Contract Law Exam

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FINAL EXAMINATION

CONTRACTS- FIU

August 3rd, 2020

J. ANKUS, J.D.

Instructions: Take a deep breath, exhale, take another, and exhale. Relax. This is an open book and open note exam

which covers the whole course. Take your time, read the questions carefully, and think about your answers. There

are a total of 20 questions. Each one is worth 5 points apiece. FIU Honor Code applies at all times. I will miss all of

you and never forget our experience. May you all be safe and healthy and if you can buy a piece of Elvis’ chewed

gum for a reasonable price, let me know.

1. What are some examples of equitable remedies?

A. Injunctions, specific performance, reformation and recission

B. Time is of the essence, mailbox rule, capacity and estoppel

C. Parol evidence, undue influence, counteroffer and consideration

D. None of the above

2. Quantum Meruit means “not as much as merited” True or False

3. What does “FOB” stand for in a shipping contract?

A. Free On Board

B. Freight Onto Board

C. Freight Over Board

D. Free Over Board

4. A person who is over the age of full legal rights and duties is best called:

A. A minor

B. An adult

C. An offeror

D. An offeree

5. If you don’t understand all of the terms and conditions of a contract you are supposed to sign, then:

A. Sign the contract and know that you will always be able to set it aside later on grounds of fraud.

B. Sign the contract and know that you will always be able to persuade a judge to rule in your favor.

C. Do not sign the contract until you understand exactly what you are signing.

D. A or B but not C.

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6. A mistake in a contract is best described as:

A. An intentional error or act

B. An unintentional error or act

C. Mutual assent

D. Value of consideration

7. When there is a conflict between an express condition and an implied condition in a contract, the:

A. Express condition takes priority.

B. Implied condition takes priority.

C. Express condition is given the same weight as the implied condition.

D. The amount of consideration alone will determine whether or not there is capacity of the parties.

8. Why do we favor using “Plain English” to interpret contracts:

A. To help provide consideration to support a contract between two individuals

B. To encourage fraud and misrepresentation among financial institutions.

C. To assist readers in understanding and interpretation of its provisions.

D. To assist business to avoid having to pay state taxes

9. Which statement is MOST true?

A. Fraud is always an intentional act

B. Void agreements are almost always enforceable

C. Offers are only properly accepted in writing or by email

D. An offer can be withdrawn after it is accepted

10. Must an offeree communicate an acceptance to the offeror? What is the best answer:

A. Yes and the acceptance must be in the manner specified by the offeror which may be verbal, in writing

or otherwise.

B. Yes provided it is only done by electronic means or by text message.

C. No, there is no need to communicate an acceptance ever.

D. A and C only.

11. When an offer has been properly rejected, it also most likely creates:

A. The power of acceptance.

B. The possibility of a counteroffer.

C. The possibility of a unilateral mistake.

D. The power of mutual mistake.

12. Estoppel is a legal concept that often substitutes for:

A. Consideration

B. Sole Proprietorship

C. Duress

D. Specific Performance

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13. If you want to use a Latin phrase to denote a choice of law provision in a contract, you’d most likely call it a:

A. Res Ipsa Loquitur clause

B. Quantum Valebant clause

C. Quantum Meruit clause

D. Lex Voluntatis clause

14. Where do we most often see the usage of a “time is of the essence clause” and the remedy of specific

performance?

A. In contracts involving the sale of real estate.

B. In contracts involving the sale of bottled water.

C. In contracts for the purchase of a new car.

D. All of the above.

15. “What the BIG print generally gives in a contract, the ___________ print generally takes away!”

A. Bolder

B. Smaller

C. Clearer

D. Underlined

16. Oscar Odd calls Frank Enfurter and offers to buy his hot dog grilling machine for $250. He tells Frank, “if you

want to accept my offer, you need to paint a picture of a hot dog on the side of your house. Once I see it, I

will come over and give you $250 cash for the hot dog grilling machine. How can Frank best accept this

offer?

A. By painting a picture of a hot dog on the side of Frank’s house.

B. By painting a hotdog on the side of Oscar’s house.

C. By calling Oscar back and saying “I accept”.

D. None of the above

17. Richie’s Grandpa had told him many times, that when he passed away, that Richie, then 28 years old, would

be left his antique car in his will. Richie went a local body shop, told the owner that he expected to be left

an antique car when his grandfather passed away. Richie then signed a written contract to restore the car

to its original condition. The contract called for Richie to pay $10K to the body shop once the work was

completed. When Grandpa passed, Richie found out that Grandpa had actually left the car to Richie’s

brother, Itchy- who had no idea he would inherit the car. The body shop wants to sue Richie for breach of

contract. Richie’s best defense is to:

A. Claim there is fraud on the part of the body shop.

B. Show the body shop that the condition precedent was not met.

C. Tell the body shop owner to sue Itchy for fraud.

D. Tell the body shop Richie lacked capacity to sign the contract because he was a minor.

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18. “Confirmation and acceptance of a previous act done by you or another person” is not usually described as:

A. Ratification

B. Termination

C. Extension

D. B and C only

19. “When a written contract embodies the entire agreement between the parties, no oral testimony will be

permitted to modify or change the written agreement” best summarizes:

A. The Parol Evidence Rule

B. Mutual Assent

C. Mutual Mistake

D. Mailbox Rule

20. The ability to do something such as make a rational decision about a business transaction is best defined as:

A. Capacity

B. Condition Subsequent

C. Statute of Frauds

D. Mistake