Reference no: EM132192451
1. James orally entered into a contract to sell 100 tonnes of cotton to Bryan for a price of $1000 per ton. Both parties subsequently signed a written contract. However, the written contract mistakenly stated the price of cotton as $1100 per ton. While signing, Bryan failed to notice this mistake. Which of the following contract terms will govern in such a scenario?
A) Both parties must consider the contract null because a mutual mistake has occurred.
B) James can nullify the contract stating Bryan’s mistake of not noticing the error.
C) Both parties must carry on with the contract as agreed orally.
D) Bryan can hold James responsible for the error and cancel the contract.
2. In which of the following situations is a state most likely to enforce a usury law?
A) X sends two boxes of unapproved medicines to children in Africa.
B) X sells a plot of land at a rate higher than the maximum contract rate.
C) X purchases two crates of liquor from a minor.
D) X charges a very high rate of interest on money borrowed by Y.
3. Mark owes $2000 each to his business partners, Ryan, Bryan, and Clark. Since Mark is facing financial difficulties, his business partners agree to accept a total amount of $4800 from Mark as a cancellation of the unpaid balance due to them. This type of an agreement is known as a _____.
A) composition of creditors
B) writ of certiorari
C) promissory estoppel
D) forbearance
4. Which of the following is true of the parol evidence rule?
A) It involves making modifications to an oral testimony if there is proof of accident or error.
B) It allows a written contract to be modified by oral testimony if there is evidence of fraud.
C) It rules out oral testimony as a way to edit a written contract in any situation.
D) It assumes that an oral contract represents the complete agreement.
5. When a party sues to enforce an alleged contract, the Statute of Frauds requires that:
A) there be a note in writing signed by the party against whom the claim for breach of contract is made.
B) the contract be evidenced by a writing signed by a maximum of one party.
C) the note required by the Statute of Frauds must set forth all the material terms of the transaction in case of the sale of goods.
D) the contract be evidenced by signatures on paper and not electronic signatures.
6. Which of the following is true of contracts?
A) All contracts need to be written in order to be enforceable.
B) All contracts of importance must be in oral form.
C) Written evidence, composed in clear language, is more reliable than oral
D) An oral contract can be ascertained whereas a written contact cannot be ascertained.