1. All contracts must be in writing in order to be legally enforcible under the law.
True
False
Question 2. Since a contract must be voluntarily entered into, one who enters into a contract under duress can have that contract voided.
True
False
Question 3. John thinks a book he is buying is worth $50.00. He buys it and later learns it was worth only $35.00. John can receive his money back.
True
False
Question 4. A contract that is to be performed over two years must be in writing in order to be legally enforceable in a court of law.
True
False
Question 5. John and Joe reach an agreement. John signs the agreement and sends it to Joe but Joe, being busy, forgets to sign it. Under the statute of frauds, this contract can be enforced against John but not against Joe.
True
False
Question 6. Mary purchases an insurance contract from Allstate and names her daughter Susan as beneficiary. Susan can enforce this contract against Allstate because Susan is the party intended to benefit under this contract.
True
False
Question 7. Mark enters into a contract with ABC company to paint his house and to do landscaping. This will increase the value of Mark's house along with the value of the homes to either side of Mark's house. The ABC company does a horrible job and the value of Mark's house in fact is lower as are now the values of the houses next to Mark. The owners of those houses can sue the ABC company for the damage done to the value of their homes.
True
False
Question 8. John borrows $100 from Fred. Fred owes $100 to Joe. Fred can assign John's duty to pay Fred the $100 directly to Joe. If John fails to pay, Joe can sue John for breach of contract.
True
False
Question 9. The Miramax production company hires Lady Gaga to present a concert. She becomes ill and instead is able to have Celine Dion perform the concert. Miramax production company refuses to let Celine Dion perform and is sued by Lady Gaga for the agreed fee. This is a legally enforceable delegation of a duty to a third party so that Miramax owes Lady Gaga the fee.
True
False
Question 10. John contracts to build a display case for Fred. John walks off the job before completing the display case. Fred hires his brother-in-law to complete the display case at twice the cost than any other carpenter would charge. Fred will be able to collect this increased cost as compensatory damages.
True
False
Question 11. Mary enters into a written contract to buy Joe's house. Joe decides not to sell Mary the house and tries to negotiate a higher price. Mary can sue Joe for specific performance to force him to deed to her title to the house at the original contract price.
True
False
Question 12. if one is concerned about exposure to the amount of damages in the event of a breach of the contract, that party can attempt to negotiate a liquidated damages clause which predetermines and fixes the damages to a set amount.
True
False
Question 13. Joan needs a truck on Saturday to make a delivery which will earn her $10,000. She rents a truck from Bill. Joan does not tell Bill why she needs the truck.
Bill fails to have the truck ready for Joan's use on Saturday. Joan is unable to mitigate her damages though she makes a reasonable attempt to find another delivery truck at the last minute.
Joan can sue John for the loss of $10,000.
True
False
Question 14. Equitable damages such as specific performance or injunction are used when monetary damages are not sufficient to give the non-breaching party the benefit of the contract.
True
False
Question 15. Mary agrees to sell John a readily available textbook for $20. John refuses to sell the book and Mary after mitigating her damages finds a similar book at a cost of $25. Her damages due to this breach is $25.
True
False