Section 1 Quiz

Section 1 Q 13

Which of the following, if intentionally misstated by a seller to a buyer, would be considered a fraudulent inducement to make a contract?

Section 1 Q 14

lf a person is induced to enter into a contract by person because of the close relationship between the parties, the contract may be voidable under which of the following defenses?

Section 1 Q 7

Wick Company made a contract in writing to hire Zake for five years for $150,000 per year. After two years, Zake asked Wick for a raise of $20,000 per year. Wick at first refused but agreed to pay Zake a $60,000 bonus after Zake completed the fifth year of work. Zake put some pressure on Wick to get Wick to agree to these terms. After the fifth year, Zake left and demanded Wick pay Zake the $60,000 bonus and Wick refused. Zake sued Wick for the $60,000 bonus. Who wins?

Section 1 Q 8

Rail, who was sixteen years old, purchased an $8OO computer from Elco Electronics. Rail and Elco are located in a state where the age of majority is eighteen. On several occasions Rail returned the computer to Elco for repairs. Rail was very unhappy with the computer. Two days after reaching the age of eighteen, Rail was still frustrated with the computer’s reliability, and returned it to Elco, demanding an$800 refund. Elco refused, claiming that Rail no longer had a right to disaffirm the contract Elko’s refusal is:

Section 1 Q11

Under a personal services contract, which of the following circumstances will cause the discharge of a party’s duties?

Section 1 Q 17

On June 1, 202x, Decker orally guaranteed the payment of a $5,000 note Decker’s cousin owed Baker. Decker’s agreement with Baker provided that Decker’s guaranty would terminate in eighteen months. On June 3,202x, Baker wrote Decker confirming Decker’s guaranty. Decker did not object to the confirmation. On August 23,202x, Decker’s cousin defaulted on the note and Baker demanded that Decker honor the guaranty. Decker refused. Which of the following statements is correct?

Section 1 Q 20

Rogers and Lennon entered into a written computer consulting agreement that required Lennon to provide certain weekly reports to Rogers. The agreement also stated that Lennon would provide the computer equipment necessary to perform the services, and that Rogers’ computer would not be used. As the parties were executing the agreement, they orally agreed that Lennon could use Rogers’ computer. After executing the agreement, Rogers and Lennon orally agreed that Lennon would report on a monthly, rather than weekly, basis. The parties now disagree on Lennon’s right to use Rogers’ computer and how often Lennon must report to Rogers. ln the event of a lawsuit between the parties, the parol evidence rule will:

Section 1 Q 1

Carson Corp., a retail chain, asked Alto Construction to fix a broken window at one of Carson’s stores. Alto offered to make the repairs within three days at a price to be agreed on after the work was completed. A contract based on Alto’s offer would fail because of indefiniteness as to the:

Section 1 Q 18

Which of the following statements is true with regard to the Statute of Frauds?

Section 1 Q 21

Where the parties have entered into a written contract intended as the final expression of their agreement, which of the following agreements will be admitted into evidence because they are not prohibited by the parol evidence rule?

Section 1 Q 2

On September 10, Harris, lnc., a new car dealer, placed a newspaper advertisement stating that Harris would sell ten cars at its showroom for a special discount only on September 12,13, and 14. On September’1 2, King called Harris and expressed an interest in buying one of the advertised cars. King was told that five of the cars had been sold and to come to the showroom as soon as possible. On September 13, Harris made a televised announcement that the sale would end at ‘1 0:00 PM that night. King went to Harris’ showroom on September 14 and demanded the right to buy a car at the special discount. Harris had sold the ten cars and refused King’s demand. King sued Harris for breach of contract. Harris’ best defense to King’s suit would be that Harris’:

Section 1 Q 9

Green was adjudicated incompetent by a court having proper jurisdiction. Which of the following statements is correct regarding contracts subsequently entered into by Green?

Section 1 Q 22

Parc hired Glaze to remodel and furnish an office suite. Glaze submitted plans that Parc approved. After completing all the necessary construction and painting , Glaze purchased minor accessories that Parc rejected because they did not conform to the plans. Parc refused to allow Glaze to complete the project and refused to pay Glaze any part of the contract price. Glaze sued for the value of the work performed. Which of the following statements is correct?

Section 1 Q 3

On April 1, Fine Corp. faxed Moss an offer to purchase Moss’ warehouse for $500,000. The offer stated that it would remain open only until April 4 and that acceptance must be received to be effective. Moss sent an acceptance on April 4 by overnight mail and Fine received it on April 5. Which of the following statements is correct?

Section 1 Q 24

Kaye contracted to sell Hodges a building for $310,000. The contract required Hodges to pay the entire amount at closing. Kaye refused to close the sale of the building. Hodges sued Kaye. To what relief is Hodges entitled?

Section 1 Q 4

On February 12, Harris sent Fresno a written offer to purchase Fresno’s land. The offer included the following provision : “Acceptance of this offer must be by registered or certified mail, received by Harris no later than February 18 by 5:00 p.m. CST.” On February 18, Fresno sent Harris a letter accepting the offer by private overnight delivery service. Harris received the letter on February 19. Which of the following statements is correct?

Section 1 Q 25

Nagel and Field entered into a contract in which Nagel was obligated to deliver certain goods to fields by September 10.  On September 3, Nagel told Fields that Nagel had no intention of delivering the goods required by the contract. Prior to September 10, Field may successfully sue Nagel under the doctrine of

* Section 1 Q 5

Kay, an art collector, promised Hammer, an art student, that if Hammer could obtain certain rare artifacts within two weeks, Kay would pay for Hammer’s postgraduate education .At considerable effort and expense, Hammer obtained the specified artifacts within the two-week period When Hammer requested payment, Kay refused. Kay claimed that there was no consideration for the promise. Hammer would prevail against Kay based on:

*Section 1 Q 6

On September 21 , Summers sent Fox a letter offering to sell Fox a vacation home for $150,000. On October 2, Fox replied by mail agreeing to buy the home for $145,000.Summers did not reply to Fox. Do Fox and Summers have a binding contract?

*Section 1 Q 10

All of the following are effective methods of ratifying a contract entered into by a minor except:

*Section 1 Q 12

Which of the following would be unenforceable because the subject matter is illegal?

*Section 1 Q 15

Petersen went to Jackson’s home to buy a used car advertised in the newspaper. Jackson told Petersen that “it is a great car”’ and that “the engine had been overhauled a year ago.” Shortly after he bought the car, Petersen began experiencing problems with the engine. When Jackson refused to refund his money, Petersen sued for fraud based on it was not a “great car” and also based on the fact, as learned later, the overhaul was done thirteen months ago, not a year. Will Petersen win his case?

*Section 1 Q 16

Maco,lnc. and Kent contracted for Kent to provide Maco certain consulting services at an hourly rate of $20. Kent’s normal hourly rate was $90 per hour, the fair market value of the services. Kent agreed to the $20 rate because Kent was having serious financial problems. At the time the agreement was negotiated, Maco was aware of Kent’s financial condition and refused to pay more than $20 per hour for Kent’s services. Kent has now sued to rescind the contract with Maco claiming duress by Maco during the negotiations. Under the circumstances. Kent will:

*Section 1 Q 19

Carson agreed orally to repair Ives’ rare book for $450. Before the work was started, Ives asked Carson to perform additional repairs to the book and agreed to increase the contract price to $650. After Carson completed the work, Ives refused to pay and Carson sued. Ives’ defense was based on the Statute of Frauds What total amount will Carson recover?

*Section 1 Q 23

To cancel a contract and to restore the parties to their original positions before the contract, the parties should execute a: