contract

contract

1. If what is written in a contract is clear, a court will enforce the contract according to its obvious terms.

True

False

2. Consent to the terms of a contcrat is voluntary even if one of the parties sis forced into the agreement.

True

False

3.

Patty executes a will, leaving her estate to her spouse Quentin. They have a daughter Rita. Later, Patty and Quentin divorce. Patty does not execute a new will before she dies. With respect to Patty’s estate, Quentin is entitled to

a.

one-half.

b.

nothing.

c.

everything.

d.

one-third.

4.

A state law prohibits gambling houses. Tim rents a building to Victoria under a lease that provides the premises are to be used only to house an illegal betting operation. This lease is

a.

unenforceable.

b.

enforceable only if the tenant does not do what the lease provides.

c.

enforceable as long as the tenant does what the lease provides.

d.

enforceable under any circumstances.

5.

Sheila is a shareholder of Travels & Trips Inc. She has the right to inspect corporate books and records

a.

under no circumstances.

b.

only if she is also a director.

c.

for a proper purpose.

d.

without restriction

6.

Bev owns and operates City Delivery Service as a sole proprietorship. When she dies, the business will automatically

a.

transfer to the owner’s heirs.

b.

dissolve.

c.

dissociate.

d.

transfer to its creditors.

7.

Ellen conveys a house to Floyd with the right to possess and use the property for a period of time specified in an express contract. This is

a.

a fixed-term tenancy.

b.

a tenancy at will.

c.

a periodic tenancy.

d.

a tenancy at sufferance.

8.

Beth goes to Dr. Carl for surgery. Carl says that Beth should be healed within a week. Beth is not healed within a week. With respect to breach of contract, Carl is (a).not liable, but Beth chose Carl for the surgery.(b).not liable, because his statement was an opinion.(c).liable.(d).not liable, because surgery is not a serious subject for a contract.

9.

Darcy enters into a contract with Event Center Inc. to use its venue for a business meeting. If an ambiguity appears in the contract that outside evidence does not make clear, it will most likely be

a.

struck from the deal.

b.

interpreted against the party responsible for creating it.

c.

construed according to the court’s discretion.

d.

applied in favor of the party who drafted the contract.

10.

Reed agrees to sell his Sports Equipment store to Taylor. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely

a.

invalid because it is part of a sale of an ongoing business.

b.

valid if both parties are justifiably ignorant of the facts.

c.

valid because it is part of a sale of an ongoing business.

d.

invalid because of the unreasonable terms of area and time.

11.  Games Corporation hires Haley, a minor, to create new customized game software for certain clients. Haley signs a contract that requires her to work for Games for eighteen months. Before beginning work, however, Haley tells Games that she will not create new software for Games and that she is going to work for Imagine Inc., a Games competitor. Is Games’ contract with Haley enforceable? Why or why not?

12.  On May 1, Ramona and Santo orally agree that Santo will guide a party from the base of Mount McKinley to its summit and from the summit to a return to the base. Under the agreement, Ramona will pay for the service after the completion of the climb on June 1. On May 1, is this contract express or implied? On May 31, after the climb has been made but before payment is paid, is the contract executed or executory?

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