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 because it wasn't written.
B. The promise isn't legally enforceable unless Holly proves that the promise influenced her decision to marry him.
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 parol evidence rule.
B. won't win based on the statute of frauds.
C. will win based on the seller's representation when they looked at the property.
D. won't win based on the statute of limitations.
3. James leases an apartment to Kyle for $900 per month rent. The written lease contains no prohibition against assignment, nor does it expressly permit assignment. Kyle assigns his rights to Harley without any consideration. James finds out and objects. The assignment is
A. valid because there's no consideration for the assignment.
B. invalid because the lease didn't expressly permit assignment.
C. valid because the written lease didn't prohibit it.
D. invalid because James didn't consent to the assignment.
4. Morey and Sheryl enter into a contract in which Morey agrees to pay Sheryl $40 to collect his mail while he is on a month-long vacation. Sheryl then delegates the duty to her son, Greg. In this delegation, Sheryl is the
A. obligor.
B. assignor.
C. assignee.
D. oblige.
5. Rodrick was deeply in debt when he died. His niece, Evangeline, became the administrator of his estate. She orally promised Rodrick's creditors that she would personally pay his debts if they didn't publicize the fact that Rodrick died in debt. When Evangeline was unable to pay the debts, the creditors sued her. Will the creditors be legally able to collect from Evangeline?
A. Yes, there was a bargained-for exchange.
B. Yes, Evangeline made a guaranty of payment.
C. No, Evangeline was not Rodrick's child.
D. No, Evangeline's promise wasn't in writing or signed.
6. Gabriel applies for a home loan. Mark signs the agreement, promising to pay off the debt in case Gabriel fails to do so. In this case, Mark is the
A. obligor.
B. assignor.
C. guarantor.
D. obligee.
7. 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 was unenforceable because it didn't specify a time for performance.
B. Tom breached the contract because he didn't perform within a reasonable time.
C. The contract violates the statute of frauds.
D. Tom couldn't have breached the contract because the contract didn't specify a time for performance, and he did do the painting work.
8. 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 can't be enforced because there's no handwritten signature.
B. The contract is unenforceable due to the statute of frauds.
C. The contract is enforceable.
D. The contract can't be enforced because electronic contracts aren't legally binding.
9. Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is
A. unenforceable because all necessary elements aren't met.
B. enforceable because all necessary elements are met.
C. unenforceable because of the statute of frauds.
D. unenforceable because of the parol evidence rule.
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. fiduciary.
C. executor.
D. creditor beneficiary.
12. 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. won't win because they shouldn't have entered into an oral contract to buy the house.
B. won't win because they can find another house that will work just as well.
C. 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.
D. will win because the owner breached his agreement to sell them the house.
13. 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. nominal
B. exemplary
C. speculative
D. consequential
14. Sara purchases life insurance on her own life and makes her husband, Dean, the beneficiary. Sara dies. Dean applies to the insurance company for payment of the proceeds. The insurance company denies payment, pointing out that Dean didn't sign the contract and therefore doesn't have privity of contract. Dean is
A. entitled to the proceeds as an incidental beneficiary.
B. not entitled to the proceeds because he doesn't have privity of contract.
C. entitled to the proceeds as an intended beneficiary.
D. entitled to the proceeds because he was married to Sara.
16. Danielle purchases life insurance on her own life with Big Life Insurance and makes her husband, Walter, the beneficiary. Which of the following statements is true?
A. Walter is a donee beneficiary.
B. Big Life Insurance is a creditor beneficiary.
C. Danielle is a donee beneficiary.
D. Danielle is an intended third-party beneficiary.
17. Paul enters into a contract with Harry. Paul agrees to put a new roof on Harry's house, and Harry agrees to pay Paul $5,000. Paul is late on a payment to Sam's Supply House and tells Sam's Supply House that he will pay when he receives money from Harry. Sam's Supply House has heard this from Paul before and didn't receive money. To ensure Paul pays his payment from the money Harry pays him, Sam's Supply House can
A. require an accord and satisfaction be entered into.
B. have Harry assign his interests under the contract with Paul to Sam's Supply House.
C. tell Harry that Paul is indebted to Sam's Supply House, which automatically makes them a creditor beneficiary entitled to the payment.
D. have Paul assign his interests under the contract with Harry to Sam's Supply House
18. On June 29, Henry contracts to purchase American flags, which Henry intends to sell at the annual Fourth of July fireworks event, from Liz. The contract doesn't specify a delivery date. Liz delivers the flags on July 7. Henry sues for breach of contract. Which of the following will most likely happen?
A. Henry will win because of the standard construction rule.
B. Liz will win because she delivered within a reasonable time.
C. Liz will win because the contract didn't specify a delivery date.
D. Henry will win because of the equal dignities rule.
19. 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. best evidence
B. equal dignities
C. standard construction
D. parol evidence
20. A substitution, by mutual agreement, of a new party for one of the original parties to a contract is called a
A. complete performance.
B. mutual rescission.
C. novation.
D. condition concurrent.