1. An assignment must be:

a.

in writing

b.

agreed to by all parties

c.

supported by consideration

d.

none of these

Spring agreed to buy Summer's car. Because the actual purchase was not to take place for several months, they drew up a lengthy agreement that specified all of the rights and obligations of each of the parties that they could think of. They tookthis two-page, single-spaced document to an attorney for review. The attorney suggested a few changes. They had the document retyped and they signed it. The contract is referred to as a

a.

A simple contract

b.

A formal contract

c.

An implied contract

d.

An executed contract

1. An act of concealment, because it does not involve an affirmative misrepresentation, will not be sufficient to give rise to an action for fraud.

True

False

1. Heather brought a French horn from Patrick on credit. Patrick then sold the receivable to Carol for cash. Heather had notice of the transfer. Which of the following is true?

a.

Carol was a delegate and Patrick is a delegator.

b.

Heather was a delegator, obligor, promisor, and debtor.

c.

Carol was an assignor, obligee, promisee, and debtor.

d.

Patrick was an assignor, obligee, promisee, and creditor.

1. Willy signs a lease to open a law office. The state legislature outlaws the private practice of law, thus rendering the lease worthless. When Willy fails to pay the rent, the landlord files a suit against Willy. Willy's best defense is that

a.

a novation has occurred.

b.

the lease violated the Statute of Frauds.

c.

an accord and satisfaction have occurred.

d.

the purpose of the lease has been frustrated.

1. On the first day of the month, Thomas and Moore orally agreed that Thomas was to deliver to Moore's place of business a case of wickets on each Monday of the current month. Moore was to pay $300 price on the first of the following month. On the 15thof the month, the agreement should be classified as

a.

Unexecuted because the agreement was oral.

b.

Cancelable at any time with respect to future deliveries.

c.

Executed.

d.

Executory.

1. Over the last century, contract law has undergone considerable change in response to social, economic, and political shifts. Which of the following is a true statement about current contract law?

a.

Greater freedom of contract is permitted.

b.

The principles of caveat emptor and laissez-faire are less influential.

c.

Once a contract is formed, the parties are less likely to be excused from performance.

d.

Contract formation is more difficult than formerly.

1. When Elvira was 13, she a promissory note to pay for a funeral service. When she was 14, adjudgment "as entered against her on the note (but unknown to Elvira). At the age of 20, 2 years after attaining her majority, Elvira learned of the judgment when she inquired about her credit status. She brought an action 2 months later to reopen the judgment and avoid the contract while on which it was based. Elvira should

a.

Lose because she did not repudiate the contract while she was a minor.

b.

Win because all contracts of a minor are void.

c.

Win because she disaffirmed within a reasonable time.

d.

Lose because she waited more than 2 years after reaching her majority.