1.Compensatory damages

a)Are a separate item of proof and must be proved by a preponderance of the evidence.

b)Are automatic in any case of breach of contract.

2.Under the above facts, Bopeep

a)Both of the other answers are correct.

b)May sue and recover punitive damages from Reggie.

c)May sue and recover actual damages from Reggie.

3.A breach of contract for the sale of land

a)Will always involve a rule of law which departs from common law contract law.

b)Can result in the plaintiff getting the remedy of specific performance.

4.Leon Leadfoot is an employee of Daddy D's Income Tax and Bail Bonds, Inc. Leon, while on the job, drove his vehicle negligently. Leon's negligence proximately caused personal injuries to Bill Sprivvins.

a)Leon would be personally liable to Bill because he was the tort feasor.

b)Both of the other answers are correct.

c)Daddy D's Income Tax and Bail Bonds, Inc. is liable to Bill based on respondeat superior.

5.When a plaintiff seeks an equitable remedy

a)The plaintiff can prove the remedy at law is inadequate by proving an inability to prove money damages.

b)The plaintiff must first prove that the remedy at law is inadequate.

6.Title to land is transferred

a)When the deed is recorded in the county clerk's office.

b)When the parties enter into the contract for the purchase and sale of the land.

c)At the time the seller signs and delivers a deed to the buyer.

7.Which of the following is tangible personal property?

a)A computer.

b)Both of the other answers are correct.

c)A patent.

8.Most torts are

a)Fault based.

b)Non-fault based.

9.In a defective product case

a)There must be fault in the part of the seller in order for the plaintiff to prevail.

b)Strict liability is applicable.

10.In a case involving fraud in the inducement,

a)The plaintiff can be awarded punitive damages for the tort.

b)The plaintiff can be awarded compensatory damages for breach of contract.

c)Both of the answers are correct.

11.Which of the following statements is true?

a)Punitive damages are recoverable in cases involving the tort of a bad faith.

b)Punitive damages are recoverable in cases involving fraud.

c)Both of the other answers are correct.

12.A deed to real state must be acknowledged before a notary public

a)In order to transfer title.

b)In order to be recorded in the County Clerk's real estate records.

13.A civil wrong other than a breach of contract.

a)Is the same as a breach of contract.

b)Is the definition of a tort.

14.Which of the following statements is true?

a)Absence of contractual capacity always makes a contract void.

b)An illegal bargain results in a voidable contract.

c)A contract induced by a misrepresentation of material fact makes a contract voidable.

15.Plaintiff sued Defendant for breach of a contract for the sale of land.

a)If plaintiff is to recover money damages, he will have to separately prove the amount in dollars and cents.

b)Money damages will be presumed, and plaintiff does not have to offer proof of the actual amount.

16.Which of the following is an example of substantial performance?

a)A building contractor's duty under a construction contract.

b)Seller's duty to convey marketable title to land.

c)A duty to repay a loan of money.

17.When a contract is based on a misrepresentation of a material fact, the contract is

a)Void.

b)Illegal.

c)Voidable.

d)Unenforceable.

18.Reggie Ripoff says to Bopeep Pettigrew, "I have the opportunity to purchase four oil and gas leases in New Mexico and I plan to immediately re-sell them for a good profit to a party I already have lined up. You can invest in them for $300,000.00 each for a total of $1,200,000.00. I will be putting in an equal amount. When I 'flip' each of them I'll split the net profit with you after you receive back your initial investment."

Bopeep agreed to the plan and wire transferred $1,200,000.00 to Reggie's bank account. But instead of purchasing the leases, he did what he had planned all along, using Bopeep's money to pay off some court judgements which had been taken against him by parties whom he had previously swindled. Under these facts,

a)Reggie is guilty of both breach of contract and of fraud.

b)Reggie is guilty only of breach of contract.

c)Reggie cannot be held liable under any theory of recovery.

19.At closing in a contract for the sale of land, the grantee is entitled to receive from the grantor.

a)Marketable title.

b)A title with no more than ordinary defects.

20.In order to discharge a contractual obligation, impossibility of performance

a)Must be objective.

b)May be subjective.

21.Which of the following statement is true?

a)Recording a deed constitutes constructive notice of the interest represented by the document and protects against competing claims.

b)Recording deed is necessary in order to have a transfer of title.

22.Which of the following damages are recoverable for the tort of ordinary negligence?

a)Actual damages.

b)Punitive damages.

c)Both of the other answers are correct.

23.A warranty deed warrants that

a)The title to land is marketable.

b)The conveyance includes personal property.

24.At a real estate closing, the buyer is entitled to receive from the seller

a)Marketable title.

b)A deed which contains no warranties.

25.Punitive damages

a)are damages resulting from intentional torts.

b)are damages for breach of contract.

c)are damages resulting from ordinary negligence.

26."Marketable title" to land means

a)A title reasonably clear of defects.

b)It is land which can be acquired at a discounted price.

27.If a party fails to perform an absolute duty by thatparty under a contract

a)Neither of the other answers are correct since in a contract law there is no such thing as "absolute duty."

b)Such party has breached the contract.

c)Such party can still be discharged if he or she can show substantial performance.

28.Parol evidence is admissible to show

a)Nothing, since parol evidence is never admissible.

b)A subsequent integrated mutually agreed modification or recission of the integrated contract.

c)A prior or contemporaneous agreement which varies, changes, alters or modifies an integrated contract.

29.Recordation of a real estate document in the county clerk's office

a)Provides constructive notice to all of the interest represented by the instrument.

b)Is necessary to convey title from the grantor to the grantee.

c)Both of the other answers are correct.

30.The tort of strict liability is applied

a)In defective product cases.

b)In cases involving extra-hazardous activities.

c)Both of the other answers are correct.

31.An example of a tort is

a)A seller's failure to close on a real estate contract.

b)Failure to exercise ordinary care while driving a motor vehicle.

c)A buyer's failure to close on a real estate contract.

32.An integrated contract

a)Is illegal.

b)Leads to the application of the Parol Evidence Rule.

c)Both b and c

d)Is a contract which is entirely in writing.

33.Which of the following violates the patrol evidence rule?

a)Extrinsic evidence of fraud.

b)Extrinsic evidence of a prior or contemporaneous oral agreement which alters a provision in an integrated contract.

c)Extrinsic evidence of lack of capacity.

34.Innocent misrepresentation

a)Can result in rescission of a contract.

b)Is non-existent since there is no such thing as innocent misrepresentation.

35.Which of the following statements is true?

a)A copyright is intangible personal property.

b)A patent is tangible personal property.

36.A warranty deed warrants that

a)The title to land is marketable.

b)The conveyance includes personal property.

37.Which of the following is personal property?

a)A copyright.

b)Both of the other answers are correct.

c)A pickup truck.

38.Ernie entered into a contract to sell to Bert a piece of real estate. The land had a fair market value of $775,000.00. The contract called for Bert to pay a purchase price of $800,000.00. Before the date set for closing. Bert notified Ernie that he was backing out of the contract. The contract called for Bert to pay money damages for breach of contract. Assuming Ernie prevails in the breach of contract cause of action and that the above-described facts are all

a)Compensatory damages in the amount of $25,000.00.

b)Punitive damages in an amount up to double the amount of compensatory damages.

39.An award of specific performance to a plaintiff in a breach of contract case is an example of

a)An equitable remedy.

b)A remedy at law.

40.In order to form a contract, there must be

a)Legal subject matter and parties with contractual capacity.

b)An offer and acceptance.

c)All of the other answers are correct.

d)Consideration.

41.If a minor enters into a contract the contract is

a)voidable at the option of the adult.

b)Unenforceable.

c)Voidable at the option of the minor.

42.Verne Hicks entered into a contract to sell a piece of real estate owned by him to Purnell Wickersham. The land had a fair market value of $550,000.00. The contract called for Purnell to pay a purchase price of $529,000.00. Before the date set for closing, Verne notified Purnell that he was backing out of the contract. Purnell sued Verne for specific performance. Assuming Purnell prevails in the breach of contract of action, which of the following is true?

a)Purnell can recover punitive damages.

b)Purnell can recover specific performance, since he can show that the remedy at law is inadequate.

c)Purnell will be limited to his remedy at law for money damages, since he can prove $21,000.00 in compensatory damages.

43.Gross negligence is

a)The failure to exercise ordinary care.

b)Treated as an intentional tort.

44.Consideration does not have to involve the exchange of money.

a)True

b)False

45.A contract between Ernie and Bert to defraud Cookie

a)Is unenforceable.

b)Is void

c)Is voidable

46.A tort

a)Is the same as a breach of contract.

b)Is always a crime.

c)is a civil wrong other than breach of contract.

47.An example of a duty of absolute performance is

a)A building contractor's duty to build a warehouse.

b)A trial attorney's representation of a client in court.

c)A debtor's obligation to repay a loan of money.

48.For a promise to be contractually binding on the promiser, it must always be supported by the promisee's promise to pay money.

a)True.

b)False.

49.Which of the following statement is true?

a)Fraud is a contract related tort.

b)Breach of contract will always include a tort.

c)Punitive damages are recoverable for breach of contract.