6 Contract enforcable

Which of the following statements is TRUE? In a standard form contract

• A)  a court will interpret the contract in favour of the party that wrote it if there is confusion

• B)  a company does not have to point out any unusual terms if the contract is made between two companies

• C)  consumers must beware and carefully read all the terms as the court will not protect them if they did not notice a disclaimer clause

• D)  lawyers for both sides usually negotiate all the terms

• E)   signatures cannot be done electronically, only in person

In interpreting a contract, the court does NOT consider which of the following factors?

• A)   the ordinary meaning of the words used

• B)   other provisions in the contract

• C)   the true intention of the parties

• D)   the length of the contract

• E)    the normal terms used in that industry

The parol evidence rule:

• A)   Absolutely bars all oral evidence relating to additional terms of a contract.

• B)   Creates a presumption that the written document contains the entire contract.

• C)   Makes oral statements govern over written ones.

• D)   Can be used to imply (add) terms to a contract.

• E)    Is a provision in the Statute of Frauds

Which of the following would a company put in a standard form contract to try and prevent the court from making an exception to the parol evidence rule?

• A)   an entire agreement clause

• B)   a disclaimer clause

•       C)   a limitation clause

•   D)   an exemption clause

•   E)   all of the above could achieve that result

The test for when a court can add an implied term into a contract is the

• A)   subjective assessment test

• B)   objective assessment test

• C)   reasonable person test

• D)   beyond reasonable doubt test

• E)    officious bystander test

Carla Wolfe orders some inventory from Supplex Co. Carla calculates that if Supplex is late in delivery, she will lose about $100 a day in profits. They agree to specify in the purchase order that Supplex will pay Carla $100 a day if late. What is this clause called?

• A)   Penalty clause

• B)   Liquidated damages clause

• C)   Pre-estimated clause

• D)   Guarantee clause

• E)    Defeasance clause

Another name for an exemption clause is:

• A)   An entire agreement clause.

• B)   A disclaimer

• C)   A venue clause

• D)   A liquidated damages clause

• E)    Both C and D

Joe Kunz agrees to buy a computer from Alf Singer for $3,000, by paying six installments of $500 each. Joe gave Alf $500 as a down payment but then backs out of the deal. Alf’s loss of profit will be $1,500. Which of the following statements is TRUE?

• A)   Joe is entitled to get the $500 back.

• B)   Alf is entitled to keep the $500 and sue for the balance of the lost profit.

• C)   Alf is entitled to keep the $500, but cannot sue for the balance.

• D)   Under no circumstances can Joe ever get the down payment back.

• E)    Alf is entitled to keep the $500 and sue for all of his lost profit.

A venue clause determines which of the following

• A)  the place for a contract to be made

• B)  the place for a contract to be performed

• C)  B and C above

• D)  the place a trial over a contract dispute will take place

• E)  the place where goods are to be shipped to

Privity of contract means

• A)  only the parties that made the contract are entitled to its benefits or can sue to enforce it

• B)  all contract terms must be kept private and not shared with other parties

• C)  family members have a right to enforce contracts other family members make

• D)  employees can enforce contracts on behalf of their employers

• E)   the parties who made the contract can add on other parties to the contract later on