1. Which of the following is an example of discharge by impossibility?
A. Jason agrees to paint Sheila’s house for $1,000. Sheila later tells Jason that she won’t pay him. As a result, Jason decides not to paint. B. Jason agrees to paint Sheila’s house for $1,000. Before Jason can paint, Sheila’s house burns down. C. Jason agrees to paint Sheila’s house for $1,000. Jason paints, but before Sheila pays him, she files bankruptcy. As a result, Jason doesn’t get paid. D. Jason agrees to paint Sheila’s house for $1,000. Sheila changes her mind and asks Jason not to paint. Jason agrees.
2. Sara purchases life insurance on her own life and makes her husband, Dean, the beneficiary. Sara dies. Dean applies to the insurance company for payment of the proceeds. The insurance company denies payment, pointing out that Dean didn’t sign the contract and therefore doesn’t have privity of contract. Dean is
A. not entitled to the proceeds because he doesn’t have privity of contract. B. entitled to the proceeds as an intended beneficiary.
C. entitled to the proceeds as an incidental beneficiary.
D. entitled to the proceeds because he was married to Sara.
4. Warren agrees to paint Abby’s restaurant for $1,000. Warren fails to paint. Abby may be entitled to punitive damages if
A. Abby has to pay substantially more than $1,000 for someone else to perform the job.
B. the contract breached was both written and witnessed.
C. Warren doesn’t know how to paint, misrepresented himself as a painter, and never intended to paint.
5. Robert contracts to paint Jake’s house for $500. Robert then asks Elmer to perform the painting work for him. Elmer does a bad job, and Jake wants to sue for breach of contact. Which of the following is true?
A. Robert is responsible for the breach of the contract only if there has been a novation. B. Robert isn’t responsible if he gave Jake notice of the delegation.
C. Robert is responsible for the breach of the contract.
D. Elmer, but not Robert, is responsible for the breach.
9. Kevin, a world-renowned violinist, agrees to play at the reception for Jay’s wedding. Something comes up at the last minute, and Kevin delegates his duty to perform to Susan, a mediocre but professional violinist. This delegation is
A. permissible if Kevin also assigns to Susan the right to be paid for playing. B. impermissible.
D. permissible if Susan performs well.
11. Which of the following acts is designed to cut down on identity theft related to the use of credit cards?
A. Fair and Accurate Credit Transactions Act
B. Uniform Computer Information Transactions Act C. Uniform Electronic Transactions Act
D. E-Sign Act
13. Stan contracts to sell his house to Bonnie for $150,000. Stan then finds a buyer who will pay $200,000 and tells Bonnie he won’t perform. Bonnie wants to make Stan honor his contract. The remedy she should seek is
A. compensatory damages. B. specific performance.
C. punitive damages.
D. consequential damages.
14. On June 29, Henry contracts to purchase American flags, which Henry intends to sell at the annual Fourth of July fireworks event, from Liz. The contract doesn’t specify a delivery date. Liz delivers the flags on July 7. Henry sues for breach of contract. Which of the following will most likely happen?
A. Liz will win because the contract didn’t specify a delivery date. B. Henry will win because of the equal dignities rule.
D. Henry will win because of the standard construction rule.
16. A substitution, by mutual agreement, of a new party for one of the original parties to a contract is called a
B. complete performance. C. condition concurrent.
17. Which of the following is an example of discharge by operation of law?
A. Xavier agrees to paint Rita’s house for $1,000. Xavier paints, but before Rita pays him, she files bankruptcy. As a result, Xavier doesn’t get paid. B. Xavier agrees to paint Rita’s house for $1,000. Before Xavier can paint, Rita’s house burns down. . D. Xavier agrees to paint Rita’s house for $1,000. Rita later tells Xavier that she won’t pay him. As a result, Xavier decides not to paint.
18. Danielle purchases life insurance on her own life with Big Life Insurance and makes her husband, Walter, the beneficiary. Which of the following statements is true?
A. Walter is a donee beneficiary.
B. Big Life Insurance is a creditor beneficiary.
C. Danielle is an intended third-party beneficiary.
D. Danielle is a donee beneficiary. 20. Jessica orally agrees that she will sell 400 pairs of flip-flops to a customer for $600. This agreement is
A. unenforceable because of the statute of frauds.
C. unenforceable because of the parol evidence rule.
D. unenforceable because all necessary elements aren’t met.