Question 1

With regard to the law governing privity of contract and assignment,which of the following is false?

Accepted Answer

A)  Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out, in good faith, to the first assignee to give him notice, he has no further obligation. 
B)  If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee; the assignee must look to the assignor for payment. 
C)  A statutory assignment is easier to enforce than an equitable assignment. 
D)  An exception to the doctrine of privity of contract is a contract granting an interest in land. 
E)  "Novation" refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another. 
A)  Where the assignor assigns the same debt to two or more persons, if the promisor (debtor) pays out, in good faith, to the first assignee to give him notice, he has no further obligation. 
B)  If a promisor (debtor) accidentally pays out to the assignor after receiving notice of the assignment, he is free from any obligation to the assignee; the assignee must look to the assignor for payment. 
C)  A statutory assignment is easier to enforce than an equitable assignment. 
D)  An exception to the doctrine of privity of contract is a contract granting an interest in land. 
E)  "Novation" refers to the ending of the original contract and entering into a new contract with changes in terms, such as substituting one party for another.

Question 2

In AMJ Campbell v.Kord Products Inc.,a comma was inserted into the contract with the effect that both "freight" and "rebates" would be deducted from the sale price,rather than simply "freight rebates".This resulted in a difference of price amounting to $759 000.What was the result?

Accepted Answer

A)  The Court denied a request for rectification because a Court will not rectify a contract that is in writing. 
B)  The Court denied a request for rectification because it was not clear both parties had the same intention. 
C)  The Court denied a request for rectification because the appropriate remedy was rescission. 
D)  The Court allowed the request for rectification because the price difference was significant. 
E)  The Court allowed the request for rectification because one party had obviously made a mistake. 
A)  The Court denied a request for rectification because a Court will not rectify a contract that is in writing. 
B)  The Court denied a request for rectification because it was not clear both parties had the same intention. 
C)  The Court denied a request for rectification because the appropriate remedy was rescission. 
D)  The Court allowed the request for rectification because the price difference was significant. 
E)  The Court allowed the request for rectification because one party had obviously made a mistake.

Question 3

When a negotiable instrument is used,the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

Accepted Answer

A) True 
 B)False

Question 4

What is the term used to describe a claim which results in a court declaring a contract void because a party is unaware of the nature of the contract?

Accepted Answer

The answer of What is the term used to describe...

Question 5

Discuss the signs that the doctrine of privity may be breaking down.In your discussion,include a reference to the leading cases in this area.

Accepted Answer

Case law,especially some recent Supreme

Question 6

Which one of the following will be excluded by the parol evidence rule?

Accepted Answer

A)  express terms 
B)  extrinsic evidence 
C)  evidence of implied terms 
D)  a condition precedent 
E)  evidence of a collateral agreement 
A)  express terms 
B)  extrinsic evidence 
C)  evidence of implied terms 
D)  a condition precedent 
E)  evidence of a collateral agreement

Question 7

For a misrepresentation to be actionable,it must become a term of the contract.

Accepted Answer

A) True 
 B)False

Question 8

Damages are available as a remedy where the misrepresentation has become a term of the contract that is breached,where the misrepresentation is ___________,and where there is negligence.

Accepted Answer

A)  innocent 
B)  fraudulent 
C)  negligent 
D)  material 
E)  actionable 
A)  innocent 
B)  fraudulent 
C)  negligent 
D)  material 
E)  actionable

Question 9

Al sells gravel to Bob on credit,and Bob sells it to Chuck,an innocent purchaser.Then Bob runs away with the money,without paying Al.Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

Accepted Answer

A)  Al 
B)  Bob 
C)  Chuck 
D)  Al and Bob 
E)  Bob and Chuck 
A)  Al 
B)  Bob 
C)  Chuck 
D)  Al and Bob 
E)  Bob and Chuck

Question 10

Mike is given a bottle of wine as a gift.Josh,a neighbour,sees it and recognizes it as a very rare bottle.Knowing that Mike doesn't drink,Josh offers him $300 for it,which he believes to be a fair price.Mike happily agrees.Later,when Josh is looking up the price of the bottle on eBay,he realizes that it is not a valuable bottle of wine at all.He had confused it with another vintage.Josh,who is taking a law class,wonders whether or not he could have the contract set aside.Which of the following statements is true?

Accepted Answer

A)  It is unlikely to be set aside unless Josh could show that it would be unfair or unjust to enforce it. 
B)  It will automatically be set aside on the basis of the doctrine of mistake. 
C)  It will only be set aside if Josh's mistake rendered the contract illegal. 
D)  A contract can never be set aside where a mistake has been made. 
E)  The contract will only be set aside if Josh's mistake was the result of willful blindness. 
A)  It is unlikely to be set aside unless Josh could show that it would be unfair or unjust to enforce it. 
B)  It will automatically be set aside on the basis of the doctrine of mistake. 
C)  It will only be set aside if Josh's mistake rendered the contract illegal. 
D)  A contract can never be set aside where a mistake has been made. 
E)  The contract will only be set aside if Josh's mistake was the result of willful blindness.

Question 11

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just some aspect of it.

Accepted Answer

A) True 
 B)False

Question 12

Outline the restrictions on the ability of a person to claim non est factum.

Accepted Answer

It must be shown that the mist

Question 13

Misgana ran into Tarja at their local gym.Tarja,it turns out,operated an art gallery that did custom framing and mounting.Misgana had some beautiful prints she wanted to have put into special frames and agreed to pay Tarja $400 to have this done.Tarja passed the task along to her new assistant,Shandy.Shandy used the wrong adhesive when mounting the prints,which meant they did not stick properly to the backing.Which of the following is true?

Accepted Answer

A)  Misgana could successfully sue only Shandy or Tarja for breach of contract, whichever she chooses, but not both. 
B)  Misgana could successfully sue only Tarja for breach of contract. 
C)  Misgana could only sue Tarja because she is the one who did a poor job of the framing. 
D)  Misgana could successfully sue Shandy and Tarja for breach of contract because both were connected with the job. 
E)  If Tarja doesn't pay Shandy, Shandy could sue Misgana directly for her pay because she worked on Misgana's prints. 
A)  Misgana could successfully sue only Shandy or Tarja for breach of contract, whichever she chooses, but not both. 
B)  Misgana could successfully sue only Tarja for breach of contract. 
C)  Misgana could only sue Tarja because she is the one who did a poor job of the framing. 
D)  Misgana could successfully sue Shandy and Tarja for breach of contract because both were connected with the job. 
E)  If Tarja doesn't pay Shandy, Shandy could sue Misgana directly for her pay because she worked on Misgana's prints.

Question 14

An assignee is "subject to the equities," means that a negotiable instrument can never convey more than existed between the original parties.

Accepted Answer

A) True 
 B)False

Question 15

Distinguish between innocent and fraudulent misrepresentation,indicating why the distinction is important.

Accepted Answer

Innocent misrepresentation is involved w

Question 16

____________ attempts to return both parties to their original positions; the subject matter of the contract must be returned to the original owner,and any monies paid under the contract must also be returned.

Accepted Answer

A)  Damages 
B)  Remedies 
C)  Rescission 
D)  Compensation 
E)  Avoidance 
A)  Damages 
B)  Remedies 
C)  Rescission 
D)  Compensation 
E)  Avoidance

Question 17

What is a collateral contract?

Accepted Answer

A separate contractu

Question 18

The threat of violence makes a contract voidable.

Accepted Answer

A) True 
 B)False

Question 19

What is the significance of an assignment qualifying as a statutory assignment?

Accepted Answer

The assignee can sue the origi

Question 20

In which of the following would the court find that the contract is void (i.e.,not a binding agreement)?

Accepted Answer

A)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract. 
B)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burnt. 
C)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school. 
D)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake. 
E)  Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable. 
A)  After some negotiation, Paul accepted Monafo's offer to sell him the painting for $5000. When the contract was put in writing, the price was incorrectly stated as $500. Monafo could prove the terms of the oral contract. 
B)  Two parties contracted for a tanker of oil, but unknown to either of them at the time of the contract, the tanker had caught on fire and all the oil had burnt. 
C)  Kramer, thinking that the city was going to build a new school in the area, offered to buy a house. She had not talked with the seller or his agent about the possibility of a school. After the offer was accepted, she learned that there would be no such new school. 
D)  Joe bought pizzas, but after eating one he realized that purchasing them was a big mistake. 
E)  Ry and Ali, two parties to a contract, each had a different understanding about the term "royalties" in the contract. The court found Ali's interpretation the more reasonable.

With regard to the law governing privity of contract and assignment,which of the following is false?

In AMJ Campbell v.Kord Products Inc.,a comma was inserted into the contract with the effect that both "freight" and "rebates" would be deducted from the sale price,rather than simply "freight rebates".This resulted in a difference of price amounting to $759 000.What was the result?

When a negotiable instrument is used,the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

What is the term used to describe a claim which results in a court declaring a contract void because a party is unaware of the nature of the contract?

Discuss the signs that the doctrine of privity may be breaking down.In your discussion,include a reference to the leading cases in this area.

Which one of the following will be excluded by the parol evidence rule?

For a misrepresentation to be actionable,it must become a term of the contract.

Damages are available as a remedy where the misrepresentation has become a term of the contract that is breached,where the misrepresentation is ___________,and where there is negligence.

Al sells gravel to Bob on credit,and Bob sells it to Chuck,an innocent purchaser.Then Bob runs away with the money,without paying Al.Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just some aspect of it.

Outline the restrictions on the ability of a person to claim non est factum.

An assignee is "subject to the equities," means that a negotiable instrument can never convey more than existed between the original parties.

Distinguish between innocent and fraudulent misrepresentation,indicating why the distinction is important.

____________ attempts to return both parties to their original positions; the subject matter of the contract must be returned to the original owner,and any monies paid under the contract must also be returned.

What is a collateral contract?

The threat of violence makes a contract voidable.

What is the significance of an assignment qualifying as a statutory assignment?

In which of the following would the court find that the contract is void (i.e.,not a binding agreement)?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters

Exam 8: Factors Affecting the Contractual Relationship

With regard to the law governing privity of contract and assignment,which of the following is false?

In AMJ Campbell v.Kord Products Inc.,a comma was inserted into the contract with the effect that both "freight" and "rebates" would be deducted from the sale price,rather than simply "freight rebates".This resulted in a difference of price amounting to $759 000.What was the result?

When a negotiable instrument is used,the drawer of the instrument cannot use the rule of privity to limit the claim of the holder.

What is the term used to describe a claim which results in a court declaring a contract void because a party is unaware of the nature of the contract?

Discuss the signs that the doctrine of privity may be breaking down.In your discussion,include a reference to the leading cases in this area.

Which one of the following will be excluded by the parol evidence rule?

For a misrepresentation to be actionable,it must become a term of the contract.

Damages are available as a remedy where the misrepresentation has become a term of the contract that is breached,where the misrepresentation is ___________,and where there is negligence.

Al sells gravel to Bob on credit,and Bob sells it to Chuck,an innocent purchaser.Then Bob runs away with the money,without paying Al.Who will get the gravel if the court holds that the contract between Al and Bob was "void"?

To avoid a contract on the basis of non est factum,the mistake must have gone to the entire nature of the agreement,not just some aspect of it.

Outline the restrictions on the ability of a person to claim non est factum.

An assignee is "subject to the equities," means that a negotiable instrument can never convey more than existed between the original parties.

Distinguish between innocent and fraudulent misrepresentation,indicating why the distinction is important.

____________ attempts to return both parties to their original positions; the subject matter of the contract must be returned to the original owner,and any monies paid under the contract must also be returned.

What is a collateral contract?

The threat of violence makes a contract voidable.

What is the significance of an assignment qualifying as a statutory assignment?

In which of the following would the court find that the contract is void (i.e.,not a binding agreement)?

Managing Your Legal Affairs

Introduction to the Legal System

The Resolution of Disputesthe Courts and Alternatives to Litigation

Intentional Torts and Torts Impacting Business

Negligence, Professional Liability, and Insurance

The Elements of a Contractconsensus and Consideration

The Elements of a Contract capacity, Legality, and Intention

The End of the Contractual Relationship

Employment

Agency and Partnership

Corporations

Real, Personal, and Intellectual Property

Information Technology and the Internet

Sales and Consumer Protection

Priority of Creditors

Filters