Question 1

When a negotiable instrument is used, the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

Accepted Answer

A) True 
 B)False

Question 2

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Accepted Answer

There are many situations where it simpl...

Question 3

When there is disagreement over the meaning of a term in a contract, the normal approach taken by the courts is to apply the most reasonable interpretation, although the courts will refuse to imply terms into the agreement that the parties have left out.

Accepted Answer

A) True 
 B)False

Question 4

Privity of contract is a principle that holds that a contract can affect only the immediate parties to it.

Accepted Answer

A) True 
 B)False

Question 5

Injunction is an example of an equitable remedy.

Accepted Answer

A) True 
 B)False

Question 6

Discuss the development and importance of the principle of unconscionable contracts.In your answer, compare unconscionability to insanity, duress, and undue influence.

Accepted Answer

Unconscionable contracts are a relativel...

Question 7

With regard to the law concerning misrepresentation, which of the following is true?

Accepted Answer

A)  If the buyer realizes the seller persuaded him to contract by a misrepresentation, he will not be able to get the remedy of rescission if he was tainted with wrongdoing himself (i.e., not coming with "clean hands") .
B)  Damages as a remedy are not available where the misrepresentation becomes part of the contract.
C)  A misrepresentation can be a true assertion of fact that induces (persuades)  the party to contract.
D)  Rescission is available as a remedy for misrepresentation only if it is innocent misrepresentation.
E)  The case law allows a remedy for an opinion given by a non-expert.F) None of the above
G) B) and E)

Question 8

Joe, a student at the local college, had a one-year lease on a suite in a house owned by Sam.Sam sold that house to Jones without telling him about the lease.When Jones discovered Joe in the suite, he demanded that Joe leave.Explain the rights of the parties in terms of privity of contract.

Accepted Answer

Joe is not party to the contract between...

Question 9

It came to your attention that your great-grandmother had signed a contract pursuant to which she would be paying $5000 for an electronic organ that retails in reputable stores for $3000.Furthermore, the interest being charged is 18%, even though today's rate fell to a 20-year low.This debt is totally out of line with her pension income.It is apparent that she was misled by the door-to-door salesperson who came to her home.On these facts, which of the following laws is the most likely to help her?

Accepted Answer

A)  Non est factum
B)  Misrepresentation only
C)  Unconscionability only
D)  Both unconscionability and misrepresentation
E)  Undue influence onlyF) A) and E)
G) B) and D)

Question 10

With regard to exemption clauses, which of the following is true?

Accepted Answer

A)  When exemption clauses appear unfair, courts generally will not allow them.
B)  Courts are generally reluctant to interfere with exemption clauses, even when they may appear unfair.
C)  When an exemption clause leads to an "unconscionable, unfair, or unreasonable result," the doctrine of fundamental breach would apply.
D)  To overrule an exemption clause, the courts first consider whether there exists some "overriding policy" on the part of the defendant.
E)  Courts are more likely to interfere with a contract in a commercial relationship than with a contract in a consumer relationship.F) C) and D)
G) All of the above

Question 11

A salesman innocently misrepresented a fact about a new printer to a customer.He honestly believed that his statement was true and was not careless.Although this fact was not about a term of the contract, it did induce the customer to buy that printer.The next day, the customer learned the true facts and wanted to return the printer.If the store refused to take it back and the customer sued, which of the following would be the most likely result?

Accepted Answer

A)  The buyer's case would be dismissed
B)  An injunction
C)  An order of rescission
D)  An award of damages
E)  An order of specific performanceF) D) and E)
G) A) and C)

Question 12

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress.Which of the following is true with regard to these areas of the law?

Accepted Answer

A)  A buyer could not be awarded the equitable remedy of rescission if the seller honestly believed that his or her misrepresentation, which persuaded the buyer to buy, was true.
B)  Independent legal advice given to a person is good evidence of undue influence.
C)  If a seller persuades a person to buy something by an innocent misrepresentation, the buyer could ask for rescission and damages for the tort of deceit.
D)  Where a written document embodies the original oral agreement, a party to the contract could ask the court for the equitable remedy of rectification.
E)  An illiterate or blind person might successfully argue non est factum and avoid his or her obligations under a contract only if he or she was misled about the very nature of the document and was not careless.F) B) and C)
G) A) and E)

Question 13

Discuss unconscionability with respect to contract law.

Accepted Answer

This principle allows the court to modif...

Question 14

Which of the following is true with regard to ending a contract by agreement?

Accepted Answer

A)  A contract can be ended by agreement if one party has performed his obligation and agrees to take something as satisfaction from the other although that other hasn't performed according to the contract.
B)  A contract can be ended by one party if he finds a better deal (e.g., by cancelling an order that has been accepted)  as long as this is done before performance.
C)  A contract cannot be ended by the happening of a "condition subsequent" provided for in the contract.
D)  A contract can be ended unilaterally by one party.
E)  A contract cannot be ended by agreement if neither party to the contract has performed his or her obligation.F) C) and D)
G) B) and D)

Question 15

Non est factum is available as a defence even when there is negligence on the part of the person claiming it.

Accepted Answer

A) True 
 B)False

Question 16

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Accepted Answer

A) True 
 B)False

Question 17

Specific performance is an equitable remedy that requires the breaching party to perform his or her part of the contract.

Accepted Answer

A) True 
 B)False

Question 18

A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.

Accepted Answer

A) True 
 B)False

Question 19

In which of the following would the court find that the contract is void (i.e., not a binding agreement) ?

Accepted Answer

A)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burnt.
B)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house.She had not talked with the seller or his agent about the possibility of a school.After the offer was accepted, she learned that there would be no such new school.
C)  Ry and Ali, two parties to a contract, each had a different understanding about the term royalties in the contract.The court found Ali's interpretation the more reasonable.
D)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000.When the contract was put in writing, the price was incorrectly stated as $500.Monafo could prove the terms of the oral contract.
E)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake.F) None of the above
G) B) and C)

Question 20

Harry agreed to make a new violin for Ted at a particularly attractive price.Before he finished crafting it, however, an opportunity arose to work as a salesman for Joe's Fine Cars.Since it was clear that he could never make a living as a violin maker, Harry took the job and refused to finish the violin for Ted.Which of the following is the appropriate remedy in these circumstances?

Accepted Answer

A)  Injunction
B)  Specific performance
C)  Rescission
D)  Damages
E)  No remedyF) A) and E)
G) All of the above

Exam 4: Enforcing Contractual Obligations

Correct Answer
verified

With regard to exemption clauses, which of the following is true?

Correct Answer
verified

Privity of contract is a principle that holds that a contract can affect only the immediate parties to it.

Correct Answer
verified

Specific performance is an equitable remedy that requires the breaching party to perform his or her part of the contract.

Correct Answer
verified

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Correct Answer
verified

Which of the following is true with regard to ending a contract by agreement?

Correct Answer
verified

Injunction is an example of an equitable remedy.

Correct Answer
verified

In which of the following would the court find that the contract is void (i.e., not a binding agreement) ?

Correct Answer
verified

When a negotiable instrument is used, the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

Correct Answer
verified

Discuss the development and importance of the principle of unconscionable contracts.In your answer, compare unconscionability to insanity, duress, and undue influence.

Correct Answer
verified
Unconscionable contracts are a relativel...
View Answer

When there is disagreement over the meaning of a term in a contract, the normal approach taken by the courts is to apply the most reasonable interpretation, although the courts will refuse to imply terms into the agreement that the parties have left out.

Correct Answer
verified

A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.

Correct Answer
verified

Joe, a student at the local college, had a one-year lease on a suite in a house owned by Sam.Sam sold that house to Jones without telling him about the lease.When Jones discovered Joe in the suite, he demanded that Joe leave.Explain the rights of the parties in terms of privity of contract.

Correct Answer
verified
Joe is not party to the contract between...
View Answer

Correct Answer
verified

Non est factum is available as a defence even when there is negligence on the part of the person claiming it.

Correct Answer
verified

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Correct Answer
verified
There are many situations where it simpl...
View Answer

Discuss unconscionability with respect to contract law.

Correct Answer
verified
This principle allows the court to modif...
View Answer

With regard to the law concerning misrepresentation, which of the following is true?

Correct Answer
verified

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress.Which of the following is true with regard to these areas of the law?

Correct Answer
verified

Correct Answer
verified

Exam 4: Enforcing Contractual Obligations

Correct AnswerverifiedShow Answer

With regard to exemption clauses, which of the following is true?

Correct AnswerverifiedShow Answer

Privity of contract is a principle that holds that a contract can affect only the immediate parties to it.

Correct AnswerverifiedShow Answer

Specific performance is an equitable remedy that requires the breaching party to perform his or her part of the contract.

Correct AnswerverifiedShow Answer

When an outside, unforeseen event interferes with the performance of a contract, and there is some other way to fulfill the contract, performance is required.

Correct AnswerverifiedShow Answer

Which of the following is true with regard to ending a contract by agreement?

Correct AnswerverifiedShow Answer

Injunction is an example of an equitable remedy.

Correct AnswerverifiedShow Answer

In which of the following would the court find that the contract is void (i.e., not a binding agreement) ?

Correct AnswerverifiedShow Answer

When a negotiable instrument is used, the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

Correct AnswerverifiedShow Answer

Discuss the development and importance of the principle of unconscionable contracts.In your answer, compare unconscionability to insanity, duress, and undue influence.

Correct AnswerverifiedUnconscionable contracts are a relativel...View AnswerShow Answer

When there is disagreement over the meaning of a term in a contract, the normal approach taken by the courts is to apply the most reasonable interpretation, although the courts will refuse to imply terms into the agreement that the parties have left out.

Correct AnswerverifiedShow Answer

A condition precedent is a term of a contract that will bring that contract to an end when the specified condition is met.

Correct AnswerverifiedShow Answer

Joe, a student at the local college, had a one-year lease on a suite in a house owned by Sam.Sam sold that house to Jones without telling him about the lease.When Jones discovered Joe in the suite, he demanded that Joe leave.Explain the rights of the parties in terms of privity of contract.

Correct AnswerverifiedJoe is not party to the contract between...View AnswerShow Answer

Correct AnswerverifiedShow Answer

Non est factum is available as a defence even when there is negligence on the part of the person claiming it.

Correct AnswerverifiedShow Answer

Discuss frustration in contract law and indicate when it is available and how and why it has been modified by statute.

Correct AnswerverifiedThere are many situations where it simpl...View AnswerShow Answer

Discuss unconscionability with respect to contract law.

Correct AnswerverifiedThis principle allows the court to modif...View AnswerShow Answer

With regard to the law concerning misrepresentation, which of the following is true?

Correct AnswerverifiedShow Answer

Often a party to a contract wants to avoid his or her obligations by arguing that the contract was entered into because of a mistake, misrepresentation, undue influence, or duress.Which of the following is true with regard to these areas of the law?

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Unconscionable contracts are a relativel...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
Joe is not party to the contract between...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
There are many situations where it simpl...
View Answer

Correct Answer
verified
This principle allows the court to modif...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified