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Multiple Choice
Identify the letter
of the choice that best completes the statement or answers the
question.
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1.
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How do most contracts
come to an end?
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a.
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frustration
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c.
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breach of condition
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b.
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performance
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d.
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none of the above
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2.
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If parties decide to end
a contract because a business venture does not seem worthwhile, their
reason for ending the contract is called
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a.
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performance
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c.
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impossibility of performance
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b.
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frustration
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d.
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mutual agreement
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3.
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If a party fulfills most
but not all of the conditions of a contract, the other party can
usually
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a.
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have no recourse
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d.
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pay token amount set
by court
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b.
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negotiate lower fee
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e.
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c and d are both right
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c.
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have him/her charged
with fraud
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4.
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In contract law, mitigation
of loss means
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a.
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reduce losses to extent
possible
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c.
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make losses large
to justify court case
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b.
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inflate loss estimates
to get large settlement
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d.
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ensure court knows
details of all losses
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5.
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Liquidated damages are intended
to compensate
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a.
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frustration of contract
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c.
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breach of contract
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b.
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performance of contract
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d.
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mitigation of loss
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6.
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When non-performance is
the issue, in which of these agreements would the court be most likely
to award money damages rather than specific performance?
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a.
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complete city sewer
tunnel
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c.
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finish planting hedge
around park
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b.
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write song for city
anniversary
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d.
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none of the above
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7.
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You have bought a used car
from a fellow parked nearby, but the police inform you that it was
stolen from Amir. Which of the following is most likely?
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a.
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You are charged with
theft.
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d.
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You get a refund from
the seller.
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b.
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Amir gets the car
back; you lose it.
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e.
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a and d are both likely.
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c.
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You and Amir split
the cost of the car.
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8.
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Which of the following do
sellers add to contracts to reduce the risk of being sued for breach
of implied warranty?
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a.
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faint hope clauses
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c.
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notwithstanding clauses
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b.
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disclaimer clauses
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d.
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escape clauses
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9.
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Clauses that remove protections
from the buyer are not binding unless
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a.
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neutral third party
agrees they are fair
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c.
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seller draws buyer's
attention to them
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b.
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no buyers have complained
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d.
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buyer initials each
one
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10.
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When consumers buy on credit,
they are entitled to which of the following under provincial legislation?
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a.
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full disclosure of
credit costs
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c.
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market sharing
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b.
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cooling-off period
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d.
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a credit report
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