Refraction.
B) Repudiation.
C) Recapitulation.
D) Renascence.
E) Redaction.

Answer 1

B

Question 2

Which of the following is not correct about the Uniform Commercial Code?

A) The Code primarily governs real estate transactions.
B) The Code provisions are originally drafted by the National Conference of Commissioners on Uniform State Laws but may be modified by state legislatures as they consider the provisions.
C) That the average consumer may obtain protection under the Code because of the warranty provisions.
D) That the Code is silent on remedies for breaches of contracts covered therein.
E) None of the above.

Answer 2

A

Question 3

Which of the following is not correctly matched?

A) Punitive damages are designed to punish malicious wrongdoers.
B) Compensatory damages are designed to put the aggrieved party in the economic position she would have been in had the contract been completed.
C) Specific performance is an equitable remedy that is particularly appropriate when the subject of the contract is unique.
D) Promissory estoppels is an appropriate remedy when the promisor has substantially changed positions in reliance upon the gratuitous promise of the promisor.
E) None of the above.

Answer 3

E

Question 4

The Black Eyed Peas have agreed to appear at your university for the sum of $5,000,000; however, a Dallas promoter offers $100,000,000 for a performance on the same night. When the band accepts the Dallas offer, the university sponsor files for breach of contract. Which legal remedies would be appropriate?

A) Restitution.
B) Specific performance to force The Black Eyed Peas to appear on your campus.
C) Prohibition.
D) Injunction to prevent the band from performing that evening in any location.
E) All of the above.

Question 5

George recently found a painting in his grandmother's attic. Being untrained in art, he had the piece appraised by the renowned art auction house, Sotheby's of London, which verified it as a lost Monet. George agrees to sell it to you for $30,000,000. It now transpires that the painting is a forgery. The contract is voidable because of:

A) Duress.
B) Innocent misrepresentation.
C) Fraud.
D) Undue influence.
E) None of the above.

Question 6

Peter is a renowned artist who has been commissioned to produce a portrait of the Chief Justice of the United States. Peter's business is a:

A) Partnership.
B) Sole proprietorship.
C) Corporation.
D) Subchapter S corporation.
E) None of the above.

Question 7

Which of the following is a requirement for a valid contract?

A) Offer and acceptance.
B) Consideration.
C) Capacity of parties.
D) Does not contravene public policy.
E) All of the above.

Question 8

Consideration for contracts: -...

A) Must be cast in monetary terms for a valid contract.
B) Can be a mutual exchange of promises.
C) Can be an exchange of detriments.
D) A and C.
E) B and C.

Question 9

Ruth cared for her husband during his illness (Alzheimer's) and was treated for depression herself by a psychiatrist. During all of this, her most trusted financial advisor was her accountant, Dewey Cheatum. Three months after her husband's death, Ruth conveyed property valued at $500,000 to Dewey for the sum of $10. Under what theory would Ruth seek to cancel the property transfer?

A) Misrepresentation.
B) Duress.
C) Fraud.
D) Undue influence.
E) Misunderstanding.

Question 10

Bubba's Motors advertises 2011 Jaguars for the sum of $100.00 in the Daily Disappointment, the local newspaper. This advertisement is:

A) A contract to sell you the vehicle at that price.
B) A formal offer.
C) Merely a solicitation for offer.
D) An example of estoppel.
E) All of the above.

Question 11

The current transfer of a contractual interest to a third party is:

A) Assurance.
B) Arbalest.
C) Acceptance.
D) Assent.
E) Assignment.

Question 12

Ricardo and Miriam entered into an oral agreement that Ricardo will sell Miriam's company the land on which to build a shopping center for $100,000,000. The agreement:

A) Is a valid contract because there is genuine assent.
B) Is a valid contract because it is supported by consideration.
C) Is a valid contact because it is not for illegal purposes.
D) Is a valid contract because it is between competent parties.
E) Is not a valid contract because it violates the Statute of Frauds.

Question 13

The rule that a person cannot use evidence of oral statements made before or at the time the contract was signed to alter the written terms is:

A) Statute of Frauds.
B) Parole Evidence Rule.
C) Respondent superior.
D) Specific performance.
E) Exculpatory Clause.

Question 14

Abby enters into an agreement to purchase the helmet worn by Jimmie Johnson in the race when he won his fifth straight NASCAR Championship. She discovers that the helmet was actually worn in a different race. The appropriate legal remedy is:

A) Acquiescence in the substitution.
B) Promissory estoppels.
C) Punitive damages.
D) Specific performance.
E) There is no legal remedy.

Question 15

The primary purpose of contract law is:

A) To protect those who injudiciously enter into contracts.
B) To provide certainty and stability in business transactions.
C) To provide a means for enforcement of illegal transactions.
D) All of the above.
E) None of the above.

Question 16

An offer terminates:

A) When either the offeror or the offeree dies.
B) When a counteroffer is substituted.
C) By rejection in the specified manner.
D) By withdrawal of the offeror.
E) All of the above.

Question 17

Which of the following constitutes consideration?

A) Sherri does something she is not already legally obligated to do.
B) Sherri promises to do something she was not already obligated to do.
C) Sherri refrains from doing something she legally could have done.
D) Sherri promises to refrain from doing something she legally could have done.
E) All of the above.

Question 18

According to the text, the freedom to contract:

A) Is absolute.
B) Is protected under the U.S. Constitution.
C) Is increasingly being limited by courts, administrative agencies, and legislative bodies.
D) A and B.
E) B and C.

Question 19

Distinguish between an offer and a solicitation to offer.

Question 20

Discuss the conditions under which an offer terminates.

Question 21

Discuss assent and the various factors that may destroy the reality of the consent.

Question 22

Define capacity and the effect of minority on contracts.

Question 23

Identify the types of contracts that the Statute of Frauds affects and its effect.

Question 24

Discuss a breach of contract and remedies for the breach of contract.

Question 25

Identify and discuss various rules of contract interpretation.

Question 26

Discuss warranties, especially those found in the Uniform Commercial Code.

Question 27

Identify and discuss various types of business relations including, but not limited to, ownership interests, liability, and tax issues.