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Questions 1 to 20: Select the best answer to each question. Note that a question and its answers may be split across a page break, so be sure that you have seen the entire question and all the answers before choosing an answer.
1. Charles orally promises Holly that he will marry her. He also states that if they ever get divorced, he will transfer one-half of his assets to Holly. They marry and divorce within a year. Which of the following is true of Charles's promise to Holly?
A. The promise isn't legally enforceable unless Holly proves that the promise influenced her decision to marry him.
B. The promise isn't legally enforceable because it wasn't written.
C. The promise is legally enforceable only if it doesn't involve the transfer of land.
D. The promise qualifies as an enforceable oral contract.
2. Coretta and Mary find a property to purchase. They sign a written agreement that states the agreed-on price, closing date, and items that are to stay in the house. They forget to include the washer and dryer in the agreement, but the seller tells them he will leave them if they want them. Right before closing, they walk through the property and find that the washer and dryer have been removed. They purchase the property and sue the seller for not leaving the washer and dryer. Coretta and Mary most likely
A. won't win based on the statute of frauds.
B. won't win based on the statute of limitations.
C. won't win based on the parol evidence rule.
D. will win based on the seller's representation when they looked at the property.
3. Vega appoints Ancel, a real estate broker, to negotiate the sale of her home. The _______ rule requires that this agreement be in writing and signed to be enforceable.
A. standard construction
B. equal dignities
C. parol evidence
D. best evidence
4. Star Software Systems and Henry orally agree for Henry to write special accounting software. This software usually takes three years to complete but can be finished sooner. Does Henry have an enforceable legal agreement with Star?
A. Yes, the agreement is enforceable, but only to the extent of work Henry completes within the first year of the contract.
B. No, the agreement is unenforceable since the contract involves a tangible work product.
C. No, the agreement is unenforceable because Henry could possibly complete writing the software within a year.
D. Yes, the agreement is enforceable because Henry could possibly complete writing the software within a year.
5. Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center together. They see a house in the perfect neighborhood with a "For Sale by Owner." They talk to the owner, reach an agreement, and shake hands. Just before the closing on the house, at which they'll take ownership of the house, the owner decides not to sell to Bella and Connie. They tell the owner they're
going to sue him for breach of contract. Bella and Connie most likely
A. will win because the owner breached his agreement to sell them the house.
B. will win because the owner shouldn't have entered into a contract with them if he wasn't sure he wanted to sell the house.
C. won't win because they can find another house that will work just as well.
D. won't win because they shouldn't have entered into an oral contract to buy the house.
6. Tom and Zeke enter into a contract for Tom to paint Zeke's house for $1,000. The contract doesn't specify a time for performance by Tom. Six years later, Tom shows up with a bucket of paint, paints the house, and demands payment. Which of the following is true?
A. The contract violates the statute of frauds.
B. Tom couldn't have breached the contract because the contract didn't specify a time for performance, and he did do the painting work.
C. Tom breached the contract because he didn't perform within a reasonable time.
D. The contract was unenforceable because it didn't specify a time for performance.
7. Which of the following is an example of discharge by impossibility?
A. Jason agrees to paint Sheila's house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees.
B. Jason agrees to paint Sheila's house for $1,000. Before Jason can paint, Sheila's house burns down.
C. Jason agrees to paint Sheila's house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn't get paid.
D. Jason agrees to paint Sheila's house for $1,000. Sheila later tells Jason that she won't pay him. As a result, Jason decides not
to paint.
8. Joe pays for his food at the drive-thru window as he receives it. The payment and the receipt of the food are _______ conditions.
A. subsequent
B. precedent
C. spontaneous
D. concurrent
9. Time Zone sells Gary an iWatch for $4,000 by representing it as having a real gold case and watch band. Later, Gary finds that the iWatch case and band are just polished with gold coating; the watch could be bought in the local store for $100. Gary can sue Time Zone for _______ damages.
A. consequential
B. nominal
C. speculative
D. exemplary
10. Claudia contracts with Friendly Paving Co. to install a new driveway. To pay for this work, Claudia transfers to Friendly Paving Co. her right to receive payment from Clifford for a loan she made to him. Friendly Paving Co. is now a/an
A. donee beneficiary.
B. creditor beneficiary.
C. fiduciary.
D. executor.
11. Barb and Ned exchange e-mails in which Barb agrees to paint Ned's house for $1,000. Which of the following statements is true?
A. The contract is enforceable.
B. The contract is unenforceable due to the statute of frauds.
C. The contract can't be enforced because there's no handwritten signature.
D. The contract can't be enforced because electronic contracts aren't legally binding.
12. Under the _______ rule, courts generally accept into evidence only the original of a writing, not a copy.
A. equal dignities
B. standard construction
C. parol evidence
D. best evidence
13. John, a highly skilled mechanic specializing in Jabooti motorcycles, agrees to repair Gladys's Jabooti motorcycle. Yet when John becomes ill, he transfers that responsibility to Clark, a friend of his. The transfer to Clark is called a/an
A. conveyance.
B. novation.
C. delegation.
D. assignment.
14. Warren agrees to paint Abby's restaurant for $1,000. Warren fails to paint. Abby may be entitled to punitive damages if
A. Warren doesn't know how to paint, misrepresented himself as a painter, and never intended to paint.
B. the contract breached was both written and witnessed.
C. Abby has to pay substantially more than $1,000 for someone else to perform the job.
D. Abby loses profits as a result of the breach.
15. According to the _______ rule, whenever an ambiguous term, clause, or line is found in a prewritten contract, that ambiguity is interpreted against the party who wrote the contract.
A. equal dignities
B. standard construction
C. parol evidence
D. best evidence
16. One name for a promise made by one party to pay another person's debts, if that person fails to pay the debt, is
A. collateral contract.
B. prenuptial agreement.
End of exam
C. signature requirement.
D. condition precedent.
17. Sagan is borrowing money from Big Bank. His friend Leda, who works for Graille Systems, signs the loan agreement, promising to pay the debt if Sagan doesn't. In this scenario, _______ is the obligee and Sagan the obligor.
A. Big Bank
B. Leda
C. Sagan
D. Graille Systems
18. A substitution, by mutual agreement, of a new party for one of the original parties to a contract is called a
A. novation.
B. complete performance.
C. condition concurrent.
D. mutual rescission.
19. Under the _______ rule, the courts generally accept into evidence only the original of a writing, not a copy.
A. original construction
B. parol evidence
C. best evidence
D. standard construction
20. Kevin, a world-renowned violinist, agrees to play at the reception for Jay's wedding. Something comes up at the last minute, and Kevin delegates his duty to perform to Susan, a mediocre but professional violinist. This delegation is
A. permissible if Kevin also assigns to Susan the right to be paid for playing.
B. permissible if Susan performs well.
C. permissible.
D. impermissible.