5. Denise orally authorizes Shaun to sell her house. Shaun enters into a written agreement with Eric to sell him the house for $140,000. Both Shaun and Eric sign the contract. Denise learns of the agreement after the fact and decides she doesn't want to sell. If the contract is ruled unenforceable, the most likely reason is the __________ rule.
A. equal dignities
C. parol evidence
D. best evidence
6. Stan contracts to sell his house to Bonnie for $150,000. Stan then finds a buyer who will pay $200,000 and tells Bonnie he won't perform. Bonnie wants to make Stan honor his contract. The remedy she should seek is
A. consequential damages.
B. specific performance.
C. compensatory damages.
D. punitive damages.
7. Under tenant Lester's lease contract with landlord Mary, Lester must pay an extra $25 if his rent is more than five days late. This is an example of __________ damages.
8. Jack and Jane formed a contract in which Jack agreed to sell Jane a large amount of apples. Jack knew that Jane planned to resell the apples at the farmers' market the following weekend. Jack failed to deliver the apples as promised. Jane will most likely be able to recover
A. both nominal and punitive damages.
B. punitive damages only.
C. both compensatory and consequential damages.
D. compensatory damages only.
9. Kevin, a world-renowned violinist, agrees to play at the reception for Jay's wedding. Something comes up at the last minute, and Kevin delegates his duty to perform to Susan, a mediocre but professional violinist. This delegation is
A. permissible if Kevin also assigns to Susan the right to be paid for playing.
D. permissible if Susan performs well
10. Tom and Zeke go out to a restaurant for dinner. Tom orders a steak, and Zeke orders lasagna. After they've finished eating, they pay their bill. Assuming all parties performed in the order they were required to under this contract, which of the following is true?
A. There was no contract.
B. Service and payment were conditions concurrent.
C. Service was a condition precedent to payment.
D. Payment was a condition precedent to service
11. Which of the following is an example of discharge by operation of law?
A. Xavier agrees to paint Rita's house for $1,000. Rita later tells Xavier that she won't pay him. As a result, Xavier decides not to paint.
B. Xavier agrees to paint Rita's house for $1,000. Xavier paints, but before Rita pays him, she files bankruptcy. As a result, Xavier doesn't get paid.
C. Xavier agrees to paint Rita's house for $1,000. Before Xavier can paint, Rita's house burns down.
D. Xavier agrees to paint Rita's house for $1,000. Rita changes her mind and asks Xavier not to paint. Xavier agrees.
12. Coretta and Mary find a property to purchase. They sign a written agreement that states the agreed-on price, closing date, and items that are to stay in the house. They forget to include the washer and dryer in the agreement, but the seller tells them he will leave them if they want them. Right before closing, they walk through the property and find that the washer and dryer have been removed. They purchase the property and sue the seller for not leaving the washer and dryer. Coretta and Mary most likely
A. will win based on the seller's representation when they looked at the property.
B. won't win based on the statute of limitations.
C. won't win based on the parol evidence rule.
D. won't win based on the statute of frauds
13. Bella and Connie are struggling to find jobs. They decide they want to open a child daycare center together. They see a house in the perfect neighborhood with a "For Sale by Owner." They talk to the owner, reach an agreement, and shake hands. Just before the closing on the house, at which they'll take ownership of the house, the owner decides not to sell to Bella and Connie. They tell the owner they're going to sue him for breach of contract. Bella and Connie most likely
A. will win because the owner breached his agreement to sell them the house.
B. won't win because they shouldn't have entered into an oral contract to buy the house.
C. won't win because they can find another house that will work just as well.
D. will win because the owner shouldn't have entered into a contract with them if he wasn't sure he wanted to sell the house.
14. Candice hires Otto to work as a tax preparer in Candice's tax return business. The employment contract restricts the ability of Otto to set up a competing business or engage in tax preparation services if Otto leaves Candice's employ. Otto discovers he likes this kind of work and wants to set up his own tax return business. He asks you whether the restrictions in his contract with Candice will be enforceable. You should tell him that
A. any restriction regarding employment will be enforceable as long as there was adequate consideration.
B. any restriction regarding employment is unenforceable as against public policy.
C. restrictive covenants regarding future employment will be enforceable if they're reasonable.
D. restrictive covenants regarding future employment will be enforceable if the value of the consideration given for the covenant equals the value of the income loss that would be caused by enforcing the agreement.
15. Jordan is charged with a crime, and Jeff is chosen to be on the jury. Jordan offers to pay Jeff $500 if he votes not guilty. Jeff does so, but Jordan refuses to pay. Jeff sues Jordan for breach of contract. Jeff will
A. win because of the statute of frauds.
B. lose because the contract is against public policy.
C. lose because the contract is usurious.
D. win because Jordan materially breached.
16. Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is
A. enforceable because all necessary elements are met.
B. unenforceable because all necessary elements aren't met.
C. unenforceable because of the parol evidence rule.
D. unenforceable because of the statute of frauds
17. Collin purchases a house, using a loan from Big Bank. As a condition of the loan, Big Bank requires that Collin purchase life insurance payable to Big Bank, to the extent of the outstanding mortgage, if Collin dies before fully paying the mortgage. Big Bank is
A. both a creditor beneficiary and a donee beneficiary.
B. an incidental beneficiary but not a donee beneficiary.
C. an intended beneficiary but not a donee beneficiary.
D. a creditor beneficiary but not a donee beneficiary.
18. Will contracts with Grace to sell her 100 lamps for $1,000. Will breaches his contractual duty to deliver the lamps, and Grace buys 100 lamps for $2,000 from another dealer. Grace sues Will for breach of contract. She will most likely receive what type of damages?
A. Nominal damages of $100
B. Consequential damages of $3,000
C. Compensatory damages in the amount of $1,000
D. Compensatory damages in the amount of $2,000
19. Horatio agrees to paint Stella's house for $1,000. Horatio fails to paint, and Stella hires Winston to paint the house for $1,000. Stella sues Horatio for breach of contract. Stella likely will receive __________ damages.
20. Which of the following is an example of discharge by impossibility?
A. Jason agrees to paint Sheila's house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees.
B. Jason agrees to paint Sheila's house for $1,000. Sheila later tells Jason that she won't pay him. As a result, Jason decides not to paint.
C. Jason agrees to paint Sheila's house for $1,000. Before Jason can paint, Sheila's house burns down.
D. Jason agrees to paint Sheila's house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn't get paid.