AIC 301 - Expanding Your Claims
Perspective Exam UPDATED QUESTIONS
AND CORRECT ANSWERS
Emilia's state hired Emilia, a musician, to create a theme song for the state's public school system.
Two disputes between the parties eventually led them to court. First, the contract called for Emilia to
be paid $12,000, but the state actually paid Emilia in bonds worth $12,000. Second, the contract was
unclear about the length of the theme song. It said that the song had to be "of length no less than thirty
(60) seconds," and the parties could not agree whether 30 seconds or 60 seconds was correct. Using
the established guidelines of contract construction, which one of the following is the court most likely
to determine?
Select one:
A. Emilia must be paid in cash, and the song must be at least 60 seconds long.
B. Emilia can be paid in bonds, and the song must be at least 60 seconds long.
C. Emilia can be paid in bonds, and the song must be at least 30 seconds long.
D. Emilia must be paid in cash, and the song must - CORRECT ANSWER D. Emilia must be
paid in cash, and the song must be at least 30 seconds long.
Emilia must be paid in cash, and the song must be at least 30 seconds long. Words prevail over
numbers.
In general, if a party assigns rights and delegates obligations to an assignee, but a third party to the
contract has a defense against the assignor, the third party can assert that same defense against
Select one:
A. The assignee only.
B. The assignor only.
C. Either the assignee or the assignor, but not both.
D. Both the assignee and the assignor. - CORRECT ANSWER D. Both the assignee and the
assignor.
If a party assigns rights and delegates obligations to an assignee, but a third party has a defense
against the assignor, the third party can assert that same defense against both the assignee and the
assignor.
, Forest has contracted with a hat company, Company X, to buy hats so that he can supply 500 hats of a
specific type, made only by Company X, to Company Z. Just one day before the delivery date, Forest
learns that Company X has gone out of business and he will therefore not be able to supply the hats to
Company Z. Forest cannot find the specified hats elsewhere in the marketplace, either. Company Z
has sued Forest for breach of contract. Forest's duty to perform will be discharged because
Select one:
A. Forest could substitute a product of like kind and quality.
B. Forest could get a novation of his contract with Company Z.
C. Performance by Forest became objectively impossible.
D. Performance by Forest became impracticable. - CORRECT ANSWER C. Performance by
Forest became objectively impossible.
Performance by Forest became objectively impossible because Forest cannot conceivably perform
(provide the specifically required hats). Impracticability concerns excusing performance that is
possible but unreasonably difficult. Novation does not apply, as it is the substitution of a contractual
party.
In a contract for 1,000 loaves of bread, grocer Andy wrote out the words "one thousand" but typed in
the number 100. The supplier delivered 100 loaves which resulted in a loss of a major customer.
Which one of the following priorities will apply in this case?
Select one:
A. Words prevail over printing.
B. Handwriting prevails over typewriting.
C. Printing prevails over handwriting.
D. Figures prevail over words. - CORRECT ANSWER B. Handwriting prevails over
typewriting.
When the parties have made typewritten or handwritten changes in a printed contract form, the courts
apply the rule that handwriting prevails over typewriting as the first priority. This is a typographical
error and therefore handwriting will prevail over typewriting.
Ray sells a schooner to Catherine. The bill of sale indicates the price of the schooner as well as the
make, model, and year of the boat. Catherine later claims in a lawsuit that Ray had promised to
include communications and computer equipment in the sale, and she attempts to support her claim in
court with a letter written by Ray. Ray wrote and signed the letter before the date of the final bill of
sale, in which he promised to include the claimed items. Under the parol evidence rule, the contract
Select one:
Perspective Exam UPDATED QUESTIONS
AND CORRECT ANSWERS
Emilia's state hired Emilia, a musician, to create a theme song for the state's public school system.
Two disputes between the parties eventually led them to court. First, the contract called for Emilia to
be paid $12,000, but the state actually paid Emilia in bonds worth $12,000. Second, the contract was
unclear about the length of the theme song. It said that the song had to be "of length no less than thirty
(60) seconds," and the parties could not agree whether 30 seconds or 60 seconds was correct. Using
the established guidelines of contract construction, which one of the following is the court most likely
to determine?
Select one:
A. Emilia must be paid in cash, and the song must be at least 60 seconds long.
B. Emilia can be paid in bonds, and the song must be at least 60 seconds long.
C. Emilia can be paid in bonds, and the song must be at least 30 seconds long.
D. Emilia must be paid in cash, and the song must - CORRECT ANSWER D. Emilia must be
paid in cash, and the song must be at least 30 seconds long.
Emilia must be paid in cash, and the song must be at least 30 seconds long. Words prevail over
numbers.
In general, if a party assigns rights and delegates obligations to an assignee, but a third party to the
contract has a defense against the assignor, the third party can assert that same defense against
Select one:
A. The assignee only.
B. The assignor only.
C. Either the assignee or the assignor, but not both.
D. Both the assignee and the assignor. - CORRECT ANSWER D. Both the assignee and the
assignor.
If a party assigns rights and delegates obligations to an assignee, but a third party has a defense
against the assignor, the third party can assert that same defense against both the assignee and the
assignor.
, Forest has contracted with a hat company, Company X, to buy hats so that he can supply 500 hats of a
specific type, made only by Company X, to Company Z. Just one day before the delivery date, Forest
learns that Company X has gone out of business and he will therefore not be able to supply the hats to
Company Z. Forest cannot find the specified hats elsewhere in the marketplace, either. Company Z
has sued Forest for breach of contract. Forest's duty to perform will be discharged because
Select one:
A. Forest could substitute a product of like kind and quality.
B. Forest could get a novation of his contract with Company Z.
C. Performance by Forest became objectively impossible.
D. Performance by Forest became impracticable. - CORRECT ANSWER C. Performance by
Forest became objectively impossible.
Performance by Forest became objectively impossible because Forest cannot conceivably perform
(provide the specifically required hats). Impracticability concerns excusing performance that is
possible but unreasonably difficult. Novation does not apply, as it is the substitution of a contractual
party.
In a contract for 1,000 loaves of bread, grocer Andy wrote out the words "one thousand" but typed in
the number 100. The supplier delivered 100 loaves which resulted in a loss of a major customer.
Which one of the following priorities will apply in this case?
Select one:
A. Words prevail over printing.
B. Handwriting prevails over typewriting.
C. Printing prevails over handwriting.
D. Figures prevail over words. - CORRECT ANSWER B. Handwriting prevails over
typewriting.
When the parties have made typewritten or handwritten changes in a printed contract form, the courts
apply the rule that handwriting prevails over typewriting as the first priority. This is a typographical
error and therefore handwriting will prevail over typewriting.
Ray sells a schooner to Catherine. The bill of sale indicates the price of the schooner as well as the
make, model, and year of the boat. Catherine later claims in a lawsuit that Ray had promised to
include communications and computer equipment in the sale, and she attempts to support her claim in
court with a letter written by Ray. Ray wrote and signed the letter before the date of the final bill of
sale, in which he promised to include the claimed items. Under the parol evidence rule, the contract
Select one:
