32.Building Restoration, Inc. (BRI), enters into a contract to refurbish an old train depot for Casual Dining, Inc., to open as Eat Up Restaurant. If BRI completes most of the work promised in the contract, its performance will be

a.

absolute.

b.

complete.

c.

material.

d.

substantial.

33.Dix agrees to sell Eli, for $1,500, a remote parcel of land. They believe the land to be worthless, but beneath it is shale rock containing oil. A court would

a.

not rescind the contract.

b.

rescind the contract on the basis of fraud.

c.

rescind the contract on the basis of mistake.

d.

rescind the contract on the basis of undue influence.

34.A transfer of contractual rights is an

a.

Offer.

b.

Assignment.

c.

Delegation of duties.

d.

None of the above.

35.Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere forever. This promise is most likely

a.

invalid because it is part of a sale of an ongoing business.

b.

invalid because of the unreasonable terms of area and time.

c.

valid because it is part of a sale of an ongoing business.

d.

valid if Reed and Taylor are reasonably intelligent.

36.Rita, a minor, misrepresents her age as twenty-one and signs a contract with Sporty Motors to buy a sport utility vehicle (SUV). In most states, Rita may

a.

disaffirm the contract.

b.

disaffirm the contract only if she makes full payment.

c.

disaffirm the contract if she returns the SUV in good condition.

d.

not disaffirm the contract due to the misrepresentation.

37.Oxley contracts to buy a pizza oven from Restaurant Supplies Warehouse (RSW) for $2,500, but RSW fails to deliver. Oxley buys the appliance else-where for $3,500. Oxley's measure of damages is

a.

$1,000.

b.

$3,500.

c.

lost profits.

d.

$0.

38.Mai is a third party beneficiary under a contract between Novia and Opie. Novia and Opie can modify or rescind their contract without Mai's consent

a.

at any time.

b.

at no time.

c.

only with Mai's consent.

d.

only if they pay Mai damages.

39. An assignment of rights can be:

a.

oral.

b.

written.

c.

Neither a or b.

d.

Both a and b.

40.Leon contracts to install automatic watering troughs in Kendall's dairy barn. Leon then becomes seriously ill and contracts with Jake to install the troughs. Jake is unreliable and never shows up to install the troughs. In most states, Kendall can sue

a.

no one.

b.

Jake only.

c.

Leon only.

d.

Jake or Leon.

41.The following duties cannot be delegated:

a.

Obligations involving personal skill or talent.

b.

Obligations that will vary materially.

c.

Both a and b.

d.

No obligations can be delegated.

42.Rico, a user of SmartPhoneApps.com's Web site, can download apps for free if he first clicks on "I accept" after viewing certain terms. This is

a.

a contract that does not include the terms.

b.

a contract that includes the terms.

c.

not a contract but the terms are enforceable.

d.

Neither a or b.

43.An intended third party beneficiary must be intended to benefit:

a.

At the time of contracting.

b.

At any time.

c.

If specified in the contract.

d.

None of the above.

44.Jake and Kline make an illegal contract that unjustly enriches Jake at the expense of Kline. A court will

a.

not not enforce the contract because it is illegal.

b.

award damages to Kline.

c.

reform the contract to make it legal.

d.

enforce the contract as it was originally written.

45. Incidental beneficiaries may:.

a.

Sue under a contract.

b.

Never sue under a contract.

c.

Sue if they are a minor.

d.

None of the above.

46. Grain Co-op, LLC and Hearty Cereals, Inc., discuss the terms of a contract for periodic deliveries of corn. Grain faxes Hearty a memo on Grain's letterhead that summarizes the points on which they agreed, including a two-year term. Grain begins to perform, and Hearty accepts the deliveries but refuses to pay.

The transaction between Grain and Hearty falls within the provision of the Statute of Frauds involving

a.

collateral promises.

b.

the one-year rule.

c.

contracts involving real estate.

d.

secondary contracts.

47.Handicrafts & Hobbies Store agrees to hire Iliana for one year at a salary of $600 per week. When Handicrafts & Hobbies cancels the contract, Iliana spends $150 to obtain a similar job that pays $450 per week for a year. Iliana is entitled to recover

a.

the amount of the wages that Handicrafts & Hobbies promised only.

b.

the difference between the wages at the two jobs only.

c.

the difference between the wages at the two jobs plus $150.

d.

$150 only.

48.Jason and Kelly enter into a contract for Jason to renovate Kelly's house by a certain date. Jason never performs. After the applicable limitations period has passed, Kelly decides to bring a suit against Jason for breach. This suit

a.

must be filed within ten to twenty years, depending on state law.

b.

can no longer be brought.

c.

can be filed within four years after Kelly decides to sue.

d.

must be filed between four and five years after Kelly decides to sue.

49. Flora, who owns and operates Garden Fresh Organic Farms, agrees to sell Harvesters Grocery a minimum quantity of uncommon fresh fruits and vegetables for the region every week for three months.

If a strike of Harvester's Grocery workers delays delivery of the produce beyond the time for performance, Flora's contract with Harvesters is

a.

breached.

b.

discharged.

c.

not affected.

d.

suspended.

50.Ian owes Jo $5,000. Jo assigns the right to this payment to Kyle. To be effective notice by Jo to Ian of the assignment

a.

must be given immediately.

b.

must be given within thirty days.

c.

must be given within a reasonable time.

d.

is not required.

51.D'Sean promises to pay his personal assistant Edie $50,000 in consideration of the services she had provided over the prior years. D'Sean never makes the payment. D'Sean's promise is

a.

enforceable for the entire $50,000.

b.

enforceable to the extent of what Edie's services were actually worth.

c.

not enforceable because the consideration is in the past.

d.

not enforceable because the failure to pay is an unforeseen difficulty.

52.Gavin takes out an insurance policy on her car. Gavin can assign his policy to a third party

a.

under any circumstances.

b.

under no circumstances.

c.

as long as he does so in writing.

d.

if a court approves the assignment.

53.Moe illegally threatens physical harm to force Norel to contract to pay him for protecting her store against vandalism and destruction. Norel may

a.

rescind the contract or refuse to comply with its terms.

b.

do nothing once she has agreed to pay.

c.

recover from her insurer for the cost.

d.

recover from the local police for their failure to protect her store.

54.Idina admires Jules's collection of guitars. Jules says, "I plan to sell the collection when I get tired of it." Jules's statement is

a.

an offer.

b.

not an offer because it has not been communicated to Idina.

c.

not an offer because Jules expressed only an intent to enter into a future contract.

d.

an acceptance.