Name:
Personal and Business Law – Unit 2 Test (___/185)
(40) Write a contract that uses the following data:
You are being contracted to paint 3 different rooms 3 different colors in the same house
Your customer is John Smith
He lives at 1311 South Kirkwood Road, Kirkwood Missouri 63122
Your rate is $500 per room and is payable upon satisfactory completion
The contract cannot be delegated
The contract is not to exceed 2 days in length and completed by no later than June 1
List the six elements of a contract
1.
2.
3.
4.
5.
6.
Law – Unit 2 Test
Page 1
(40) You are the office manager of Kramer Products, Inc, at 387 Park Avenue, Newark New Jersey 07104
– phone number 201-426-3999. You are purchasing 18 Marathon printing calculators for $89.99 each,
from Taft Business supply. Terms of the sale are: $419.82 down payment and $100 per month for 12
months. Fill out the below sales form and answer the questions that follow
Taft Business Supply
536 Market Street
Newark, NJ 07104
201-426-7750
Date:
Please deliver the following equipment as specified herein, and in accordance with prices,
terms, and conditions made in this order at
Name of Customer:
Address:
Phone:
Model:
Price:
Description of Equipment:
Terms:
It is expressly understood that there is no verbal understanding or additional written agreement
existing that can change or modify the prices, conditions of sale, or terms of payment as
specified herein, and acceptance of this order becomes a binding contract subject to the terms
and conditions set forth herein.
Salesperson: Bill Jones Accepted by:
Does the above agreement contain the essential elements of a valid contract?
What are the benefits and the detriments contained in the above contract?
If this contract were signed on Sunday, would it be valid in all states? Why?
If a lawsuit were brought on the contract, would you be permitted to change the terms of the contract
by oral evidence? What is the principle pertaining to this practice?
Are usury statutes a problem with the above contract? Explain your answer.
Law – Unit 2 Test
Page 2
(10) What are the four characteristics of a contract?
1.
2.
3.
4.
(10) What are the three requirements of an offer, please give a short example of each?
1.
2.
3.
(1) Who is the only party to a contract that can rescind a contract?
(5) Explain the principle of duplicate originals and why it is used.
(5) Please explain how hand written terms on a preprinted contract prevail?
(5) Please list the four types of consideration
1.
2.
3.
4.
(5) Please explain what Accord and Satisfaction means
(10) Please explain the differences between duress and undue influence
(10) Please explain the differences between satisfactory performance and substantial performance
Law – Unit 2 Test
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(10) List and give an example of each of the ways that a contract may be discharged by impossibility of
performance
1.
2.
3.
(5) How do actual damages differ from incidental damages?
(2) What is the test called that the courts use to determine satisfactory performance?
(2) What is legal tender?
(10) What guidelines should you follow when you are asked to sign your name to any document?

(5) What makes a contract divisible?
(5) What is capacity?
(5)What are the two rules that govern the revocation of contracts?
Law – Unit 2 Test
Page 4