Contract Law Final Part 2

Lending money at a higher rate than a state's maximum rate is:

• overcharging

• interest gouging

• usury

• an unfair business practice

In divisible contracts, separate consideration is given for the legal and illegal parts.

• True

• False

When a court decides that a contract is illegal because it is unfair, it holds the power to alter it to make it fair.

• True

• False

In most states persons engaged in trade occupations such as barbers, plumbers, and electricians, must first obtain a:

• workman's license

• competency license

• revenue license

• repairman's license

A ________ is a fiction created by the law to allow the enforcement of a contractual remedy where justice alone warrants such a remedy.

• revenue license

• quasi-contract

• legal-entity

• parol contract

Words spoken prior to the execution of a the final writing or at the signing of a contract are considered to be:

• an oral agreement

• parol evidence

• restrained evidence

• excited utterances

In determining if a breach of contract is major or minor, a court will determine the significance of the breach in relation to the rest of the contract.

• True

• False

________ discharges a contractual obligation for personal services that cannot be fulfilled due to the permanent disability of the service provider.

• Tender of performance

• Operation of law

• Subsequent agreement

• Impossibility of performance

Punitive damages are designed only to be token damages.

• True

• False

In contract law, a condition subsequent specifies something that must happen or a contractual performance that need no longer be required or enforceable.

• True

• False