Chapter 20 Practical Contracts and the Lawyer

In the case of a typo, a court will reform a contract if there is clear and convincing evidence that the

alleged mistake does not actually reflect the true intent of the parties.

• True

• False

In business law, a lawyer’s primary job is to represent the client in contract litigation.

• True

• False

“Scrivener’s error” is another (fancier) name for a typo.

• True

• False

Contracts must use formal terminology such as "whereas" and "heretofore" in order to be legal.

• True

• False

You should hire a lawyer to review any legal papers you have to sign, especially such papers as lease agreements

or car purchases.

• True

• False

A contract should have a descriptive title, which is generally in all capital letters, underlined and centered at the

top of the page.

• True

• False

Emily runs a children’s clothing boutique that takes in local homemade items on a consignment basis. Her

standard form contract indicates that Emily has the right to put items on sale without prior approval, but does not

specify what effect the sale has on the consignor’s payment percentage. Her intent is to keep the same profit

she would have had without the sale. She is using ambiguity in her contract to increase her sales and profit.

• True

• False

Ricardo has agreed to sell his family farm to Walter for a price of $450,000. Even though both sides agree on the

terms, it is still worth the money for Ricardo to hire a lawyer to write the contract.

• True

• False

It is unethical to use your lawyer as an excuse for a provision of a contract, such as, “My lawyer insists that I

have a liquidated damages clause.”

• True

• False

Some contracting parties are intentionally vague in contract terms.

• True

• False