Final Exam

Question 1

A contract to pay for lawn care services costing $1500 would have to be in writing or in proper electronic form to be enforceable

Answer 1

False

Question 2

An employment contract that is in any way capable of being performed within one year from the date of agreement falls within the requirements of the statute of frauds

Answer 2

False

Question 3

Barrys sport shop calls champion tee shirt company to order 200 designer tee shirts at $2 per shirt. The next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order to 300 tee shirts. Champion sends 200. Can Barry force champion to send the additional 100?

Answer 3

No, because Barry does not have a writing signed by champion.

Question 4

Bob sends Fred a letter offering to sell Fred his car for $2,500. Fred writes back that he’ll take it. They now must get together and write a memorandum because it is a sale of goods for over $500.

Answer 4

False

Question 5

General contract law states that contracts that have to be in writing must:

Answer 5

specify the parties to the contract.
specify the subject matter and essential terms.
be signed by the party to be charged or by his/her agent.

Question 6

Jim promises to many Candy if she will buy him a new Ferrari for his birthday. If this promise is made orally, it is not enforceable.

Answer 6

True

Question 7

In which of the following situations does the parol evidence rule not apply?

Answer 7

The parol evidence rule does not apply in either a or b

Question 8

The UCC permits an oral agreement for the sale of goods to be enforced against a party who admits to the contract in court, even though the statute of frauds requires the agreement in writing.

Answer 8

• True

Question 9

The UCC requires that all contracts for the sale of goods must be in writing or in proper electronic form

Answer 9

False

Question 10

The purpose of the statute of fronds is to prevent the performance of oral contracts.

Answer 10

False

Question 11

Which of the following would not require a writing under the statute of frauds?

Answer 11

A landscaper agrees to landscape the lot surrounding an office building.

Question 12

A and B enter into a contract en January 1st of this year. A’s friend c tells A “the law generally restricts the time within which an action an be brought by either party to a contract.” C’s statement is:

Answer 12

True, because of statutes of limitations

Question 13

A breach of contract always discharges the injured party from performance under the contract.

Answer 13

False

Question 14

A material breach by the seller will discharge the buyer from his obligations under a contract.

Answer 14

True

Question 15

Al owes Tracy $500, due June 1st. Al, Tracy, and Ted mutually agree that Ted will pay Tracy instead of paying Al the money Ted owes al. Such an agreement is an example of:

Answer 15

A novation

Question 16

An accord and satisfaction discharges the original debt.

Answer 16

True

Question 17

Anita, who is a seamstress, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he is not satisfied and refuses to accept or pay for it. If Bryan is honest in his dissatisfaction, but he is unreasonable:

Answer 17

Anita has no recourse against Bryan, because she agreed to the subjective standard.

Question 18

Ashley contracted to perform on her horse, Coronation, in the opening ceremonies of
the World Equestrian Games. If, before the event, Coronation pulls a tendon in its leg
and Ashley has to cancel her appearance, this is a case of:

Answer 18

objective impossibility, which discharges Ashley’s contractual duty.

Question 19

bIll recently borrowed $50 trom Ricardo for a couple of weeks. Bill, still short of cash,
tells Ricardo, “I will wash and wax your car in exchange for the $50 I owe you.” Ricardo tells Bill, “OK, that’s great!” Ricardo’s performance of his new duty will be:

Answer 19

a satisfaction.

Question 20

Bob, the tax accountant, promises to do Marges individual federal, state, local, and gift taxes for the year. He completes all but the gift taxes. Under the substantial performance doctrine, Marge will:

Answer 20

Have to pay Bob fall all but the gift taxes.

Question 21

By agreement, parties to a contract may discharge each other from performance under a contract.

Answer 21

True

Question 22

Concurrent conditions occur when mutual duties of performance under a contract.

Answer 22

True

Question 23

Tamie mane, to hinduts to hildhedchild cabinet to Lords satisfaction and Lord
promises to pay Daniel $2,800 for the cabinet if she is satisfied with it when completed. Daniel completes the cabinet in a workmanlike manner using the wood Lora has chosen. If Lora tells Daniel that she is not satisfied with the cabinet and refuses to accept or pay for it, Daniel is entitled to recover from Lora the reasonable value of the cabinet if her dissatisfaction is unreasonable.

Answer 23

False

Question 24

Fred contracts to sell a certain tract of land to Mary for $20,000 but the contract is silent as to the time of delivery of the deed and payment of the price. In this case:

Answer 24

The payment of the $20,000 and the delivery of the deed are mutually dependent and, in the absence of an agreement to the contrary, are concurrent conditions.

Question 25

If the performance of a contract that was legal when formed becomes illegal because of a subsequently enacted law, the duty of performance is discharged.

Answer 25

True

Question 26

In the case of Hochster v. De La Tour the plaintiff was allowed to treat the repudiation by De La Tour as breach of contract and immediately bring suit.

Answer 26

True