Midterm Exam 2

A  Liquidated Damages.

B  Statutory Damages.

C  Compensatory Damages.

D  Special Damages.

A  Rescission.

B  Substantial performance.

C  Accord and Satisfaction.

D  Substitution.

A  Perfect Tender.

B  Quasi Contract.

C  Utilitarian.

D  Mailbox Rule.

A  Offer

B  Acceptance

C  It does not lack any elements. It is a valid contract

D  Consideration

A  a void contract because of the UCC.

B  a void agreement because of the fraud involved.

C  a voidable contract, one that Jennifer can void.

D  a voidable contract, one that Jack can void.

A  Jill can be held personally liable to the customer since she is a partner.

B  Jill has no potential liability to the customer.

C  Jill can only be liable to the amount of her investment.

D  Jill is personally liable, but the woman must first collect from the general partners before collecting from Jill.

A  A limited partner in a limited partnership.

B  A sole proprietor.

C  A general partner in a limited partnership.

D  A partner in a general partnership.

A  Matt would win; this is an implied contract.

B  Walter would win as there was no contract.

C  Walter would win because of the UCC.

D  Matt would win in quantum meruit.

A  There is no contract until January 27.

B  On January 16, the contract was executory.

C  On January 16, the contract was executed.

D  This contract is a unilateral contract.

A  the shares are publicly traded.

B  the shareholders usually restrict share transfer.

C  the corporation can typically operate without a board of directors.

D  minority shareholders are provided more protection than in regular corporations.

A  The contract is enforceable, but only up to the value of the water system.

B  The contract is unenforceable because it is unconscionable.

C  The contract is fully enforceable as written.

D  The contract is unenforceable because it is exculpatory.

A  If Beth pays the obligation in full under the terms of the note.

B  When Beth turns 18.

C  Only if Mona pays half of the value of the note.

D  Only if Mona dies before Beth’s obligation is discharged.

A  there is promissory estoppel.

B  there is undue influence.

C  justice demands it.

D  conduct of the parties indicates they intended an agreement.

A  only one promise is involved in a unilateral contract.

B  the Statute of Frauds applies to one and not the other.

C  one is enforceable, the other is not.

D  only one promise is involved in a bilateral contract.

A  The law would enforce this valid, enforceable contract.

B  Jane would win as this is a voidable contract.

C  The law would not enforce Jane’s promise, as it does not have a lawful purpose.

D  Shelly would win as this is a unilateral contract.

A  A limited liability company.

B  A close corporation.

C  A limited partnership.

D  A general partnership.

A  Silence as to a toxic waste problem on real property that the buyer would not reasonable be able to find or see after investigating.

B  A false statement that a $30,000 car attracts members of the opposite sex.

C  A false prediction that a painting’s value will rise.

D  A false statement that a used car is “the best deal in town.”

A  acceptance is deemed when received.

B  written contracts must be signed and mailed.

C  acceptance must mirror the offer.

D  acceptance is deemed when dispatched.

A  Rachel is personally liable for any business debts, regardless of whether she or Cyndi created the obligation.

B  Cyndi is personally liable for any negligent act committed by Rachel in the scope of the business activity.

C  Rachel is personally liable for any business contracts entered into by Cyndi.

D  All the above.

A  not enforceable because Becky does not have a legal right to drink alcohol.

B  enforceable because the agreement accomplishes Ben’s goal of keeping Becky from drinking.

C  enforceable because Becky is giving up the right to do something she would otherwise be entitled to do.

D  not enforceable because Becky is a minor and could disaffirm the contract.

A  the written agreement is a full and final expression of the parties’ agreement.

B  the contract was a full and final oral explanation of the parties’ agreement.

C  the Statute of Frauds applies.

D  the contract has been fully performed by both parties.

A  when it provides them with necessities.

B  at any time so long as the contract was created when they were a minor.

C  as long as they are they age of minority.

D  if they misrepresent their age.

A  Legality

B  Performance

C  Offer

D  Consideration

A  S corporation.

B  corporation.

C  general partnership.

D  limited liability company.

A  The court would order Myrtle to pay the reasonable value of the yard work because of the benefit conferred on her.

B  This is an express, voidable contract that either party may avoid.

C  Myrtle would not have to pay for the yard work.

D  This is an implied, unilateral contract and she must pay the price requested by the man.

A  Buyer agrees to pay any costs of litigation.

B  Creditor charges 38% interest on a loan.

C  Employee agrees to never work for a competing company.

D  Seller is not responsible for property damage regardless of the cause of the injury.

A  Debtor and creditor.

B  Doctor and patient.

C  Husband and wife.

D  Chief executive officer and corporation.

A  employment.

B  services.

C  real estate.

D  All of the above.

A  $50,000

B  $100,000.

C  whatever they receive from the partnership.

D  None of the above. The partnership itself will pay the taxes on the business’s profit.

A  Walter will win, as the promise is enforceable.

B  Walter will win, as no consideration is required to modify an employment contract.

C  Walter will lose based upon the preexisting duty rule.

D  Walter will lose because he can’t use past acts to satisfy consideration.

A  an illusory promise.

B  a unilateral contract.

C  a conditional offer.

D  an unliquidated offer.

A  If the parties agree to settle for less than the full amount, there is no consideration to make the agreement enforceable.

B  If Wilde’s agrees to accept less than the full amount, the agreement is only binding if it is in writing and signed by Bernie.

C  The disputed amount is also known as an unliquidated amount.

D  If Wilde’s agrees to accept less than the full amount as full payment, the agreement is not binding.

A  bilateral, implied contract.

B  unilateral, implied contract.

C  bilateral, express contract.

D  unilateral, express contract.

A  Be able to recover the $2,000 but not the $10,000.

B  Be able to recover the $12,000.

C  Not be able to recover the $12,000.

D  Be able to recover the $3 million lost on the contract.

A  provide consideration as a substitute for the offer.

B  revoke the offer any time before acceptance.

C  ensure the contract is legally enforceable.

D  accept the offer any time before termination.

A  Don must pay the value of the benefit received, but doesn’t have to pay the full price because Ron did not wax the car.

B  Ron is under no obligation to wax the car, even if Ron and Don had discussed the possibility.

C  If waxing had been discussed, Ron must wax the car before he can get paid.

D  Don must prove that Ron was supposed to wax the car by showing the notes he took during their negotiations.

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE

A  FALSE

B  TRUE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  TRUE

B  FALSE

A  FALSE

B  TRUE