Contracts MCQ - Contracts MC Questions 1. Seller delivers...

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Contracts MC Questions 1. Seller delivers goods to Buyer who agrees to pay the $5,000 price in 60 days. Seller transfers its right to receive the price to Bank at a 10% discount. Which of the following is false? A. Seller is obligated to pay the assignee in the event the obligor fails to pay, unless the assignment was specifically without recourse. B. After notice of the assignment, Bank (the assignee) can sue Buyer directly if Buyer does not pay. C. Seller (the assignor) has no right to make further assignments or collect payments for its own benefit. D. Upon receipt of notice of the assignment, Buyer (the obligor) must pay Bank to discharge its obligations. 2. In September, Cobb Company contracted with Thrifty Oil Company for the delivery of 100,000 gallons of heating oil at the price of $.75 per gallon at regular specified intervals during the forthcoming winter. Due to an unseasonably warm winter, Cobb took delivery of only 70,000 gallons. In a suit against Cobb for breach of contract, Thrifty will A. Win, because this is a requirements contract. B. Win, because the change of circumstances could have been contemplated by the parties . C. Lose, because Cobb acted in good faith. D. Lose, because both parties are merchants and the UCC recognizes commercial impracticability. 3. On June 1, 20X1, Decker orally guaranteed the payment of a $5,000 note Decker’s cousin owed Baker. Decker’s agreement with Baker provided that Decker’s guarantee would terminate in 18 months. On June 3, 20X1, Baker wrote Decker confirming Decker’s guarantee. Decker did not object to the confirmation. On August 23, 20X1, Decker’s cousin defaulted on the note and Baker demanded that Decker honor the guarantee. Decker refused. Which of the following statements is true? A. Decker is liable under the oral guarantee because Decker did not object to Baker’s June 3 letter. B. Decker is not liable under the oral guarantee because it expired more than 1 year after June 1. C. Decker is liable under the oral guarantee because Baker demanded payment within 1 year of the date the guarantee was given. D. Decker is not liable under the oral guarantee because Decker’s promise was not in writing.
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4. Mary agrees to sell her home to Marisol for $100,000. The contract is silent regarding the time of payment and the time of delivery of the deed. Thus, payment or tender of the price is a condition of tender or delivery of the deed and vice versa. The conditions involved are A. Implied in law. B. Subsequent. C. Implied in fact. D. Express. 5. Bill Cratchett leased an apartment from Grendel. Cratchett was a person of limited means in a locality where low-income housing was scarce. Shortly after signing the agreement, he fell in an unlit stairwell when a step unexpectedly gave way. In a suit for damages, Grendel relied on a clause in the lease stating, “Tenant agrees to hold Owner harmless from any claims for damages no matter how caused.” Cratchett should A. Lose because exculpatory clauses are usually upheld in the interest of
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Contracts MCQ - Contracts MC Questions 1. Seller delivers...

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