Question 1

The threat of violence makes a contract voidable.

Accepted Answer

A) True 
 B)False

Question 2

When the courts find that undue influence is present,the resulting contract is:

Accepted Answer

A)  binding.
B)  void.
C)  illegal.
D)  voidable.
E)  unenforceable.F) B) and C)
G) A) and E)

Question 3

Mrs.Sharp,the owner of a restaurant,induced the Morissons to buy the business by a misrepresentation; the invoices made her costs appear less than they actually were,and thus her profits more than they actually were.On these facts,which of the following is false?

Accepted Answer

A)  The court could award the equitable remedy of rescission if the evidence showed she had fraudulently misrepresented the costs.
B)  The court could not award the equitable remedy of rescission if evidence showed that Mrs.Sharp really believed the invoices were accurate.
C)  The court could not award the equitable remedy of rectification because the argument is not about rectifying an erroneous written version of a previous oral contract.
D)  The court could terminate the contract for breach of contract if the accurate statement of costs and profit were essential terms of the contract.
E)  The cause of action could be for the tort of deceit,if there was evidence that Mrs.Sharp intended to deceive the Morissons.F) A) and E)
G) A) and B)

Question 4

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar,her employee.After the ad ran,it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.On these facts,which of the following is true?

Accepted Answer

A)  Only Peppar is liable since he made the mistake.
B)  Tong can sue either Hocaloski or Peppar,her employee,for breach of contract,but not both of them.
C)  If Hocaloski did not pay Peppar,Peppar could sue Tong for his pay because Peppar did do work for Tong.
D)  For breach of contract,Tong could successfully sue only Hocaloski.
E)  Tong can sue both Hocaloski and Peppar for breach of contract,since they are both connected with the job.F) C) and E)
G) None of the above

Question 5

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) A) and E)
G) B) and D)

Question 6

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Accepted Answer

A) True 
 B)False

Question 7

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 or her 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 or she 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) All of the above
G) B) and C)

Question 8

When it has been clearly established that one of the parties to the contract has been the victim of undue influence,that contract is void.

Accepted Answer

A) True 
 B)False

Question 9

Indicate under which circumstances the remedy of rescission may not be available.

Accepted Answer

where the victim of the misrepresentatio...

Question 10

Which of the following is true with regard to tender of performance?

Accepted Answer

A)  If the seller attempts to deliver the contract goods at the time and place designated in the contract,but the buyer refuses delivery,the seller will have to make another attempt to deliver before he can sue for breach of contract.
B)  If Pete shows up at Valley Service Station to fix the gas pumps on the date and at the time he was supposed to,but Valley's manager tells him to come back later,Pete has no further obligations and can sue for breach of contract.
C)  If Ivan attempts to pay his $25 debt to Jan in 25-cent pieces,that attempt constitutes a lawful tender of Ivan's obligation.
D)  If Sam attempts to deliver the truckload of strawberries at Frank's produce plant at 8:00 p.m.on Saturday,the berries cannot be refused as long as delivery was before the specified July 10 deadline.
E)  If Walt attempts to pay Sarah the $750 debt he owes her with a cheque on the date and at the place designated in the contract,she will have to accept that cheque even though there was no mention of payment by cheque in the contract.F) B) and C)
G) C) and E)

Question 11

Len's new secretary asked him to sign four letters that she said concerned general office matters.One of the "letters" was,in fact,a cheque for $500,payable to the secretary.The secretary cashed the cheque at her bank,and when her bank presented the cheque for payment,Len refused to pay it.He said he had been tricked and it was all a mistake.On these facts,which of the following is true?

Accepted Answer

A)  Len would be obligated to honour the cheque no matter how careful he had been.
B)  Even if Len had been careless,he will not have to honour the cheque.
C)  Len may be able to avoid his obligation on the cheque on the basis of duress.
D)  Len may be able to avoid his obligation on the cheque on the basis of unconscionability.
E)  Len may be able to avoid his obligation on the cheque on the basis of non est factum.F) D) and E)
G) A) and D)

Question 12

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just to some aspect of it.

Accepted Answer

A) True 
 B)False

Question 13

Which of the following is true with regard to ending a contract by performance,agreement,or breach?

Accepted Answer

A)  If a person properly tenders performance of a service that is rejected by the other party,he is required to try again and again.
B)  If one party to the contract has paid for a service,but now the other party doesn't want to perform,the contract is ended by agreement as long as both parties agree to call it off.
C)  A person has legally tendered performance if he pays a $500 debt in 25-cent coins.
D)  A contract can be ended by breach if there was either a breach of condition or a breach of warranty.
E)  A contract ends by agreement when the parties include in the contract a "condition subsequent" (i.e.,a clause that says the contract will end upon the happening of a specified future event that then takes place) .F) A) and B)
G) B) and C)

Question 14

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Accepted Answer

A) True 
 B)False

Question 15

A bill of exchange is an order by one person to another to pay money to a third.

Accepted Answer

A) True 
 B)False

Question 16

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 17

The longer Adolph stayed on this job,the more he hated it.He thought the boss was too demanding.He especially disliked being reprimanded for being late.One afternoon,he was asked by a secretary to take a letter to the boss for his signature.The boss had had an eye operation and was recuperating at home.Adolph got two signatures,one on the letter and one on a note promising to pay Adolph $1000 in consideration for services rendered.The boss was not careless,but couldn't read the papers.What plea or argument,if any,could the boss use to avoid paying on the promissory note?

Accepted Answer

A)  unconscionability
B)  duress
C)  shared mistake
D)  rectification
E)  non est factumF) C) and D)
G) All of the above

Question 18

All rules of contract formation apply when parties agree to discharge a contract.

Accepted Answer

A) True 
 B)False

Question 19

If Jones receives a promissory note from Smith and passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following is true with regard to ending a contract by performance,agreement,frustration,or breach?

Accepted Answer

A)  If the court holds that a contract has been ended by frustration,the damages awarded by the court will be the same as if the contract was ended by a breach.
B)  A person who breaches a contract is liable for all loss that directly and naturally flows from the breach,no matter how unforeseeable.
C)  The victim of a breach can recover damages even for the loss he could have avoided if he had tried to.
D)  A victim of breach can only receive compensation in an amount that was reasonably foreseeable by the breaching party at the time they entered into the agreement.
E)  If a person owing money has tendered payment in a reasonable way,at a reasonable time,and it has been refused,he is free from any further obligation to pay.F) A) and D)
G) B) and E)

Exam 4: Enforcing Contractual Obligations

Mrs.Sharp,the owner of a restaurant,induced the Morissons to buy the business by a misrepresentation; the invoices made her costs appear less than they actually were,and thus her profits more than they actually were.On these facts,which of the following is false?

Correct Answer
verified

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just to some aspect of it.

Correct Answer
verified

All rules of contract formation apply when parties agree to discharge a contract.

Correct Answer
verified

Indicate under which circumstances the remedy of rescission may not be available.

Correct Answer
verified
where the victim of the misrepresentatio...
View Answer

If Jones receives a promissory note from Smith and passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

Correct Answer
verified

Which of the following is true with regard to tender of performance?

Correct Answer
verified

The threat of violence makes a contract voidable.

Correct Answer
verified

Which of the following is true with regard to ending a contract by performance,agreement,frustration,or breach?

Correct Answer
verified

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

Correct Answer
verified

Correct Answer
verified

A bill of exchange is an order by one person to another to pay money to a third.

Correct Answer
verified

Correct Answer
verified

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Correct Answer
verified

When it has been clearly established that one of the parties to the contract has been the victim of undue influence,that contract is void.

Correct Answer
verified

When the courts find that undue influence is present,the resulting contract is:

Correct Answer
verified

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar,her employee.After the ad ran,it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.On these facts,which of the following is true?

Correct Answer
verified

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Correct Answer
verified

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

Correct Answer
verified

Which of the following is true with regard to ending a contract by performance,agreement,or breach?

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

Exam 4: Enforcing Contractual Obligations

Mrs.Sharp,the owner of a restaurant,induced the Morissons to buy the business by a misrepresentation; the invoices made her costs appear less than they actually were,and thus her profits more than they actually were.On these facts,which of the following is false?

Correct AnswerverifiedShow Answer

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just to some aspect of it.

Correct AnswerverifiedShow Answer

All rules of contract formation apply when parties agree to discharge a contract.

Correct AnswerverifiedShow Answer

Indicate under which circumstances the remedy of rescission may not be available.

Correct Answerverifiedwhere the victim of the misrepresentatio...View AnswerShow Answer

If Jones receives a promissory note from Smith and passes it on to Green,who qualifies as a holder in due course,Green is the receiver of assigned contractual rights and is in the same position as Jones.

Correct AnswerverifiedShow Answer

Which of the following is true with regard to tender of performance?

Correct AnswerverifiedShow Answer

The threat of violence makes a contract voidable.

Correct AnswerverifiedShow Answer

Which of the following is true with regard to ending a contract by performance,agreement,frustration,or breach?

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

A bill of exchange is an order by one person to another to pay money to a third.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Rules of interpretation are guidelines used by the court to correct simple misunderstandings in relation to the contract.

Correct AnswerverifiedShow Answer

When it has been clearly established that one of the parties to the contract has been the victim of undue influence,that contract is void.

Correct AnswerverifiedShow Answer

When the courts find that undue influence is present,the resulting contract is:

Correct AnswerverifiedShow Answer

Tong hired Hocaloski to design an ad for her business.Hocaloski assigned the work to Peppar,her employee.After the ad ran,it was noticed that Peppar made a serious error; he gave the wrong address and phone number of the business.On these facts,which of the following is true?

Correct AnswerverifiedShow Answer

For a contract to be ended by agreement,there must be consideration as well as agreement on both sides.

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

Which of the following is true with regard to ending a contract by performance,agreement,or breach?

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

Correct Answer
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Correct Answer
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Correct Answer
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where the victim of the misrepresentatio...
View Answer

Correct Answer
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Correct Answer
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Correct Answer
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