64. A contract can be discharged by impossibility in all the following scenarios except:

a. destruction of subject matter in a sales contract.

b. performance under the contract becomes 25% more expensive due to currency fluctuations in construction contract.

c. when the law changes.

d. death of obligee in a personal services contract.

65. A contract under which one or both parties have not yet fully performed is termed a(n):

a. void agreement.

b. executory contract.

c. executive contract.

d. executed contract.

66. Which of the following is not an element of an accord and satisfaction?

a. a bona fide dispute

b. a proposal to settle the dispute

c. performance of the agreement to settle the dispute

d. reservation of rights under the federal Consumer Credit Protection Act

67. An agreement is not binding when:

a. one party makes a mistake regarding a material fact but the mistake is unknown to the other contracting party.

b. both parties make a mistake regarding a material fact.

c. one party makes a mistake of law.

d. both parties make a mistake in judgment.

68. The main thrust of the quasi contract is to:

a. encourage the making of written contracts.

b. prevent enrichment.

c. compensate those who voluntarily help others.

d. prevent unjust enrichment.

69. A third-party beneficiary:

a. may be obligated to pay for services rendered.

b. may bring suit on and enforce the contract.

c. must consent to the contract.

d. must be identified by name.

70. Contractual capacity is the ability to:

a. read and write.

b. sign a written contract.

c. understand that a contract is being made and to understand its general nature.

d. understand the legal meaning of the contract being made.

71. Promissory estoppel does NOT require

a. a signed writing explaining the promise.

b. a clear and definite promise

c. that justice be better served by enforcement of a promise

d. that a promisee has justifiably relied on the promise

72. The plaintiff in a quasi-contractual action can recover:

a. lost profits.

b. damages for mental distress.

c. the reasonable value of the benefit conferred upon the defendant.

d. for all the damages sustained.

73. Bankruptcy results in a discharge of contractual obligations by __________.

a. default

b. equity

c. operation of law

d. oath or affirmation

74. A right of __________ refusal is the right of a party to meet the terms of a proposed contract before it is executed, such as a real estate purchase agreement.

a. concomitant

b. conditional

c. formal

d. first

75. Jones has a life insurance policy on his own life that provides that in the event of his death, his mother will receive the proceeds. Jones' mother is a(n):

a. incidental beneficiary.

b. donee beneficiary.

c. creditor beneficiary.

d. assignee.

76. An assignment of royalties to a song:

a. is a contract.

b. requires consideration.

c. is a transfer of rights.

d. is not enforceable.

77. When a person has performed services under an oral contract that cannot be enforced because of the statute of frauds, such person:

a. can recover the agreed payment for the services because a refusal to make payment would be a breach of the contract.

b. can recover the reasonable value of the services because there is a quasi-contractual duty to pay for the benefit received from such services.

c. cannot recover the value of the services because they were rendered under a unilateral mistake of law.

d. can have the party receiving the services arrested for obtaining property by false pretenses.

78. A contract is created by which the terms are stated to be for consideration in the amount of $3,000. If typewritten in the contract is the term "four thousand dollars," while the amount of $3,000 is printed within the form:

a. the contract will be interpreted to be for $3,000.

b. the contract will be interpreted to be for $4,000.

c. there is a contract but the courts will not specify the dollar amount, as a conflict exists.

d. a compromise settlement amount of $3,500 will be used.

79. An agreement to slander a third person would not be enforceable because slander is a(n):

a. crime.

b. civil wrong.

c. infringement of privacy.

d. restraint against trade.

80. If an offeree dies before the offer has been accepted, the offer:

a. may be rejected by the surviving spouse of the offeree.

b. may be accepted by the surviving spouse of the offeree.

c. is automatically revoked by the death of the offeree.

d. may be accepted by the guardian appointed for any minor children of the offeree.

81. A person lacks contractual capacity if:

a. the person is a chronic alcoholic.

b. the person is a drug addict.

c. because of mental impairment, the person does not comprehend that a contract is being made or understand its consequences.

d. the person is a minor.

82. Negotiable instruments are:

a. formal contracts.

b. informal contracts.

c. option contracts.

d. first-refusal agreements.

83. The obligation of a cosigner is discharged by:

a. the minority status of one of the parties.

b. the majority status of one of the parties.

c. the court's declaration of the contract's provision of necessaries.

d. the payment of the debt.

84. A counteroffer is a(n):

a. acceptance of the original offer.

b. rejection of the original offer.

c. acceptance of the original offer and an invitation to further negotiate.

d. a revocation of the original offer.