Contract Law Quiz

Lana agrees to work as Michelle’s personal assistant for one year but dies in the ninth month of the contract. Lana’s death...

• discharges the contract.

• breaches the contract.

• requires Lana’s estate to pay damages.

• suspends performance of the contract.

Michael has an expensive cable TV package. When Michael retires and begins living on a fixed income, he decides he can no longer afford his cable TV package. Michael calls his cable TV provider and says he wants to cancel. The salesperson tells Michael they can give him a “great deal,” but he has to sign a contract immediately to receive the deal. Michael feels pressured, but signs the contract without reading it first because of this time limit and because the contract has a great deal of fine print. This is an example of a(n)...

• valid contract.

• unconscionable contract.

• high-pressure sales contract.

• e-commerce contract.

Dwelling Inc. enters into a contract with Estate Management to manage and maintain Dwelling’s apartment complex. Their contract contains a clause that limits Estate’s liability except in cases of gross negligence or willful misconduct. With respect to this clause, a court would most likely...

• enforce it.

• reform it.

• refuse to enforce it.

• reallocate the risk expressed in it.

An ad for the New Plays Festival asks playwrights to submit their work and “we might produce it for the world.” Omar submits a play with a note that states, “I accept.” Between the Festival and Omar, there is...

• a contract to produce Omar’s play.

• a contract to consider producing Omar’s play.

• a contract to negotiate with Omar to produce the play.

• no contract.

Commercial Rebuild LLC enters into a contract to remodel Dockside Marina, agreeing to use only products from Eagle Supplies. Halfway through the project, Commercial refuses to finish the job. The contract can be enforced against Commercial by...

• Dockside only.

• Eagle only.

• Dockside or Eagle.

• any interested third party, including a contracting party’s employee.

Industrial Solvents Inc. averages $15,000 profit per day before deciding to ignore air pollution standards, after which the average is $30,000. Industrial Solvents is subject to a fine of...

• $0.

• $15,000 per day.

• $30,000 per day.

• $30,000 total.

Noxious Inc. makes and sells pesticides. If a substance is identified as harmful and the harm is imminent, the Environmental Protection Agency can...

• conduct an inspection of the maker’s plant.

• declare the substance to be unregulated and allow its production.

• ignore the risk if the benefit outweighs the harm.

• order the substance to be sold in an adulterated form.

County Title Company processes information furnished by others to transfer title to real estate from Dali to Ezra. The furnished information is mistaken. The contract between Dali and Ezra may be rescinded because the mistake...

• is about a material fact.

• is subject to only one interpretation.

• was avoidable.

• affects a third party.

Pablo, a minor, enters into a contract to buy two all-season passes from Chalet Ski Park. The contract will be made enforceable if Pablo...

• ratifies it.

• disaffirms it.

• nullifies it.

• voids it.

Reed agrees to sell his Sports Equipment store to Jantae. As part of the sale, Reed promises not to open a similar, competing store anywhere. This promise is most likely...

• invalid because it is part of a sale of an ongoing business.

• invalid because of the unreasonable terms of area and time.

• valid because it is part of a sale of an ongoing business.

• valid if both parties are justifiably ignorant of the facts.