BLAW FINAL NOTES

Which of the following promises does not have to be evidenced by writing in order to be enforceable?

Mindy's agreement with Susan to buy her bike for $400

Chris receives a printed form in the mail from Wyandott Heating indicating that he has placed a telephone
order for a $600 heater. He doesn't recall placing the order. Which of the following is correct?

Chris can hold Wyandott to the order.

In states that have adopted it, the UETA:

encourages and gives full effect to electronic contracts.

Which of the following is an exception to the suretyship provision requirement under the statute of frauds?

A promise, the leading object of which is to obtain an economic benefit for oneself

E-Sign provides consumers must:

receive a “clear and conspicuous” statement informing them of their right to withdraw
consent to receiving electronic records.

What is another name for the main purpose doctrine?

The leading object rules

Under the parloe evidence rule, which of the following types of evidence may be used to vary or contradict
the written agreement?

Subsequent oral or written agreements modifying the original agreement

Under the UCC, a(n) ____ is a sequence of previous conduct between the parties to an agreement which
may be fairly regarded as establishing a common basis of understanding for interpreting their conduct
under the contract.

course of dealing

Under the UCC, ____ refers to the manner and extent to which the respective parties to a contract have
accepted successive tenders of performance by the other party without objection.

course of performance

Under the UCC, a(n) ____ is a practice or method of dealing, regularly observed and followed in a place
or vocation or trade.

usage of trade

In determining the meaning of a contract under the UCC, which of the following will have first priority?

Express terms

Which of the following would NOT require a writing under the statute of frauds?

Where a landscaper agrees to landscape the lot surrounding an office building

Which of the following would not be subject to the writing requirements of Article 2 of the UCC?

Medical care received in a hospital

E-Sign:

ensures that the electronic form of Internet an e-mail agreement will not make them
unenforceable because of the statute of frauds.

Which of the following need NOT be contained in a memorandum, which satisfies the general statute of
frauds writing requirement?

The signature of the party suing

Which of the following would NOT meet the signature requirement for a writing to satisfy the statute of
frauds?

All of the above meet the signature requirement.

Most states have statutes requiring which of the following contracts to be evidenced by a writing to be
enforceable?

All of the above.

On March 1, Sara, a student, received a telephone call from ComputerChip, Inc. offering her a job for one
year beginning on June 15, after completion of the school year. According to the personnel manager, she
will have to move to California and be ready to start work at 8:00 a.m. on June 15. Should Sara ask for a
letter confirming the telephone conversation if she accepts the offer immediately.

Yes, because the job offer is for longer than one

year from March 1

Which of the following would be admissible under the parol evidence rule? Assume the written contract
was made on June 1, 2007, and that it is an integrated document.

A letter dated July 9, 2007, reciting agreement to new delivery terms

Barry's Sport Shop calls Champs Tee Shirt Company to order 200 designer tee shirts at $2 per shirt. The
next day, Barry decides he can easily sell 100 more. Before the order is filled, he calls to change the order
to 300 tee shirts. Champs sends 200. Can Barry force Champs to send the additional 100?

No, because Barry does not have a writing signed by Champs Tee Shirts

Which of the following is untrue with regard to the interpretation of contracts?

Technical terms will always be given technical meaning even where a different intent is
manifested by the parties.

Sam, a shopkeeper, dies unexpectedly at the age of 46. His lifelong business associate, Paul, is appointed
the administrator of the estate. Sam had a personal debt of $8,000 which he owed to Art's Appliance
Store. Paul says to Art, "If there isn't enough money in the estate, I'll personally see that the bill is paid."
Which of the following is correct?

An oral statement such as this is not enforceable because this promise is within the
statute of frauds.

The statute enacted by Congress which makes electronic records and signatures valid and enforceable for many transactions affecting interstate or foreign commerce is the:

Electronic Signatures in Global and National Commerce Act.

Which of the following promises in consideration of marriage would be outside the statute of frauds?

John and Joan mutually promise to marry each other in a formal ceremony on June 23.

Under the UCC statute of frauds, which of the following terms must be included in a writing in order to
satisfy the writing requirement?

The quantity of the goods

Blevins, Inc. calls the Widget Corporation of America to order 400 widgets at $2 a widget. Widget accepts the oral order and then sends out an order confirmation form, with the pre-printed name Widget Corporation of America on the top of the form. The form states that an order has been received for "300" widgets and that it will be filled promptly.

Blevins can enforce the contract for 300 widgets, but not for 400 widgets.

The parol evidence rule does not apply to:

The parol evidence rule does not apply to either (a) or (b).

A contract contains a provision that states it will be effective for a "year." The plaintiff in a lawsuit claims
that a "year" is obviously 12 months. The defendant claims that the contract meant a 10-month school
year.

The term "year" in the contract is ambiguous,
and the parties can bring in parol evidence to
clarify their intent.

Requirements for a memorandum that satisfies the statute of frauds include that the writing:

None of the above.

The voluntary transfer of a contractual right to a third party is known as a(n):

assignment.

A(n) ____ is a method of discharging a contract in which a third party becomes bound upon a promise to the oblige.

novation

A(n) ____ is a third party who obtains possible benefits but no rights under a contract.

incidental beneficiary

A(n) ____ is an intended beneficiary of a contract who receives the benefits of the contract as a gift.

donee beneficiary

Anita owes Brad $75,000. Brad signs a written statement granting Glen a gratuitous assignment of his rights from Anita. Brad delivers the signed statement to Glen six weeks before Brad dies. The assignment is:

irrevocable because of the delivery of the statement.

Which of the following duties would not be delegable?

Arthur has a duty to teach an accounting class at a community college during the fall semester.

Teresa has a contract to teach eighth grade at Washington Middle School. She decided she
could make more money writing a book, so she assigns her teaching contract to her friend, Shirley,
who is also a licensed teacher. The duties under the teaching contract:

All of these are correct.

Annette entered into a contract with a local truck dealer to have a new truck delivered to her daughter, Sue, as a graduation present. In this contract, Sue is:

a donee beneficiary.

Professor Dought has a life insurance policy on his own life that provides that in the event of his
death, his mother will receive the proceeds. Professor Dought's mother is a(n):

donee beneficiary.

Leighton wants to buy a new car. He goes to the bank to get a loan for the purchase and signs an agreement to pay $10.00 per month in premiums on a term life insurance policy which names the bank as the recipient of the policy proceeds in the event of his death before the loan is repaid. The bank is a(n):

creditor beneficiary.

Betty owes Agatha $1,000. On March 1 Agatha, for value, assigned the debt to Clara. Thereafter, on March 30, Agatha assigned the same right to Diane. Under the:

American rule, Clara will prevail over Diane.

Courts will enforce contracts for the benefit of all but which of the following?

Incidental beneficiaries

Bill has a right against Heather and assigns it for $100 to Dan. Later, Bill grants Heather a release. Bill:

is liable to Dan for damages because he breached an implied warranty.

Zoe enters into a contract with a contractor to build a large apartment complex in Lake City. Donner will benefit from this contract since his restaurant is adjacent to the planned complex. Donner in this instance is a(n):

incidental beneficiary.

The party to whom a contractual duty of performance is owed is known as the:

obligee.

Mr. Homayer hired Blake Painters to paint his house. Blake decides it has too many jobs and delegates the duties to the Andrews Company. Andrews does a poor job, and drips paint on the Homayers' flowers and windows. Mr. Homayer:

can sue both Blake and Andrews.

Mary goes to a stockbroker, purchases 50 shares of a certain stock, and instructs the broker to register the stock in her husband Warren's name. If this stock is intended as a Valentine's Day gift, Warren becomes a(n):

donee beneficiary.

When contract terms prohibiting the assignment of rights exist, most courts will:

strictly construe them.

Which of the following is NOT true concerning the requirements for an effective assignment?

Consideration is required.

Which of the following involves a creditor beneficiary relationship?

A contract between an employer and a union representing the employees, which contract is
made for the benefit of the employees

Lynne is the intended beneficiary of a third-party contract. Her rights have vested. In an action
by Lynne to enforce the promise, the promisor may assert the defense of:

fraud.

Which of the following involves an invalid assignment that a court would not enforce?

An assignment of an automobile liability insurance policy accompanied by the delivery of the
policy

Which of the following is correct with regard to successive assignments of the same right?

In England, the first assignee to notify the obligor prevails.

Noel and Lyle have a contract whereby Noel is to perform routine construction services according to the blueprints that Lyle has provided. Noel assigns the contract to David. As a result of this assignment:

Noel no longer has any rights under the contract, but he remains responsible for the duties he agreed to perform.

Brice owns a parcel of land that is encumbered by a mortgage held by the First National Bank. Brice agrees to sell the land to Paul for $50,000. Brice and Paul together go to the First NationalBank to discuss the sale
and purchase with the banker. Brice, Paul, and the banker sign an agreement stating that Paul will assume the mortgage and that Brice will be discharged from all
further liability on the mortgage. In this case:

the agreement among the three is a novation.

Notice of an assignment:

cuts off any defenses based on subsequent agreements between the obligor and assignor.

Odessa owes Kevin $2,000. On July 1, Kevin assigns the right to the $2,000 to Troy. Thereafter, on July 15, Kevin assigns the same right to Donna, who in good faith gives value for it and knows nothing about the first assignee. In this case:

the rule differs in different states. Depending on which rule a state follows, the answer will vary.

Barbara owes Arturo $2,000. On July 1, Arturo assigns the debt to Charles. Thereafter on July 15, Arturo assigns the same right to Dennis, who in good faith gives value for it and knows nothing about the first assignee. Dennis immediately notifies Barbara of the assignment. Under:

the English Rule, Dennis has priority.

Notice of an assignment:

precludes subsequent setoffs and counterclaims of the obligor that arise out of entirely separate matters.

The law governing assignments is found in Articles ____ and ____ of the Uniform Commercial Code (UCC), as well as the common law.

2 and 9

A gratuitous assignment is rendered irrevocable if, prior to the attempted revocation, the assignee:

Both of these.

A contract contains the provision, “Walter Hamilton promises to pay Faye Weeks $1,200 for a 2003 V-6
motor provided that Phelps’ Garage approves the quality of the motor.” This provision:

creates an express condition which must be met before Walter’s duty to pay arises.

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:

an express condition.

Which of the following is a contract with a condition subsequent?

Roger bought a VCR, but he may return the VCR within ten days and get all of his money
back.

A(n) ____ is a substituted contract that involves an agreement among three parties to substitute a new
promisee in place of an existing promisee, or to replace an existing promisor with a new one.

novation

A(n) ____ is a contract between a promisee and a promisor by which the promisee agrees to accept and
the promisor agrees to render a substituted performance in satisfaction of an existing contractual duty.

accord

Which of the following is/are correct with regard to conditions subsequent?

A "sale or return" contract is an example of a contract with a condition subsequent.

Bill recently borrowed $50 from Ricardo for a couple of weeks. Bill, still short of cash, tells Ricardo, "I will wash and wax your car in exchange for the $50 I owe you." Ricardo tells Bill, "OK, that's great!" Ricardo's performance of his new duty will be a(n):

satisfaction.

On November 1, Paula and Roberta enter into a contract where both parties are obligated to perform on
December 31. On December 1, Paula tells Roberta, "I can, in no way, perform my duties in our contract."
This statement is a(n):

anticipatory repudiation.

A and B enter into a contract on January 1 of this year. A's friend C tells A, "The law generally restricts
the time within which an action can be brought by either party to a contract." C's statement is:

true, because of statutes of limitation.

The Code greatly alters the common law doctrine of material breach by adopting what is known as the:

perfect tender rule.

Unless one of the parties contractually assumes the risk, the ____ discharges a contract if supervening
circumstances make fulfillment of the purpose which both parties had in mind impossible.

frustration of purpose doctrine

Meg has contracted to paint a portrait of Julio but dies before completing the portrait. Which of the following is correct?

Meg’s contractual duty is discharged due to objective impossibility.

Refusal of a tender of performance by one party to a bilateral contract will:

be treated as a repudiation, excusing the tendering party from further duty of
performance under the contract.

Conditions may be classified:

Both (a) and (b); they are not mutually exclusive.

Which of the following would be considered a material breach of a contract?

All of the above would be material breaches.

Russell promises Marty $1,500 if he will completely landscape Russell's yard. Which of the following
would discharge Russell's obligations to pay under this contract?

Marty doesn't plant any flowers, shrubs, or grasses.

Fred contracts to sell a certain tract of land to Maria for $20,000, but the contract is silent as to the time of
delivery of the deed and payment of the price.

The payment of the $20,000 and the delivery of the deed are mutually dependent and, in the
absence of an agreement to the contrary, are concurrent conditions.

Phil, the tax accountant, promises to do Marge's individual federal, state, local, and gift taxes for the year.
He completes all but the gift taxes. Under the substantial performance doctrine:

Marge will have to pay Phil for all but the gift taxes.

Henry hires Ace Roofing to put a new roof on his house. When Ace comes, Henry refuses to let them on
the roof, saying that he has a headache and doesn't want to listen to pounding. The next day, Henry still
has a headache and he refuses to allow them on the roof. The day after, the baby is sleeping and Henry
refuses to allow them to work. After four weeks of this, Ace:

may be discharged, but Henry is not.

Anita, who is a tailor, agrees to sew a suit for Bryan, who promises in return to pay Anita $500 for the suit
if he is satisfied with it. Anita completes the suit, which fits Bryan perfectly. Nevertheless, he says that he
is not satisfied and refuses to accept or pay for it. Bryan is honest in his dissatisfaction, but he is
unreasonable.

Anita has no recourse against Bryan, because she agreed to the subjective standard.

Lynn, who is a tailor, agrees to sew a pair of drapes for Zach's living room. Zach promises to pay Lynn
$300. Lynn completes the drapes using material selected by Zach, but Zach is not satisfied and refuses to pay for them.

Whether Zach will have to pay for the drapes depends upon whether as a reasonable man he ought to be satisfied.

Jim contracted with Kevin to serve as a guide for Kevin on his three-week fishing trip to Canada. The
contract was made on April 1 with the trip to begin on June 1. On May 1, Kevin notified Jim that he had
changed his mind and would be unable to make the trip. He also refused to pay Jim any compensation.

Both (b) and (c) above are correct.

Miller has a contract to sell 1,000 bushels of wheat to a bakery. The wheat is stored in a grain elevator and
has become infested with insects. What is the consequence?

Miller is not discharged, but must substitute wheat or pay damages to the bakery for breach
of contract.

Arnold and Doug make a contract for Arnold to manufacture five leather chairs of a specified design.
Prior to their manufacture, the factory is destroyed in an accidental fire that is no one's fault. The chairs
are available from other sources.

Arnold's duty to deliver the chairs is discharged by the destruction of the factory.

Louis agreed to provide all the apples that Cindy's Cider Mill will need at $3 per bushel unless weather
conditions require additional labor to be hired. The rate would then be $3.50 per bushel. A freeze warning
required Louis to hire 100 additional overtime workers, raising the cost per bushel to $4.75. Louis wants
to get out of his contract. Can he?

No, the parties expected the hardship and provided for it in their contract

Janice contracts to sell a certain tract of land to Anthony for $5,000, but the contract does not state a time
for delivery of the deed and payment of the price. In this situation:

courts will treat the promises to deliver the deed and to pay the $5,000 as mutually
dependent. Anthony’s duty to pay is conditioned upon Janice’s delivery of the deed
and Janice’s duty to deliver the deed is conditioned upon Anthony’s payment or tender
of $5,000 to Janice.

Which of the following generally is not grounds for discharge of a contract by operation of law?

Running of the statute of limitations

The usual remedy for breach of contract is:

money damages.

If Jana, a minor, transfers property to Scott and Scott sells the property to a good faith purchaser for value
before Jana avoids the transfer:

Jana loses the right to recover the property if the transfer involved goods.

Miller made a contract to sell his condominium to Jefferson for $80,000. Two days later Miller changed
his mind after discovering that he could have sold the property to another buyer for an additional $20,000.
Jefferson sues and asks the court to have the property conveyed to him at the price of $80,000. Jefferson
is seeking:

specific performance.

A contractor and Buckingham, Inc. have a contract, which calls for the contractor to build a building with
the completion of it by June 15. If the building is not completed by that date, the contract calls for the
contractor to pay $100 per day in damages. The $100 per day is:

liquidated damages.

Garrett ordered 100 pieces of 2 ⋅ 6 lumber from his supplier and paid upon delivery. Later, when he
unpacked the lumber, he discovered that the supplier had delivered 2 ⋅ 4 lumber. After being notified, the
supplier picked up the lumber, apologized, and gave Garrett his money back. The response the supplier
made to rectify the breach is:

None of the above

When an injured party is required to elect remedies, which of the following would be mutually exclusive?

Specific performance and restitution

The return to the aggrieved party of the consideration, or its value, which he gave to the other party is:

restitution.

The process whereby a court "rewrites" or "corrects" a written contract to make it conform to the true
intentions of the parties is:

reformation.

The majority of states follow the ____ rule in awarding damages for fraud.

benefit-of-the-bargain

Equitable remedies will not be granted where:

the contract is tainted with fraud, duress, undue influence, mistake, or unfair practices.

David enters into a contract to give Edward the right of first refusal to purchase a tract of land owned by
David. David subsequently offers the land to Fred without first offering it to Edward. An appropriate
remedy for Edward to seek would be:

injunction.

A power of avoidance held by a party may be lost if:

All of the above.