BUL 4421 FINAL EXAMS WITH VERIFIED QUESTIONS
AND CORRECT ANSWERS
________ of parties is not usually relevant under objective theory of contracts - ANSWERS-
subjective intent
"accord" = - ANSWERS-new agreement to pay less than creditor claims is owed
"satisfaction" = - ANSWERS-debtor's payment of a reduced amount
(t or f) a married minor is not considered emancipated - ANSWERS-false; married minor =
emancipated
(t or f) A minor can disaffirm parts of a contract - ANSWERS-false, the entire contract must be
voided
(t or f) Adults can disaffirm contracts made with minors - ANSWERS-False; only minors can
disaffirm
(t or f) emancipated minors have full legal capacity to enter into contracts - ANSWERS-true
(t or f) there is no protocol for rejecting an assignment - ANSWERS-true
3 conditions required for implied contracts (and recovery) - ANSWERS-1- benefits conferred by
plaintiff upon defendant
2- defendant has knowledge of benefit being bestowed on them, and
3- defendant retains benefit under circs which it would be unjust to do so without payment
3 Requirements for Accord & Satisfaction: - ANSWERS-1. The debt is unliquidated
2. The creditor agrees to accept less than it is owed as full payment.
3. The debtor pays the amount they have agreed on
A fraudulent/intentional misrepresentation is - ANSWERS-A consciously false representation of a
material fact intended to mislead the other party.
A party guilty of negligent misrepresentation is treated as if - ANSWERS-he had intent to
deceive; they should have known the truth using skill and knowledge of a person in their
position/profession.
A voidable contract can be - ANSWERS-*rescinded,* or canceled; permitting the person who
canceled the contract to require the return of everything she gave the other party
,abandonment - ANSWERS-tenant moves out of leased premises before the end of the term, has
no intent to return, and has defaulted on rent payments
abandonment is essentially - ANSWERS-the tenant making an offer to surrender to the landlord
Accord & Satisfaction (used for Unliquidated debt) - ANSWERS-Settling to pay an unliquidated
debt for less than the full amount (requires 3 things).
Adequacy of consideration - ANSWERS-The court doesn't help you if you made a bad deal (paid
$500 for a $100 TV).
After the delegation, although the delegatee is bound to perform, the _______________ remains
liable if the delegatee fails to perform. - ANSWERS-delegator
Agreement - ANSWERS-(Offer & Acceptance)
Offer by Oferror to enter into a contract and acceptance of terms by offeree.
agreement by a fraudulent representation can be - ANSWERS-rescinded on the basis that there
was no meeting of the minds
an assignee may decline an assignment if - ANSWERS--he has not legally agreed to it and
-he declines in a timely fashion after learning about the assignment and its terms
an innocent, misled party may - ANSWERS-rescind the contract.
an innocent, misled party may not - ANSWERS-sue for damages; the other party had no intent to
mislead
Anticipatory Repudiation - ANSWERS-When breaching party *conveys an express indication of
his/her intent to no longer perform* or by taking an action that would be inconsistent with his/her
ability to carry out the contract prior to the time when such performance is due the objective
standard applies.
Anticipatory Repudiation allows the non-breaching party to - ANSWERS-be discharged from
his/her obligations under the contract and is free to go ahead and sue for the breach even
though performance is not yet due.
Antilapse Clause - ANSWERS-provides a grace period for the insured to pay the premium.
Any agreement to commit a crimt or tort is - ANSWERS-illegal, void, and unenforceable
any contract entered into by a minor is voidable by the minor until - ANSWERS-he or she reaches
the age or majority, or a reasonable time thereafter
Any fraud on the part of a party to a contract provides a basis for - ANSWERS-recission
Appraisal Clause - ANSWERS-allows the insured party and the insurer to select a disinterested
appraiser for a second opinion on damages.
, Arbitration Clause - ANSWERS-provides that disputes must be submitted to arbitration.
Assent under duress is - ANSWERS-not legal; coercion interferes with the party's free will
Assignee - ANSWERS-a party not in privity to a contract who is the recipient of a transfers of
rights to a contract
assignee should always give notice to the obligor as soon as possible after receiving the
assignment because - ANSWERS-obligor may satisfy their obligations by performing for the
assignor until receiving notice of assignment from assignee
Assignment - ANSWERS-The transfer of rights under a contract to a third party.
assignments require - ANSWERS-no special wording or forms to be valid
Assignor - ANSWERS-the party to a contract who transfers his or her rights to a third party
Authorized Means of Acceptance - ANSWERS-means by which offer can be accepted
Automatic Stay - ANSWERS-Once a petition voluntary or involuntary, is filed, the code provides
for an automatic stay, or moratorium, for almost all creditor litigation against the debtor.
Bankruptcy Discharge - ANSWERS-A written federal court order signed by a bankruptcy judge
stating that the debtor is immune from creditor actions to collect debts.
Bankruptcy Law - ANSWERS-is federal law; however, state laws regarding property and debts
may affect the bankruptcy proceeding.
Because their contacts are voidable, minors have the right - ANSWERS-to disaffirm or avoid their
contract., until a reasonable time after reaching the age of majority
Before a third party's rights have vested, the original contracting parties can - ANSWERS-make
changes to the original contract without the third party's permission.
Bilateral Contract = - ANSWERS-A promise + a promise.
-I'll pay you $1000 for you to paint my car.
-(My promise = $1000)
-(Your promise = Paint my car)
-Mutual exchange
Binder - ANSWERS-one page document reflects the insurance company's commitment to provide
insurance and serves as temporary proof of insurance until policy is issued
Capacity - ANSWERS-the mental ability to understand his or her rights and obligations under a
contract and therefore presumable to comply with the terms
Casualty insurance - ANSWERS-protects a person from accidental injury
AND CORRECT ANSWERS
________ of parties is not usually relevant under objective theory of contracts - ANSWERS-
subjective intent
"accord" = - ANSWERS-new agreement to pay less than creditor claims is owed
"satisfaction" = - ANSWERS-debtor's payment of a reduced amount
(t or f) a married minor is not considered emancipated - ANSWERS-false; married minor =
emancipated
(t or f) A minor can disaffirm parts of a contract - ANSWERS-false, the entire contract must be
voided
(t or f) Adults can disaffirm contracts made with minors - ANSWERS-False; only minors can
disaffirm
(t or f) emancipated minors have full legal capacity to enter into contracts - ANSWERS-true
(t or f) there is no protocol for rejecting an assignment - ANSWERS-true
3 conditions required for implied contracts (and recovery) - ANSWERS-1- benefits conferred by
plaintiff upon defendant
2- defendant has knowledge of benefit being bestowed on them, and
3- defendant retains benefit under circs which it would be unjust to do so without payment
3 Requirements for Accord & Satisfaction: - ANSWERS-1. The debt is unliquidated
2. The creditor agrees to accept less than it is owed as full payment.
3. The debtor pays the amount they have agreed on
A fraudulent/intentional misrepresentation is - ANSWERS-A consciously false representation of a
material fact intended to mislead the other party.
A party guilty of negligent misrepresentation is treated as if - ANSWERS-he had intent to
deceive; they should have known the truth using skill and knowledge of a person in their
position/profession.
A voidable contract can be - ANSWERS-*rescinded,* or canceled; permitting the person who
canceled the contract to require the return of everything she gave the other party
,abandonment - ANSWERS-tenant moves out of leased premises before the end of the term, has
no intent to return, and has defaulted on rent payments
abandonment is essentially - ANSWERS-the tenant making an offer to surrender to the landlord
Accord & Satisfaction (used for Unliquidated debt) - ANSWERS-Settling to pay an unliquidated
debt for less than the full amount (requires 3 things).
Adequacy of consideration - ANSWERS-The court doesn't help you if you made a bad deal (paid
$500 for a $100 TV).
After the delegation, although the delegatee is bound to perform, the _______________ remains
liable if the delegatee fails to perform. - ANSWERS-delegator
Agreement - ANSWERS-(Offer & Acceptance)
Offer by Oferror to enter into a contract and acceptance of terms by offeree.
agreement by a fraudulent representation can be - ANSWERS-rescinded on the basis that there
was no meeting of the minds
an assignee may decline an assignment if - ANSWERS--he has not legally agreed to it and
-he declines in a timely fashion after learning about the assignment and its terms
an innocent, misled party may - ANSWERS-rescind the contract.
an innocent, misled party may not - ANSWERS-sue for damages; the other party had no intent to
mislead
Anticipatory Repudiation - ANSWERS-When breaching party *conveys an express indication of
his/her intent to no longer perform* or by taking an action that would be inconsistent with his/her
ability to carry out the contract prior to the time when such performance is due the objective
standard applies.
Anticipatory Repudiation allows the non-breaching party to - ANSWERS-be discharged from
his/her obligations under the contract and is free to go ahead and sue for the breach even
though performance is not yet due.
Antilapse Clause - ANSWERS-provides a grace period for the insured to pay the premium.
Any agreement to commit a crimt or tort is - ANSWERS-illegal, void, and unenforceable
any contract entered into by a minor is voidable by the minor until - ANSWERS-he or she reaches
the age or majority, or a reasonable time thereafter
Any fraud on the part of a party to a contract provides a basis for - ANSWERS-recission
Appraisal Clause - ANSWERS-allows the insured party and the insurer to select a disinterested
appraiser for a second opinion on damages.
, Arbitration Clause - ANSWERS-provides that disputes must be submitted to arbitration.
Assent under duress is - ANSWERS-not legal; coercion interferes with the party's free will
Assignee - ANSWERS-a party not in privity to a contract who is the recipient of a transfers of
rights to a contract
assignee should always give notice to the obligor as soon as possible after receiving the
assignment because - ANSWERS-obligor may satisfy their obligations by performing for the
assignor until receiving notice of assignment from assignee
Assignment - ANSWERS-The transfer of rights under a contract to a third party.
assignments require - ANSWERS-no special wording or forms to be valid
Assignor - ANSWERS-the party to a contract who transfers his or her rights to a third party
Authorized Means of Acceptance - ANSWERS-means by which offer can be accepted
Automatic Stay - ANSWERS-Once a petition voluntary or involuntary, is filed, the code provides
for an automatic stay, or moratorium, for almost all creditor litigation against the debtor.
Bankruptcy Discharge - ANSWERS-A written federal court order signed by a bankruptcy judge
stating that the debtor is immune from creditor actions to collect debts.
Bankruptcy Law - ANSWERS-is federal law; however, state laws regarding property and debts
may affect the bankruptcy proceeding.
Because their contacts are voidable, minors have the right - ANSWERS-to disaffirm or avoid their
contract., until a reasonable time after reaching the age of majority
Before a third party's rights have vested, the original contracting parties can - ANSWERS-make
changes to the original contract without the third party's permission.
Bilateral Contract = - ANSWERS-A promise + a promise.
-I'll pay you $1000 for you to paint my car.
-(My promise = $1000)
-(Your promise = Paint my car)
-Mutual exchange
Binder - ANSWERS-one page document reflects the insurance company's commitment to provide
insurance and serves as temporary proof of insurance until policy is issued
Capacity - ANSWERS-the mental ability to understand his or her rights and obligations under a
contract and therefore presumable to comply with the terms
Casualty insurance - ANSWERS-protects a person from accidental injury
