Question 1

Beryl enters into a contract with Clay for a guided tour of Deep Canyon.Clay represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Most likely,Beryl

Accepted Answer

A)   could exert duress to obtain a new guide.
B)   can rescind the deal based on fraudulent misrepresentation.
C)   might recover damages for the mistake.
D)   must comply with the contract because the representation is an opinion.E) A) and B)
F) None of the above

Question 2

Metro Holdings Inc.contracts to sell a commercial parking garage to New Property LLC.The contract provides that if Metro does not close the deal by a certain date,it must pay the buyer one-half of the value of the property.This provision is not enforceable if it is

Accepted Answer

A)   meant to pay for additional work in the event of damage.
B)   a reasonable estimate of the loss on the breach.
C)   designed to penalize Metro.
D)   intended to quickly provide cash to New Property.E) A) and C)
F) B) and C)

Question 3

When the performance of a contract depends on the personal skill of the obligor,a delegation of the duty is prohibited.

Accepted Answer

A) True 
 B)False

Question 4

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000.Bill transfers his duty under this contract to Dewey.With respect to the duties under the original contract,this transfer

Accepted Answer

A)   does not relieve Bill of the potential obligation to perform.
B)   extinguishes Bill's obligation to perform.
C)   is an invalid transfer of a non-transferable obligation.
D)   requires a special form to constitute a valid transfer.E) None of the above
F) All of the above

Question 5

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation.Under this contract,the intended beneficiary is

Accepted Answer

A)   Miranda.
B)   New Credit.
C)   Lyle.
D)   any customer of Miranda's.E) A) and B)
F) None of the above

Question 6

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement,repair,or refund of the purchase price.With respect to this provision,on a customer's suit for breach,a court is most likely to

Accepted Answer

A)   enforce it.
B)   reform it.
C)   refuse to enforce it.
D)   reallocate the risk expressed in it.E) A) and B)
F) C) and D)

Question 7

At an auction,Ben bids on a 1957 Chevy coupe,believing that it is worth more than the price asked.When the car proves to need more repairs than Ben estimated,and thus is worth less as is,Ben is

Accepted Answer

A)   still liable on the bid.
B)   not liable on the bid because he underestimated the cost of repairs.
C)   not liable on the bid because the auctioneer misrepresented the value.
D)   not liable on the bid because the need for repair is not a material fact.E) A) and B)
F) A) and D)

Question 8

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

Accepted Answer

A) True 
 B)False

Question 9

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Accepted Answer

A) True 
 B)False

Question 10

Because of the potential for punitive damages,plaintiffs are likely to include a claim for fraudulent misrepresentation in their contract disputes.

Accepted Answer

A) True 
 B)False

Question 11

A threat to exercise a legal right to sue someone ordinarily constitutes duress.

Accepted Answer

A) True 
 B)False

Question 12

The first element of proving fraud is to show that the innocent party is not easily fooled.

Accepted Answer

A) True 
 B)False

Exam 11: Contract Performance, breach, and Remedies

The first element of proving fraud is to show that the innocent party is not easily fooled.

Correct Answer
verified

Beryl enters into a contract with Clay for a guided tour of Deep Canyon.Clay represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Most likely,Beryl

Correct Answer
verified

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement,repair,or refund of the purchase price.With respect to this provision,on a customer's suit for breach,a court is most likely to

Correct Answer
verified

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation.Under this contract,the intended beneficiary is

Correct Answer
verified

At an auction,Ben bids on a 1957 Chevy coupe,believing that it is worth more than the price asked.When the car proves to need more repairs than Ben estimated,and thus is worth less as is,Ben is

Correct Answer
verified

Because of the potential for punitive damages,plaintiffs are likely to include a claim for fraudulent misrepresentation in their contract disputes.

Correct Answer
verified

Metro Holdings Inc.contracts to sell a commercial parking garage to New Property LLC.The contract provides that if Metro does not close the deal by a certain date,it must pay the buyer one-half of the value of the property.This provision is not enforceable if it is

Correct Answer
verified

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

Correct Answer
verified

When the performance of a contract depends on the personal skill of the obligor,a delegation of the duty is prohibited.

Correct Answer
verified

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Correct Answer
verified

A threat to exercise a legal right to sue someone ordinarily constitutes duress.

Correct Answer
verified

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000.Bill transfers his duty under this contract to Dewey.With respect to the duties under the original contract,this transfer

Correct Answer
verified

Exam 11: Contract Performance, breach, and Remedies

The first element of proving fraud is to show that the innocent party is not easily fooled.

Correct AnswerverifiedShow Answer

Beryl enters into a contract with Clay for a guided tour of Deep Canyon.Clay represents that he is an experienced,knowledgeable guide,when in reality he has never been in the canyon.Most likely,Beryl

Correct AnswerverifiedShow Answer

Home Furnishing Store's contract for a sale of its appliances provides that the only remedy for breach is replacement,repair,or refund of the purchase price.With respect to this provision,on a customer's suit for breach,a court is most likely to

Correct AnswerverifiedShow Answer

Lyle and Miranda agree that Lyle will fix the refrigeration unit in Miranda's Bagel Café in exchange for her payment of a debt that Lyle owes to New Credit Corporation.Under this contract,the intended beneficiary is

Correct AnswerverifiedShow Answer

At an auction,Ben bids on a 1957 Chevy coupe,believing that it is worth more than the price asked.When the car proves to need more repairs than Ben estimated,and thus is worth less as is,Ben is

Correct AnswerverifiedShow Answer

Because of the potential for punitive damages,plaintiffs are likely to include a claim for fraudulent misrepresentation in their contract disputes.

Correct AnswerverifiedShow Answer

Metro Holdings Inc.contracts to sell a commercial parking garage to New Property LLC.The contract provides that if Metro does not close the deal by a certain date,it must pay the buyer one-half of the value of the property.This provision is not enforceable if it is

Correct AnswerverifiedShow Answer

Expenses incurred because of a breach of contract to obtain performance from another source are not recoverable in a suit for breach.

Correct AnswerverifiedShow Answer

When the performance of a contract depends on the personal skill of the obligor,a delegation of the duty is prohibited.

Correct AnswerverifiedShow Answer

The standard measure of compensatory damages is the value of the breaching party's actual performance.

Correct AnswerverifiedShow Answer

A threat to exercise a legal right to sue someone ordinarily constitutes duress.

Correct AnswerverifiedShow Answer

Bill and Charlene enter into a contract for the clearing,plowing,and preparing of Charlene's 100-acre tract for which she agrees to pay $1,000.Bill transfers his duty under this contract to Dewey.With respect to the duties under the original contract,this transfer

Correct AnswerverifiedShow Answer

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