Contract law

Will an addendum be enforceable if all parties do not agree on the new terms and do not sign? Choose the best answer.

• No, you have to have at least half of the original parties of the contract to sign the addendum to make it enforceable.

• No, if all parties do not agree and do not sign the addendum the contract cannot be enforced.

• Yes, if at least the person who constructs the addendum signs, the addendum can be enforced.

• All of the answers are correct.

Which of the following individuals must sign and date the addendum to make it formal and legal? Choose the best answer.

• All parties who signed the contract.

• The notary.

• The writer of the addendum.

• All of the answers are correct.

Which of the following is NOT a step in creating an addendum?

• Be specific in listing the affected terms/parts of the original contract.

• Use a writing font that is consistent with the original contract.

• Include a signature block for all parties to sign, including the notary.

• Place addendum on company letterhead.

Is an addendum to a contract the same thing as an amendment of a contract?

• No, they are not the same thing even though the end results are the same.

• Yes, they are the same thing.

• It depends on the context in which you use either of them.

• They are similar, but the end results are different.

What is an addendum?

• An attached document that is submitted with a contract that lists demands that must be changed before the original contract can be signed.

• When a person who creates a contract makes changes to the contract within the original contract.

• An additional document that is signed and added to a contract that lists changed terms to the contract.

• None of the answers are correct.

Delegation occurs when a party to the contract transfers .............................

• benefits of a particular contractual duty

• responsibility and authority for a particular contractual duty

• rights and benefits of a contract

• liability of a contract

In which of the following cases will delegation generally be prohibited?

• An original party has already performed one or more duties of the contract

• The contract concerns a unique or personal performance

• The contract concerns a series of duties or performances

• Another contractual duty has already been delegated

A writer has made a deal with a publishing company which has delegated the proofing and spelling check to an outside company. The proofing company has not completed its job by the deadline and has thus cost both the writer and the publishing company a large amount of money. Who can be held legally liable in such a scenario?

• The writer can only sue the publishing company, as the proofing company has no liability

• Either the writer or the publishing company can sue the proofing company

• Only the publishing company can sue the proofing company

• Only the proofing company can sue the writer.

For a bilateral contract to be valid, there must be consideration. What is consideration?

• Conditions that take into consideration both parties' interests.

• A clause that allows the sell to back out of a signed agreement.

• Something of value like money being exchanged for something else.

• Carefully worded legal terms used to consider all parts of an agreement.

What differentiates a bilateral contract from a unilateral contract?

• In a bilateral contract, one party agrees to do something.

• In a bilateral contract, both parties agree to do something.

• In a bilateral contract, the agreed terms are not legally enforceable by either party.

• In a bilateral contract, one party enters into an agreement that is legally enforceable.