Question

QUESTION 11 1. Jane and John Dou post a sign on their lawn that says, “House for Sale. $300,000.” Henry Weinhard sends a letter to the Dous that says, “I accept your offer to sell your house for $300,000.” The Dous read Weinhard’s letter and send a letter in return stating: “We will accept your offer to buy our house if you agree to pay all closing costs, including legal fees and the cost of a new survey. We also feel the house is now worth $320,000 and we would like you to pay the extra $20,000.” The Dous’ letter is: a. a modified acceptance of Weinhard’s offer b. a rejection and counteroffer to Weinhard’s offer c. a revocation of Weinhard’s offer d. an acceptance of Weinhard’s offer QUESTION 12 1. Jane and John Dou post a sign on their lawn that says, “House for Sale. $300,000.” Henry Weinhard sends a letter to the Dous that says, “I accept your offer to sell your house for $300,000.” The Dous read Weinhard’s letter and send a letter in return stating: “We will accept your offer to buy our house if you agree to pay all closing costs, including legal fees and the cost of a new survey. We also feel the house is now worth $320,000 and we would like you to pay the extra $20,000.” After Weinhard receives the Dous’ letter, he sends another letter saying he is no longer interested in their property. The Dous then send another letter to Weinhard stating, “We have reconsidered and are willing to accept your earlier offer to buy our house for $300,000.” Weinhard: a. is now obligated to buy the house for $300,000 as he originally stated in his first letter b. is obligated to buy the house but the price remains negotiable c. can accept or reject the Dous’ offer as he wishes d. can accept or counteroffer but he cannot reject because the Dous have agreed to his earlier terms and conditions QUESTION 13 1. Under the UETA, “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record” is considered a. a record. b. an e-document. c. an e-signature. d. an e-transaction. QUESTION 14 1. Over the Internet, Alpha Contractors, Inc., arranges to lease storage space from Omega Company. To complete the deal, Alpha clicks on a button that says, in reference to certain terms, “I agree.” Most likely, the parties have a. a binding contract but the terms and conditions will need to be added later. b. a binding contract that includes the terms and conditions. c. an unenforceable contract if the lease lasts more than one year. d. an unenforceable contract because it does not include the terms and conditions in writing. QUESTION 15 1. Saraj, a world-class track star, signs a contract to coach the local high school track team. After 3 weeks of coaching, Saraj decides she does not like coaching and delegates the job to her sister. This delegation of duties will: a. not be valid because personal service contracts cannot be delegated b. be valid only if her sister is a world-class track star c. not be valid because duties cannot be delegated d. be valid 4 points QUESTION 16 1. Jason owns two cars – a blue 2009 Honda Accord and a red 2005 Honda Civic. He tells you, “I’d like to sell my Honda and buy a hybrid.” You offer him $4500, thinking he is referring to the Accord. He accepts your offer, thinking you are referring to the Civic. This is an example of: a. a mutual mistake as to fact b. a mutual mistake as to value c. a unilateral mistake as to value d. a unilateral mistake as to fact QUESTION 17 1. The Statute of Frauds requires: a. full disclosure in “click-on” agreements b. parties to deal openly and fairly with each other c. certain contracts to be in writing to be enforceable d. certain contracts to be express rather than implied QUESTION 18 1. Which of the following contracts must be in writing to be enforceable? a. The sale of a computer for $749 b. The sale of a computer printer for $299 c. A seasonal employment contract running from June 1, 2012 through September 18, 2012 d. The rental of a car for one week for $219 QUESTION 19 1. Monique agrees in writing to sell her lawnmower to Andy for $400. While the mower is parked in Monique’s driveway, a strong wind suddenly topples her neighbor’s tree. The tree lands on the mower and destroys it. a. Monique is still obligated under this contract because of her negligence in storing the mower near the tree b. Andy can insist that Monique find a substitute mower to deliver to him for $400 c. Monique and Andy are no longer obligated under this contract because of impossibility of performance d. Monique is no longer obligated under the contract because of the Statute of Frauds QUESTION 20 1. Paulo pays Cindy $20 per week to drive Lauri, Paulo’s daughter, to school. a. Cindy is a third party beneficiary in this situation b. If Cindy was driving past Lauri’s school anyway, there would be no contract between Paulo and Cindy because Cindy’s consideration is illusory c. Lauri is a third party beneficiary in this situation d. Lauri can legally refuse to ride with Cindy because she is a minor QUESTION 21 1. In which situation would the remedy of specific performance be appropriate? a. You agree to videograph your sister’s wedding for $300 but change your mind, leaving her without a videographer b. The local grocery store runs out of Brand X milk, on sale for $2.00/gallon, and offers to let you substitute Brand Y for the same price c. The bookstore refuses to purchase your textbook at the end of the term because a new edition is coming out next year d. You have a contract to buy my lakefront cabin but I refuse to turn over the deed to you QUESTION 22 1. You obtain a mortgage for your new house from Bank X. Bank X sells this mortgage to Bank Y. This is a. a delegation and you are obligated to pay Bank X under the original terms of your mortgage. b. an assignment and you are obligated to pay Bank Y under the original terms of your mortgage. c. a third party beneficiary contract. d. an assignment and you are discharged from making any further mortgage payments. QUESTION 23 1. The most common method for discharging a contract is by: a. breach b. recission c. accord and satisfaction d. performance QUESTION 24 1. Your neighbor contracts with a tree service to remove tree branches from his property. This will also give you a better view of the mountains, even though the trees are completely on your neighbor's property. The tree service breaches the contract and the branches are not trimmed. a. You can sue the tree service because you were an intended beneficiary of the contract. b. You CANNOT sue the tree service because you were an intended beneficiary of the contract. c. You can sue the tree service because you were an incidental beneficiary of the contract. d. You CANNOT sue the tree service because you were an incidental beneficiary of the contract. QUESTION 25 1. You believe a photograph is worth several hundred dollars. You buy the photograph for $5 and it turns out to be of no special value. You: a. cannot get the contract rescinded because of your unilateral mistake as to value b. can get the contract rescinded because you were fraudulently induced to buy the photograph c. can get the contract rescinded because you were mistaken as to the value of the photograph d. cannot get the contract rescinded because it was a mutual mistake as to value QUESTION 26 1. Advertisements are generally NOT treated as offers to contract. True False QUESTION 27 1. A counteroffer made by the offeree will NOT terminate an offer. True False QUESTION 28 1. A "shrink-wrap agreement" for software purchases is normally enforced unless its terms are objectionable on grounds that apply to contracts in general. True False QUESTION 29 1. You owe your father $50. You tell him you will pay him the $50 if he lets you borrow his truck. Your promise to pay the $50 is legal consideration in exchange for using his truck. True False QUESTION 30 1. A minor normally is permitted to disaffirm a contract for the purchase of necessaries but remains liable for the reasonable value of the goods. True False QUESTION 31 1. The parol evidence rule permits the introduction at trial of oral agreements by the parties that contradict or change the terms of the written contract. True False QUESTION 32 1. You believe your car is mechanically sound but the water pump is nearing the end of its life. You are not an expert in automobile mechanics and you do not try to cover up any known problems. Nevertheless, because you tell a prospective buyer that you think the car is sound, the buyer can rescind the contract because of fraud. True False QUESTION 33 1. A click-on agreement is normally NOT enforced. True False QUESTION 34 1. Under contract law, damages compensate an innocent party for harm suffered as a result of another's wrongful act. True False QUESTION 35 1. Compensatory and punitive damages are usually both awarded in breach of contract actions. True False

Answer 1

QUESTION 13 1. Under the UETA, “an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record” is considered a. a record. b. an e-document. c. an e-signature. d. an e-transaction.

Correct Answer:- . c. an e-signature

Reason:- Uniform Electronic Transactions Act (UETA) has four conditions for a signature to be termed as e-signature which are intent to sign, consent of conductingbusiness,, connection with the record and record retention

Question:- 15 1. Saraj, a world-class track star, signs a contract to coach the local high school track team. After 3 weeks of coaching, Saraj decides she does not like coaching and delegates the job to her sister. This delegation of duties will: a. not be valid because personal service contracts cannot be delegated b. be valid only if her sister is a world-class track star c. not be valid because duties cannot be delegated d. be valid 4 points

Correct Answer:- a. not be valid because personal service contracts cannot be delegated

Reason:- In case of the personal service contract, it is the person who agrees to perform the duties is required to perform all the contractual obligations and these cannot be passed to another person as the other party provided the contract looking at the skills and capabilities of the assignee.

QUESTION 16 1. Jason owns two cars – a blue 2009 Honda Accord and a red 2005 Honda Civic. He tells you, “I’d like to sell my Honda and buy a hybrid.” You offer him $4500, thinking he is referring to the Accord. He accepts your offer, thinking you are referring to the Civic. This is an example of: a. a mutual mistake as to fact b. a mutual mistake as to value c. a unilateral mistake as to value d. a unilateral mistake as to fact

Answer:- a. a mutual mistake as to the fact

Reason:- A mutual mistake as to fact occurs when both the parties entering into the agreement are having a mistake which is related to the matter of fact which is required for the agreement.

QUESTION 17 1. The Statute of Frauds requires a. full disclosure in “click-on” agreements b. parties to deal openly and fairly with each other c. certain contracts to be in writing to be enforceable d. certain contracts to be express rather than implied

Answer:- c. certain contracts to be in writing to be enforceable

Reason:- The Statute of Frauds requires that some specific kinds of contracts must be in written form signed by the parties which have to perform the contract having enough evidence to form a contract.

QUESTION 25 1. You believe a photograph is worth several hundred dollars. You buy the photograph for $5 and it turns out to be of no special value. You: a. cannot get the contract rescinded because of your unilateral mistake as to value b. can get the contract rescinded because you were fraudulently induced to buy the photograph c. can get the contract rescinded because you were mistaken as to the value of the photograph d. cannot get the contract rescinded because it was a mutual mistake as to the value

Answer:- a. cannot get the contract rescinded because of your unilateral mistake as to the value

Reason:- The contracts which are made out of cannot be rescinded unless the contracts an unconscionable contract to it can be proved that the mistakes made was also known to the other party