277. The parol evidence rule prohibits the introduction of oral evidence into a lawsuit where the evidence presented is
contrary to the terms of a written contract. Parol evidence may be introduced when:
a. it will explain the written instrument through previous trade usage
b. a written contract is incomplete
c. it will prove fraud, mistake or misrepresentation
d. a written contract is unclear
e. all of the other choices
278. The parol evidence rule prohibits the introduction of oral evidence into a lawsuit where the evidence presented is
contrary to the terms of a written contract. Parol evidence may be introduced except when:
a. it will explain the written instrument through previous trade usage
b. the written contract is incomplete or ambiguous
c. it will prove fraud, mistake or misrepresentation
d. when one of the parties to the contract is not in court
e. none of the other choices
279. Prohibiting the introduction of oral evidence when it contradicts the terms of a written contract is an example of:
a. the right to disaffirm
b. the parol evidence rule
c. promissory estoppel
d. a legal detriment
e. none of the other choices
280. The prohibits the introduction of oral evidence into a lawsuit where the evidence presented is contrary to the
terms of a written contract.
a. parol evidence rule
b. real evidence rule
c. oral evidence rule
d. phone evidence rule
e. verbal evidence rule
281. In Deschamps v. Treasure State Trailer Court, Ltd. where Deschamps was sued after he bought a mobile home
trailer park and then stopped making payments on it because he claimed the seller told him the water system was in
good condition when in fact it required $400,000 of repairs, the supreme court of Montana held that:
a. Deschamps had to make the full payment because his claims of reliance on verbal information were barred
under the parol evidence rule
b. Deschamps did not have to make the full payment because his claims of reliance on verbal information were
barred under the parol evidence rule
c. Deschamps should not have to make the full payment because there was a lack of agreement in the contract
d. Deschamps should not have to make the full payment because there was a lack of consideration in the
contract
e. the original contract was void
282. In Deschamps v. Treasure State Trailer Court, Ltd. where Deschamps was sued after he bought a mobile home
trailer park and then stopped making payments on it because he claimed the seller told him the water system was in
good condition when in fact it required $400,000 of repairs, the supreme court of Montana held that:
a. the original contract was void
b. Deschamps did not have to make the full payment because his claims of reliance on verbal information were
barred under the parol evidence rule
c. Deschamps should not have to make the full payment because there was a lack of agreement in the contract
d. Deschamps should not have to make the full payment because there was a lack of consideration in the
contract
e. none of the other choices are correct
283. Bob tells Charles and Fritz: “If either of you collect all the old bricks at the house on Main Street that has been torn
down and deliver them to the new house I am going to build, I will pay you 10 cents per brick.” Charles then spends
three days collecting the bricks at the old house site and is about to deliver them to Bob’s new building site when
Bob drives by and tells him to forget it. Charles wants Bob to pay him.
a. this was a unilateral contract never executed, so not enforceable
b. this was a bilateral contract never executed, so not enforceable
c. the court would hold that Bob has a moral obligation to pay Charles
d. this was a contract that would be enforceable due to substantial performance
e. none of the other choices
284. When the obligations of a contracted have been performed, the contract is:
a. terminated or discharged
b. finished or written off
c. finalized
d. burned
e. destroyed
285. means that the contract basically has been fulfilled and payments must be made.
a. Serious performance
b. Final performance
c. Substantial performance
d. Material fulfillment
e. Good faith
286. means that the contract basically has been fulfilled and payments must be made.
a. Serious performance
b. Final performance
c. Adequate performance
d. Material fulfillment
e. none of the other choices are correct
287. Ford promises to deliver 100,000 new cars to Hertz by June 1 for its rental fleet. Ford only delivers 98,300 of the
cars by June 1 and promises the rest soon. Ford has
a. breached the contract and Hertz may reject all the cars
b. engaged in anticipatory breach and Hertz may reject all the cars
c. engaged in rescission and Hertz may reject all the cars
d. violated a condition precedent and Hertz may reject all the cars
e. engaged in substantial performance; Hertz may not reject all the cars
288. Ford promises to deliver 100,000 new cars to Hertz by June 1 for its rental fleet. Ford only delivers 98,300 of the
cars by June 1 and promises the rest soon. Ford has
a. breached the contract and Hertz may reject all the cars
b. engaged in anticipatory breach and Hertz may reject all the cars
c. engaged in rescission and Hertz may reject all the cars
d. violated a condition precedent and Hertz may reject all the cars
e. none of the other choices
289. A transfer of contract rights to another party is:
a. assignment
b. reenlistment
c. delegation
d. termination
e. reassignment
290. A transfer of contract rights to another party is:
a. reassignment
b. reenlistment
c. delegation
d. termination
e. none of the other choices are correct
291. A transfer of contractual duties to a third party is a(n):
a. delegation
b. assignment
c. reassignment
d. termination
e. enlistment
292. A transfer of contractual duties to a third party is a(n):
a. enlistment
b. assignment
c. reassignment
d. termination
e. none of the other choices are correct
293. To transfer contract rights to a third party is:
a. assignment
b. delegation
c. repudiation
d. beneficiary
e. none of the other choices
294. To transfer contract rights to a third party is:
a. rescission
b. delegation
c. repudiation
d. beneficiary
e. none of the other choices
295. Jan owes you $500. Since you owe Bob some money, you give Bob the right to collect the money Jan owes you.
This is:
a. assignment
b. delegation
c. repudiation
d. beneficiary
e. none of the other choices
296. Jan owes you $500. Since you owe Bob some money, you give Bob the right to collect the money Jan owes you.
This is called:
a. promissory estoppel
b. delegation
c. repudiation
d. beneficiary
e. none of the other choices
297. To transfer contractual duties to a third party is:
a. assignment
b. delegation
c. repudiation
d. beneficiary
e. none of the other choices
298. To transfer contractual duties to a third party is:
a. assignment
b. promissory estoppel
c. repudiation
d. beneficiary
e. none of the other choices
299. You are hired to mow a lawn on Saturday. Being busy, you hire your brother to do the job for you and get paid for
it. This is:
a. assignment
b. delegation
c. repudiation
d. beneficiary
e. none of the other choices
300. You are hired to mow a lawn on Saturday. Being busy, you hire your brother to do the job for you and get paid for
it. This is:
a. assignment
b. rescission
c. repudiation
d. beneficiary
e. none of the other choices
301. A(n) is a party who is not part of an original contract who acquires rights under the contract.
a. second-party beneficiary
b. third-party beneficiary
c. sub-standard beneficiary
d. offeror
e. offeree
302. A(n) is a party who is not part of an original contract who acquires rights under the contract.
a. second-party beneficiary
b. defendant
c. sub-standard beneficiary
d. offeror
e. none of the other choices are correct
303. A owes B $10,000. A promises to pay the money back to C, to whom B owes $10,000. C would be called:
a. an assignee
b. a repudiator
c. a third party beneficiary
d. a performer in place
e. a rescission
304. A owes B $10,000. A promises to pay the money back to C, to whom B owes $10,000. C would be called:
a. an assignee
b. a repudiator
c. a promisee
d. a performer
e. none of the other choices
305. When a party to a contract does not perform as required, there is:
a. a failure to perform
b. a breach of contract
c. a breach of trust
d. a failure of contract
e. a rescinding of the contract
306. When a party to a contract does not perform as required, there is:
a. a failure to perform
b. a rescinding of the contract
c. a breach of trust
d. a failure of contract
e. none of the other choices are correct
307. If the performance promised by a party is clearly inferior to the requirements of the contract, there has been:
a. substantial performance
b. a material breach of the contract
c. an immaterial breach of the contract
d. a and c
e. none of the other choices
308. Anticipatory breach:
a. is addressed by U.C.C. Section 2-207, not by the common law
b. requires that a valid contract will not be enforced by the courts because of a subsequent illegality
c. discharges the duties of the non-breaching party and allows that party to sue for damages from the
repudiation
d. is prohibited by the U.C.C., but allowed by the common law
e. none of the other choices
309. Anticipatory breach:
a. is addressed by U.C.C. Section 2-207, not by the common law
b. means that an otherwise valid contract will not be enforced by the courts because of a subsequent illegality
c. holds that a party may breach a contract if it no longer has an “essential need“ for the purpose of the
contract
d. is prohibited by the U.C.C., but allowed by the common law
e. none of the other choices
310. Anticipatory breach:
a. does not apply in case of service contracts
b. discharges the duties of the non-breaching party under the contract
c. prohibits the contract from being reinstated
d. does not occur so long as the event is more than one year in the future
e. all of the other choices
311. A contract can be discharged by:
a. performance
b. agreement of the parties
c. legal impossibility
d. none of the other choices
e. any of the other specific choices
312. Rescission, novation, and accord and satisfaction are all forms of:
a. performance
b. discharge by agreement
c. contract writing
d. contract enforcement
e. none of the other choices are correct
313. Which of the following is not a form of discharge by agreement:
a. rescission
b. novation
c. accord
d. satisfaction
e. all of the other specific choices are correct
314. When both parties agree that their contractual relationship should be terminated without performance and their
obligations are discharged, this is:
a. rescission
b. novation
c. accord and satisfaction
d. discharge by operation of law
e. equitable remedy
315. When both parties agree that their contractual relationship should be terminated without performance and their
obligations are discharged, this is:
a. anticipatory breach
b. novation
c. accord and satisfaction
d. discharge by operation of law
e. none of the other choices
316. Nguyen promised to paint Carara’s house for $2,000 in the next month. When he got behind in his work, he asked if
she would hire someone else instead, and Carara agreed. This is:
a. rescission
b. novation
c. accord and satisfaction
d. discharge by operation of law
e. equitable remedy
317. Nguyen promised to paint Carara’s house for $2,000 in the next month. When he got behind in his work, he asked if
she would hire someone else instead, and Carara agreed. This is:
a. anticipatory breach
b. novation
c. accord and satisfaction
d. discharge by operation of law
e. none of the other choices
318. In the divorce agreement between Ted and Alice, Alice agreed to assume the debt on Ted’s credit card. The credit
card company agrees to this arrangement. This is an example of:
a. accord and satisfaction
b. novation
c. rescission
d. revocation
e. none of the other choices
319. In the divorce agreement between Ted and Alice, Alice agreed to assume the debt on Ted’s credit card. The credit
card company agrees to this arrangement. This is an example of:
a. accord and satisfaction
b. promissory estoppel
c. rescission
d. revocation
e. none of the other choices
320. When parties agree to discharge one party from a contract and create a new contract with another party who is to
become responsible for the discharged party’s performance, this is:
a. accord and satisfaction
b. specific performance
c. novation
d. equitable remedy
e. equitable performance
321. When parties agree to discharge one party from a contract and create a new contract with another party who is to
become responsible for the discharged party’s performance, this is:
a. accord and satisfaction
b. specific performance
c. rescission
d. equitable performance
e. none of the other choices
322. A(n) is an agreement by the parties to offer and accept some performance different from that originally
bargained for.
a. agreement
b. accord
c. satisfaction
d. remand
e. substitution
323. A(n) is an agreement by the parties to offer and accept some performance different from that originally
bargained for.
a. agreement
b. substitution
c. satisfaction
d. remand
e. none of the other choices are correct
324. An accord is an agreement by the parties to offer and accept some performance different from that originally
bargained for. The actual performance of the new obligation is:
a. accord
b. satisfaction
c. completion
d. finalization
e. termination
325. An accord is an agreement by the parties to offer and accept some performance different from that originally
bargained for. The actual performance of the new obligation is:
a. accord
b. termination
c. completion
d. finalization
e. none of the other choices are correct
326. Fernando owes Lucia $8,000. They both realize he is unlikely to be able to repay that much, so Lucia says: “Pay me
$5,000 and we‘ll call it good.” Fernando pays the $5,000. This settlement is called:
a. preexisting duty
b. liquidated debt
c. unliquidated debt
d. accord and satisfaction
e. detrimental reliance
327. Fernando owes Lucia $8,000. They both realize he is unlikely to be able to repay that much, so Lucia says: “Pay me
$5,000 and we‘ll call it good.” Fernando pays the $5,000. This settlement is called:
a. preexisting duty
b. liquidated debt
c. unliquidated debt
d. rescission
e. none of the other choices
328. The doctrine of
impossible.
is used to end the obligations to a contract when an event occurs that makes performance
a. changed circumstances
b. discharge due to infeasibility
c. impossibility of performance
d. discharge by legal infeasibility
e. legal incompatibility
329. The doctrine of
impossible.
is used to end the obligations to a contract when an event occurs that makes performance
a. changed circumstances
b. discharge due to infeasibility
c. legal incompatibility
d. legal infeasibility
e. none of the other choices are correct
330. Impossibility:
a. discharges the obligations of the parties to the contract
b. discharges the obligations of the offeror
c. discharges the obligations of the offeree
d. does not discharge any party’s obligations
e. means the contract must be rewritten by an attorney
331. Bart was supposed to deliver 100,000 firecrackers to Lisa by June 1, but his factory explodes in April so he
suspends operations. The contract:
a. has suffered a novation
b. has incurred a rescission
c. has incurred the failure of a condition precedent
d. has been terminated by impossibility
e. none of the other choices