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blawfinal - Business Law Final Exam Study Guide 1) Theresa...

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Business Law Final Exam Study Guide 1) Theresa has a contract to teach 8 th grade at Washington Middle School. She decided she could make more money writing a book, so she assigns her teaching contract to her friend, Stephanie, who is also a licensed teacher. Theresa cannot assign her teaching contract to Stephanie since the contract involves personal rights. Also, Theresa couldn’t delegate her performance to Stephanie, even though Stephanie is equally competent; for this contract is personal in nature. “You have a right to the benefit you contemplate from the character, credit and substance of the person with whom you contract.” 2) William has a contract to build a new office building for Angela. The contract contains a provision requiring William to furnish a certificate of occupancy from the building inspector before Angela is required to pay. This provision is: A) AN EXPRESS CONDITION. B) an implied in fact condition. C) An implied in law condition. D) An implied contract. This falls under satisfaction of a 3 rd party and is an express condition, meaning the duty of payment was made expressly conditional upon the presentation of the certificate. 3) Which of the following need NOT be contained in a memorandum, which satisfies the general (as opposed to the UCC) statute of frauds writing requirement? C) THE SIGNATURE OF THE PARTY SUING. a) the name of the parties to the contract. B) the signature of the party being sued. D) the subject matter and essential terms of the unperformed promises. (both parties don’t have to have signed) 4) A clause in a contract for the purchase of real estate which provides that the seller shall be entitled to retain the purchaser’s down payment as liquidated damages should the purchaser fail to close the transaction will generally be enforceable. A contract may contain a liquidated damages provision by which the parties agree in advance to the damages to be paid in event of a breach. Such a provision will be enforced if it amounts to a reasonable forecast of the loss that may or does result from the breach. If however, the sum agreed upon as liquidated damages bears no reasonable relationship to the amount of probable loss that may or does result from breach, it is unenforceable as a penalty. By examining the substance of the provision, the nature of the contract, and the extent of probable harm to the promisee that a breach may reasonably be expected to cause, the courts will determine whether the agreed amount is proper as liquidated damages or unenforceable as a penalty. If a liquidated damage provision isn’t enforceable, the injured party nevertheless is entitled to the ordinary remedies for breach of contract. 5) Barry’s Sport Shop calls Champion Tee Shirt to order 200 designer tee shirts at $2
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blawfinal - Business Law Final Exam Study Guide 1) Theresa...

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