Olin convinces Pia, who has no artistic ability, that Pia has considerable talent and induces Pia to pay Olin $10,000 for art lessons. When Pia realizes the truth, she files a suit against Olin. Pia is most likely to recover on the basis of
c. undue influence.
d. none of the choices.
____ 11. Steven, who is Bertha's guardian, convinces her to buy a certain parcel of land from Christy at a greatly inflated price. Steven may be liable for
d. undue influence.
____ 12. Elle buys a new textbook for $100 and a used car for $5,000, and signs a one-year lease for an apartment for $1,000 monthly rent to start at the beginning of the next month. The Statute of Frauds covers
a. the apartment lease, and the textbook and car purchases.
b. the apartment lease and the car purchase only.
c. the apartment lease only.
d. the textbook and car purchases only.
____ 13. Theo and Uma orally agree on the sale of Theo's Fitness Center to Uma and note the terms on a sheet of the center's stationery, which includes the Center's letterhead but which neither party signs. This agreement is most likely enforceable against
a. neither Theo nor Uma.
b. Theo and Uma.
c. Theo only.
d. Uma only.
____ 14. Consumer Goods, Inc., and Delta Distribution, Inc., sign a written contract for a sale of goods. To be enforceable, this written contract must include
a. a correct title, such as "Purchase Order" or "Sales Invoice."
b. a declaration of the subject matter.
c. a quantity term.
d. the parties' names.
Fact Pattern 12-3
Odell and Paula sign a contract for the sale of Odell's Pizza Parlor to Paula. The parties intend their written contract to be a final statement of most, but not all, of the terms of their agreementOdell must first buy the building from Quin, after which Odell and Paula will negotiate a final price.
____ 15. Refer to Fact Pattern 12-3. The writing that Odell and Paula signed is
a. a completely integrated contract.
b. a conditionally integrated contract.
c. a partially integrated contract.
d. a supplementally integrated contract.
____ 16. Equity Company and Faye enter into a contract for Faye to cater a meeting of Equity's shareholders. When Faye's schedule conflicts, she asks Gudren to serve Faye's coffee and pastries at the meeting. This transfer of duties is
a. a delegation.
b. an assignment.
c. a novation.
d. prohibited by law.
____ 17. Commercial Shipping, Inc., and Dock Services Corporation enter into a contract for Dock to load Commercial's trucks for which Commercial agrees to pay Dock. Dock transfers its duty to load the trucks to East Harbor Transport Company. Dock is
a. a delegator.
b. an assignor.
c. a payor.
d. a righter.
____ 18. Vicky contracts with Warren for the delivery of hospice services to benefit Xavier. This is
a. a delegation.
b. an assignment.
c. a third party beneficiary contract.
d. a novation.
Fact Pattern 13-2
Bell Medical Education Service enters into a contract to employ Chris as an instructor for two years to begin May 1. One month before the term begins, Bell is underbid by a competitor and loses a major client, Delta Hospital Center. Bell now refuses to hire Chris.
____ 19. Refer to Fact Pattern 13-2. Under the circumstances, with respect to damages, Chris can
a. bring an action immediately.
b. bring an action only after the contract's two-year term begins.
c. bring an action only after the contract's two-year term ends.
d. do nothing.
____ 20. Super Toolmakers, Inc., contracts to sell its business to True Hardware Corporation. Before either party has performed, rescission of this contract requires
a. a mutual agreement to rescind.
c. performance by all of the parties.
d. an accord and satisfaction.
____ 21. Roy and Sheila are parties to a contract. They subsequently agree that Tony should take Roy's place and assume all of his rights and duties under the contract. This is
a. a novation.
b. an accord and satisfaction.
c. an assignment.
d. a modification.
____ 22. Mona and Nero want to discharge their contract by executing and performing a new agreement. They can best accomplish this by
a. accord and satisfaction.
d. specific performance.
Fact Pattern 13-3
Haruko, who owns and operates Garden Orchard, agrees to sell Fresh Produce Cooperative ten bushels of apples.
____ 23. Refer to Fact Pattern 13-3. When bad weather destroys Garden Orchard's apple crop, Haruko's obligation to deliver apples to Fresh Produce is
c. not affected.
____ 24. Refer to Fact Pattern 13-3. When the market price for apples exceeds the price in the contract with Fresh Produce, Haruko decides not to deliver the apples. This
a. breaches the contract.
b. discharges the contract.
c. has no effect on the contract.
d. suspends the contract.
____ 25. Superb Construction, Inc., contracts to build a store for Tasty Confection Company, with Tasty's payment due on June 1. On June 1, Tasty's bank is closed, and for this reason, Tasty claims it cannot pay Superb on time. In this situation
a. Tasty's bank is in breach of contract.
b. Tasty is in breach of contract.
c. the contract is discharged.
d. the contract is suspended.
____ 26. Clarice pays Damien $10,000 to design an ad campaign for her Sweetwater Coffee Stand chain. The next day, Damien tells Clarice that he has accepted a job in New York and cannot design her campaign. She files a suit against Damien. As compensatory damages, she can recover
____ 27. Beachside Pools, Inc., agrees to build a swimming pool for Candy, but fails to build it according to the contract specifications. Candy hires Do-We Fix-It Company to finish the project. Candy may recover from Beachside
a. the contract price less costs of materials and labor.
b. the contract price.
c. the costs needed to complete construction.
d. profits plus the costs incurred up to the time of the breach.
____ 28. Ray breaches his lease with Sunny Properties and vacates the premises six months before the end of the term. In some states, Sunny would have to
a. avoid reletting the premises to recover damages from Ray.
b. make reasonable efforts to relet the premises to mitigate damages.
c. relet the premises to recover damages from Ray.
d. sell the premises to recover damages from Ray.
____ 29. Home Delivery Corporation and Interstate Transport, Inc., sign an agreement that provides for the payment of "$1,000 by whichever party commits a material breach of the contract that creates damages difficult to estimate but approximately $1,000." This is
a. a liquidated damages clause.
b. a mitigation of damages clause.
c. a nominal damages clause.
d. a penalty clause.
____ 30. Ira orally agrees to buy a unique collection of sports memorabilia for $1,000 from Jane and sends her $250 as a down payment. When Ira sends her the rest of the price, Jane refuses to ship Ira the collection. Ira should seek
d. specific performance.
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