Reference no: EM131625072

1.) Rose questions whether there is consideration for her contract to perform with Saxophone Symphony. To constitute consideration, there must be
a.) Serious thought underlying each party's intent to contract
b.) a bargained-for exchange
c.) a payment
d.) a performance

2.) Boyd defends against a breach-of-contract suit by College Credit Corporation by claiming that their deal-a student loan accruing interest at a certain rate and payable beginning on a certain date-was unfair because the consideration for their contract was inadequate.

Refer to Fact Pattern 13-2. If, as Boyd claims, the consideration in this problem is inadequate, it may indicate a lack of

a.) "heft," "substance," or "weight" in the terms of the contract
b.) flexibility on the part of College Credit to accommodate Boyd's needs
c.) accord in Boyd's satisfaction with the value of the deal
d.) voluntary consent

3.) Digital Enterprise, Inc., promises to pay its employees a year-end bonus "if profits continue to be high and management agrees at the time." This is
a.) an option-to-cancel clause
b.) an illusory promise
c.) an output contract
d.) an enforceable contract

4.) Rosa, a seventeen-year-old, signs a contract to sell her car to Street Fleet Cars. Later, Rosa decides not to sell the car. Rosa is liable to Street Fleet for
a.) Nothing
b.) the value of her performance under the contract
c.) the amount of the buyer's profit on the deal
d.) the cost of a car of comparable value

5.) Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely
a.) invalid because of the unreasonable terms of area and time
b.) valid because it is part of a sale of an ongoing business
c.) invalid because it is part of a sale of an ongoing business
d.) valid if Reed and Taylor are reasonably intelligent

6.) All gambling contracts are legal but voidable
a.) True
b.) False

7.) Data Storage Inc. offers to provide cloud-computing services to Enterprises, LLC, but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Enterprises accepts the written offer
a.) a mistake of value does not afford relief from a contract
b.) the price was below the prices of comparable devices
c.) a bilateral mistake does not afford relief from a contract
d.) a unilateral mistake does not afford relief from a contract

8.) County Title Company processes information furnished by others to transfer title to real estate from a seller to a buyer. In performing this task for a sale of land from Doyle to Ezra, the furnished information is mistaken.

Refer to Fact Pattern 15-3. The contract between Doyle and Ezra that includes the mistake may be rescinded if the mistake involves

a.) value or quality
b.) a material fact
c.) any of the choices
d.) any fact

9.) In selling a commercial building, Riley tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building.

Refer to Fact Pattern 15-4. On learning the truth, Sam confronts Riley, who says he was not trying to fool Sam-he was only trying to make a sale. This is

a.) a mistake of value
b.) a valid defense to a charge of fraud
c.) misrepresentation
d.) unconscionable

10.) Normally, a contract will be set aside because certain pertinent information was not volunteered
a.) True
b.) False

11.) Ed orally agrees with Far East Restaurant to provide delivery service to its customers for six months. This contract is enforceable by
a.) Far East only
b.) either Ed or Far East
c.) any interested third party, such as a Far East customer
d.) none of the choices

12.) Retail Company and Sales Wholesale Corporation enter into a contract for a sale of beach toys for $5,000. To be enforceable, the contract should be in writing and identify
a.) the source of payment
b.) the terms of payment
c.) the quantity
d.) the price

13.) Market Company and Nick enter into a contract for Nick to cut and trim the landscaping around Market's building before a meeting of the company's sales staff. When Nick's schedule conflicts, he asks Otis to do the cutting and trimming. This transfer of duties is
a.) a delegation
b.) an assignment
c.) Alienation
d.) a third party beneficiary contract

14.) Contract duties are not assigned-they are delegated
a.) True
b.) False

15.) Leah and Mason are parties to a contract for the sale of Mason's day care facility to Leah. Before the deal closes, they agree to substitute Nell for Leah as a party to the deal. This novation does not require
a.) performance of the original contract by all of the parties
b.) a new, valid contract
c.) the agreement by all of the parties to the new contract
d.) the existence of a previous, valid obligation

16.) Oren and Pat are parties to a contract for the management of Oren's residential rental properties. A dispute arises between them over the obligations due under the contract. They negotiate a compromise and form a different agreement to substitute for the original one. This settlement agreement does not require
a.) a new, valid contract
b.) a third party
c.) the existence of a previous, valid obligation
d.) the agreement by the parties to the new contract

17.) Anticipatory repudiation discharges the repudiating party's obligations under a contract
a.) True
b.) False