BLAW EXAM 4
1. CPA QUESTION Two individuals signed a contract that was intended to be their entire agreement. The
Parol evidence rule will prevent the admission of evidence offered to:
(a) Explain the meaning of an ambiguity in the written contract
(b) Establish that fraud had been committed in the formation of the contract
(c) Prove the existence of a contemporaneous oral agreement modifying the contract (d) Prove the
existence of a subsequent oral agreement modifying the contract - correct answer ✔✔: C. The rule
prevents reliance on any oral agreements made while signing the integrated written contract. CPA
Examination, November 1991, #23.
. Raul wants to plant a garden, and he agrees to buy a small piece of land for $300. Later, he agrees to
buy a table for $300. Neither agreement is put in writing. The agreement to buy the land ____________
enforceable, and the agreement to buy the table ____________ enforceable.
(a) is; is
(b) is; is not
(c) is not; is
(d) is not; is not - correct answer ✔✔C
. The common law statute of frauds requires that to be "in writing" an agreement must be signed by....
(a) the plaintiff
(b) the defendant
(c) both A and B
(d) none of the above - correct answer ✔✔B
Mandy verbally tells a motorcycle dealer that she will make her son's motorcycle payments if he falls
behind on them. Will Mandy be legally required to live up to this agreement?
(a) Yes, absolutely.
(b) Yes, if her son is under 18.
, (c) Yes, if Mandy will be the primary driver of the motorcycle. (d) Yes, if the motorcycle is worth less than
$500.
(e) No, absolutely not. - correct answer ✔✔C. If Mandy drives the motorcycle, she can be held to this
oral agreement because she benefits from the "leading object," the motorcycle
. In December 2012, Eric hires a band to play at a huge graduation party he is planning to hold in May,
2014. The deal is never put into writing. In January 2014, if he wanted to cancel the job, Eric
_____________ be able to do so. If he does not cancel, and if the band shows up and plays at the party
in May, 2014. Eric ______________ have to pay them.
(a) will; will
(b) will; will not
(c) will not; will
(d) will not; will not - correct answer ✔✔A
1. CPA QUESTION: Nagel and Fields entered into a contract in which Nagel was obligated to deliver
certain goods by September 10. On September 3, Nagel told Fields that he had no intention of delivering
the goods. Prior to September 10, Fields may successfully sue Nagel under the doctrine of:
(a) promissory estoppel
(b) accord and satisfaction
(c) anticipatory breach
(d) substantial performance - correct answer ✔✔C. CPA Examination, November 1989, #19
2. Most contracts are discharged by:
(a) agreement of the parties
(b) full performance
(c) failure of conditions
(d) commercial impracticability (e) a material breach - correct answer ✔✔B
3. If a contract contains a condition precedent, the ____ has the burden of proving that the condition
actually happened. If a condition subsequent exists, the ____ has the burden of showing that the
condition occurred.
(a) plaintiff; plaintiff
1. CPA QUESTION Two individuals signed a contract that was intended to be their entire agreement. The
Parol evidence rule will prevent the admission of evidence offered to:
(a) Explain the meaning of an ambiguity in the written contract
(b) Establish that fraud had been committed in the formation of the contract
(c) Prove the existence of a contemporaneous oral agreement modifying the contract (d) Prove the
existence of a subsequent oral agreement modifying the contract - correct answer ✔✔: C. The rule
prevents reliance on any oral agreements made while signing the integrated written contract. CPA
Examination, November 1991, #23.
. Raul wants to plant a garden, and he agrees to buy a small piece of land for $300. Later, he agrees to
buy a table for $300. Neither agreement is put in writing. The agreement to buy the land ____________
enforceable, and the agreement to buy the table ____________ enforceable.
(a) is; is
(b) is; is not
(c) is not; is
(d) is not; is not - correct answer ✔✔C
. The common law statute of frauds requires that to be "in writing" an agreement must be signed by....
(a) the plaintiff
(b) the defendant
(c) both A and B
(d) none of the above - correct answer ✔✔B
Mandy verbally tells a motorcycle dealer that she will make her son's motorcycle payments if he falls
behind on them. Will Mandy be legally required to live up to this agreement?
(a) Yes, absolutely.
(b) Yes, if her son is under 18.
, (c) Yes, if Mandy will be the primary driver of the motorcycle. (d) Yes, if the motorcycle is worth less than
$500.
(e) No, absolutely not. - correct answer ✔✔C. If Mandy drives the motorcycle, she can be held to this
oral agreement because she benefits from the "leading object," the motorcycle
. In December 2012, Eric hires a band to play at a huge graduation party he is planning to hold in May,
2014. The deal is never put into writing. In January 2014, if he wanted to cancel the job, Eric
_____________ be able to do so. If he does not cancel, and if the band shows up and plays at the party
in May, 2014. Eric ______________ have to pay them.
(a) will; will
(b) will; will not
(c) will not; will
(d) will not; will not - correct answer ✔✔A
1. CPA QUESTION: Nagel and Fields entered into a contract in which Nagel was obligated to deliver
certain goods by September 10. On September 3, Nagel told Fields that he had no intention of delivering
the goods. Prior to September 10, Fields may successfully sue Nagel under the doctrine of:
(a) promissory estoppel
(b) accord and satisfaction
(c) anticipatory breach
(d) substantial performance - correct answer ✔✔C. CPA Examination, November 1989, #19
2. Most contracts are discharged by:
(a) agreement of the parties
(b) full performance
(c) failure of conditions
(d) commercial impracticability (e) a material breach - correct answer ✔✔B
3. If a contract contains a condition precedent, the ____ has the burden of proving that the condition
actually happened. If a condition subsequent exists, the ____ has the burden of showing that the
condition occurred.
(a) plaintiff; plaintiff
