Q1. A contract was signed for a car rental. At the time the contract was signed, the clerk told the renter to ignore paragraph 14 of the contract. This paragraph was printed clearly, and was not removed, nor crossed out, and the contract was signed. The rental Company is now trying to enforce the terms of paragraph 14, which the renter says are no longer applicable. Which is the best answer?

a) The car dealership will be bound as it was unconscionable t enforce the contract

b) This is an example of a unilateral mistake so the renter is not bound

c) The renter is bound by what he signed

d) The parole evidence rule will allow the renter to prove that paragraph 14 should be excluded.

Q2. Which best applies?

a) When there is a trivial breach of a condition of a contract the court will allow the contract to be discharged

b) A court will treat a substantial performance as if it were a breach of a warranty

c) Substantial performance is when the parties agree to quit the contractual terms before completion

d) A condition precedent is a term which brings obligations to an end upon some event or condition taking place

Q3. Which best describes a situation which invokes the doctrine of frustration?

a) City Hall is on strike when the contract is entered into, so plans cannot be approved until the strike is over

b) On reviewing the plans, City Hall has determined that the land the project is to be built on is not suitable for building the intended project so will not approve the plans

c) While City Hall is on strike the contractor may have the plans approved by city management if an increased fee is paid

d) A contractor cannot get plans to build a project approved on time to start building as he waited too long before submitting the plans

Q4. The Parol Evidence rule does not apply

a) When the parties are in different jurisdictions

b) When the courts can strike out the offending term

c) Where one party does not agree with a document signed after the contract was formed

d) Where one party can show there was a condition precedent

Q5. Which best describes frustration of a contract?

a) An event occurred which prevents the parties from completing the contractual terms.

b) Performing the terms of the contract will cost the supplier more money than he will make from performing the contract

c) One of the parties has breached the terms of the contract

d) Neither party knew that goods were no longer available when they entered into a contract