1. A woman received an unordered piece of jewelry in the mail along with a bill for $850. She called the store and was told that it was a sales promotion and she should pay for the jewelry, did not pay and was sued. What is the result?
The woman is liable for the reasonable value of the jewelry
The woman is liable for the $850
The woman may keep the jewelry without liability
The woman is obligated to return the jewelry.
2. The parol evidence rule
Is designed to preserve the integrity of a complete written contract
Prevents proof of an unpaid obligation
Applies to incomplete contracts
Applies to prevent changing the terms of a oral contracts only
3. Which of the following events excuses the promisor from performing on a contract?
Riots
Shortages of materials
Learning that the performance will be much more costly than originally anticipated.
Destruction of the subject matter of the contract.
4. An apparently voluntary agreement may in fact not be voluntary if:
a. undue influence is present.
b. duress is present.
c. fraud is present.
d. all of the above.
5. The remedy of specific performance will most likely be granted in the case of:
A contract for the sale of a new automobile.
A contract to buy shares of stock traded publicly
A contract for the sales of real estate
A contract for the sales of Florida oranges.
6. A minor cannot avoid a contract that has been:
Ratified
Signed
Processed
Disallowed by the minor’s parents
7. In a unilateral contract, the consideration for the promise is:
The surrender of a claim against the promisor
Agreeing not to sell the promisor’s property
A promise to do the act called for by the promisor
The doing of the act called for by the promisor.
8. Contractual capacity is the ability to:
Read and write
Sign a written contract
Understand that a contract is being made and understand its general nature
Understand the legal meaning of all the terms of the contract being made.
9. The time that a minor has to avoid contract is:
One year from the date of the agreement
30 days from learning of his or her right to disaffirm
The age of 18
A reasonable period of time after reaching the age of 18
10. The courts will consider the adequacy of the consideration when:
One party clearly has the better of the deal
One party has more business experience than the other
One party claims to have been defrauded
One party shows that a much lower price was nationally advertised on television
11. The effect of making a partial payment to satisfy an admitted debt is an example of the rule that:
Past benefits is not consideration for a later promise
A conditional promise may be consideration
Doing what one is bound to do is not consideration
Consideration must be adequate to be binding.
12. Which of the following will not be consideration for a promise?
A return promise
Forbearance
Performance of acts the promisee was bound to perform but had vowed not to do
Performance of a requested act
13. A third-party beneficiary:
May be obligated to pay for services rendered.
May bring suit on and enforce the contract
Must consent to the contract
Must be identified by name