Contracts MCQs

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Carson Corp., a retail chain, asked Alto Construction to fix a broken window at one of Carson’s stores. Alto offered to make the repairs within th...






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On September 10, Harris, Inc., a new car dealer, placed a newspaper advertisement stating that Harris would sell ten cars at its showroom for a spec...






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On June 15, Peters orally offered to sell a used lawn mower to Mason for $125. Peters specified that Mason had until June 20 to accept the offer. On...






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Calistoga offers to sell her home to Drake for $300,000. Drake asks her if she would accept $250,000. Which of the following is true?






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Opal offered, in writing, to sell Larkin a parcel of land for $300,000. If Opal dies, the offer will






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On April 1, Fine Corp. faxed Moss an offer to purchase Moss’ warehouse for $500,000. The offer stated that it would remain open only until April 4...






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On February 12, Harris sent Fresno a written offer to purchase Fresno’s land. The offer included the following provision: “Acceptance of this of...






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Kay, an art collector, promised Hammer, an art student, that if Hammer could obtain certain rare artifacts within two weeks, Kay would pay for Hamme...






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On September 27, Summers sent Fox a letter offering to sell Fox a vacation home for $150,000. On October 2, Fox replied by mail agreeing to buy the ...






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Wick Company made a contract in writing to hire Zake for five years for $150,000 per year. After two years, Zake asked Wick for a raise of $20,000 p...






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Grove is seeking to avoid performing a promise to pay Brook $1,500. Grove is relying on lack of consideration on Brook’s part. Grove will prevail ...






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Dunne and Cook signed a contract requiring Cook to rebind 500 of Dunne’s books at $0.80 per book. Later, Dunne requested, in good faith, that the ...






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In which of the following situations does the first promise serve as valid consideration for the second promise?






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Which of the following will be legally binding despite lack of consideration?






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Rail, who was sixteen years old, purchased an $800 computer from Elco Electronics. Rail and Elco are located in a state where the age of majority is...






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Green was adjudicated incompetent by a court having proper jurisdiction. Which of the following statements is correct regarding contracts subsequent...






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All of the following are effective methods of ratifying a contract entered into by a minor except






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Under a personal services contract, which of the following circumstances will cause the discharge of a party’s duties?






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Which of the following would be unenforceable because the subject matter is illegal?






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Which of the following, if intentionally misstated by a seller to a buyer, would be considered a fraudulent inducement to make a contract?






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If a buyer accepts an offer containing an immaterial unilateral mistake, the resulting contract will be






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If a person is induced to enter into a contract by another person because of the close relationship between the parties, the contract may be voidabl...






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Long purchased a life insurance policy with Tempo Life Insurance Co. The policy named Long’s daughter as beneficiary. Six months after the policy ...






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Petersen went to Jackson’s home to buy a used car advertised in the newspaper. Jackson told Petersen that “it is a great car” and that “the ...






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A building subcontractor submitted a bid for construction of a portion of a high-rise office building. The bid contained material computational erro...






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Maco, Inc. and Kent contracted for Kent to provide Maco certain consulting services at an hourly rate of $20. Kent’s normal hourly rate was $90 pe...






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To prevail in a common law action for fraud in the inducement, a plaintiff must prove that the






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On June 1, 2010, Decker orally guaranteed the payment of a $5,000 note Decker’s cousin owed Baker. Decker’s agreement with Baker provided that D...






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Nolan agreed orally with Train to sell Train a house for $100,000. Train sent Nolan a signed agreement and a down payment of $10,000. Nolan did not ...






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Cherry contracted orally to purchase Picks Company for $1,500,000 if it is profitable for one full year after the making of the oral contract. An au...






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Which of the following statements is true with regard to the Statute of Frauds?






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Carson agreed orally to repair Ives’ rare book for $450. Before the work was started, Ives asked Carson to perform additional repairs to the book ...






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Landry Company contracted orally with Newell to pay her $50,000 for the completion of an ethics audit of Landry Company. The report is to span a per...






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Rogers and Lennon entered into a written computer consulting agreement that required Lennon to provide certain weekly reports to Rogers. The agreeme...






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Joan Silver had viewed some land that she wished to purchase. It was offered for sale by Daniel Tweney over the Internet for $200,000. Silver believ...






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One of the criteria for a valid assignment of a sales contract to a third party is that the assignment must






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Your client, Bugle, owns a parking lot near downtown San Francisco. One day Bugle is excited because he learns that Fargo, who owns a parking lot ne...






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Baxter, Inc. and Globe entered into a contract. After receiving valuable consideration from Clay, Baxter assigned its rights under the contract to C...






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Mackay paid Manus $1,000 to deliver a painting to Mackay’s friend Mann. When they met and signed the contract, Mackay said she wanted the painting...






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Ferco, Inc. claims to be a creditor beneficiary of a contract between Bell and Allied Industries, Inc. Allied is indebted to Ferco. The contract bet...






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Parc hired Glaze to remodel and furnish an office suite. Glaze submitted plans that Parc approved. After completing all the necessary construction a...






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Which of the following actions if taken by one party to a contract generally will discharge the performance required of the other party to the contr...






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Which of the following actions will result in the discharge of a party to a contract? Prevention of performance . . . Accord and satisfaction






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To cancel a contract and to restore the parties to their original positions before the contract, the parties should execute a






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Ordinarily, in an action for breach of a construction contract, the statute of limitations time period would be computed from the date the






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Kaye contracted to sell Hodges a building for $310,000. The contract required Hodges to pay the entire amount at closing. Kaye refused to close the ...






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Ames Construction Co. contracted to build a warehouse for White Corp. The construction specifications required Ames to use Ace lighting fixtures. In...






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Master Mfg., Inc. contracted with Accur Computer Repair Corp. to maintain Master’s computer system. Master’s manufacturing process depends on it...






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Nagel and Fields entered into a contract in which Nagel was obligated to deliver certain goods to Fields by September 10. On September 3, Nagel told...






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Maco Corp. contracted to sell 1,500 bushels of potatoes to LBC Chips. The contract did not refer to any specific supply source for the potatoes. Mac...