4. Creditor beneficiaries can:

A.Sue both the promisor andpromisee

B.Sue only the promisor

C.Sue only for payment of money

D.Sue in breach of insurance contracts

5.Kids Corner ordered for a supply of stuffed toys looking like Santa Claus from Toyland Inc.The toys were to be supplied by 1st of December but were sent to Kids Corner on 25th of December. There has been a _____ of contract.

A.Compensatory breach

B.Anticipatory breach

C.Material breach

D.Non-occurrence of concurrent condition

6. If a part of a divisible contract becomes illegal:

A. The whole contract is void

B. The illegal parts will be removed and the legal parts remain in force

C. The whole contract will be unenforceable

D. The whole contract is still enforceable

7. Kay contracts with Glenda to pay her $50 to let all the air out of Sally's auto tires to "teach her a lesson" not to flirt with Kay's boyfriend. This contract

A. Is void

B. Is voidable

C. Is unconscionable

D. Is enforceable since the harm is minor

8.Identify the true statement regarding the idea of public policy.

A.The court's view of public policy is determined by what the court believes is in the best interests of society

B.Public policy is resistant to any social or economic change

C.Courts have limited discretion in determining what constitutes a violation of public policy

D.The limited discretionary powers provide the legal system minimal flexibility which ensures a strict adherence to policies

9.Oral contracts that come under the provisions of the statute of frauds are:

A.Void

B.Illegal

C.Unenforceable

D.Valid

10.State statutes of frauds generally agree:

A.Thatmemorandums satisfying the requirement for a writing need only be signed by the party to be bound

B.That evidence of an oral agreement is never admissible

C.That the signature should appear on the bottom left corner of the memorandum