21.A promise to pay $2,500 a year to a local police officer to not have your store vandalized is legally unenforceable under the rule that makes performance of a pre-existing legal obligation legally insufficient consideration.

True

False

22.Destruction of the subject matter has what effect on the offer?

a. The offer is merely delayed under the "Hardship Rule."

b. The offer is terminated.

c. This creates an impossibility of fact that does not terminate the offer.

d. The offer is delayed until additional subject matter can be located.

23.Which of the following would be admissible under the parol evidence rule? Assume the written contract was made on June 1, 2010, and that it is an integrated document.

a. A letter dated July 9, 2010, reciting agreement to new delivery terms

b. A chart showing the dates for delivery written on August 16, 2009

c. A copy of common carrier rules on the duty of delivery persons for uncrating merchandise, which is dated December 1, 2006

d. A copy of two letters while the parties were in the negotiation stage of their contract which showed agreement to a term not included in the June 1, 2010 contract

24.Stan has a typed copy of a contract, which he would like to have Todd sign. Todd, who needs glasses to read typing, doesn't want to sign until he has read the document, but Stan convinces Todds to sign it anyway, because it is a "standard" contract for this type of situation. Is the contract which Todd signed binding upon him?

a. Yes, because he has made a unilateral mistake of law

b. Yes, because he was negligent in not ascertaining its contents

c. No, because he did not read it

d. No, because he entered into it based upon fraud in the execution

25.Rescission is usually permitted where the parties to a contract are both mistaken about a material fact.

True

False

26.Nona offers to pay Janice $1,500 if Janice will paint her apartment while she is out of town on vacation for two weeks. Janice makes no promise but tells Nona that she will think about it. While Nona is out of town, Janice paints the apartment. This is best described as a(n):

a. unilateral contract.

b. quasi contract.

c. bilateral contract.

d. implied in fact contract.

27.Tony, who is a minor, enters into a contract with Vicky, who is an adult. Which of the following is correct?

a. Vicky may disaffirm the contract when Tony becomes an adult.

b. Vicky may not disaffirm the contract.

c. Tony may ratify the contract at any time during his minority.

d. Vicky may disaffirm the contract at any time.

28.Though contractual duties generally are delegable; a delegation will not be permitted if the nature of the duties is personal in that the obligee has a substantial interest in having the delegator perform the contract.

True

False

29.Jeremy threatens to hit Gil on the head with a baseball bat unless Gil signs a contract agreeing to pay Jeremy $1800 for a motor. If, because of the threat, Gil signs the contract:

a. the contract is voidable at Gil's option.

b. Jeremy has committed physical duress against Gil.

c. this is an example of economic duress.

d. All of the above.

30.Steve breaches a contract with Patty in a state where the statute of limitations is six years. Seven years later Patty wants to sue. The contract is unenforceable, rather than void or voidable.

True

False