Question 1

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would​

Accepted Answer

A)   ​allow the parties to rescind the contract.
B)   ​award damages to Flora for the mistake.
C)   ​award damages to Global for the mistake.
D)   ​enforce the contract as is.E) None of the above
F) A) and B)

Question 2

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.​

Accepted Answer

A) True 
 B)False

Question 3

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.​

Accepted Answer

A) True 
 B)False

Question 4

Fact Pattern 10-2 
In selling a commercial building, Riley tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building.
​
-​Refer to Fact Pattern 10-2. Under these circumstances, Sam's best course of action is most likely to

Accepted Answer

A)   ​scam Riley.
B)   ​induce Riley to give him the commission on her next sale.
C)   ​recover damages or rescind the contract to buy the building.
D)   ​sabotage Riley's career with bad publicity.E) C) and D)
F) A) and D)

Question 5

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of​

Accepted Answer

A)   ​duress.
B)   ​fraud.
C)   ​mistake.
D)   ​undue influence.E) B) and C)
F) A) and C)

Question 6

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to​

Accepted Answer

A)   ​any extent because the order was placed orally.
B)   ​no extent because the order was placed orally.
C)   ​the extent of the three accepted boxes.
D)   ​the extent of the four undelivered boxes.E) None of the above
F) A) and B)

Question 7

Fact Pattern 10-2 
In selling a commercial building, Riley tells Sam that the property has a certain capacity, making it suitable for a nightclub. Riley knows nothing about the capacity of the building, but it is not as he specifies. Sam buys the building.
​
-Refer to Fact Pattern 10-2. On learning the truth, Sam confronts Riley, who says he was not trying to fool Sam-he was only trying to make a sale. This is​

Accepted Answer

A)   ​a mistake of value.
B)   ​a valid defense to a charge of fraud.
C)   ​misrepresentation.
D)   ​unconscionable.E) C) and D)
F) None of the above C

Question 8

A contract involving interests in property of any kind must be in writing to be enforceable.​

Accepted Answer

A) True 
 B)False

Question 9

Moe threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may​

Accepted Answer

A)   ​rescind the contract or refuse to comply with its terms.
B)   ​do nothing once she has agreed to pay.
C)   ​recover from her insurer for the cost.
D)   ​recover from the local police for their failure to protect her store.E) B) and D)
F) A) and B)

Question 10

A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year.​

Accepted Answer

A) True 
 B)False  True

Question 11

In a transaction for the sale of an auto painting facility, Bright Auto Colors Company tells Custom Cars Corporation that the paints and other supplies on-site are included. The contract says nothing about the supplies on-site, but does state, "This document supersedes all oral promises relating to the sale." Are the supplies part of the sale? Why or why not?​

Accepted Answer

No, the supplies are not part of this de...

Question 12

Any party who does not receive what he or she considers a fair bargain can rescind the deal on the basis of mistake.​

Accepted Answer

A) True 
 B)False

Question 13

Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of​

Accepted Answer

A)   ​all of the choices.
B)   ​Pumps.
C)   ​Quality.
D)   ​Reliable.E) B) and D)
F) B) and C)

Question 14

Don enters into a contract with Eve, who claims to have access to a stock-trading algorithm that will multiply an investment many times over. When the results do not match this promise, Don learns that Eve does not have access to any unique software and files a suit, alleging fraud. Proof of an injury is required to​

Accepted Answer

A)   ​recover damages.
B)   ​rescind the contract.
C)   ​undo Eve's influence.
D)   ​punish the defendant.E) A) and C)
F) A) and B)

Question 15

Duress is a possible ground for rescission of a contract.​

Accepted Answer

A) True 
 B)False

Question 16

Misrepresentation cannot occur by silence.​

Accepted Answer

A) True 
 B)False

Question 17

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would​

Accepted Answer

A)   ​not rescind the contract.
B)   ​rescind the contract on the basis of fraud.
C)   ​rescind the contract on the basis of mistake.
D)   ​rescind the contract on the basis of undue influence.E) B) and C)
F) C) and D)

Question 18

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.​

Accepted Answer

A) True 
 B)False  False

Question 19

​To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

Accepted Answer

A) True 
 B)False

Question 20

A unilateral mistake always gives the mistaken party a right to relief from the contract.​

Accepted Answer

A) True 
 B)False

Exam 10: Defenses to Contract Enforceability

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

Correct Answer
verified

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.

Correct Answer
verified

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

Correct Answer
verified

Correct Answer
verified

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of

Correct Answer
verified

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to

Correct Answer
verified

Correct Answer
verified
C

A contract involving interests in property of any kind must be in writing to be enforceable.

Correct Answer
verified

Moe threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may

Correct Answer
verified

A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year.

Correct Answer
verified
True

Correct Answer
verified
No, the supplies are not part of this de...
View Answer

Any party who does not receive what he or she considers a fair bargain can rescind the deal on the basis of mistake.

Correct Answer
verified

Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of

Correct Answer
verified

Correct Answer
verified

Duress is a possible ground for rescission of a contract.

Correct Answer
verified

Misrepresentation cannot occur by silence.

Correct Answer
verified

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

Correct Answer
verified

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.

Correct Answer
verified
False

To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

Correct Answer
verified

A unilateral mistake always gives the mistaken party a right to relief from the contract.

Correct Answer
verified

Exam 10: Defenses to Contract Enforceability

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would​

Correct AnswerverifiedShow Answer

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.​

Correct AnswerverifiedShow Answer

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of​

Correct AnswerverifiedShow Answer

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedC

A contract involving interests in property of any kind must be in writing to be enforceable.​

Correct AnswerverifiedShow Answer

Moe threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may​

Correct AnswerverifiedShow Answer

A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year.​

Correct AnswerverifiedTrue

Correct AnswerverifiedNo, the supplies are not part of this de...View AnswerShow Answer

Any party who does not receive what he or she considers a fair bargain can rescind the deal on the basis of mistake.​

Correct AnswerverifiedShow Answer

Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of​

Correct AnswerverifiedShow Answer

Correct AnswerverifiedShow Answer

Duress is a possible ground for rescission of a contract.​

Correct AnswerverifiedShow Answer

Misrepresentation cannot occur by silence.​

Correct AnswerverifiedShow Answer

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would​

Correct AnswerverifiedShow Answer

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.​

Correct AnswerverifiedFalse

​To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

Correct AnswerverifiedShow Answer

A unilateral mistake always gives the mistaken party a right to relief from the contract.​

Correct AnswerverifiedShow Answer

Flora enters into a contract with Global Shipping, Ltd., to insure and ship a painting from France to the United States for a certain price. Global makes a mistake in adding the costs, which results in a contract price that is $1,000 less than the true cost. Most likely, a court would

Correct Answer
verified

To be enforceable, a memorandum evidencing an oral contract must include the essential terms.

Correct Answer
verified

A seller's attempt to conceal a fact that is material to a contract can give rise to an action for fraud.

Correct Answer
verified

Correct Answer
verified

Mona is induced by her guardian Newt to sign a contract to invest her student loan funds in OptiBank through Newt's investment firm. Unknown to Mona, Newt realizes a commission from the investment. Most likely, Mona may rescind the contract on the basis of

Correct Answer
verified

Physicians Clinic orders by phone seven boxes of single-use latex gloves from Quality Medical Supplies, Inc. After three boxes are delivered and accepted, Physicians Clinic repudiates the contract. Quality Medical can enforce the contract to

Correct Answer
verified

Correct Answer
verified
C

A contract involving interests in property of any kind must be in writing to be enforceable.

Correct Answer
verified

Moe threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may

Correct Answer
verified

A contract must be in writing to be enforceable if it makes performance possible only over a period of more than one year.

Correct Answer
verified
True

Correct Answer
verified
No, the supplies are not part of this de...
View Answer

Any party who does not receive what he or she considers a fair bargain can rescind the deal on the basis of mistake.

Correct Answer
verified

Pumps, Inc., agrees to assume a debt of Quality Parts Company to Reliable Finance LP. The agreement is not in writing. To be enforceable, the promise must be for the benefit of

Correct Answer
verified

Correct Answer
verified

Duress is a possible ground for rescission of a contract.

Correct Answer
verified

Misrepresentation cannot occur by silence.

Correct Answer
verified

Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

Correct Answer
verified

Evidence of prior agreements that differ from the written terms of a contract can be introduced in court to contradict the contract.

Correct Answer
verified
False

To be enforceable, a writing evidencing an oral contract must have been signed by the party who seeks to enforce it.

Correct Answer
verified

A unilateral mistake always gives the mistaken party a right to relief from the contract.

Correct Answer
verified