Exam 11

Topics: Contract law, Contract, Property Pages: 46 (8632 words) Published: January 29, 2013
Sample Test Questions, Final Exam, Fall 2003, Professor Isler

Indicate whether the sentence or statement is true or false.

____1.When an obvious clerical error exists in a written contract, the contract may not be enforceable.

____2.If the subject matter of a contract turns out to be more valuable than one of the parties believed it would be, that party can rescind the contract.

____3.A fraudulent contract may be enforced by the innocent party.

____4.An act of concealment, with an affirmative misrepresentation, will not be sufficient to give rise to an action for fraud.

____5.A statement by a nonexpert seller to a nonexpert buyer about the setback restrictions on a parcel of property must be true or the buyer can cancel the contract.

____6.The fact that certain material information is not volunteered by the seller of a product will usually give rise to an action for fraud.

____7.Scienter exists if a party makes a statement that he or she does not believe is true.

____8.Undue influence will typically arise in situations in which there is a fiduciary relationship between the parties.

____9.A contract entered into under undue influence is voidable.

____10.A contract entered into under duress is voidable.

____11.The Statute of Frauds requires that fraud must be proved by a writing.

____12.The Statute of Frauds requires that statutes must be in writing.

____13.A contract must be in writing to be enforceable if performance is improbable or unlikely within one year.

____14.An oral contract for a transfer of land is enforceable.

____15.A party's oral agreement to pay another's debt is enforceable if the party's main purpose is to derive a benefit for himself or herself.

____16.To be enforceable, a contract for a sale of goods priced at $500 or more must be in writing.

____17.An oral contract that must be in writing to be enforceable is not enforceable even if the party against whom enforcement is sought admits, in pleadings, to its existence.

____18.Parol evidence is only oral evidence that is outside a written contract and not incorporated into the contract expressly or by reference.

____19.The parol evidence rule permits the introduction at trial of evidence of the parties' prior negotiations even if they differ from the terms of the parties' written contract.

____20.When the terms of a written agreement are clear, and there is no fraud or deceit, the parol evidence rule bars oral evidence that contradicts those terms.

____21.Privity of contract refers to the fact that only the actual parties to a contract should have rights and liabilities under the contract.

____22.An unconditional assignment of rights in a contract will extinguish the rights of the assignor.

____23.Banks may assign their loan contracts to other firms.

____24.A right to receive income can be assigned.

____25.A contract that contains language stating that any assignment is "void" may still be assigned.

____26.An assignment of an insurance policy cannot be prohibited.

____27.Third parties have no rights to contracts to which they are not a party, even if the contracting parties made the contract with the intent to benefit a third party.

____28.The vesting of contractual rights in a third party will not prevent the original parties to the contract from modifying the contract as long as the contract expressly reserves their right to do so.

____29.If a contract expressly reserves to the contracting parties the right to cancel, rescind, or modify the contract, then the rights of the third party beneficiary are subject to any changes made by the contracting parties.

____30.The fact that a contract does not require performance rendered directly to a third party will make it very likely the third party will be considered an intended beneficiary.

____31.When a condition operates to terminate a party's...
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