Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In an email, however, the firm’s sales representative mistakenly offers to sell the beef to Steak House for $1,000. Steak’s manager immediately accepts. The seller:

Is bound to the deal at the offered price.

Is bound to the deal but can change the intended price.

Can rescind the deal and recover damages for the mistake.

Ben enters a contract to buy a classic car, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is (mistake of value), Ben is:

Not liable because he underestimated the cost of repairs.

Not liable because he made a mistake of value.

Not liable because the need for repair is not a material fact.

Owen, an employee of Plumbing LLC, makes a substantial math mistake in totaling the estimated costs for a project for which Quality Built Inc. is seeking bids. Consequently, Plumbing’s bid is significantly low. Any contract with Quality Built that includes the mistake may be rescinded:

If Quality Built knew or should have known of the mistake.

If Owen’s supervisor did not know of the mistake.

If Owen’s calculator didn’t work properly.

Air Flo Inc. and Banyan Grove Apartments enter into an oral contract in which Air Flo agrees to provide air-conditioning and heating maintenance for Banyan Grove's facilities for two years. This contract is enforceable by:

Any third party, such as an HVAC supplies provider.

Elena offers to invest a certain amount in Fred’s business if Fred marries Elena’s daughter, Gloria. This promise is enforceable:

Only if the amount of the investment is more than $500.

Only if Gloria agrees to marry Fred.

Hardware Store Company and Indestructible Tools Inc. sign a written contract for a sale of goods. To be enforceable, this written contract must include:

A quantity term, such as “50 hammers.”

A correct title, such as “Purchase Order.”

A date, such as “October 2023.”

The parties’ contact information.

To be enforceable, a contract that is required to be in writing must include:

The signature of the party against whom enforcement is sought.

The signatures of all of the parties to the agreement.

The signature of the party who is seeking enforcement.

Randy agrees to sell his Taco Hut restaurant to Sally. The parties intend their written contract to be a complete and final statement of the terms of their agreement. Later, the parties dispute some of the provisions. In litigation, Sally offers evidence to contradict the written terms. Most likely, the court will:

Reform the written terms to match the evidence.

Strike a balance between the evidence and the written terms.

Frank makes and sells camping gear. Frank and Greg enter into a contract for a delivery of the gear to Greg’s Outfitters retail locations for an invoiced price. Frank transfers the right to payment under the contract to Haulers Distribution Inc. This transfer is:

A third party beneficiary contract.

Jan is obligated under a contract to pay Katie $500. Katie assigns the right to receive the funds to Lauren. If Jan does not pay the debt, the obligee (Lauren) can:

Extinguish the contract rights of the obligor.

Demand performance of the deal from any of the original parties.

Retail LLC contracts with Paving Inc. to pave a parking lot. The contract provides that it cannot be assigned without Retail’s consent. Later, Paving assigns the contract to Roadwork Company without obtaining Retail’s consent. Retail could most successfully argue that the contract cannot be assigned because:

The contract prohibits assignment.

The assignment is prohibited by statute.

The assignment will materially change the risk.

In a state in which a statute prohibits an employee from assigning the right to receive workers’ compensation benefits, the employee can assign the right:

If all interested parties consent.

If the employee is fully advised of his rights.

If there is no significant change to the obligor’s risk or duties.

Ellen owes Floyd $10,000. Floyd assigns the claim to Garry. Garry does not notify Ellen of the assignment. Later, Floyd assigns the same claim to Holly. Holly immediately notifies Ellen of the assignment. Holly has priority to payment in:

States that follow the English rule.

ACCT 2700 Exam 4

Authored by Jameson Gross

Business

University

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MULTIPLE CHOICE QUESTION

30 mins • 1 pt

A contract that has all four required elements (A-C-C-L) is not enforceable if the parties have not genuinely agreed to its terms. True or False?

True

False

MULTIPLE CHOICE QUESTION

30 mins • 1 pt

If there is a unilateral mistake about a material fact, there is still voluntary consent by the parties and the contract will generally be enforceable. True or False?

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

When both parties to a contract are mistaken about the same material fact, a bilateral mistake has occurred. True or False?

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

If a contractor’s bid was significantly low because he made an inadvertent mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable. True or False?

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Mistakes of value or quality will entitle the mistaken party to rescind the contract. True or False?

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not true. True or False?

True

False

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Undue influence can arise from a confidential relationship or a relationship based on trust. True or False?

True

False

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ACCT 2700 Exam 4

A contract that has all four required elements (A-C-C-L) is not enforceable if the parties have not genuinely agreed to its terms. True or False?

If there is a unilateral mistake about a material fact, there is still voluntary consent by the parties and the contract will generally be enforceable. True or False?

When both parties to a contract are mistaken about the same material fact, a bilateral mistake has occurred. True or False?

If a contractor’s bid was significantly low because he made an inadvertent mistake in adding up the total estimated costs, any contract resulting from the bid is still normally enforceable. True or False?

Mistakes of value or quality will entitle the mistaken party to rescind the contract. True or False?

For purposes of fraudulent misrepresentation, scienter clearly exists if a party asserting a fact knows it is not true. True or False?

Undue influence can arise from a confidential relationship or a relationship based on trust. True or False?

Forcing a party to enter into a contract under the fear of threats constitutes duress. True or False?

Restaurant Food Inc. intends to sell a certain quantity of beef for $1,100. In an email, however, the firm’s sales representative mistakenly offers to sell the beef to Steak House for $1,000. Steak’s manager immediately accepts. The seller:

Ben enters a contract to buy a classic car, believing that it is worth more than the price asked. When the car proves to need more repairs than Ben estimated, and thus is worth less as is (mistake of value), Ben is:

Access all questions and much more by creating a free account

Popular Resources on Wayground

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