1. Under common law of contract, the delegation of duties is best described as follows:

a. Delegation of duties occurs when there is a breach of the contract and a third party steps in to perform the contract

b. Delegation of duties occurs when one of the parties to a contract can no longer perform resulting in cancellation of the contract

c. Delegation of duties occurs when one party to the contract transfers his or her obligations to perform to a third party who provides the required performance under the contract.

d. Delegation of duties is never allowed to occur in a contract because performance must be provided by a party to the contract.

2. Rescission of a contract occurs under which circumstances:

a. Rescission occurs when performance of the contract is in doubt and results in a breach of contract for damages.

b. Rescission occurs when there is a unilateral mistake made in the contract regarding the meaning of the contract.

c. Rescission of a contract is never allowed due to the requirement of performance of all contract obligations.

d. Rescission occurs when one party to the contract commits fraud entitling the other party to cancel the contract from its inception.

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3. In contract law, a bilateral mistake occurs in which of the following circumstances:

1. When one party to the contract makes a mistake and does not 0understand the terms and requirements of the contract.
2. When both parties to a contract have a meeting of the minds regarding the total meaning of the contract terms.
3. When both parties make their own mistake as to the meaning of the terms and provisions of the contract giving either one the right to cancel the contract.
4. when both parties make their own mistake as to the meaning of the terms and provisions of the contract requiring both of them to agree to cancel the contract.

4. Under the terms of a contract, which of the following statements is correct:

1. Exculpatory clauses with a release of liability are quite common in contracts and are easily enforced by the Courts
2. Intoxication is a condition which inhibits a persons normal capacity to act or think and may result in an unenforceable contract due to a lack of capacity to enter a contract
3. At common law oral contracts for the purchase and sale of real estate were enforceable if all of the legal requirements were present.
4. Forbearance is not a legal form of consideration as it does not require the person to act in any capacity.

5. The Uniform Electronic Transactions ACT or UETA specifies which of the following:

1. UETA applies to contracts as well as wills and trust agreements
2. UETA specifically provides one may not deny the existence of a legal contract just because the contract was signed electronically.
3. UETA requires the use of security procedures such as encryption in order to verify changes to electronic documents.
4. UETA was challenged in the California courts and determined to be unconstitutional under the California constitution.

6. Common law requires that all Offers have the following characteristics to be valid:

1. Offers must always be in writing to be valid at common law.
2. Offers must be held open for at least 5 business days so that the Offeree has sufficient time to decide whether to accept it or not.
3. Offers must be reasonably certain as to the terms so the terms can be ascertained by the parties.
4. Irrevocable Offers may be withdrawn if they are not accepted after 5 days.

7. Requirements of a valid contract at common law include which of the following:

a. Contracts must have a valid offer, acceptance, consideration, legal capacity of all parties to the contract as well as a legal purpose.

b. Contracts must have offer, acceptance and legal purpose

c. Contracts must have legal consideration only to be valid.

d. Contracts must have a valid offer, acceptance and consideration.

8. Quasi-contracts are contracts that are derived from which of the following:

a. Implied contracts imposed to avoid unjust enrichment.

b. Actual contracts under law with very harsh burdens.

c. Actual contracts which are used to avoid misconduct or negligence.

d. Implied contracts which result from a misunderstanding.

9. A substituted method of acceptance of an offer occurs under which of the following circumstances.

1. A substituted method of acceptance is never allowed at common law.
2. A substituted method of acceptance can result in a valid acceptance if it serves the same purpose as the authorized means.
3. A substituted method of acceptance can only occur when the Offeror is made aware of it and agrees to the method used for acceptance.
4. A substituted method of acceptance will always be effective upon dispatch.

10. Rescission is normally a remedy in a contract under which of the following circumstances.

1. When one party is incompetent and unable to contract
2. When one party is a minor and accepted the Offer.
3. When one party commits a fraud upon the other party.
4. When one party breaches the contract resulting in damages.