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City Construction Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled to A) damages. B) nothing...
.City Construction Corporation substantially performs its contract with Downtown Apartments, Inc. Downtown is entitled toA) damages.B) nothing more.C) specific performance.D) substitute performance.2.Roy contracts to sell his Double-R Ranch to Sam on May 1. On April 20, Roy tells Sam that he will not go through with the deal. Sam files a suit against Roy. Sam can recoverA) the cost of any ranch that would suit him.B) the cost of a similar, nearby ranch.C) the Double-R Ranch.D) nothing.3.Gwen agrees to paint Holly's Gift Shop. Gwen does the work, but Holly does not pay. To recover the price, Gwen can collect from Holly on the basis of theirA) express contract.B) implied-in-fact contract.C) implied-in-law contract.D) quasi contract.4.Fine Properties, Inc., negotiates with General Maintenance Corporation to include a liquidated damages clause in their contract. To be enforceable, at the time of the contract, an estimate of the damages from a breach must beA) definite.B) difficult.C) easy.D) possible.5.Jay tells Kim that he will buy her textbook from the last semester for $80. Kim agrees. Jay and Kim haveA) an express contract.B) an implied-in-fact contract.C) an implied-in-law contract.D) a quasi contract.6.First State Bank offers to lend money to Todd at 15 percent interest. Before Todd accepts, a statute is enacted prohibiting loans at interest rates greater than 12 percent. Todd and the bank haveA) have a contract for a loan at 15 percent interest.B) have a contract for a loan at 12 percent interest.C) have a contract for a loan at 0 percent interest.D) no contract for a loan.7.Andy offers to sell Barb ten computers for her office. Barb sends a rejection first, then later changes her mind and sends an acceptance. Whether they have a contract is determined byA) Barb's rejection.B) Barb's acceptance.C) whether Barb's rejection or acceptance is received first.D) whether Barb's rejection or acceptance is received last.8.Emma advertises a reward for the return of her lost dog. Frank, who does not know of the reward, finds and returns the dog. Frank cannot recover the reward because heA) did not confer a benefit on Emma by returning the dog.B) did not know of the reward when Frank found and returned the dog.C) does not need the money.D) returned the dog.9.Lara is a real estate broker licensed only in Minnesota. Lara concludes a sale in North Dakota. She can successfully sue toA) collect the commission only.B) collect the commission or keep it if it has already been paid.C) keep the commission if it has already been paid but not to collect it.D) neither collect the commission nor keep it.10.Auto Body Repair Shop (ABRS) promises to pay Ben $1,000 a week to work for ABRS. Ben accepts and quits his job with Car Care Service. ABRS fails to provide a job for Ben. Ben has a cause of action based onA) an illusory promise.B) a release.C) past consideration.D) promissory estoppel.11.Fact Pattern 8-2Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. NFC begins to perform, but Macro refuses to pay.Refer to Fact Pattern 8-2. The transaction between Macro and NFC falls within the Statute of Frauds'A) collateral-promise provision.B) one-year rule.C) sales-of-goods stipulation.D) secondary-contracts section.12.Carol pays Dick $10,000 for Dick to design an advertising campaign for Carol's health club. The next day, Dick tells Carol that he has accepted a job in New York and cannot design the campaign. Carol files a suit against Dick. Carol can recoverA) $100,000.B) $10,000.C) $1,000.D) nothing.13.Edie obtains a consumer loan from First State Bank at an interest rate that exceeds the state's maximum. First State hasA) calculated the optimum rate that the market will bear.B) engaged in a restraint of trade.C) underestimated the risk of the loan's nonpayment.D) violated the usury laws.14.Betty, a minor, signs a contract to buy an SUV by misrepresenting her age to be twenty-one. In most states, Betty mayA) disaffirm the contract.B) disaffirm the contract only if she first makes full payment.C) disaffirm the contract only if she returns the SUV in original condition.D) not disaffirm the contract.15.Rita offers to sell an MP3 player to Steve, but receives a letter of acceptance from Tony. A valid contract exists betweenA) Rita and Steve.B) Rita and Tony.C) Rita, Steve, and Tony.D) none of these choices.16.Liu agrees to assume Mia's debt to NuSales Corporation. Liu does not get any personal benefit for the agreement. To be enforceable, the promise must be in writing if the debt is forA) $50.B) $500.C) $5,000.D) $50, $500, or $5,000.17.Joy signs a contract with Kent, an unlicensed physician, to perform a medical procedure. This contract is enforceable byA) Joy only.B) Joy or Kent.C) Kent only.D) no one.18.Quality Manufacturing, Inc., and Regional Sales Corporation orally agree to several contracts. Most likely enforceable is an oral contract involvingA) a collateral promise.B) a sale of goods for $400.C) a sale of land.D) a sale that cannot be completed within a year.19.Fact Pattern 8-1Nano Corporation offers to sell a robotic device to Onyx Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Onyx accepts the written offer.Refer to Fact Pattern 8-1. Nano's best defense against enforcement of the contract is that Onyx knewA) a bilateral mistake supports the cancellation of a contract.B) a mistake of value supports the cancellation of a contract.C) a unilateral mistake supports the cancellation of a contract.D) the price was below the prices of comparable devices.20.Development Associates (DA) agrees to buy five acres of land from Eagle Properties for $15,000. Eagle fails to go through with the deal on the agreed date, when the market price of the land is $17,000. DA files a suit against Eagle. DA may recoverA) $17,000.B) $15,000.C) $2,000.D) nothing.21.Fact Pattern 8-2Macro Marketing, Inc., and National Food Corporation (NFC) discuss the terms of a contract. Macro then faxes NFC a memo on Macro's letterhead that summarizes the items on which they agreed, including a two-year term. NFC begins to perform, but Macro refuses to pay.Refer to Fact Pattern 8-2. Between Macro and NFC, there isA) an oral contract only.B) a pre-contract only.C) a written contract.D) no contract.22.While intoxicated, Tim contracts to buy a bicycle for double its normal price. The contract isA) enforceable even if Tim did not understand its legal consequences.B) enforceable only if Tim understood its legal consequences.C) unenforceable because it obviously favors the other party.D) unenforceable under any circumstances.23.Great Hardware Store agrees to hire Holly for one year at a salary of $500 per week. When Great cancels the contract, Holly spends $100 to obtain a similar job that pays $450 per week for a year. Holly is entitled to recoverA) the amount of the wages that Great promised only.B) the difference between the wages at the two jobs only.C) the difference between the wages at the two jobs plus $100.D) $100 only.24.A contract for a sale of land from Best Properties, Inc., to Commercial Investments Corporation contains an erroneous legal description. The most appropriate remedy for these parties isA) damages.B) reformation.C) rescission.D) specific performance.25.Lana applies for a firefighter's job with Metro City, which responds with a letter setting an appointment for a medical exam. The letter also states that it is "a conditional employment offer." Based on the court's reasoning in Case 7.1, Ardito v. City of Providence, this letter isA) a bilateral contract that Lana accepted by applying for the job.B) a quasi contract on which Lana can rely for employment.C) a unilateral contract that Lana can accept by passing the exam.D) no contract.26.Andy and Business Company (BC) enter into an oral contract under which Andy agrees to clean BC's office for two years. This contract is enforceable byA) Andy only.B) BC only.C) either party.D) neither party.27.Mei writes a check to Nat in an amount that represents half of her debt to him. On the back of the check, Mei includes the words "payment in full." Nat cashes the check. This discharges the entire debtA) if the debt is liquidated.B) if the debt is past due.C) if the debt is unliquidated.D) under no circumstances.28.Kit offers to sell her boat to Liu. Liu accepts and, unknown to Kit, builds a dock for the boat. Kit's later attempt to revoke the offer will beA) effective because Kit did not build the dock.B) effective because Kit did not know that Liu would build a dock.C) ineffective because Liu justifiably relied on Kit's offer.D) ineffective because Liu showed a serious intent to close the deal.29.Bob contracts to work for Central Construction Corporation (CCC) during July for $4,500. On June 30, CCC cancels the contract. Bob declines a similar job with Design Builders, Inc., which would have paid $4,000. Bob files a suit against CCC. As compensatory damages, Bob can recoverA) $4,500.B) $4,000.C) $500.D) nothing.30.Pacific Applications, Inc., and Quality Resale Company (QRC) enter into an oral contract for Pacific's sale to QRC of six used forklifts for $4,900 each. Before QRC takes possession of the items, this contract is enforceable byA) either party.B) neither party.C) Pacific only.D) QRC only.31.Fact Pattern 8-1Nano Corporation offers to sell a robotic device to Onyx Assembly, Inc., but mistakenly transposes some of the digits in the price so that $15,400 appears in the offer as $14,500. Onyx accepts the written offer.Refer to Fact Pattern 8-1. Onyx's best argument in favor of enforcement of the contract is thatA) a bilateral mistake does not afford relief from a contract.B) a mistake of value does not afford relief from a contract.C) a unilateral mistake does not afford relief from a contract.D) the price was below the prices of comparable devices.32.Gina, a minor, enters into a contract to buy a tractor from Herb, an adult. If the deal is set aside, restoring Gina and Herb to the positions they held before the contract is required inA) all states.B) most states.C) no states.D) some states.33.Applied Services, Inc., contracts with Bankers Corporation, which breaches their contract. Applied has several remedies available. Under the common law, Applied mustA) accept a double recovery.B) allow the remedies to cumulate.C) elect which remedy to pursue.D) permit Bankers to choose a remedy.34.Ida promises to pay Jon, her son, $15,000 if he obtains his degree at Kappa University, where he is currently in his second year. Jon graduates. Ida isA) not required to pay, because Jon was already at Kappa.B) not required to pay, because obtaining a degree benefits Jon.C) required to pay, because a job can be hard to find after college.D) required to pay, because Jon obtained a degree at Kappa.35.Don wants to exchange his performance for Earl's promise. As consideration, performanceA) is not legally adequate.B) is not legally sufficient.C) may consist of an act or a forbearance from an act.D) may consist of an act only.36.Dill, a salesperson for Excel Autos, promises Fern that a certain car will give her a "smooth ride." Dill offers a test drive, which Fern declines. She buys the car but soon realizes that its suspension is in poor condition. FernA) can rescind the contract on the ground of fraud.B) can rescind the contract on the ground of misrepresentation.C) can rescind the contract on the ground of mistake.D) was not defrauded.37.Frank agrees to lease an apartment from Gina for one day to see Harry, the president of the United States, deliver a speech in the street below. The speech is canceled ten days before its delivery date. The contractA) is discharged.B) is not affected.C) is postponed until another event is scheduled.D) must be performed immediately.38.Jean contracts to sell her backhoe to Kyla for $2,000. Before performing, Jean and Kyla decide to cancel the deal. This is an example ofA) a material breach.B) an anticipatory repudiation.C) a novation.D) a rescission.39.Amber offers to buy a laser printer, with a case of paper and an extra cartridge, from Best Office Products for $200. Cris, Best's representative, says, "OK, but no paper and no extra cartridge." Cris hasA) accepted the offer.B) made a counteroffer without rejecting the offer.C) rejected the offer and made a counteroffer.D) rejected the offer without making a counteroffer.40.Business Office, Inc., hires Carl to repair a computer on site for $400, but Carl does not show up as agreed. Business Office hires Dan to do the job for $350. Business Office may recover from CarlA) compensatory damages.B) consequential damages.C) nominal damages.D) punitive damages.41.Macro Corporation and Micro, Inc., enter into an agreement. To constitute a contractA) all terms must be express.B) all terms must be implied.C) the terms may be express, implied, or a mix of both.D) the terms may be express or implied, but not both.42.Protective Finishes, Inc. (PFI), agrees to paint Quinn's house, using a particular brand of "discount" paint. PFI completes the job but uses a different brand of discounted paint. This is most likelyA) a complete excuse for Quinn's refusal to pay.B) a material breach.C) complete performance.D) substantial performance.43.Ace Properties. Inc., and Dandy Capital Corporation enter into a contract for a sale of land. To be enforceable, the contract must be in writing if the land is valued atA) $50.B) $500.C) $5,000.D) $50, $500, or $5,000.44.Myra orally promises Nick that she will buy his fishing trawler for $10,000. Before either party acts in reliance on this promise, under the doctrine of promissory estoppel, the transaction is enforceable byA) either party.B) Myra only.C) neither party.D) Nick only.45.Alan, a minor who is under his parents' care and control, signs a contract to rent an apartment from Bob for one year. Before the end of the term, Alan moves out. Bob sues for the rent for the rest of the term. Alan canA) avoid liability for the rent but not disaffirm the contract.B) disaffirm the contract and avoid liability for the rent.C) disaffirm the contract but not avoid liability for the rent.D) not disaffirm the contract nor avoid liability for the rent.46.Fact Pattern 9-1AAA Properties, Inc., contracts with Best Builders, Inc., to construct an office building. AAA agrees to obtain insurance to cover the project, after which the parties waive their rights against the subcontractors. AAA obtains the policy from City Insurance Company. When the new building is destroyed in a storm, City pays AAA and then files a suit against the subcontractors.Refer to Fact Pattern 9-1. Delta Corporation is the owner of an adjacent building, the value of which increased when AAA's new offices were built. City files a suit against Delta, claiming that Delta's negligence contributed to the collapse of AAA's new building. In relation to the waiver in AAA's contract with Best, Delta would beA) an incidental beneficiary and thus not liable to City.B) an incidental beneficiary and thus possibly liable to City.C) an intended beneficiary and thus not liable to City.D) an intended beneficiary and thus possibly liable to City.47.Diners Restaurant signs an agreement with Eagle Bank to borrow $10,000 at 20 percent interest. Later, the state legislature passes a law lowering the maximum permissible rate of interest from 15 percent. Diners' best argument for avoiding payment to Eagle is thatA) performance of the contract is commercially impossible.B) the agreement violates the mirror image rule.C) the law has rendered performance of the contract illegal.D) the specific subject matter of the contract has been destroyed.48.Paul offers Rita $1,000 for her $5,000 computer. Rita knowingly and voluntarily agrees to the offer but later sues Paul. A court would likelyA) set aside the agreement as unfair.B) set aside the agreement because the consideration is inadequate.C) not question the adequacy of the consideration.D) consider such a suit to be frivolous.49.AAA Autos contracts to sell a customized car to Barb. AAA installs a slightly used engine in the car, arguing that a new engine would be too costly. Barb sues AAA. The court will most likely rule in favor ofA) AAA, because a used engine is the same quality as a new engine.B) AAA, if the difference between the used and new engines is trivial.C) Barb, because the engine is not precisely what Barb wanted.D) Barb, if there is any difference between the used and new engines.50.Property Development Company and Quality Land Corporation sign a written contract for a sale of land. In some states, to be enforceable, this contract must includeA) a correct title, such as "Land Transfer" or "Real Estate Agreement."B) a declaration of the subject matter.C) a statement of the consideration.D) the parties' names.51.Lily wrongfully terminates her employee Mai. Nate offers a similar job to Mai, who refuses to accept and files a suit against Lily. The damages that Mai receives will most likely be equal toA) Mai's salary less the income Mai would have received from Nate.B) Mai's salary plus the income Mai would have received from Nate.C) Mai's salary without more.D) nothing.52.Beth claims that her contract with Carl is voidable. If the contract is avoidedA) both parties are released from it.B) neither party is released from it.C) only Beth is released from it.D) only Carl is released from it.53.Employment Sources, Inc., enters into a contract with Fred. If Fred is a minor, this contract is most likelyA) enforceable.B) unenforceable.C) void.D) voidable.54.Fact Pattern 9-1AAA Properties, Inc., contracts with Best Builders, Inc., to construct an office building. AAA agrees to obtain insurance to cover the project, after which the parties waive their rights against the subcontractors. AAA obtains the policy from City Insurance Company. When the new building is destroyed in a storm, City pays AAA and then files a suit against the subcontractors.Refer to Fact Pattern 9-1. In relation to the waiver in AAA's contract with Best, the subcontractors areA) incidental beneficiaries and thus liable to City.B) incidental beneficiaries and thus not liable to City.C) intended beneficiaries and thus liable to City.D) intended beneficiaries and thus not liable to City.55.Gary threatens physical harm to force Hugh to sell his business, Imported Goods, Inc., to Gary for a below-market price. This isA) duress.B) fraud.C) puffery.D) undue influence.56.Cathy assures Don that she will deliver his products as he directs. An assertion that one will do something in the future is part of the definition ofA) a declaration.B) a moral obligation.C) an ethical principle.D) a promise.57.Alpha Design Company and Beta Products, Inc., sign a document that states Alpha agrees to design a Web page for Beta and Beta agrees to pay Alpha for this service. Alpha and Beta have madeA) an express contract.B) an implied-in-fact contract.C) an implied-in-law contract.D) a quasi contract.58.Newt and Odell enter into a bilateral contract, which is created when Newt gives a promise in exchange for Odell'sA) particular act.B) performance.C) promise.D) prudent awareness.59.Max begins to perform, intending that the completion of his performance act as an acceptance of Nia's offer, which can only be accepted by the completion of the act. Nia can revoke her offer any timeA) after Nia makes it.B) before Max completes performance of the act.C) before Max has substantially begun performance of the act.D) before Max indicates that he will perform.60.Flo agrees to work as Gary's personal accountant for one year but dies in the sixth month of the contract. Flo's estateA) is discharged from any contractual liability.B) must find a competent accountant to fulfill the contract.C) must pay liquidated damages.D) must refund any money paid to Flo on the contract.61.Retail Sales Company and Standard Purchasing Corporation enter into a contract for a sale of goods. To be enforceable, the contract should be in writing if the goods are valued at more thanA) $5.B) $15.C) $50.D) $500.62.Outstate Properties, Inc. (OPI), agrees to sell certain acreage to Pia. OPI repudiates the deal. Pia sues OPI and recovers damages. Pia can now obtainA) an amount in quasi contract.B) damages representing restitution.C) specific performance of the deal.D) nothing more.63.Uma makes a contract with Val with the intent to benefit Wat. This isA) a delegation.B) an assignment.C) a third party beneficiary contract.D) not a delegation, an assignment, or a third party beneficiary contract.64.Able Corporation agrees to buy 1,500 acres of land from Baker Properties, Inc. If the actual plot is smaller than Able and Baker believe, Able mayA) avoid or enforce the contract.B) avoid the contract only.C) enforce the contract only.D) neither avoid nor enforce the contract.65.Jack, a minor, takes out an automobile insurance policy and pays a $1,000 premium. If Jack disaffirms the contract, he can most likely recoverA) $500.B) $1,000.C) $1,500.D) nothing.66.Mary promises to pay her assistant Ned $10,000 in consideration of the services he provided over the years. Mary never pays Ned. Mary isA) liable for payment of the $10,000.B) liable only if Ned still works for Mary.C) not liable, because the consideration is in the past.D) not liable, because the consideration was unintentional.67.Lou and Mira want to rescind their contract under which Lou sold a laser printer to Mira for $200. To rescind the contractA) Lou must return the $200 only.B) Mira must return the printer only.C) Lou must return the $200 and Mira must return the printer.D) the parties can keep the "benefits" of their bargain.68.Alan promises to pay Beth $500 to install a pump in his factory. Beth completes the installation. The act of installing the pumpA) imposes a moral obligation on Alan to pay Beth.B) imposes no obligation on Alan unless he is satisfied with the job.C) is not sufficient consideration because it is not goods or money.D) is the consideration that creates Alan's obligation to pay Beth.69.Curt promises to buy illegal copies of CDs and DVDs from Donna, who promises to deliver on May 1. These promises are most likelyA) enforceable.B) valid.C) void.D) voidable.70.Scot and Tiffany enter into an implied-in-fact contract. The parties' conductA) defines the contract's terms.B) finds the contract's facts.C) terminates any unintended consequences.D) undercuts any terms based on the facts.71.National Business Company and One-State Sales, Inc., agree to simultaneously rescind their contract and enter into a new agreement under which their duties are the same. National later sues One-State to enforce the new agreement. The courtA) may apply the preexisting rule or allow the rescission.B) must allow the rescission.C) must apply the preexisting duty rule.D) must not apply the preexisting rule or allow the rescission.72.Clay, a minor, signs a contract to buy a car from Delta Motors by misrepresenting his age as twenty-one. Clay fails to make the payments. Delta sues. In most states, Clay canA) not return the car nor avoid further liability.B) not return the car but can avoid further liability.C) return the car and avoid further liability.D) return the car but cannot avoid further liability.73.Print Quik, Inc., seeks punitive damages in a suit against Reddy Supply Company. Generally, punitive damages may be recovered when a contract has been breachedA) in almost all cases.B) only if the breach is directly related to the commission of a tort.C) only if the contract involves a sale of goods or a sale of land.D) under no circumstances.74.Pam contracts to buy a Quotient-brand computer set-up from Regal Systems for $5,000, but Regal fails to deliver. Pam buys the computer elsewhere for $6,500. Pam's measure of damages isA) $1,500 only.B) $1,500 plus incidental damages.C) incidental damages only.D) $0.75.National Steel, Inc., and Overland Transport Company enter into a contract. Superior Oil Corporation, which will indirectly benefit from the deal, is prevented from having rights under the contract by the principle ofA) assignment.B) delegation.C) privity.D) vesting.76.A-One Pavers, Inc., contracts with Best Building Corporation to repave Best's parking lot. The elements of a contract do not includeA) consideration.B) contractual capacity.C) legality.D) practicality.77.Through fraudulent means, Roy induces Sal to sign a contract to invest with him her profits from Tasty CafĂ. When Sal learns the truth, she mayA) do nothing with respect to the contract.B) enforce the contract only.C) enforce the contract or recover the money paid.D) recover the money paid only.78.Eagle Corporation and Finest Products, Inc., enter into a contract. To be enforceable, the contract must includeA) no particular signatures.B) the signatures of all parties to the deal.C) the signature of the party against whom enforcement is sought.D) the signature of the party who is seeking enforcement.79.Adam, a seventeen-year-old, signs a contract to sell his car to Best Used Cars. Adam receives a better offer the next day from Cars & Trucks, Inc., and accepts the new offer. Adam isA) liable to Best and must sell it a car of comparable value.B) liable to Best and must sell it his car.C) not liable to Best because he is a minor.D) not liable to Best because the sale of the car disaffirmed their deal.80.Owen announces that he plans to sell his business, Payroll Service Company (PSC), at a price below its market value. Quality Bookkeeping, Inc., gives Owen a check for the stated amount. Owen may refuse to accept the checkA) because Owen only expressed an intent to do something in the future.B) if Owen had a "few" drinks before making his announcement.C) if Owen secretly intended not to sell PSC.D) under no circumstances.81.Jill offers to pay Kyle $500 if he jogs across the Golden Gate Bridge. Kyle can accept the offer only by jogging across the bridge. If Kyle jogs across the bridge, he and Jill will have formedA) a bilateral contract.B) a moral obligation.C) a social contract.D) a unilateral contract.82.National Insurance Company violates a statute when selling an insurance policy to Opal. The policy may be enforced byA) National Insurance only.B) National Insurance or Opal.C) no one.D) Opal only.83.Local Delivery Service, Inc., offers to deliver computers to Micro Store's customers for a certain price. Local's intent to extend a serious offer to Micro is determined by reference to Local'sA) assumptions.B) beliefs.C) intentions.D) words and conduct.84.While a minor, Jason buys a car that he continues to use and keep in repair after reaching the age of majority. Jason hasA) disaffirmed the contract.B) ratified the contract.C) rejected the contract.D) rescinded the contract.85.A contract between Kim and Larry to lease real property contains an exculpatory clause. This clause isA) enforceable only if either party is in a business important to the public interest.B) enforceable only if the lease involves residential property.C) generally enforceable as a matter of public policy.D) generally unenforceable.86.Jill and Kurt enter into a contract under which Jill agrees to pay Kurt $125 for a new briefcase. Kurt's transfer of his right to receive this payment isA) a delegation.B) an assignment.C) a third party beneficiary contract.D) not a delegation, an assignment, or a third party beneficiary contract.87.General Contractors (GC) and Herb enter into an oral contract under which Herb agrees to work on a GC project for sixteen months. This contract is enforceable byA) either party.B) GC only.C) Herb only.D) neither party.88.Ira and Jill can discharge their contract through novation. This requiresA) an agreement by all of the parties to a new contract.B) an express discharge of the contract.C) performance of all of the terms by all of the parties.D) performance of all of the terms by only one of the parties.89.Guy, an officer of Hi-Sales Corporation, makes overtures to Ilsa, a representative of Jiffy Distribution, Inc., regarding a business deal. Under the objective theory of contracts, Guy's words and conduct mean whatA) a reasonable person in Guy's position would think that they meant.B) a reasonable person in Ilsa's position would think that they meant.C) Guy subjectively intended them to mean.D) Ilsa subjectively thought that they meant.90.Lora signs a covenant not to compete with her employer, Midstate Distribution, Inc. The covenant will be enforced if itA) if it does not require either party to obtain a business license.B) if it is reasonable with respect to geographic area and time.C) if it is supported by consideration.D) under no circumstances.91.Loyal Engineers, Inc., needs a drill to continue its operations and orders one for $3,000 from Mining Supplies Company. Loyal tells Mining that it must receive the drill by Tuesday or it will lose $10,000. Mining ships the drill late. Loyal can recoverA) $13,000.B) $10,000.C) $3,000.D) nothing.92.Dale and Elin sign a contract that intentionally confers a benefit on Flo. Flo's rights under the contract will vestA) automatically.B) if she manifests assent to the contract or materially alters her position in detrimental reliance on it.C) only if she manifests assent.D) only if she materially alters her position in detrimental reliance.93.Kris contracts to work exclusively for Local Company during May for $5,000. On April 30, Local cancels the contract. Kris finds another job during May but earns only $3,000. Kris files a suit against Local. As compensatory damages, Kris can recoverA) $3,000.B) $2,000.C) $1,000.D) nothing.94.Pat, a world famous musician and composer, agrees to give ten piano lessons to Quinn in exchange for $1,000. Pat's attempt to delegate his contract to Ruth, an inexperienced pianist, will probably beA) permitted because contracts may be freely delegated.B) permitted because the contract is concerned with music lessons.C) prohibited because contracts may not be freely delegated.D) prohibited because Pat and Ruth have very different skill levels.95.Masterwork, Inc., files a suit against National Employment Company (NEC) to recover in quasi contract. Masterwork must show in part thatA) Masterwork and NEC have an enforceable contract.B) Masterwork did not voluntarily confer a benefit on NEC.C) NEC expressly promised to pay Masterwork.D) NEC is in a better financial position than Masterwork.96.Asa mistakenly pays property taxes that should have been assessed against Bud. Asa can recover the amount from Bud in quasi contractA) even if Bud was not aware of the error.B) only if Bud tried to conceal the error.C) only if Bud was aware of the error.D) under no circumstances.97.Tom enters a coffee shop in which he has an open account, fills a cup of coffee, holds it up so the cashier can see it, acknowledges the cashier's nod, and walks out with the coffee, knowing that he will be billed for it at the end of the month. Tom has formedA) an express contract.B) an implied-in-fact contract.C) an implied-in-law contract.D) a quasi contract.98.Fred and Ed sign a contract by which Fred agrees to deliver a washing machine on July 31 in exchange for Ed's promise to pay the $500 purchase price on July 31. The delivery of the washing machine and the payment of $500 are examples ofA) conditions precedent.B) concurrent conditions.C) conditions subsequent.D) illegal conditions.99.Dale files a suit against Eva, alleging her fraud in entering into a contract with him. Proof of an injury is requiredA) to recover damages.B) to rescind the contract.C) to undo Eve's influence.D) under no circumstances.100.Quality Contractors contracts to build a warehouse for Retail Storage Company. Quality completely performs. Retail Storage is entitled toA) damages.B) nothing more.C) rescission.D) specific performance.101.Ann is injured in an accident caused by Bob. Bob agrees to pay Ann $2,500 if she agrees to release Bob from further liability. Ann agrees. If Ann's damages ultimately exceed $2,500, Ann canA) collect the balance from Bob in a breach-of-contract suit.B) collect the balance from Bob on the ground of past consideration.C) collect the balance from Bob on the ground of unforeseen difficulties.D) not collect the balance from Bob.102.Jill is fifteen. In most states, Jill would be considered a minor because she is under the age ofA) sixteen.B) eighteen.C) twenty.D) twenty-one.103.Nora signs a contract to buy a car just before reaching the age of majority. After reaching the age of majority, Nora does not take possession or make payments. Most courts would hold that she hadA) disaffirmed the contract.B) executed the contract.C) ratified the contract.D) rescinded the contract.104.Jolly Sales Company and Kwik Distributors, Inc., enter into an agreement that contains some express terms and some that are implied. This isA) a mixture of an express contract and an implied-in-fact contract.B) an express contract only.C) an implied-in-law contract.D) not a contract.105.Lois takes out a life insurance policy that names her son, Matt, as the beneficiary. This isA) a delegation.B) an assignment.C) a third party incidental beneficiary contract.D) a third party intended beneficiary contract.
