Contract Law TEST REVIEW: Chapters 6 and 7 (BMA-LEB-6.3-6.8)
1. An offer to do what you have agreed to do under a contract is called tender
2. Discharge by agreement means that people can end a contract by mutual agreement.
3. Which of the following establishes a time limit for suing in a civil case? Statute of limitations
4. A(n) assignment is the transfer of a right under contract.
5. When a person fails to perform the duties spelled out in a contract, it is called breach.
6.
A(n) delegation is the transfer of a duty under contract.
7. To win a lawsuit based on fraud, five elements must be shown.
8. A(n) assignment is the transfer of a right under contract.
9. If you are the injured party when a contract has not been fulfilled, you have a choice of three
remedies: accept the breach, sue for money damages, ask the court for equitable remedy
10. Contracts can be discharged in two ways: by performance and by agreement
11. In order for fraud to occur, the injured party must suffer what? Suffer a loss (no loss=no fraud)
12. What is a unilateral mistake? An error on the part of one of the parties
13. What is a remedy? Legal means of enforcing a right or correcting a wrong
16. Emily was in a collision that caused over $5,000 in damage to her car. After she had it repaired,
she sold the car for $8,500. The buyer asked Emily if the car had ever been in a major car accident.
Emily said no because it had been completely fixed. Can she be accused of false representation?
Explain your reasoning.
Yes, she misrepresented the car
17. Sally offered to sell Pedro her IPad for $100. Pedro told her he would think about it and let her
know later that day. Later, Pedro told Sally that he would buy her IPad, but Sally told him she had
changed her mind. Can Pedro sue Sally for breach of contract? Explain your reasoning.
No, there was no consideration given/exchanged
18. If I place a cell phone on the table and state that it will never drop calls and is 100% reliable, and
you decide to buy the phone based on this representation. Later, while using the phone, your call is
dropped. To prove fraud, as the injured party, you would have to prove what about the lie? Explain
your reasoning.
Must prove that you depended on the lie
19. You signed a contract with Bill’s Produce for delivery of 100lbs of fresh vegetables that you
purchased today. Two weeks later, you have still not received your delivery, despite making phone
calls to Bill’s Produce (who stated that your contract did not promise a time for performance of the
contract). Is it reasonable to expect delivery before two weeks, even though your contract did not
specifically state when delivery would occur? Why?
Yes, two weeks is a reasonable amount of time for fresh vegetables
20. Explain the two causes for an impossibility of performance discharge of a contract.
Death or illness in a personal service contract (if requires the personal services of the person who has
died or become ill
Destruction of the exact subject matter (if the means or item needed to complete contract is
destroyed through no fault of either party; must occur after contract is entered)
21. Susan agreed to work for Bob for two years. At the end of two months, Susan went to Bob and
asked to be released from her contract. Bob agreed. Was the contract discharged? Explain.
Yes, by discharge by agreement as both parties agreed to mutual release
22. What is the Uniform Commercial Code? When is the UCC applied?
Collection of laws that governs various types of business transactions; whenever you have a contract
for the sale of goods (all things other than money, stocks, bonds) that are movable
23. Define warranty and explain the two different types of warranties.
Express warranty – oral or written statement, promise, or other representation about the quality of a
product
Implied warranty – guarantee of quality imposed by law (comes automatically rather than verbally or
in writing)
Chapter 5 and 6 Test Review – Page 2