BLAW EXAM 2 UF STUDY TEST.
Anticipatory Breach - CORRECT ANSWER Notified or seemingly obvious that a party to the contract will
not fulfill their part of the contract prior to the required time of fulfillment.
False. A key fact is that the home is worth 100k and was sold for 60k - a vastly low price the neighbor
must have known was ridiculously low. It was obvious that he was capacitated - CORRECT ANSWER T/F
Sam, a known alcoholic lives next door, comes over one day and says that since you have been such a
great neighbor, he will sell you his $100,00 house for only $60,000. Sam is obviously intoxicated. You
immediately agree and draft a contract for the sale. Sam signs it and leaves, but a week later he comes
to you and claims he didn't know what he was doing and wants to disaffirm the contract. Sam is legally
bound to the terms of the contract.
Specific Performance - CORRECT ANSWER An equitable remedy in the law of contract, whereby a court
issues an order requiring a party to perform a specific act, such as to complete performance of the
contract
True. An option is required to keep it open - CORRECT ANSWER T/F Under Common Law, offers can be
revoked at any time before acceptance, unless the parties have agreed to an "option" contract to keep it
open
False. Silence is not a fraud, but failure to answer a question is. - CORRECT ANSWER T/F A merchant's
failure to answer a customer's material question about the merchant's goods generally will not suffice as
an element of fraud
True. Countries with a more liberal interp usually have a higher economic growth rate - CORRECT
ANSWER T/F Countries with a more liberal (in other words, less formalistic) interpretation of contracts
usually have a higher economic growth rate.
Parol Evidence - CORRECT ANSWER any oral or written words outside the four corners of a written
contract
False. Both made a promise and thus this is a Bilateral contract, enforceable against both. - CORRECT
ANSWER Dave is a daredevil. Corey promises to pay Dave $200 in return for Dave's promise to come to
,Corey's party and perform various stuns on his bicycle. T/F Dave and Corey have made a unilateral
contract, with payment contingent upon Dave showing up and performing.
Bilateral Contract - CORRECT ANSWER A type of contract that arises when a promise is given in
exchange for a return promise. (Think mowing lawn in return for changing oil)
Unilateral Contract - CORRECT ANSWER A type of contract that arises when a promise in is given in
exchange for an act. (Think money for finding pet)
C. Form
OACML is the acronym. - CORRECT ANSWER Which one of the following is not one of the 6 essential
elements needed to form a contract? (Hint: There is an acronym for these elements)
A. Mutuality
B. Capacity
C. Form
D. Acceptance
E. Legality
Nudum Pactum - CORRECT ANSWER nude pact, a bare agreement that lacks the consideration to form a
valid contract
D. Defendants will be required to fulfill their services as under the contract.
Parties are rarely forced to proceed with services under specific performance. (Due to the fact that
people may not perform adequately or safely as if they had done so of their own free will) - CORRECT
ANSWER All of the following are characteristics of specific performance as a remedy EXCEPT:
A. The plaintiff need not worry about collecting money from an insolvent defendant.
B. The money may not be as valuable to the plaintiff as performance would be.
C. The plaintiff need not look elsewhere to create a new contract.
,D. Defendants will be required to fulfill their services as under the contract.
E. It can be a valuable post-judgment bargaining tool to induce a losing defendant to agree to a new
contract more attractive to the plaintiff.
True. Failure to have a regulatory license prevents a regulated person or entity from suing on an
agreement concerning the regulated business. - CORRECT ANSWER T/F Failure to obtain a regulatory
license prevents a regulated person or entity from suing on an agreement concerning the regulated
business
True. Social contracts are not true contracts. - CORRECT ANSWER T/F Social "contracts" may not be
contracts, even though the usual elements of a contract are present
Revocation - CORRECT ANSWER the taking back of an offer by the offeror
False. The first part is not clear enough and it is still a topic of debate. The second part is not true at all. -
CORRECT ANSWER T/F Unskilled workers are not considered to be an insurable interest. All states,
therefore, bar employers from taking out insurance on these types of employees.
Uniform Commercial Code - CORRECT ANSWER recognized as the most important statute in business
law, it includes provisions which regulate certain sales of goods and negotiable instruments
True. Capacity is a contract law requirement - CORRECT ANSWER T/F Capacity is a contract law
requirement because a contract involves a self-imposed duty.
Majeure Clause - CORRECT ANSWER a contract provision that relieves the parties from performing their
contractual obligations when certain circumstances beyond their control arise, making performance
inadvisable, commercially impracticable, illegal, or impossible.
True. This is a savy sales ploy - CORRECT ANSWER T/F Imagine that a real estate salesperson lies about
whether others are
interested in (have viewed) the commercial property you are viewing and are considering
buying. In fact, no one else is interested. That statement by the salesperson is almost certainly
an example of unethical behavior on the part of the salesman: self-serving actions to try to
, close a deal. However, whether it also constitutes a material misrepresentation may depend, in
part, on whether such a statement is viewed as "puffing" - an exaggeration about the number of
onlookers going past the property - or whether the statement instead goes toward some more
fundamental, intrinsic "fact" about the property - its identity as a prime commercial location.
E. Impossibility. It would not be possible to run a marathon with broken legs - CORRECT ANSWER Roy
Runner, an employee of Oligop, Inc., is offered $500 by the president of Oligop,
Sherman Trust, to represent Oligop in a marathon sponsored by the local Chamber of
Commerce. Roy accepts Sherman's offer. A week before the big marathon, however, Roy falls
victim to a hit-and-run driver and both his legs are broken. Roy is excused from performance
because of:
a. commercial impracticability
b. promissory estoppel
c. condition subsequent
d. caveat emptor
e. impossibility
D. An equitable remedy in which Lauren is enjoined.
Under a non-compete covenant, if violated, the courts will usually issue an injunction against the
violator "enjoining" them from such competition. - CORRECT ANSWER Brian is the owner of a small
insurance agency. His agency employs a number of
insurance agents who tend to the agency's clients. Brian decides to hire Lauren as an employee
of his agency. Upon employment, employees agree to sign a list of policies and procedures that
restrict the employee from competing in the same area for four years after leaving Brian's
agency. The contract provides for the usual recourse in the event of such wrongful competition,
and it does not specify any monetary recourse or amount. Lauren works a few years for the
agency and forms a great relationship with Suzie, one of the customers. After much debate,
Lauren decides to accept a position at another agency in the area. A year later, it is time for
Suzie to renew her insurance policy. Lauren and Suzie come to an agreement and Suzie signs
an insurance policy with Lauren as her new agent. Brian finds out and sues Lauren; his remedy
Anticipatory Breach - CORRECT ANSWER Notified or seemingly obvious that a party to the contract will
not fulfill their part of the contract prior to the required time of fulfillment.
False. A key fact is that the home is worth 100k and was sold for 60k - a vastly low price the neighbor
must have known was ridiculously low. It was obvious that he was capacitated - CORRECT ANSWER T/F
Sam, a known alcoholic lives next door, comes over one day and says that since you have been such a
great neighbor, he will sell you his $100,00 house for only $60,000. Sam is obviously intoxicated. You
immediately agree and draft a contract for the sale. Sam signs it and leaves, but a week later he comes
to you and claims he didn't know what he was doing and wants to disaffirm the contract. Sam is legally
bound to the terms of the contract.
Specific Performance - CORRECT ANSWER An equitable remedy in the law of contract, whereby a court
issues an order requiring a party to perform a specific act, such as to complete performance of the
contract
True. An option is required to keep it open - CORRECT ANSWER T/F Under Common Law, offers can be
revoked at any time before acceptance, unless the parties have agreed to an "option" contract to keep it
open
False. Silence is not a fraud, but failure to answer a question is. - CORRECT ANSWER T/F A merchant's
failure to answer a customer's material question about the merchant's goods generally will not suffice as
an element of fraud
True. Countries with a more liberal interp usually have a higher economic growth rate - CORRECT
ANSWER T/F Countries with a more liberal (in other words, less formalistic) interpretation of contracts
usually have a higher economic growth rate.
Parol Evidence - CORRECT ANSWER any oral or written words outside the four corners of a written
contract
False. Both made a promise and thus this is a Bilateral contract, enforceable against both. - CORRECT
ANSWER Dave is a daredevil. Corey promises to pay Dave $200 in return for Dave's promise to come to
,Corey's party and perform various stuns on his bicycle. T/F Dave and Corey have made a unilateral
contract, with payment contingent upon Dave showing up and performing.
Bilateral Contract - CORRECT ANSWER A type of contract that arises when a promise is given in
exchange for a return promise. (Think mowing lawn in return for changing oil)
Unilateral Contract - CORRECT ANSWER A type of contract that arises when a promise in is given in
exchange for an act. (Think money for finding pet)
C. Form
OACML is the acronym. - CORRECT ANSWER Which one of the following is not one of the 6 essential
elements needed to form a contract? (Hint: There is an acronym for these elements)
A. Mutuality
B. Capacity
C. Form
D. Acceptance
E. Legality
Nudum Pactum - CORRECT ANSWER nude pact, a bare agreement that lacks the consideration to form a
valid contract
D. Defendants will be required to fulfill their services as under the contract.
Parties are rarely forced to proceed with services under specific performance. (Due to the fact that
people may not perform adequately or safely as if they had done so of their own free will) - CORRECT
ANSWER All of the following are characteristics of specific performance as a remedy EXCEPT:
A. The plaintiff need not worry about collecting money from an insolvent defendant.
B. The money may not be as valuable to the plaintiff as performance would be.
C. The plaintiff need not look elsewhere to create a new contract.
,D. Defendants will be required to fulfill their services as under the contract.
E. It can be a valuable post-judgment bargaining tool to induce a losing defendant to agree to a new
contract more attractive to the plaintiff.
True. Failure to have a regulatory license prevents a regulated person or entity from suing on an
agreement concerning the regulated business. - CORRECT ANSWER T/F Failure to obtain a regulatory
license prevents a regulated person or entity from suing on an agreement concerning the regulated
business
True. Social contracts are not true contracts. - CORRECT ANSWER T/F Social "contracts" may not be
contracts, even though the usual elements of a contract are present
Revocation - CORRECT ANSWER the taking back of an offer by the offeror
False. The first part is not clear enough and it is still a topic of debate. The second part is not true at all. -
CORRECT ANSWER T/F Unskilled workers are not considered to be an insurable interest. All states,
therefore, bar employers from taking out insurance on these types of employees.
Uniform Commercial Code - CORRECT ANSWER recognized as the most important statute in business
law, it includes provisions which regulate certain sales of goods and negotiable instruments
True. Capacity is a contract law requirement - CORRECT ANSWER T/F Capacity is a contract law
requirement because a contract involves a self-imposed duty.
Majeure Clause - CORRECT ANSWER a contract provision that relieves the parties from performing their
contractual obligations when certain circumstances beyond their control arise, making performance
inadvisable, commercially impracticable, illegal, or impossible.
True. This is a savy sales ploy - CORRECT ANSWER T/F Imagine that a real estate salesperson lies about
whether others are
interested in (have viewed) the commercial property you are viewing and are considering
buying. In fact, no one else is interested. That statement by the salesperson is almost certainly
an example of unethical behavior on the part of the salesman: self-serving actions to try to
, close a deal. However, whether it also constitutes a material misrepresentation may depend, in
part, on whether such a statement is viewed as "puffing" - an exaggeration about the number of
onlookers going past the property - or whether the statement instead goes toward some more
fundamental, intrinsic "fact" about the property - its identity as a prime commercial location.
E. Impossibility. It would not be possible to run a marathon with broken legs - CORRECT ANSWER Roy
Runner, an employee of Oligop, Inc., is offered $500 by the president of Oligop,
Sherman Trust, to represent Oligop in a marathon sponsored by the local Chamber of
Commerce. Roy accepts Sherman's offer. A week before the big marathon, however, Roy falls
victim to a hit-and-run driver and both his legs are broken. Roy is excused from performance
because of:
a. commercial impracticability
b. promissory estoppel
c. condition subsequent
d. caveat emptor
e. impossibility
D. An equitable remedy in which Lauren is enjoined.
Under a non-compete covenant, if violated, the courts will usually issue an injunction against the
violator "enjoining" them from such competition. - CORRECT ANSWER Brian is the owner of a small
insurance agency. His agency employs a number of
insurance agents who tend to the agency's clients. Brian decides to hire Lauren as an employee
of his agency. Upon employment, employees agree to sign a list of policies and procedures that
restrict the employee from competing in the same area for four years after leaving Brian's
agency. The contract provides for the usual recourse in the event of such wrongful competition,
and it does not specify any monetary recourse or amount. Lauren works a few years for the
agency and forms a great relationship with Suzie, one of the customers. After much debate,
Lauren decides to accept a position at another agency in the area. A year later, it is time for
Suzie to renew her insurance policy. Lauren and Suzie come to an agreement and Suzie signs
an insurance policy with Lauren as her new agent. Brian finds out and sues Lauren; his remedy
