WorkfileContents.docx Question 1 1 out of 1 points A contract between a company in the U.S. and one in China, contained a clause that stated: "If an event happens which is extraordinary and out of the control of the parties such as a strike, act of God, fire, accident, or transportation difficulties, then the affected party shall be relieved of its obligations under the contract." This type of clause is: Selected Answer: a force majeure clause. Question 2 0 out of 1 points A contract clause which specifies the amount of damages to be paid in the event of a breach is called: Selected Answer: an incidental damages clause. Question 3 1 out of 1 points A court may, at times, discharge a party who has not performed. Selected Answer: Tru e Question 4 0 out of 1 points A wholesaler of coffee notifies a retailer that it cannot fulfill its contractual obligation to deliver 1,000 pounds of coffee at the agreed upon price of $2.00 per pound next month because of recent price increases in coffee. The retailer may treat the wholesaler as having breached the contract and sue for damages even though the wholesaler's performance is not due until next month. Selected Answer: Fals e Question 5 1 out of 1 points Abdulla hired Granite Construction to build an addition onto his home. Granite Construction dug the foundation but then abandoned the project. Granite Construction is entitled to receive the full contract price minus the value of the defects. Selected Answer: Fals e Question 6 1 out of 1 points As set forth in the Restatement Second of Contracts, which of the following duties are imposed on the parties in the performance and enforcement of a contract?
WorkfileContents.docx Selected Answer: good faith; fair dealing Question 7 0 out of 1 points Assume that Jessie and Lester have formed a contract whereby Jessie agrees to deliver 10,000 dozen "Grade A Large Eggs" to be shipped in recycled paper cartons. A shortage of paper makes paper cartons much more expensive, so Jessie uses styrofoam cartons and ships the eggs. Lester is entitled to cancel the contract based on this deviation of terms in the contract. Selected Answer: Tru e Question 8 0 out of 1 points Carswell, a contractor, enters into a contract with Helen, a homeowner, to remodel her bathroom. The contract provides a specific completion date. The contract provides that if Carswell does not have the job finished by the date, Helen may deduct $200 per day from the contract price until the job is finished. This is an example of liquidated damages. Selected Answer: Fals e Question 9 1 out of 1 points Costs to store a vehicle for a short period of time after an auto dealer fails to complete the contract to purchase the vehicle would be: Selected Answer: incidental damages.
You've reached the end of your free preview.
Want to read all 7 pages?
- Spring '14
- Contract Law