MBE 35 contracts Exam Questions with Correct Answers 100% Verified|
Guaranteed Success
A life coach entered into a contract with an introverted woman to provide a weeklong course
that served as an introduction to the life coach's yearlong program. Under the terms of the
contract, the life coach would work with the woman full-time for a week to start teaching her
to interact with people with more confidence. The woman would then participate in a speed-
dating event as her "graduation" from the course. The contract also provided that unless the
woman received an offer for a second date at the speed-dating event, she had no obligation to
pay for the introductory course. If she received an offer for a second date at the speed-dating
event, she would be required to pay the life coach $1,000 within three days of the event.
After working with the life coach pursuant to the terms of the contract, the woman attended
the speed-dating event. Four days after the event, when the woman still had not paid the life
coa (A) Because the contract involved a condition precedent, the life coach must prove that
the woman received an offer of a second date at the speed-dating event to recover.
The manager of a state fair contracted with a renowned hog breeder to exhibit the breeder's
only world-champion hog for the three weeks of the annual fair. At the conclusion of the fair
the breeder would receive $300. Two days before the opening of the fair, the hog became sick
with a communicable disease among swine and, under the applicable state quarantine law,
could not be exhibited for at least a month.
Upon learning this, which of the following courses of action can the manager legally pursue
with respect to his contract with the breeder? (C) Terminate his own performance and treat
the hog's illness as discharging all remaining duties under the contract.
A carpenter owed a bank $22,000 on an outstanding personal loan. The carpenter and a
homeowner entered into a contract under which the carpenter agreed to perform work for the
homeowner and the homeowner agreed to pay $22,000 to the bank within 30 days of
completion of the work.
The carpenter completed the work, but the homeowner incurred costs of $2,000 to correct
minor deficiencies in the work.
, What amount, if any, is the homeowner obligated to pay the bank? (A) $20,000, because the
bank, as an intended beneficiary of the homeowner's contract with the carpenter, stands in the
position of the carpenter.
An elderly woman, who had two adult children, wished to employ a live-in companion so that
she might continue to live in her own home. The woman, however, had only enough income to
pay one-half of the companion's $2,000 monthly salary. Learning of their mother's plight, her
son and daughter agreed with each other in a signed writing that on the last day of January and
each succeeding month during their mother's lifetime, each would give the mother $500. The
mother then hired the companion.
The son and daughter made the agreed payments in January, February, and March. In April,
however, the son refused to make any payment and notified his sister and mother that he
would make no further payments.
Will the mother succeed in an action for $500 brought against the son after April 30? (D)
Yes, because the mother is an intended beneficiary of a contract between the siblings
An expert in installing equipment on top of tall buildings contracted in a signed writing to lift
and emplace certain air-conditioning equipment on top of a building. An exculpatory clause in
the contract provided that the expert would not be liable for any physical damage to the
building occurring during installation of the air-conditioning equipment. There was also a clause
providing for per diem damages if the expert did not complete performance by a specified date
and a clause providing that "time is of the essence." Another clause provided that any
subsequent agreement for extra work under the contract must be in writing and signed by both
parties.
With ample time remaining under the contract for commencement and completion of his
performance, the expert notified the owner of the building that he was selling his business to a
contractor, who was equally an expert in installing equipment on top of tall buildings, (C)
Yes, because the owner did not agree to release the expert from liability under the contract.
A tree-cutter who was an expert in removing branches that threaten tall buildings contracted,
in a signed writing, to lift and trim branches near a building where a major conference was
scheduled to occur. An exculpatory clause in the contract provided that the tree-cutter would
not be liable for any physical damage to the building occurring during removal of the branches.
There was also a clause providing for per diem damages if the tree-cutter did not complete
Guaranteed Success
A life coach entered into a contract with an introverted woman to provide a weeklong course
that served as an introduction to the life coach's yearlong program. Under the terms of the
contract, the life coach would work with the woman full-time for a week to start teaching her
to interact with people with more confidence. The woman would then participate in a speed-
dating event as her "graduation" from the course. The contract also provided that unless the
woman received an offer for a second date at the speed-dating event, she had no obligation to
pay for the introductory course. If she received an offer for a second date at the speed-dating
event, she would be required to pay the life coach $1,000 within three days of the event.
After working with the life coach pursuant to the terms of the contract, the woman attended
the speed-dating event. Four days after the event, when the woman still had not paid the life
coa (A) Because the contract involved a condition precedent, the life coach must prove that
the woman received an offer of a second date at the speed-dating event to recover.
The manager of a state fair contracted with a renowned hog breeder to exhibit the breeder's
only world-champion hog for the three weeks of the annual fair. At the conclusion of the fair
the breeder would receive $300. Two days before the opening of the fair, the hog became sick
with a communicable disease among swine and, under the applicable state quarantine law,
could not be exhibited for at least a month.
Upon learning this, which of the following courses of action can the manager legally pursue
with respect to his contract with the breeder? (C) Terminate his own performance and treat
the hog's illness as discharging all remaining duties under the contract.
A carpenter owed a bank $22,000 on an outstanding personal loan. The carpenter and a
homeowner entered into a contract under which the carpenter agreed to perform work for the
homeowner and the homeowner agreed to pay $22,000 to the bank within 30 days of
completion of the work.
The carpenter completed the work, but the homeowner incurred costs of $2,000 to correct
minor deficiencies in the work.
, What amount, if any, is the homeowner obligated to pay the bank? (A) $20,000, because the
bank, as an intended beneficiary of the homeowner's contract with the carpenter, stands in the
position of the carpenter.
An elderly woman, who had two adult children, wished to employ a live-in companion so that
she might continue to live in her own home. The woman, however, had only enough income to
pay one-half of the companion's $2,000 monthly salary. Learning of their mother's plight, her
son and daughter agreed with each other in a signed writing that on the last day of January and
each succeeding month during their mother's lifetime, each would give the mother $500. The
mother then hired the companion.
The son and daughter made the agreed payments in January, February, and March. In April,
however, the son refused to make any payment and notified his sister and mother that he
would make no further payments.
Will the mother succeed in an action for $500 brought against the son after April 30? (D)
Yes, because the mother is an intended beneficiary of a contract between the siblings
An expert in installing equipment on top of tall buildings contracted in a signed writing to lift
and emplace certain air-conditioning equipment on top of a building. An exculpatory clause in
the contract provided that the expert would not be liable for any physical damage to the
building occurring during installation of the air-conditioning equipment. There was also a clause
providing for per diem damages if the expert did not complete performance by a specified date
and a clause providing that "time is of the essence." Another clause provided that any
subsequent agreement for extra work under the contract must be in writing and signed by both
parties.
With ample time remaining under the contract for commencement and completion of his
performance, the expert notified the owner of the building that he was selling his business to a
contractor, who was equally an expert in installing equipment on top of tall buildings, (C)
Yes, because the owner did not agree to release the expert from liability under the contract.
A tree-cutter who was an expert in removing branches that threaten tall buildings contracted,
in a signed writing, to lift and trim branches near a building where a major conference was
scheduled to occur. An exculpatory clause in the contract provided that the tree-cutter would
not be liable for any physical damage to the building occurring during removal of the branches.
There was also a clause providing for per diem damages if the tree-cutter did not complete
