Question 1

5 out of 5 pointsAn oral contract to sell a house is binding if:Answer

Selected Answer:the buyer paid the price and received the deed of conveyance.

Correct Answer:the buyer paid the price and received the deed of conveyance.

Question 2

5 out of 5 pointsAn oral understanding is not binding if:Answer

Selected Answer: the parties intended to formalize their understanding with a written

agreement.

Correct Answer: the parties intended to formalize their understanding with a written

agreement.

Question 3

5 out of 5 pointsAn oral contract can be enforced when it relates to:Answer

Selected Answer:the purchase of a television set for $200.

Correct Answer:the purchase of a television set for $200.

Question 4

5 out of 5 pointsThe standard statute of frauds:Answer

Selected Answer: requires that a contract for the sale of land be evidenced by a

writing.

Correct Answer:requires that a contract for the sale of land be evidenced by a writing.

Question 5

5 out of 5 pointsA promise to pay a debt must be in writing if:Answer

Selected Answer:the promise is to pay the debt of another.

Correct Answer:the promise is to pay the debt of another.

Question 6

5 out of 5 pointsThe statute of frauds applies to:Answer

Selected Answer: a promise by an executor to pay a claim against the estate out of his or

her personal funds.

Correct Answer: a promise by an executor to pay a claim against the estate out of his or

her personal funds.

Question 7

5 out of 5 pointsA writing that satisfies the requirement of a writing under the statute of frauds could be evidenced by:Answer

Selected Answer:all of the above.

Correct Answer:all of the above.

Question 8

5 out of 5 pointsA third-party beneficiary:Answer

Selected Answer:may bring suit on and enforce the contract.

Correct Answer:may bring suit on and enforce the contract.

Question 9

5 out of 5 pointsA life insurance contract is a third-party:Answer

Selected Answer:beneficiary contract.

Correct Answer:beneficiary contract.

Question 10

5 out of 5 pointsA third-party beneficiary contract may be amended:Answer

Selected Answer:all of the above.

Correct Answer:all of the above.

Question 11

5 out of 5 pointsIn a contract in which a tenant borrowed money from a bank for the purpose of adding a bathroom to her apartment, the landlord is:Answer

Selected Answer:an incidental beneficiary.

Correct Answer:an incidental beneficiary.

Question 12

5 out of 5 pointsAn incidental beneficiary of a contract:Answer

Selected Answer:cannot sue to enforce the contract.

Correct Answer:cannot sue to enforce the contract.

Question 13

5 out of 5 pointsAn assignment:Answer

Selected Answer:is a transfer of rights.

Correct Answer:is a transfer of rights.

Question 14

0 out of 5 pointsThe making of an assignment __________ the assignor of any obligation of the contract.Answer

Selected Answer:does not relieve

Correct Answer:does not relieve

Question 15

5 out of 5 pointsA __________ is a condition that must occur before a party to a contract has an obligation to perform under a contract.Answer

Selected Answer:condition precedent

Correct Answer:condition precedent

Question 16

5 out of 5 pointsIn most bilateral contracts, the performances of the parties are __________.Answer

Selected Answer:concurrent conditions

Correct Answer:concurrent conditions

Question 17

5 out of 5 pointsWhen a debtor makes a payment to a creditor specifying how it should be applied, the creditor must apply the payment:Answer

Selected Answer:as directed by the debtor.

Correct Answer:as directed by the debtor.

Question 18

5 out of 5 pointsIf no time period for performance is specified in a contract:Answer

Selected Answer:a reasonable time for performance will be implied.

Correct Answer:a reasonable time for performance will be implied.

Question 19

5 out of 5 pointsThe phrase "time is of the essence" means that:Answer

Selected Answer: performance under the contract at the times specified in the contract is

vital or essential.

Correct Answer: performance under the contract at the times specified in the contract is

vital or essential.

Question 20

5 out of 5 points

A Federal Trade Commission regulation gives a buyer three (3) business days in which to cancel a home-solicited sale of goods or services costing more than:Answer

Selected Answer:$25.

Correct Answer:$25.