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:

Accepted Answer

The defense of breach of contract in which Julie Andrews was able to withdraw from her singing contracts without penalty is known as repudiation. This defense allows a party to escape their contractual obligations due to an unforeseen circumstance or event that makes it impossible or impractical to fulfill their obligations. In Andrews' case, her illness and resulting loss of her singing voice made it impossible for her to fulfill her singing contracts.

Question 2

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

Accepted Answer

The Uniform Commercial Code primarily governs commercial transactions, not real estate transactions. Real estate transactions are typically governed by state statutes and common law.

Question 3

Which of the following is not correctly matched?

Accepted Answer

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?

Accepted Answer

The answer of The Black Eyed Peas have agreed to...

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:

Accepted Answer

The contract is voidable due to innocent misrepresentation because George, though mistaken, honestly believed the painting was a genuine Monet based on the appraisal. There was no intention to deceive, and the misrepresentation was made innocently.

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:

Accepted Answer

Peter's business is a sole proprietorship because he is the only owner of the business and has complete control over his artistic work.

Question 7

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

Accepted Answer

All of the options are requirements for a valid contract. 
A) Offer and acceptance are essential elements of contract formation. 
B) Consideration refers to something of value exchanged between parties. 
C) Capacity of parties refers to a party's ability to enter into a contract lawfully. 
D) The contract must not violate public policy, as such contracts are considered void.

Question 8

Consideration for contracts: -...

Accepted Answer

Consideration can be a mutual exchange of promises or an exchange of detriments. It does not need to be cast in monetary terms for a valid contract. Option D is incorrect because it wrongly implies that consideration must be in monetary form.

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?

Accepted Answer

Ruth's vulnerability due to caring for her ill husband and receiving treatment for her own depression may have made her susceptible to undue influence from her trusted financial advisor, Dewey. The conveyance of the property for such a low sum raises concerns about the fairness of the transaction and suggests that Dewey may have exerted undue influence over Ruth. Thus, she could seek to cancel the transfer under the theory of undue influence.

Question 10

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

Accepted Answer

The advertisement is merely a solicitation for offers, as it is not a formal offer and does not create a contract to sell the vehicle at that price. It simply invites potential buyers to make an offer or negotiate the price.

Question 11

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

Accepted Answer

The transfer of a contractual interest to a third party is called an 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:

Accepted Answer

The agreement to sell land for $100,000,000 falls under the Statute of Frauds, which requires that contracts for the sale of real property must be in writing to be enforceable. As the agreement is only oral, it is not a valid contract.

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:

Accepted Answer

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 known as the Parole Evidence Rule. The Parole Evidence Rule prevents parties from changing the terms of a written contract by introducing oral statements that contradict or modify the written terms of the agreement.

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:

Accepted Answer

The appropriate legal remedy in this situation would be specific performance. Abby entered into the agreement with the expectation of purchasing the specific helmet worn by Jimmie Johnson during his fifth straight NASCAR Championship race. If the seller substituted a different helmet, Abby may seek specific performance to ensure that the seller fulfills their obligation under the contract by delivering the specific helmet she agreed to purchase.

Question 15

The primary purpose of contract law is:

Accepted Answer

The primary purpose of contract law is to provide certainty and stability in business transactions. While contract law may also protect parties who enter into contracts without fully understanding them, and it provides a means for enforcement of illegal transactions, these are secondary purposes.

Question 16

An offer terminates:

Accepted Answer

All the options listed are correct circumstances under which an offer can terminate. Death of either party, substitution by a counteroffer, rejection in the manner specified, and withdrawal by the offeror are all valid reasons for the termination of an offer in contract law.

Question 17

Which of the following constitutes consideration?

Accepted Answer

Consideration can be in the form of an act or a promise to act, as well as refraining from an act or a promise to refrain from an act. Therefore, all of the options in the question constitute consideration.

Question 18

According to the text, the freedom to contract:

Accepted Answer

While the freedom to contract is protected under the U.S. Constitution, it is increasingly being limited by courts, administrative agencies, and legislative bodies. This is due to the recognition that some contracts may be unfair, unconscionable, or against public policy. As a result, the freedom to contract is not absolute and can be subject to reasonable limitations.

Question 19

Distinguish between an offer and a solicitation to offer.

Accepted Answer

The answer of Distinguish between an offer and a solicitation...

Question 20

Discuss the conditions under which an offer terminates.

Accepted Answer

The answer of Discuss the conditions under which an offer...

Quiz 11: Contracts