Practice Exam



Practice ExamMatching Questions.Match the following terms with their definitions:(3)A.Fraud(4)B.Restitution(5)C.Part performance(1)D.Exculpatory clause(2)E.Consideration1.A contract clause intended to relieve one party from potential tort liability2.The idea that contracts must be a two way street3.The intention to deceive the other party4.Restoring the other party to its original position5.Entry onto land, or improvements made to it, by a buyer who has no written contractTrue/False QuestionsCircle true or false:1.TFA contract may not be rescinded based on puffery.2.TFAn agreement for the sale of a house does not need to be in writing if the deal will be completed within one year.3.TFNoncompete clauses are suspect because they tend to restrain free trade.4.TFA seller of property must generally disclose latent defects that he knows about.5.TFA court is unlikely to enforce an exculpatory clause included in a contract for surgery.6.TFAn agreement for the sale of 600 plastic cups, worth $0.50 each, must be in writing to be enforceable.Multiple-Choice Questions1.In which case is a court most likely to enforce an exculpatory clause?(a)Dentistry(b)Hang gliding(c)Parking lot(d)Public transportation(e)Accounting2.Sarah, age 17, uses $850 of her hard-earned, summer-job money to pay cash for a diamond pendant for the senior prom. She has a wonderful time at the dance but decides the pendant was an extravagance, returns it, and demands a refund. The store has a “no refund” policy that is clearly stated, on a sign on the wall. There was no defect in the pendant. The store refuses the refund. When Sarah sues, she will(a)Win $850(b)Win $425(c)Win, but only if she did not notice the “no refund” policy(d)Win, but only if she did not think the “no refund” policy applied to her(e)Lose3.Tobias is selling a surrealist painting. He tells Maud that the picture is by the famous French artist Magritte, although in fact Tobias has no idea whether that is true or not. Tobias’s statement is(a)Bilateral mistake(b)Unilateral mistake(c)Fraud(d)Innocent Misrepresentation(e)Legal, as long as he acted in good faith4.Louise e-mails Sonya, “I will sell you my house at 129 Brittle Blvd. for $88,000, payable in one month. Best, Louise.” Sonya e-mails back, “Louise, I accept the offer to buy your house at that price. Sonya.” Neither party prints a copy of the two e-mails.(a)The parties have a binding contract for the sale of Louise’s house.(b)Louise is bound by the agreement but Sonya is not.(c)Sonya is bound by the agreement but Louise is not.(d)Neither party is bound because the agreement was never put in writing.(e)Neither party is bound because the agreement was never signed. (e)An adhesion contract5.In February, Chuck orally agrees to sell his hunting cabin, with 15 acres, to Kyle for $35,000, with the deal to be completed in July, when Kyle will have the money. In March, while Chuck is vacationing on his land, he permits Kyle to enter the land and dig the foundation for a new cottage. In July, Kyle arrives with the money but Chuck refuses to sell. Kyle sues.(a)Chuck wins because the contract was never put in writing.(b)Chuck wins because the contract terms were unclear.(c)Kyle wins because a contract for vacation property does not need to be written.(d)Kyle wins because Chuck allowed him to dig the foundation.(e)Kyle wins because Chuck has committed fraud.6. Ted's wallet is as empty as his bank account, and he needs $3500 immediately. Fortunately, he has three gold coins that he inherited from his grandfather. Each is worth $2500, but it is Sunday, and the local rare coins store is closed. When approached, Ted's neighbor Andrea agrees to buy the first coin for $2300. Another neighbor, Cami, agrees to buy the second for $1100. A final neighbor, Lorne, offers "all the money I have on me" - $100 – for the last coin. Desperate, Ted agrees to the proposal. Which of the deals is supported by consideration?Ted's agreement with Andrea, onlyTed's agreements with Andrea and Cami, onlyAll three of the agreementsNone of the agreements ................
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