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Contract Law Test Review -2 Flashcards | StudBud
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Contract Law Test Review -2
Contract Law Test Review -2
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1
What is the name given to a clause in which the parties agree that their contract is complete as written?
express term
exclusion clause
entire contract clause
parol evidence clause
2
What does the Statute of frauds require
contract must be in writing for the sale of real property
contract must be in writing if for sale of goods over $500
all of the above
contract must be in writing if cannot be completed in 1 year
3
Under what circumstances might a court apply the "Best Evidence Rule"?
when applying an electronic contract
when interpreting an implied term in a written contract
where evidence has been lost before trial
if the parties have entered into an oral contract with witnesses
4
What key ingredient must be present in order to distinguish a legally enforceable promise from one legally unenforceable
formalization
consideration
revocation
acceptance
5
What is the legal definition of "mistake"?
a false statement of fact that causes someone to enter a contract
an error made by one or both parties that seriously undermines a contract
the threat of physical or economic harm that results in a contract
an unfair manipulation that compromises someone's free will
6
What is the function of an express term with respect to a contract?
It implicitly states contractual promises
It gives effect to the parties' intentions
It brings an existing contract to an end
It explicitly states contractual promises
7
Does the Consumer Protection Act regulate warranties?
Always
Never
For certain businesses
For certain products
8
How would you expect a court to apply the parol evidence rule to an unclear contract
Disregard the rule and allow extrinsic evidence
Disregard the rule and apply the reasonable person test
Abide by the rule and apply implied terms for clarification
Abide by the rule and use its discretion to infer a clarification
9
In order to form the basis for a contract, an offer must satisfy what condition?
It must be in writing
It must state when the offer will expire
It must contain a request
It must contain all essential terms
10
In what way is a void contract different from a voidable contract?
voidable contract fails to meet the requirements of the Statute of Frauds
void contract cannot be enforced because it is contrary to public policy
void contract has a defect so substantial that it is of no force or effect
voidable contract fails to satisfy the Sale of Goods Act
11
What is the legal term for a clause that makes a contract enforceable only if the buyer is satisfied with an inspection?
a limitation of liability clause
a liquidated damages clause
a condition precedent
a condition subsequent
12
When a breach of contract has occurred, the purpose of damages is to
Be a determent for the breaking of moral & legal obligations
Compensate the wronged party for the loss incurred
Punish the party who has committed breach by making them pay
Have the damages reflect the severity of the breach
13
A Contract can be terminated by:
Performance
All of the above
Frustration
Agreement
14
What is the Sale of Goods Act?
Law about buying chocolate
Law that gives you money off
Law about what youcan sell
Customers rights to return / get refund if product faulty
15
The obligation to reasonably minimize the losses resulting from a breach of contract is...
Duty to Mitigate
Balance of Probabilities
Obligation on Anticipatory Breach
Reasonable Person Standard
16
The legal ingredients of a contract include all except..
Offer
promise
consideration
acceptance
17
Which is NOT true for Frustration to apply
the event was one parties fault frustrating the other party
neither party assumed the risk
performance is impossible or illegal
the event was dramatic and unforseen
18
Which terms in a contract are the ones that are the foundation of the contract?
that there has been a formal intention to create legal relations
the time period within which all obligations must be performed
the binding commitments that form the essence of the contract
that all of the parties to the contract have legal capacity to contract
19
Which of the following best explains the requirement that "contracts must be supported by mutual consideration"?
Contracts must be in writing to be enforceable.
Contracts require that the parties treat each other fairly.
A contract involves a bargain or exchange between the parties.
There must always be at least two parties to a contract.
20
What is meant by the term "contractual
quantum meruit
"?
as much as someone will pay
a term required to imply payment
a promise to pay a fair price
as much as merited or deserved
21
What principle could you expect Canadian courts to apply when faced by cases dealing with standard form contracts
Customers' continued use amounts to acceptance of unilateral amendments
Ambiguous terms are interpreted against the party whoprepared the contract
Pre-printed terms must be put inside a box to which reference is made
Terms are to be set out in plain language
22
The statute of frauds...
States that certain contracts must be in writing.
Can send people to jail for using a written agreement.
Encourages the use of oral contracts.
Helps to encourage perjury.
23
Under what circumstances would a court apply the objective standard test?
when deciding the amount of damages to award
where it is unclear whether the parties intended to form a contract
if the enforcement of the contract might cause harm to a third party
if there is inequality of bargaining power between the parties
24
what is a contract
legal agreement between two person or party
agreement between parties
legal binging agreement
agreement
25
The typical remedy for misrepresentation is ...
Mitigation
Frustration
Absolution
Recsission
26
Which of the following best explains the requirement that "contracts must be supported by mutual consideration"?
A contract involves a bargain or exchange between the parties
Contracts must be in writing to be enforceable
Contracts require that the parties treat each other fairly
There must always be at least two parties to a contract
27
Which legal doctrine deals with the enforceability of a Gratuitous Promise?
a. Voluntary assumption of risk
a. A frustrated contract
a. Promissory estoppel
a. Undue influence
28
The purchase of stationery supplies from a retailer for cash, without an invoice or a receipt being provided in return,
an informal agreement
a formal contract
an incomplete agreement
a standard form agreement
29
What is the term given to the guiding principles for interpreting the terms of a contract?
The Rules of Construction
The Rules of Interpretation
The Parol Evidence Rules
Thompson's Rules
30
Which of the following is NOT an example of an invitation to treat?
a lost and found advertisement
a display of goods in a retail store
a newspaper advertisement
an expression of interest to enter negotiations
31
The Statute of Frauds does not apply to:
garage sale
contracts lasting more than a year
5 karat diamond ring
land
32
what is a contract
legal agreement between two person or party
legal binging agreement
agreement between parties
agreement
33
When is parol evidence admissible?
To contradict terms
Never
To clarify ambiguity
Always
34
An injunction is...
A court order to produce evidence
A court order to minimize damages on a breach
A court order for incarceration in Jail
a court order to stop doing something
35
Assignment of a Contract means...
The parties must work hard to make the contract work
The contract papers are given to a law for drafting
the rights are transferred to another party
The contract has been breached
36
Consideration is:
is the most important part of the contrac
When the offeree considers whether to accept or reject offer
is the price tag
is the exchange of mutual benefit
37
When can an offer be terminated?
Anytime
Prior to acceptance
After acceptance
Never
38
Which of the following statements regarding contract terms is correct?
Contract terms are an aid for a court to interpret a business arrangement
Contract terms must be reasonable
Contract terms may be express or implied
Contract terms must be in writing to be effective
39
A contract that allows a wronged party to withdraw from the contract is...
Devoid
Voidable
Illegal
Void
40
What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?
The work must be performed
The promise must be accepted
The consideration must be adequate
The innocent party must agree to a "price" for the defendant's promise
41
What test will a court apply when asked to determine a matter involving a dispute regarding the formation of a contract?
whether the parties have legal capacity to enter into contracts
whether the terms of the contract provide sufficient mutual consideration
whether a reasonable person could conclude an offer and acceptance occured
whether the contract is sufficient to provide certainty to all parties
42
What's the 'Consumer Protection Act'?
Retail Regulation Act
Law protecting consumer rights
Consumer Interest Act
Business Protection Act
43
Can fraud override the Parole evidence rule?
Sometimes
Rarely
Never
Always
44
How does the Sale of Goods Act affect the delivery of customer service?
Credit must be provided to allow products to be purchased
Products must not be sold using misleading practices
Product information must be provided in writing
Products provided must conform to sale agreement
45
Why should one NOT rely on the common law doctrine of frustration in contractual negotiations?
frustration says the contract terms are settled at the time of acceptance
frustration operates in limited circumstances
frustration is unreliable operates in narrow cases
frustration says that you do not have to honour your obligations
46
What are the elements of importance emphasized by contract law as it pertains to the legal capacity to form contracts?
consent and voluntariness
offer and acceptance
essentials of a contract
immunity from liability
47
which of the following is correct ways in which a contract can be terminated
c) breach of contract
b) lapse of time
a) death of party
d)all of the above
48
Parole Evidence is not admitted when..
there is a collateral agreement
the document is integrated
it supplements the writing
there is a subsequent agreement
49
In what way are promises between family members treated differently than promises between other parties?
Promises between family members are always treated as gratuitous promises
The law presumes promises between family members are non-contractual
Contracts between family members are prohibited
Family members cannot sue one another for breach of contract
50
Which of the following best describes the relationship between bargaining power and the law of contract?
law of contract not concerned with the parties' relative bargaining power
goal of law of contract is to reduce the bargaining power of the parties
law of contract seeks to correct inequalities in bargaining power
law of contract is concerned with the relative bargaining power of parties
51
What distinguishes the lapse of an offer from the rejection of an offer?
A lapse requires a communication of deliberate intent by the offeree
Acceptance of an offer will be subject to rejection
An option agreement cannot lapse, but it may be rejected
Acceptance has not occurred when an offer lapses
52
Under the Consumer Protection Act, is providing a written contract mandatory?
Never
Rarely
Sometimes
Always
53
Can offers be revoked?
After acceptance
Always
Until acceptance
Never
54
An agreement or contract that is considered completely out of line
uttering
Unconscionable
verdict
Trade
55
Which is not an element of a contract?
Not necessarily in writing
between 2 or more competent persons
should be supported by a promise
Should be deliberately made
56
Which one is NOT an advantage of contracts?
They allow gratuitous promises to be relied upon
permit both parties to rely on the terms they have negotiated
allow parties to plan their business affairs
there are various options fordispute resolution
57
Luis believes his contract with ABC Homebuilder's Inc. is unconscionable. What must Luis prove in order to win his case?
Luis must prove the presence of actual pressure
Luis must prove undue influence was present
Luis must prove inequality and an improvident bargain or exploitation
Luis must prove the parties are in a relationship of utmost good faith
58
Which terms in a contract are the ones that are the foundation of the contract?
the time period within which all obligations must be performed
the binding commitments that form the essence of the contract
that all of the parties to the contract have legal capacity to contract
that there has been a formal intention to create legal relations
59
Offeror has specified the method of communication. How would a c court determine whether acceptance had been perfected?
The offer cannot be accepted by another method of communication
the offer must have been made using the same method of communication
Acceptance by other means is effective when received by the offeror
Acceptance by a specified method of communication must be reasonable
60
Which is NOT a way in which a Contract can be brought to an end legally?
Frustration
Agreement
Strict Liability
Performance
61
For novation, there must be
destruction of previous contract
notary to notarize new agreement
a previous contract and agmt of parties to new contract
willing buyer and price reduction
62
In order to form the basis for a contract, an offer must satisfy what condition?
It must state when the offer will expire
It must be in writing
It must contain a request
It must contain all essential terms
63
What's the 'Parol Evidence Rule'?
Intrinsic evidence rule
Oral evidence rule
Extrinsic evidence rule
Written evidence rule
64
force majeure
invalid; without legal force; not binding
unforeseeable event excuse a party from fulfilling contract
to satisfy a condition; to complete the required task
in the interests of
65
Can businesses opt-out of the Consumer Protection Act?
Always
With customer consent
In some circumstances
Never
66
Which is the best definition of unfair manipulation that compromises someone's free will?
Frustration
Undue Influence
Mitigation
Duress
67
What is the likely outcome if a court is asked to resolve a dispute where parties have reached an incomplete agreement
The court will forward the matter to mediation
Using the common law, the court will find a binding contract
Using statute law the court will find a binding contract
The court will decline jurisdiction to provide a remedy
68
What does consumer protection law state?
Products must be as described and fit for purpose.
Consumers are legally protected in all circumstances.
Products that are misshapen cannot be sold.
Consumers have the right to complain.
69
Which circumstance would NOT be an exception to minors lacking legal capacity to contract?
Lottery winnings
contracts for necessaries
Lease agreements
beneficial contracts of service
70
Which of the following would likely lead to a finding of incapacity?
One of the parties had more bargaining power than the other
One of the parties was a minor
One of the parties misled the other
One of the parties had a beer before signing the contract
71
What is the definition of "duress" with respect to contractual relationships?
unfair criminal activity that seriously undermines a contract
the threat of physical or economic harm that results in a contract
inequality between the parties
unfair manipulation that compromises someone's free will
72
When resolving contractual conflicts, what laws do the courts usually apply?
Judges apply common law and occasionally statutory law
Judges make all decisions based on principles of fairness and equity
the Contracts Act
the Sale of Goods Act
73
What is the name given to a clause in which the parties agree that their contract is complete as written?
entire contract clause
parol evidence clause
express term
exclusion clause
74
Duress definition
gullible
constraint by threat ; Coersion
stress ; overload of work
not easily disturbed ; unshakable
75
Contract Law Is...
When two people sign a piece of paper in agreement
A long document with legal obligations
An agreement creating obligations enforceable by the law.
An agreemen than can be physically proved
76
Undue influence is:
under the influence
Influence that is not needed at the time of the contract
Neither party has a say in the details of a contract
When 1 party is in a position of trust & dominates the other
77
Which of the following statements is true regarding legally enforceable contracts?
The agreement must have been witnessed
The agreement must have been signed by the parties
The agreement must have been in writing
The agreement must have been voluntary
78
Holding a gun to ones head to induce them to enter a contract is which of the following legally exceptional circumstance
undue inducement resulting from actual pressure
undue influence resulting from actual pressure
unconscionability resulting from presumed pressure
misrepresentation resulting from presumed pressure
79
A promise may be enforceable with out consideration.
contract signing
promissory estoppel
agreement
seal
80
When does frustration of a contract occur?
An event occurs after the contract has been made rendering it impossible
Promise to do something which later is decided isn't in their best interest
A contract is impossible to perform at the time it is made
81
Parole Evidence is admitted when..
it supplements the writing
there is a collateral agreement
there is a subsequent agreement
there is a verbal agreement
82
Which of the following would provide that a supplier will NOT be liable to a retailer if it is fails to deliver products
a limitation of liability clause
an exemption clause
a condition precedent
a liquidated damages clause
83
Under the statute of frauds, all contracts for the sale of RE must be
accompanied by earnest money deposits
in writing to be enforceable
originated by a real estate broker
on pre-printed forms
84
Which of the following best describes the relationship between bargaining power and the law of contract?
law of contract is concerned with the relative bargaining power of parties
goal of law of contract is to reduce the bargaining power of the parties
law of contract not concerned with the parties' relative bargaining power
law of contract seeks to correct inequalities in bargaining power
85
Define invitation to treat (ITT)
It is an invitation to others to make a bid
It is an invitation to others to make a negotiation
It is an invitation to others to make an offer
It is an invitation to others to make acceptance
86
According to the Statute of Frauds, which of the following Contracts MUST be in writing?
Contracts involving minors
Contracts of Service
Guarantees
Substantial Contracts
87
What must be present in order for a condition subsequent to be recognized as legally enforceable?
reasonable certainty of an unforeseen occurrence of an event
sufficient detail; otherwise, the uncertain condition is unenforceable
reasonable certainty and objectivity; otherwise, the condition will fail
sufficient fulfillment of each parties' collateral contractual obligations
88
Does the Consumer Protection Act apply to all businesses?
Never
Only B2C businesses
Only B2B businesses
Always
89
Which of the following would be an example of misrepresentation?
failure to correct an earlier assertion was but is no longer true
Not asking the right questions
No divulging a truth to which one is not aware
Asking for unreasonable disclosure
90
A contract that may be kept in force in some circumstances is...
Injunctive
Voidable
Amendable
Void
91
The innocent party has the right to termination the contract in the the breach of ...
Innominate Term
Warranty
Substantive Term
Condition
92
In what way is a void contract different from a voidable contract?
void contract has a defect so substantial that it is of no force or effect
voidable contract fails to meet the requirements of the Statute of Frauds
voidable contract fails to satisfy the Sale of Goods Act
void contract cannot be enforced because it is contrary to public policy
93
What's 'invitation to treat'?
Not an offer
A counter-offer
An offer
A contract
94
What distinguishes the lapse of an offer from the rejection of an offer?
A lapse requires a communication of deliberate intent by the offeree
An option agreement cannot lapse, but it may be rejected
Acceptance of an offer will be subject to rejection
Acceptance has not occurred when an offer lapses
95
What element must be present to enable an innocent party to commence a lawsuit when a promise is broken?
The innocent party must agree to a "price" for the promise
The consideration must be adequate
The promise must be accepted
The work must be performed
96
The Statute of Frauds does not apply to:
garage sale
contracts lasting more than a year
land
5 karat diamond ring
97
what is the meaning of a Quantum Meruit Basis?
The contractor paid the adequate quantity for his work only
The contractor paid the completed work only
If there's no payment term the contractor paid reasonable amount
The contractor paid the quantity of extra work
98
Which of the following statements regarding contract terms is correct?
Contract terms must be reasonable
Contract terms may be express or implied
Contract terms are an aid for a court to interpret a business arrangement
Contract terms must be in writing to be effective
99
What is 'counter-offer'?
New offer
Decline of offer
Modification of offer
Acceptance of offer
100
Does acceptance need communication?
Always
Never
Sometimes
Rarely
