1. Kip sells an apartment building to Lacy with a promise to repair the roof, which violates the local housing code, within six months. One year later, Kip sends Milo, a carpenter, to fix the roof. Lacy orders Milo to leave and refuses to make further payments to Kip, who files a suit against Lacy. Kip's late attempt to fix the roof is most likely (Points : 1)
- a material breach.
- complete performance.
- excused by Lacy's refusal to make further payments.
- substantial, but not complete, performance.
2. Ester is a lighting technician who hires out on a per-project basis to film and television production companies, as well as theaters and other venues that stage dramatic and musical performances. In this capacity, Ester is
- an agent.
- an employee.
- an independent contractor.
- a principal.
3. Crafted Countertops, Inc., and Kitchen Design Corporation enter into a contract that does not specify the payment terms. Payment may be made in
- any commercially normal or acceptable means except credit card.
- cash only.
- any commercially normal or acceptable means.
- cash or check only.
3. Omar is Precise Service Company's chief executive officer. On Precises's behalf, Omar solicits business, hires and fires workers, and handles the finances. Precise pays Omar varying amounts, depending on his "needs." Omar is most likely
- a principal.
- an employee.
- an employer.
- an independent contractor.
4. Neighborly Insurance Company and Ollie put their agency agreement into a written document that describes the rights and duties of both parties. Ollie, as the agent, has
- apparent authority.
- equal authority.
- express authority.
- implied authority.
5. Solana, a minor, enters into a contract to buy a dozen movies from eHD TV Stream, Inc., an Internet video service. Solana reaches the age of majority and does not disaffirm the contract nor make payment on it. eHD files a suit against her. The court will most likely consider the contract ratified if it is
- executed.
- executory.
- express.
- emancipated.
6. Juana contracts to sell Ignacio her MP3 player for $30. This contract will be fully discharged when Juana and Ignacio
- agree to sign a bill of sale.
- exchange the player for the $30.
- sign a receipt.
- shake hands and go their separate ways.
7. Lew believes an old comic book he owns has little value, but Murray is convinced it is a valuable collector's item. Lew sells it to Murray for $10 before learning it is worth $1,000. Lew can
- not rescind the contract.
- rescind the contract on the basis of fraud.
- rescind the contract on the basis of mistake.
- rescind the contract on the basis of puffery.
8. Blueberry Cafe signs an agreement with County Credit Bank to borrow $40,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest to 15 percent. Blueberry's best argument for avoiding payment to County Credit is that
- performance of the contract is commercially impracticable.
- payment of the loan would force the debtor into bankruptcy.
- the law has rendered performance of the contract illegal.
- the specific subject matter of the contract has been destroyed.
9. Roc buys a farm from Steve, who claims that it would be a prime site for a housing subdivision. Roc later learns that the law does not permit the land to be used for housing. Roc may
- not rescind the contract.
- rescind the contract only if Roc did not know the law before the deal.
- rescind the contract only if Steve knew about the law before the deal.
- rescind the contract only if the law is not common knowledge.